The effect of standardized advertising, managerial ties and born global orientation on export performance

Abstract

PurposeGiven the contradictory findings of standardization/adaptation of marketing strategy in explaining export performance in the extant research, this study aims to examine the contingent effects of managerial ties and born global orientation in the standardized advertising-export performance conceptualization.Design/methodology/approachThe study used two-respondent method in the survey research by a sample of 155 exporting firms operating in the industrial marketing based in Australia and New Zealand and applied hierarchical regression analysis to test the hypotheses.FindingsThe findings demonstrate that standardized advertising has a significant effect on export performance and this relationship is positively moderated by business ties. Such effect is particularly enhanced for born global firms (than nonborn global firms). However, political ties negatively influence the impact of standardized advertising on performance and such effect is stronger for born global firms.Research limitations/implicationsA broader perspective of contingent variables should be included to examine the underlying relationship between standardized advertising and export performance in capturing the dynamism in international marketing contexts, such as institutional frameworks or sociocultural environments in host countries.Practical implicationsStandardized advertising is critical for born global firms’ export performance as it can increase efficiency and speed up internationalization processes. Such positive impact of standardized advertising on export performance is further enhanced if born global firms allocate resources to develop strong business ties with host country partners instead of building political ties with host country governments, because smooth business networking can facilitate standardized advertising on industrial marketing, yet justifiable political relations require intricate negotiations that often prolong internationalization progress.Originality/valueThis study incorporates managerial ties and born global orientation as contingent factors in fixing the theoretic interlock between standardization advertising strategy and export firm performance.