The relationship between the international marketing strategy adaptation and the export performance of chinese firms

Abstract

International marketing strategy Adaptation (IMSA) has been widely acknowledged by scholars as a crucial determinant of export performance (Cavusgil & Zou, 1994; Shoham, 1999; Theodosiou & Leonidou, 2003). Essentially, a firm's pursuit of IMSA is contingent on different factors in the internal and external environments. However, the complicated interplays of internal and external factors in the international marketing strategy cannot be understood by just one single conceptual explanation. Therefore, the evaluation of determinants on the adaptation of the export marketing strategy with consideration to different theoretical perspectives is necessary for a better cross-fertilization of different ideas. In this study, some cultural characteristics relating to Chinese firms are addressed in assessing the marketing strategy adaptation, such as firms mimicking behaviours and the impact of relational assets (networking capability) etc. Although developing relationship with key constituencies has been historically and strategically critical in Chinese business etiquette, this variable was found, however, insignificant in moderating the performance of IMSA of Chinese firms. This result suggests that the role of guanxi may be marginalized nowadays and Chinese firms may no longer rely heavily on relationship building as in the past. This thesis has adopted the Awareness-Motivation-Capabilities (AMC) model (Chen, et al., 2007) as an important backdrop to form a research framework to examine the determinants of IMSA and the corresponding impact on export performance. The research framework has integrated the theoretical perspectives from a resource-based view, competition theory, internationalization theory and institution theory to elaborate on the effect of awareness, motivation and capability on the international marketing strategy and export performance. In order to provide empirical evidence to support the proposed variables established in the research model, a set of hypotheses is established and tested through a survey of 253 Chinese exporting firms. The results of the empirical investigation suggest that awareness and motivation are the key driving forces of a firm's strategic response to not only the firm's internal characteristics and competition within industry, but also to the regulative forces of both domestic and host markets. Managers are, therefore, advised to obtain appropriate knowledge and always be sensitive to personal, firm, industry and institutional related environments in order to adjust the degree of marketing strategy adaptation as required.