Online citations, reference lists, and bibliographies.
← Back to Search

Marketing Strategies For Foreign Expansion Of Companies Originating In Small And Open Economies: The Consequences Of Strategic Fit And Performance

Peter Gabrielsson, M. Gabrielsson, T. Seppälä
Published 2012 · Economics

Cite This
Download PDF
Analyze on Scholarcy
Share
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.
This paper references
10.1002/SMJ.642
The fit between product market strategy and business model: implications for firm performance
Christopher Zott (2008)
10.1002/SMJ.4250100202
DIVERSIFICATION STRATEGY AND INTERNATIONALIZATION: IMPLICATIONS FOR MNE PERFORMANCE
J. M. Geringer (1989)
10.1509/jimk.12.1.57.25651
A Strategic Approach to Internationalization: A Traditional versus a “Born-Global” Approach
S. Chetty (2004)
10.1007/S11575-008-0128-3
How well do Traditional Theories Explain the Internationalisation of Service MNEs from Small and Open Economies? – Case: National Telecommunication Companies
R. Laanti (2009)
Globalization and Mar
Mika Gabrielsson (2006)
10.1037/0033-2909.88.3.588
Significance Tests and Goodness of Fit in the Analysis of Covariance Structures
P. Bentler (1980)
10.1057/PALGRAVE.JIBS.8400058
Knowledge of the firm and the evolutionary theory of the multinational corporation
B. Kogut (1993)
10.1108/03090560010342476
A contingency approach to marketing high technology products
D. M. Gardner (2000)
10.1057/PALGRAVE.JIBS.8400131
The performance implications of strategic fit of relational norm governance strategies in global supply chain relationships
D. Griffith (2005)
10.1002/smj.4250110102
Environment--strategy coalignment: an empirical test of its performance implications
N. Venkatraman (2011)
10.1509/jim.11.0022
Export Promotion Strategy and Performance: The Role of International Experience
Magnus Hultman (2011)
10.1177/014920638601200408
Self-Reports in Organizational Research: Problems and Prospects
P. M. Podsakoff (1986)
10.1177/017084069601700502
Strategy, Environment and Performance in Two Technological Contexts: Contingency Theory in Korea
Jangwoo Lee (1996)
Exploring the Marketing Pro
Z. Seyda (2004)
Heuristics for Product
Kohli (1990)
Strategy, Environment
Lee (1996)
10.1016/J.IBUSREV.2010.09.003
50 years of research on international standardization and adaptation—From a systematic literature analysis to a theoretical framework
S. Schmid (2011)
The Perennial Issue of Adapta
Solberg (2002)
10.1016/S0007-6813(00)88560-2
Managing global expansion: A conceptual framework
A. Gupta (2000)
10.1509/jimk.17.4.24
When Does International Marketing Standardization Matter to Firm Performance?
Oliver Schilke (2009)
10.1111/1540-5915.02375
Experiential and Informational Knowledge, Architectural Marketing Capabilities, and the Adaptive Performance of Export Ventures: A Cross-National Study
N. A. Morgan (2003)
10.2307/2393203
Assessing Construct Validity in Organizational Research
R. Bagozzi (1991)
10.1509/jimk.10.3.1.19546
The Perennial Issue of Adaptation or Standardization of International Marketing Communication: Organizational Contingencies and Performance
C. Solberg (2002)
10.1037/0021-9010.88.5.879
Common method biases in behavioral research: a critical review of the literature and recommended remedies.
P. M. Podsakoff (2003)
10.1016/J.IBUSREV.2010.05.003
The tortuous road to globalization for Volvo's heavy truck business: Extending the scope of the Uppsala model
Jan-Erik Vahlne (2011)
1 KNOWLEDGE SHARING AND SOCIAL INTERACTION WITHIN MNCS
Niels Noorderhaven Anne-Wil (2008)
Adaptation and Performance in Foreign
Dow (2006)
10.1057/PALGRAVE.JIBS.8400128
Toward a theory of international new ventures
Benjamin M Oviatt (1994)
10.1615/atoz.g.global_strategy
A global strategy.
H. Mahler (1988)
A Taxonomy of Born-global Firms
Gary A. Knight (2005)
10.1177/0049124192021002005
Alternative Ways of Assessing Model Fit
M. Browne (1992)
10.1016/S0148-2963(00)00133-8
Marketing strategy determinants of export performance: a meta-analysis
Leonidas C. Leonidou (2002)
10.1108/02651330910971995
International marketing adaptation versus standardisation of multinational companies.
D. Vrontis (2009)
Industrial Market Structure and Economic Performance
Charles F. Phillips (1971)
10.1509/jmkg.66.4.40.18519
The GMS: A Broad Conceptualization of Global Marketing Strategy and Its Effect on Firm Performance
S. Zou (2002)
10.1509/jmkg.68.1.90.24028
Antecedents of Export Venture Performance: A Theoretical Model and Empirical Assessment
N. A. Morgan (2004)
10.2501/S0021849907070232
Mail and Internet Surveys: The Tailored Design Method
P. Chisnall (2007)
10.1509/jimk.10.4.1.19549
Customer Satisfaction in Transnational Buyer–Supplier Relationships
C. Homburg (2002)
Global Strategy … In a World of Nations?
George S Yip (1989)
Can You Standardize Multinational
Buzzell (1968)
Can You Standardize Multinational Marketing?
Robert D Buzzell (1968)
10.1016/J.JBUSRES.2005.05.001
The influence of internal and external firm factors on international product adaptation strategy and export performance: A three-country comparison
R. Calantone (2006)
The Fit Between
Zott (2008)
10.1287/MNSC.36.12.1464
Heuristics for Product-Line Design Using Conjoint Analysis
R. Kohli (1990)
10.1108/EUM0000000005291
The Contingency Approach: Its Foundations and Relevance to Theory Building and Research in Marketing
Valarie A. Zeithaml (1988)
10.21739/IBR.2002.06.6.1.1
A Study on the Foreign Direct Investment Behavior of Foreign Firms in Korea
Jong-Wook Ha (2002)
The Economics of Product Variety
LancasterKelvin (1990)
10.2307/1252014
Organizing for effective new product development: The moderating role of product innovativeness.
E. Olson (1995)
10.5465/1556399
Export Strategies and Performance of Firms from Emerging Economies: Evidence from Brazil, Chile, and Mexico
P. S. Aulakh (2000)
10.1057/9780230375932_11
The Globalisation of Markets
Gordon T. Pepper (1994)
10.1509/jimk.12.4.1.53215
Exploring the Marketing Program Antecedents of Performance in a Global Company
Janell D. Townsend (2004)
10.1016/S0969-5931(97)00032-2
The internationalization of Born Globals: An evolutionary process?
T. Madsen (1997)
Internationalisation of the Firm,
Luostarinen (1979)
10.1002/SMJ.4250080106
The structural and environmental correlates of business strategy
Danny Miller (1987)
10.1007/S11747-009-0176-7
Strategic marketing and marketing strategy: domain, definition, fundamental issues and foundational premises
Rajan Varadarajan (2010)
10.1287/MNSC.36.10.1216
Broader product line: a necessity to achieve success?
S. Kekre (1990)
Mail and internet surveys: The tailored design method, 2nd ed.
D. Dillman (2007)
Evolution of Global Marketing Strategy : Scale, Scope, and Synergy
Susan P. Douglas (1989)
10.1177/002224378101800201
Construct Validity: A Review of Basic Issues and Marketing Practices
J. Peter (1981)
10.1002/TIE.20122
Globalization and marketing strategies of Born Globals in SMOPECs
R. Luostarinen (2006)
The Born Global Firm: A Challenge to Traditional Internationalization Theory
Gary A Knight (1996)
10.1057/JIBS.2008.74
Location and the multinational enterprise: A neglected factor?
J. Dunning (1998)
10.1016/J.JWB.2007.04.010
Firms’ degree of born-globalness, international entrepreneurial orientation and export performance
O. Kuivalainen (2007)
10.1002/SMJ.549
Strategy fit and performance consequences of international marketing standardization
Constantine S. Katsikeas (2006)
10.1016/0024-6301(95)92184-2
Extend Profits, Not Product Lines
J. Quelch (1994)
10.1057/PALGRAVE.JIBS.8400305
Effects of firm resources on growth in multinationality
Chiung-Hui Tseng (2007)
10.1016/S0969-5931(02)00094-X
Standardization versus adaptation of international marketing strategy: an integrative assessment of the empirical research
M. Theodosiou (2003)
10.1002/SMJ.4250050207
A Resource-Based View of the Firm
B. Wernerfelt (1984)
10.2307/3150783
Estimating nonresponse bias in mail surveys.
J. S. Armstrong (1977)
10.1037/029167
A Primer of Lisrel: Basic Applications and Programming for Confirmatory Factor Analytic Models
B. Byrne (1989)
10.1509/jimk.19.1.82
Convergence and Divergence: Developing a Semiglobal Marketing Strategy
Susan P. Douglas (2011)
10.1057/PALGRAVE.JIBS.8490242
Product and Promotion Adaptation in Export Ventures: An Empirical Investigation
S. Cavusgil (1993)
The internationalization of the firm
P. Buckley (1999)
10.1057/PALGRAVE.JIBS.8490951
A Model of Advertising Standardization in Multinational Corporations
M. Laroche (2001)
10.1057/PALGRAVE.JIBS.8400308
International new ventures: revisiting the influences behind the ‘born-global’ firm
T. Fan (2007)
Psychometric Theory
Jim Nunnally (1978)
10.1509/jimk.8.1.27.19561
Competing Perspectives in International Marketing Strategy: Contingency and Process Models
Ayşegül Özsomer (2000)
10.1509/jmkg.67.1.100.18588
A Configuration Theory Assessment of Marketing Organization Fit with Business Strategy and Its Relationship with Marketing Performance
Douglas W. Vorhies (2003)
ORGANIZATION STUDIES 34
T. Lawrence (2013)
Experimental and Informational Knowledge, Architectural Marketing Capabilities, and the Adaptive Performance of Export Ventures: A Cross-National Study
Shaoming Zou (2003)
Born Global or Grad
Moen (2002)
10.1002/(SICI)1097-0266(200004)21:4<429::AID-SMJ81>3.0.CO;2-#
Modeling the dynamics of strategic fit: a normative approach to strategic change
E. Zajac (2000)
10.1037/0021-9010.86.1.114
Accounting for common method variance in cross-sectional research designs.
M. Lindell (2001)
10.1108/S1474-7979(2011)0000022005
Difference Scores, Analysis Levels, and the (Mis)Interpretation of Cultural Distance
G. Franke (2011)
10.1057/PALGRAVE.JIBS.8490676
The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments
J. Johanson (1977)
10.1108/02651330610712157
Globalizing internationals: product strategies of ICT manufacturers
Peter Gabrielsson (2006)
10.1002/SMJ.4250150704
The effects of industry growth and strategic breadth on new venture performance and strategy content
Patricia P. McDougall (1994)
Firm's Degree of Born-Globalness, International Entrepreneurial Orientation and Export Performance
Olli Kuivalainen (2007)
10.1002/SMJ.499
Foreign-based competition and corporate diversification strategy
H. Bowen (2005)
10.1108/03090560710821242
A review of the foundation, international marketing strategies, and performance of international new ventures
A. Aspelund (2007)
10.5465/AMBPP.1987.17533734
The Concept of Fit in Strategy Research: Towards Verbal and Statistical Congruence.
N. Venkatraman (1987)
10.1016/J.IBUSREV.2004.10.001
Globalizing internationals: business portfolio and marketing strategies in the ICT field
Peter Gabrielsson (2004)
10.1057/JIBS.2008.106
Knowledge-sharing and social interaction within MNEs
N. Noorderhaven (2009)
Location and the Multinational
Dunning (1998)
Managing in an age of modularity.
C. Baldwin (1997)
10.1057/JIBS.2008.69
Born global or born regional? Evidence from an exploratory study in the Costa Rican software industry
L. López (2007)
10.1177/002224377701400320
Estimating Nonresponse Bias in Mail Surveys
J. S. Armstrong (1977)
10.1509/jimk.14.2.1
The Impact of Strategic Fit among Strategy, Structure, and Processes on Multinational Corporation Performance: A Multimethod Assessment
S. Xu (2006)
10.1300/J042V10N04_04
Strategic Responses to Parallel Importing
S. Tan (1997)
10.1007/978-1-4613-8885-2
A Primer of LISREL
B. Byrne (1989)
10.1057/PALGRAVE.JIBS.8400138
Internationalisation: conceptualising an entrepreneurial process of behaviour in time
M. Jones (2005)
10.1509/jimk.17.4.1
Export Product Strategy Fit and Performance: An Empirical Investigation
Magnus Hultman (2009)
Common Method Biases
P. Nathan (2003)
Marketing Strategy: Some Research Hypotheses,
Johanson (1977)
10.1177/002224298905300106
Standardization of International Marketing Strategy: Some Research Hypotheses
S. Jain (1989)
10.1509/jimk.10.3.49.19540
Born Global or Gradual Global? Examining the Export Behavior of Small and Medium-Sized Enterprises
Ø. Moen (2002)
10.1002/TIE.5060270306
Do you really have a global strategy
G. Hamel (1985)
10.1016/J.INDMARMAN.2006.10.003
The globalization strategies of business-to-business born global firms in the wireless technology industry
R. Laanti (2007)
10.1177/002224299205600201
The Influence of Global Marketing Standardization on Performance
Saeed Samiee (1992)
10.1016/0019-8501(94)90010-8
Effect of industrial prenotification on response rate, speed, quality, bias, and cost
Sarah Hagget (1994)
Effects of Firm Resources on
James McCullough (2007)
10.1287/MKSC.9.3.189
The Economics of Product Variety: A Survey
Kelvin J. Lancaster (1990)
10.1057/PALGRAVE.JIBS.8400189
Adaptation and performance in foreign markets: evidence of systematic under-adaptation
D. Dow (2006)
10.1287/MKSC.18.2.137
Product Proliferation: An Empirical Analysis of Product Line Determinants and Market Outcomes
B. Bayus (1999)
10.1111/J.1467-6486.1990.TB00751.X
Performance Implications Of Strategic Coalignment: A Methodological Perspective
N. Venkatraman (1990)
10.1177/002224299405800101
Marketing Strategy-Performance Relationship: An Investigation of the Empirical Link in Export Market Ventures
S. Cavusgil (1994)
10.1300/J042V10N03_04
The Standardisation Debate in International Marketing
J. Whitelak (1997)



This paper is referenced by
10.15798/KAICI.17.2.201506.123
The Influences of SMEs’ Utilization of Export Assistance Programs and Firm Capabilities on Export Performances: Firm Type as a Moderator
Chung, Jae Eun (2015)
10.1017/JMO.2017.28
Integrating the content and process of capability development: Lessons from theoretical and methodological developments
Alireza Javanmardi Kashan (2017)
The Impact of Psychological Empowerment on Organizational Citizenship Behavior and Knowledge Sharing Behavior : The Mediating role of Employee Engagement and Moderating role of Leader-member exchange
Rizwana Kosar (2017)
10.1108/imr-04-2018-0146
The influence of internet marketing capabilities on international market performance
C. Liu (2020)
10.1509/jim.15.0003
Exit from a Foreign Market: Do Poor Performance, Strategic Fit, Cultural Distance, and International Experience Matter?
Carlos Sousa (2015)
10.1002/GSJ.1077
Early Internationalization by Firms in Transition Economies into Developed Markets: The Role of International Networks
Martina Musteen (2014)
10.1509/jim.13.0115
Planned Marketing Adaptation and Multinationals’ Choices between Acquisitions and Greenfields
Arjen Slangen (2014)
10.1108/ijcma-09-2019-0170
Entrepreneur’s political involvement and inter-organizational conflict resolution in China’s transition economy
Aiqi Wu (2020)
10.1108/jkm-09-2019-0482
Dimensions of dynamic marketing capability and export performance
Mohammad Tayeenul Hoque (2020)
10.1108/IMR-10-2012-0171
The interaction between environment and strategic orientation in born globals’ choice of entry mode
Kalanit Efrat (2013)
10.1108/IMR-10-2014-0328
Problem-solving dissension and international entry mode performance
J. Ji (2016)
10.1007/S10551-015-3004-7
Sustainability in the Face of Institutional Adversity: Market Turbulence, Network Embeddedness, and Innovative Orientation
D. Clercq (2018)
10.1509/jim.14.0019
Business and Cultural Aspects of Psychic Distance and Complementarity of Capabilities in Export Relationships
D. Griffith (2014)
10.1108/IMDS-12-2015-0518
Organizational learning and innovation as sources of strategic fit
Ignacio Tamayo-Torres (2016)
10.18267/J.CEBR.152
A COMPARATIVE ANALYSIS OF POLISH AND CZECH INTERNATIONAL NEW VENTURES
L. Danik (2016)
10.1016/J.JWB.2015.03.001
A latent class analysis of small firms’ internationalization patterns
Matthias Baum (2015)
10.1108/imr-02-2019-0084
Social media resources and export performance: the role of trust and commitment
M. A. Mahmoud (2020)
10.1108/EBR-12-2012-0073
The internationalization strategies of rapidly internationalizing high-tech UK SMEs: Planned and unplanned activities
David Crick (2014)
10.1108/EBR-11-2015-0142
Firm’s strategic orientation, market context, and performance : literature review and opportunities for international strategy research
Anders Pehrsson (2016)
10.1108/imr-11-2018-0340
How do mature born globals create customer value to achieve international growth
Svante Andersson (2020)
10.1108/JBIM-08-2018-0247
The performance implications of collaborative activities in international buyer–seller exchanges: a contingency approach
Shadab Khalil (2019)
10.1108/s2040-724620190000010010
Outward Internationalisation of Emerging Market Small and Medium Sized Enterprises: Contract Manufacturing Relationship with Developed Market Multinational Enterprise(s) and Capabilities Development
Ahmad Arslan (2019)
10.1108/IMR-01-2017-0004
Collaborative Entry Modes
S. Tarba (2017)
10.16972/APJBVE.10.2.201504.121
The Effects of International Entrepreneurial Proclivity of SME’s on Corporate Capability and Export Performance: Focused on Consumer Goods and Industrial Goods
Yang, Heesoon (2015)
10.1108/apjml-11-2018-0456
Effect of country image and materialism on the quality evaluation of Korean products
Byoungho Jin (2019)
10.1509/jim.14.0049
Product Diversification and Market Value of Large International Firms: A Macroenvironmental Perspective
T. Qiu (2014)
10.15863/tas.2018.12.68.32
Problems of knowledge through civilizational approach and principles of civil law. Case of Uzbekistan
Jakhongir Yakhshilikov (2018)
10.1016/J.IBUSREV.2016.09.006
When marketing and innovation interact: The case of born-global firms
Kalanit Efrat (2017)
10.1016/J.IBUSREV.2013.02.008
An empirical investigation into international entry mode decision-making effectiveness
J. Ji (2013)
Internationalization of globalizing internationals into BRIC emerging markets. Case study: Wärtsilä’s internationalization into BRIC countries.
M. Segarra (2016)
10.1016/J.IBUSREV.2013.03.004
Control mechanisms of MNEs and absorption of foreign technology in cross-border acquisitions
B. I. Park (2014)
10.1080/00208825.2018.1443737
A Review of Born globals
Stine Øyna (2018)
See more
Semantic Scholar Logo Some data provided by SemanticScholar