Small exporting firms’ choice of exchange mode in international marketing channels for perishable products: A contingency approach

Valeria Nyu,Frode Nilssen,Destan Kandemir

doi:10.1016/j.ibusrev.2021.101919

Valeria Nyu, Frode Nilssen + Show 1 more

Open Access

https://doi.org/10.1016/j.ibusrev.2021.101919

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Abstract

This study investigates how small, resource-constrained firms identify international marketing strategies for perishable products. Although international marketing of perishable products poses challenges for the exporter, many small companies manage to survive and thrive on an international business arena. Over the past decades, there has been a growing interest in how small firms design their international marketing channels. However, little is known about the conditions leading to the choice of a particular exchange modality. Drawing from the contingency framework, we investigate the role of firm-specific and industry-related factors in the choice of exchange mode among resource-constrained exporters. Based on insights from the Norwegian seafood industry, we introduce a contingency framework and develop a typology of exchange modalities. We suggest that resource-constrained exporters are inclined to engage in a succession of transactional exchanges. We offer propositions on the choice among alternative exchange modalities contingent upon firm and industry factors.

Highlights

The importance of commercial distribution and the design of inter national marketing channels for companies – small or large – have been addressed by scholars for over a half-century (Hoppner & Griffith, 2015; Morgan et al, 2004)
The remainder of the paper is organized as follows: First, we present insights into the Norwegian seafood industry by investigating how small exporting firms operate in a unique industry and design their international marketing channels
Previous literature has repeatedly acknowledged the exis tence of distinct exchange strategies (Day, 2000; Dwyer et al, 1987; Morgan & Hunt, 1994), as well as their antecedents and outcomes (Garbarino & Johnson, 1999; Li & Nicholls, 2000; Sheth & Shah, 2003; Siguaw et al, 2003), limited attention has been directed towards small firms

Summary

Introduction

The importance of commercial distribution and the design of inter national marketing channels for companies – small or large – have been addressed by scholars for over a half-century (Hoppner & Griffith, 2015; Morgan et al, 2004). We raise the question of whether it applies to small, resource-constrained companies oriented towards international markets. Compared to large international firms, small exporters are typically constrained by scarce financial and human resources and often more limited foreign market expertise (Brouthers et al, 2009; Majocchi & Zucchella, 2003). Limited administrative heritage allows them to develop greater agility and flexibility in international markets (Knight & Cavusgil, 2004). We suggest that these scarce resources play an influential role in the design and choice of their international marketing channels, in sharp compar ison to larger companies. Small firms adopt a simpler organizational structure (Kroon et al, 2013), flexibility (Fiegenbaum & Karnani, 1991), and agile decision-making (Gupta & Chauhan, 2020)

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