Abstract
Firms venturing abroad understand and rarely deny the significant role that information plays in export promotion. Nevertheless, the common misconception that can potentially threaten the business judgment of most exporters is that ‘the more information you know, the better it is for your firm’. Unbeknownst to them, it is the value (and not magnitude) of information that will contribute to the success of a firm’s ventures. In this paper, the authors attempt to illuminate if not identify the specific information sources providing valuable information that can successfully distinguish between high and low competency exporters. Data was derived from 104 Malaysian firms exporting to emerging markets in the Asia Pacific region. Results from the discriminant analysis revealed 9 information sources which can determine the competency level of an exporting firm. The findings are further elaborated in this paper.
Highlights
A change in the national export policy has resulted in Malaysian firms diversifying their export locations, which have traditionally focused on established markets such as the United States, Japan and the European Union to emerging markets in the Asia Pacific region
The data is derived from a study that investigates the experience of Malaysian firms in exporting to emerging markets (Kim-Soon, 2005)
Discriminant analysis was performed to examine the relationship between the information sources and promotion competency
Summary
A change in the national export policy has resulted in Malaysian firms diversifying their export locations, which have traditionally focused on established markets such as the United States, Japan and the European Union to emerging markets in the Asia Pacific region. Risks that result from the heterogeneity of foreign business environments, the multiplicity of the parameters involved in selling overseas, coupled with the existence of new variables not present in the domestic market and the high intensity of international competition (Czinkota and Ronkainen, 2001). Enters the crucial role of information, whereby it is able to help firms reduce uncertainties by understanding the targeted markets better and leading to the formulation of sound export business strategies. Walters (1996) agreed with the fact that information acquisition should be of an important priority for both firms that are less experienced in exporting as well as those who with well established overseas operations. Sufficient acquisition and effective use of information would assuredly be a contributory factor in building a firm’s competencies in international marketing. The lack of information, on the other extreme, would lead to a phobia
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