International Market Performance Research Articles

On the (in)effectiveness of standardized versus adapted international promotion strategies: Evidence from entrepreneurial firms

This study investigates how internationally active firms’ international promotion strategy is linked to international marketing performance. It addresses the issue of effectively balancing the economic benefits of standardized strategies with the potential performance gains achieved when adapting to local customer preferences and market situations. Based on contingency theory and the strategic fit paradigm, we argue that there is no panacea solution to the promotion strategy standardization versus adaptation debate. Instead, our empirical results from 298 international entrepreneurial product-market ventures based in Sweden support the view that international firms must fit the promotion strategy to relevant macro- and micro-environmental conditions in order to optimize their international marketing performance. Our results caution against assuming that all environmental factors exert an equivalent effect on the level of international promotion strategy standardization and reveal that neither standardization nor adaptation is a superior strategy in pursuing international marketing performance.

Examining the efficacy of non-market and market driving activities of B2B international firms

This study examines the impact of entrepreneurial and branding orientations on the two facets of market driving activities (market and non-market focused) of B2B firms for international market performance. Using empirical data (n = 108) on European firms, this study finds that entrepreneurial orientation influences both facets of market driving activities. Further, these effects are stronger under a strong branding orientation. Market focused aspect of the driving activities fully mediates the effects of entrepreneurial orientation and market performance. Applying resource-based and market orientation theories, and contradicting studies that emphasise the adoption approach of market orientation for business success, our findings suggest that international performance of B2B firms is enhanced using a market driving approach. Unlike market-oriented firms, market-driving companies do not adopt, but instead educate their customers to accept their dominant logic, and by doing so they influence the market structure in their industry. The findings contribute to the non-market, market driving and ambidexterity literature. Managers can learn how entrepreneurial efforts can contribute towards exercising market driving strategies at a global level. They can also learn that strong branding orientation would strengthen the market driving behavior.

Gamification as an innovation: a tool to improve organizational marketing performance and sustainability of international firms

PurposeThis study aims to investigate an under-researched area, an international marketing perspective, based on international dynamic capability, environmental sustainability and organizational marketing performance in gamification and non-gamification-based organizational culture (OC). This paper deepens the understanding of gamification-based and non-gamification-based OC influence on innovation capability and environmental and organizational marketing performance through the theory of organizational creativity and the theory of administrative behavior (AB).Design/methodology/approachThe authors collect data from firms that abide by the ISO 14091 certifications to ensure the proper quality standards. Primary data from 384 firms are used to test the hypotheses. The results would help firms invest in technological solutions by practicing creativity over time. Additionally, the study helps explore how AB is critical in steering technological creativity for making firms climate-conscious.FindingsThe study's findings identified that OC has a positive influence on technological innovation capabilities and environmental innovation capabilities. Technological innovation capabilities have a beneficial impact on environmental sustainability. Environmental sustainability appears to have a substantial correlation with technological innovation skills. Environmental innovation capabilities positively impact environmental sustainability and organizational marketing performance. A moderating effect of gamification on the international dynamic capabilities within a relationship between organizational culture and environmental innovation capabilities exists.Originality/valueThe investigation is confined to understanding how gamification-based and non-gamification-based organizational marketing culture affects innovation capability, environmental sustainability and organizational performance through the lens of theory of organizational creativity and theory of AB.

Examining the marketing performance of the firms from an international dynamic marketing capability perspective: moderating role of marketing leadership team

PurposeThis study examines the marketing performance of firms from an international dynamic marketing capability perspective. It also investigates the moderating role of marketing leadership teams to improve organizations' international marketing performance.Design/methodology/approachThe authors used dynamic capability view and other related literature to develop a theoretical model, which was validated with the structural equation modelling technique, considering a sample of 455 respondents from Indian firms. The authors also used the multigroup analysis method to examine the moderating impacts of a firm's marketing leadership team on their international marketing performance.FindingsThere is a positive relationship between a firm's dynamic ability factors and its international dynamic-marketing capabilities. The study also finds that a firm's marketing leadership team has a significant positive moderating impact on improving its international marketing performance.Research limitations/implicationsThe unique theory-based model clearly explains how a firm's dynamic abilities impact international dynamic marketing capability, which then impacts its international marketing performance. This model can help practitioners, researchers and academicians to understand the significance of a firm's international dynamic capability on international marketing performance. The study also helps firms to understand the moderating influence of marketing leadership teams to improve international marketing performance.Originality/valueThis study adds value to the body of literature on international dynamic marketing, international marketing performance and international marketing knowledge management, on which, until now, few other studies have focused. Thus, this research is unique. The proposed model of international dynamic marketing is also unique with high explanative power.

Effect of commitment on the link between organizational culture and international project performance: a comparison between China and Korea

PurposeThe purpose of this paper is to verify the mediating role of commitment between market-oriented organizational culture and international market performance, and to discuss the moderator effect of national institutional environment on this mediating role.Design/methodology/approachThe research design follows a mixed methodology, combining qualitative and quantitative data collection and analysis. In the first phase, research hypotheses are proposed based on a literature analysis. In the second phase, sample data are collected through interviews and questionnaires sent to domestic contractors in China and South Korea, and a validity analysis of the results is carried out. Correlation and regression analyses are then performed on the valid data to verify hypotheses to prove the existence and influence of mediating effects. Hayes PROCESS Macro is used on the regression results to test the mediating effect of commitment on international project performance and the moderation effect of institutional environment.FindingsThe results reveal that the commitment between partners has a mediating effect on the relationship between market culture and international project performance; however, no hierarchy culture is revealed. The mediating effect of commitment is regulated by the institutional environment.Research limitations/implicationsAlthough the reliability and validity of the questionnaire data in this study are in line with research standards, a larger sample size would improve the reliability of the results. Further, the interviewed samples are mainly from China and South Korea; large representative samples from additional countries, such as Japan, should be considered to gain a fuller understanding and more comprehensive results.Originality/valueBy emphasizing the differences between the two institutional environments of developing and developed countries in East Asia, a theoretical and empirical basis is provided. International construction enterprises in other countries can apply the findings to improve their international market performance in different institutional environments. The findings also provide an empirical reference that international construction enterprises in China and South Korea may use to adjust their organizational cultures and commitments to improve market performance.

Achieving high international market performance via simple vs complex configuration of international managerial network ties: A set theoretic approach across two countries

ABSTRACT This study investigates the configuration of entrepreneurial capabilities, international managerial network ties and its performance effect among international ventures located in institutionally different contexts (Austria and Hungary). The study introduces and defines the concept of simple vs complex configuration of international managerial network ties and uses a set theoretic approach to assess the configuration of the above factors. The results of the fuzzy set analysis demonstrate that international ventures can fully capitalize on their entrepreneurial capabilities when they rely on a complex configuration of international managerial network ties. The findings also show that international ventures seek a balance between institutionally different contexts which may result in behaviors that are normally unacceptable by home country-related cultural and institutional norms. Finally, the results reveal that integrating exploration and exploitation strategies requires a complex configuration of international managerial network ties, which in turn leads to high IMP.

Are born global firms really a \u201cnew breed\u201d of exporters? Empirical evidence from an emerging market

This study investigates and compares born global (BG) firms and non-BG firms in Malaysia. We employed the multigroup analysis technique with structural equation models to test six hypotheses to determine the differences and similarities between two proposed models of BG and non-BG firms across a wide range of industries. The study reveals differences between the antecedents of marketing capabilities for BGs versus non-BGs, indicating that the performance enabling mechanisms differ between the groups. More precisely, the ability of BG firms to convert digital and entrepreneurial orientations into marketing capabilities is found to be a distinguishing characteristic of these firms. Moreover, non-BGs utilize government support to build marketing capabilities and obtain superior performance in the international market. This result suggests that governmental export promotion initiatives in Malaysia should be adjusted to increase relevance for BGs. The findings indicate that marketing capabilities play an essential role in the international market performance of both BGs and non-BGs. An important implication is that managerial focus and actions need to be adjusted depending on the type of firm. The two types of firms are not equal; if they are managed similarly, misjudgment will arise.

Openness, economic uncertainty, government responses, and international financial market performance during the coronavirus pandemic

This study explores the impact of COVID-19 on financial markets controlled by macroeconomic and administrative factors. As natural experimentation, we employ panel data analysis to test 50 stock market indices from January 01 to August 20, 2020. The findings suggest daily growth of COVID-19 confirmed cases have considerable adverse effects on stock returns and positive impacts on investment risks across markets. The government prompt interventions offset adverse impacts of the pandemic. Market reactions to the outbreak and authority responses information are more momentous in more developed economies due to their better information efficiency. The country-specific features of globalisation, uncertainty, healthcare system readiness, and economic development levels appear to have substantial impacts on equity market reactions. Financial markets in countries with higher levels of globalisation, economic policy and financial uncertainty experience more chaos during the pandemic. While those hostile effects are less significant in countries with robust healthcare systems.

Does listed real estate behave like direct real estate? Updated and broader evidence

ABSTRACT This study investigates a question relevant to many investors: do the broad Real Estate Investment Trust (REIT) return characteristics reflect those of the broad direct real estate markets. The paper makes several contributions to the literature in addition to using more recent data: (1) we use data for six countries (Australia, France, Germany, Netherlands, the U.K., and the U.S.); (2) we estimate both country-specific and panel models to increase the reliability and generalizability of the analysis; (3) we estimate a structural vector autoregressive model to be able to better and more reliably interpret the various shocks in the system; and (4) we investigate the effects of global liquidity shocks, among other shocks. Our results indicate that over the mid to long horizon, broad REIT and direct returns have similar characteristics and are highly correlated at the panel level. Also, the two types of exposure to real estate exhibit similar reactions to economic shocks. Thus, the paper makes a case that investors do not necessarily need to worry much about compositional effects when aiming to track broad international direct market performance by investing in listed real estate.

The Influence of Dynamic and Adaptive Marketing Capabilities on the Performance of Portuguese SMEs in the B2B International Market

The present investigation aims study the sustainability of the business model of the Portuguese SMEs operating in the B2B International market analyzing the influence of dynamic marketing capabilities and adaptive marketing capabilities in their international marketing performance. It will also analyze the moderating effects of Competitive Intensity within this international scenario. A quantitative study was developed, using a questionnaire as a research method. In total, 335 valid responses were collected from Portuguese SMEs in June 2020. To test the hypotheses, multiple hierarchical regressions were performed. As for the analyzes involving Competitive Intensity environments, namely low and high intensity, dummies were developed to evaluate the different effects produced by the capacities in the International Marketing Performance. This study shows the positive impact of the dynamic marketing capabilities and adaptive marketing capabilities on the international marketing performance of the surveyed companies, essentially from the product development management, supply chain management, vigilant market learning and open marketing. when in a low competitive intensity environment only dynamic marketing capabilities had a positive effect on performance, but in a high, competitive, intensity environment both dynamic marketing capabilities and adaptive marketing capabilities showed positive effects in relation to performance. This study innovates by bringing international marketing, through two marketing capacities, from the perspective of SMEs that perform B2B activities.

The moderating role of innovation intensity between international marketing strategy and international marketing performance: branding and commitment in international marketing

This study sheds light on international marketing literature and investigates the moderating role of innovation intensity between international marketing strategy and international marketing performance. An administrative survey was conducted towards international marketing managers belongs to retail industry. Structural equation modelling (SEM) technique was used for inferential analysis. Results indicate that altogether, international commitment, brand orientation, brand repositioning, control international branding activities, and congruence of marketing environment explained a substantial variance in international marketing strategy. Effect size analysis f-square showed that international marketing strategy had medium level of effect size on international marketing strategy. The research model was further extended with moderating effect of innovation intensity. Interaction effect confirmed the moderating effect of innovation intensity and indicates that the relationship between international marketing strategy and international marketing performance will be higher when innovation intensity is higher. Lastly, theoretical and managerial implications are discussed with IPMA analysis.

Connected markets through global real estate investments

AbstractThis study focuses on the possibility of higher risk in commercial real estate markets due to the “linked ownership” network, which is measured by the common holdings of properties in different urban real estate markets by the same investor. Using data from 2007 to 2016, our results show that commonality in ownership can explain the significant comovement in international office market performance and add additional information to other matrices constructed by geographic distance, mergers and acquisitions capital flow, currency unit, and even overlapping occupiers located in those cities. The transmission mechanism is most pronounced and persistent during the global financial crisis period.

International business strategy: development of an integrated framework and typology

PurposeThe purpose of this study is international business strategy (IBS) has evolved into a complex and vast domain of study. Given this fact, the author first proposed a set of screens that a firm’s IBS manager was required to assess before venturing into a foreign country. Then the author developed an integrated IBS framework to secure a holistic view regarding IBS. Finally, the author proposed a typology to classify IBS archetypes.Design/methodology/approachThe author undertook a systematic and integrated literature review of IBS literature. The literature review was carried out with a conceptual perspective in mind. Incremental and argumentative logic was applied to develop the integrated IBS framework from a wide domain of literature. Furthermore, the typology on IBS initiatives was also developed based upon a classification scheme developed in the framework.FindingsThe author developed the integrated conceptual framework based upon six building blocks which were conceptual elements. The framework consisted of the antecedent variable as internationally deployable organizational resources and capabilities (IDORC), the mediating variables as internationally implementable organizational process (IIOP), internationally executable practices and activities (IEPA) and international market product service offerings (IMPSO). The moderating variable was international initiatives management direction and control (IIMDC), while the dependent variable was international market performance assessment (IMPA). Thus, IDORC, IIOP, IEPA, IMPSA, IIMDC and IMPA were the building blocks of IBS framework. There were 12 types of IBS typologies based upon the dominant role played by the home and host countries in the six building block elements of IBS mentioned. The 12 typologies were domestic reproduction (DR), foreign country centric offerings (FCCO), international offerings perspective (IOP), foreign country-driven activities (FCDA), international-driven activities (IDA), foreign country-driven process (FCDP), international-driven process (IDP), foreign country initiatives domestically controlled (FCIDC), international initiatives domestically controlled (IIDC), international initiatives home-dominant foreign dyad controlled (IIHDFDC), international independent initiative (III) and international coordinated network approach (ICNA).Research limitations/implicationsIn this study, an integrated framework on IBS was developed. In the theoretical framework, antecedent (DORC), mediating (IIOP, IEPA and IMPSA), moderating (IIMDC) and dependent variables (IMPA) have been incorporated. This was the first theoretical contribution of this paper toward IBS theorization. Second contribution of this paper was toward typology development regarding IBS initiatives archetypes. The 12 typologies were DR, FCCO, IOP, FCDA, IDA, FCDP, IDP, FCIDC, IIDC, IHDFDC, III and ICNA. The IBS typology is based upon the six constituent concepts developed from literature.Practical implicationsManagers who are responsible for the planning and execution of IBS initiatives could from the integrated IBS framework comprehend what would be the steps required to plan and execute an IBS strategy in its entirety for success in foreign markets. Furthermore, managers could understand the various mediation and moderation roles regarding the IBS factors present in any firm internationalization effort. This would help managers not only to amplify the mediating effects but also to tweak the efforts of moderation so as to arrive at better internationalization performance. The section on typology on IBS initiatives would help managers to secure a better fit for the IBS initiative of the firm. The typology would anchor managerial perspectives regarding how the home country firm organizational contributions on resources and capabilities, processes, practice activities and products and services need to be offered in foreign countries.Originality/valueTo the best of author’s knowledge, this is one of the first frameworks regarding an integrated perspective on IBS and a typology on IBS based upon a set of antecedent (resources and capabilities), mediation (process, activities and market offerings), moderation (management control) and dependent (performance) variables building on firm resource-based view perspectives.

The influence of internet marketing capabilities on international market performance

PurposeThe paper aims to explore the influential path of internet marketing capabilities impacting international market performance. The paper further investigates the mitigating roles of market- and entrepreneurial-oriented behaviors and knowledge internalization in this relationship. The effect of internet use for customer management on internet marketing capabilities is also examined.Design/methodology/approachA total of 618 firms with sales in international markets were approached to participate. Data were collected from a sample of 132 Taiwanese firms and analyzed using a structural equation model.FindingsUse of internet for customer management positively influences internet marketing capabilities. The results also support the positive impacts of internet marketing capabilities on market- and entrepreneurial-oriented behaviors. Knowledge internalization mediates the relationships between market- and entrepreneurial-oriented behaviors and international market performance.Research limitations/implicationsThis paper’s investigation of the role of internet marketing capability in international market performance contributes to online internationalization, strategic orientations and organizational learning theory.Practical implicationsManagers should focus on developing internet marketing capabilities in management culture and fostering market- and entrepreneurial-oriented behaviors to facilitate knowledge internalization for better international performance.Originality/valueThis paper contributes to the construction of an alternative and comprehensive mechanism to understand the influences of internet marketing capabilities on the firm’s international performance.

The moderating role of innovation intensity between international marketing strategy and international marketing performance: Branding and commitment in international marketing

This study sheds light on international marketing literature and investigates the moderating role of innovation intensity between international marketing strategy and international marketing performance. An administrative survey was conducted towards international marketing managers belongs to retail industry. Structural equation modelling (SEM) technique was used for inferential analysis. Results indicate that altogether, international commitment, brand orientation, brand repositioning, control international branding activities, and congruence of marketing environment explained a substantial variance in international marketing strategy. Effect size analysis f-square showed that international marketing strategy had medium level of effect size on international marketing strategy. The research model was further extended with moderating effect of innovation intensity. Interaction effect confirmed the moderating effect of innovation intensity and indicates that the relationship between international marketing strategy and international marketing performance will be higher when innovation intensity is higher. Lastly, theoretical and managerial implications are discussed with IPMA analysis.

The impact of relational asset on automotive supplier’s performance in international market

The impact of relational asset on automotive supplier’s performance in international market

A leader in an emerging new international market: the determinants of French wine exports, 1848–1938

AbstractThe objective of this article is to provide an in‐depth study of France's performance in the new international wine market that began to take shape from the middle of the nineteenth century. We analyse the main determinants of its success in exporting ordinary and high‐quality wine using a gravity model for both types of wine. The article shows how France lost foreign markets in the ordinary wine sector, due to difficulties in maintaining its exports, which resulted from the decrease in production caused by the phylloxera plague and increasing competition from growing numbers of producers who were more efficient at producing these types of wines. However, in the high‐quality wine market, French exporters enjoyed considerable success, increasing their exports thanks to their efforts to offer a product that was highly valued abroad and the use of modern marketing and sales techniques. The exports benefited from the fall in transport costs and French colonial expansion. However, exports of both products were severely affected by a series of major events, including the First World War, the Russian Revolution, Prohibition in the US, and the Great Depression. This case study of the wine market shows that the collapse of the first globalization was not the same for all products.

Toward a 7-P framework for international marketing

ABSTRACT The purpose of this paper is to develop a generalized 7 P-theoretical framework for strategic planning as part of international marketing (Potential, Path, Process, Pace, Pattern, Problems and Performance) with theoretical propositions. Although the 7 P-framework is based on the literature on internationalization of Latin American firms, we present it as a benchmark typology for firms wanting to succeed in international marketing from any similar geographical regions, cultures, or industries, particularly, firms from emerging countries. It was found that firms from developing countries such as Latin America face many challenges such as Cognitive Bias, Liability of foreignness and Resource constraints, while internationalizing their operations. Finally, we provide several recommendations for future research.

The influence of competences and institutions on the international market orientation in foreign-owned subsidiaries

The international market orientation of foreign-owned subsidiaries, defined here as the importance of markets supplied outside their host country, can, and often does, play a vital role for managers as well as policy makers. This paper investigates how multilevel corporate competences and institutional differences stand to influence international market orientation and performance among firms. Our research is based on a survey of subsidiaries located in the mid-range, emerging economy of Taiwan. The results are analysed using SEM-PLS method. We found that competences that emerge from the subsidiary itself and competences from multinational enterprise networks serve to enhance; whereas, competences emerging from headquarters' operations can have an adverse effect on international market orientation. Institutional differences add to the overall complexity through direct and moderating effects. This study indicates that the competence-based view of the firm can be enriched with insights from institutional theory in order to expand our understanding of subsidiary development located in emerging economies and also with their international market orientation in particular.

The influence of competences and institutions on the international market orientation in foreign-owned subsidiaries

The international market orientation of foreign-owned subsidiaries, defined here as the importance of markets supplied outside their host country, can and often does, plays a vital role for managers as well as policy makers. This paper investigates how multilevel corporate competences and institutional differences stand to influence international market orientation and performance among firms. Our research is based on a survey of subsidiaries located in the mid-range, emerging economy of Taiwan. The results are analysed using SEM-PLS method. We found that competences that emerge from the subsidiary itself and competences from multinational enterprise networks serve to enhance; whereas, competences emerging from headquarters’ operations can have an adverse effect on international market orientation. Institutional differences add to the overall complexity through direct and moderating effects. This study indicates that the competence-based view of the firm can be enriched with insights from institutional theory in order to expand our understanding of subsidiary development located in emerging economies and also with their international market orientation in particular.