Marketing Strategies for Foreign Expansion of Companies Originating in Small and Open Economies: The Consequences of Strategic Fit and Performance

Abstract

This study examines the marketing strategies of companies originating in small and open economies as they expand into foreign markets. It distinguishes two major globalization paths (that of born globals and that of globalizing internationals), contrasts them with traditional internationalizers, and describes their characteristics. It then outlines a framework and hypotheses regarding the marketing strategies used in foreign expansion and examines them empirically in the information and communication technology field. The authors examine two important strategic marketing issues: the breadth of product offering and the standardization of marketing strategies across countries. The empirical results show that foreign expansion path, foreign business experience, and external globalization pressure have an impact on the selection of marketing strategies. The study also finds that the fit between these contextual factors and the standardization of marketing strategy has a positive effect on performance. The novel results regarding the importance of foreign expansion paths in the selection of marketing strategies have important implications for both academicians and practitioners in the field of international marketing.