Journal of

International Marketing
Editor in Chief David A. Griffith Michigan State University AMA Vice President of Publications Richard J. Lutz University of Florida Former Editors S. Tamer Cavusgil (19932000) Georgia State University Bodo B. Schlegelmilch (20002003) WU Wien Daniel C. Bello (20032007) Georgia State University

volume 19 / number 1 / 2011

Editorial Board
Dana Alden University of Hawaii Rajeev Batra University of Michigan Simon Bell University of Melbourne Daniel C. Bello Georgia State University Ruth N. Bolton Marketing Science Institute Roger J. Calantone Michigan State Univesity S. Tamer Cavusgil Georgia State Univesity Nicole Coviello Wilfrid Laurier University C. Samuel Craig New York University Michael R. Czinkota Georgetown University Michael Y. Hu Kent State University John Hulland University of Pittsburg Subhash Jain University of Connecticut Constantine S. Katsikeas University of Leeds Daekwan Kim Florida State University Gary Knight Florida State University V. Kumar Georgia State University Luis Filipe Lages Universidade Nova de Lisboa Peter Magnusson Northern Illinois University Naresh K. Malhotra Nanyang Technological University Bruce Money Brigham Young University Neil A. Morgan Indiana University Janet Y. Murray University of Missouri at St. Louis Matthew B. Myers University of Tennessee Cheryl Nakata University of Illinois at Chicago Alex Rialp-Criado Universitat Autnoma de Barcelona Aric Rindfleisch University of Wisconsin Matthew J. Robson University of Leeds Martin S. Roth University of South Carolina Saeed Samiee University of Tulsa Bodo B. Schlegelmilch WU Wien Steven H. Seggie Ozyegin University Aviv Shoham University of Haifa Carl Solberg Norweigian School of Management Carlos M.P. Sousa University College Dublin Chris Styles University of Sydney Gerard J. Tellis University of Southern California David K. Tse Hong Kong University Ana Valenzuela Baruch College Stanford A. Westjohn University of Toledo Jeryl Whitelock Bradford University Nancy Wong University of WisconsinMadison Goksel Yalcinkaya University of New Hampshire Eden Yin Cambridge University Shaoming Zou University of Missouri at Columbia

American Marketing Association Chief Executive Officer Dennis Dunlap Managing Editor Christopher Bartone Associate Managing Editor Andy Seagram Technical Editor Marilyn Stone Graphics Editor Sarah Burkhart JIM Web site www.marketingpower.com/JIM JIM submissions http://mc.manuscriptcentral.com/ama_jim

Adamantios Diamantopoulus University of Vienna Susan P. Douglas New York University Jody Evans Melbourne Business School Esra Genctuck zye in University g Kate Gillespie University of Texas at Austin David Gilliland Colorado State University Zeynep Gurhan-Canli Koc University Kelly Hewett Bank of America Harmut Holzmller TU Dortmund University

Copyright 2011, American Marketing Association. All rights reserved. Journal of International Marketing (ISSN 1069-031X) is published quarterly (Spring, Summer, Fall, Winter). Subscriptions are $120 for individuals and $235 for institutions in the United States and Canada. Subscriptions outside Continental U.S. add $30. Subscriptions for AMA members are $55. Prepayment is required in U.S. dollars or the equivalent. Published by the Publications Group of the American Marketing Association, 311 S. Wacker Drive, Chicago, IL 60606-2266. POSTMASTER: Send address changes to Journal of International Marketing, 311 S. Wacker Dr., Ste. 5800, Chicago, IL 60606-2266, USA. Advertisers and Advertising Agencies assume liability for all content (including text, representations, and illustrations) of advertisements published and also assume responsibility for any claims arising therefrom made against the publisher. The right is reserved to reject any advertisement.

Change of Address: Send new address, address label from JIM, and zip code to American Marketing Association. Allow 6 to 8 weeks. Permissions and Reprint Information: Where necessary, permission is granted by the copyright owner for those registered with the Copyright Clearance Center (CCC), 222 Rosewood Drive, Danvers, MA 01923, to photocopy any article herein for a flat fee. Contact the CCC with ISSN 1069-031X, volume, and first and last page numbers of each article copied. Copying for other than personal or internal reference without express permission of the American Marketing Association is prohibited. Address request for customized bulk reprints to Tamara Groft, Sheridan Reprints, 800-352-2210 or tgroft@tsp.Sheridan.com. The views expressed in JIM are not necessarily those of the editorial staff or the publisher. All articles have undergone a blind review process, unless noted otherwise.

2010 Hans B. Thorelli Award

Each year, the Editorial Board of Journal of International Marketing honors the author(s) of one of the articles published with the Hans B. Thorelli Award, which, in 2005, was reestablished as a five-year-plus award. This years award recognizes an article published in 1993 that has made the most significant and long-term contribution to international marketing theory or practice. The JIM Editorial Board, in conjunction with the award committee of Editor David A. Griffith (Chair, Michigan State University), Subhash Jain (University of Connecticut), and Daekwan Kim (Florida State University), has selected the following recipients and article for the 2010 Hans B. Thorelli 5-Year Award: Inward-Outward Connections in Internationalization Lawrence S. Welch and Reijo K. Luostarinen Volume 1, Number 1 Journal of International Marketing honored the recipients with a cash award and a special plaque, which was presented at the American Marketing Associations 2011 Winter Marketing Educators Conference, February 1820, 2011, at the Hilton Austin in Austin, Tex. The editor thanks the Editorial Board members and the members of the Award Committee for taking the time to participate in this important aspect of JIM, which honors the scholarship of authors. The award is named in honor of Professor Hans B. Thorelli. Professor Thorelli directed the first ever representative study of consumer experience in the marketplace in a developing country (Thailand). He initiated the development of the pioneering, marketing-oriented International Operations Simulation (INTOP) at the University of Chicago in 1964, and he directed the 2006 edition of INTOPIA B2B for the Internet. Thorelli was a Distinguished Professor of Business Administration Emeritus at Indiana University and the author of more than 100 articles and 11 books in marketing, international business, strategic management, and public policy. He held doctoral and LL.D. degrees from the University of Stockholm. Professor Thorelli passed away in 2009.

2010 S. Tamer Cavusgil Award

Each year, the Editorial Board of Journal of International Marketing honors the author(s) of one of the articles published with the S. Tamer Cavusgil Award, which was established in 1998. This years award recognizes the article published in 2010 that has made the most significant contribution to the advancement of the practice of international marketing management. The JIM Editorial Board, in conjunction with the award committee of Editor David A. Griffith (Chair, Michigan State University), Subhash Jain (University of Connecticut), and Daekwan Kim (Florida State University), has selected the following recipients and article for the 2010 S. Tamer Cavusgil Award: Exploring Cross-National Differences in Organizational Buyers Normative Expectations of Supplier Performance Michelle D. Steward, Felicia N. Morgan, Lawrence A. Crosby, and Ajith Kumar Volume 18, Number 1 Journal of International Marketing honored the recipients with a cash award and a special plaque, which was presented at the American Marketing Associations 2011 Winter Marketing Educators Conference February 1820, 2011, at the Hilton Austin in Austin, Tex. The editor thanks the Editorial Board members and the members of the Award Committee for taking the time to participate in this important aspect of JIM, which honors the scholarship of authors. The award is named in honor of Professor S. Tamer Cavusgil, Fuller E. Callaway Professorial Chair and Executive Director of the Center for International Business Education and Research (CIBER) at Georgia State University. Cavusgil has been a long-time contributor to such fields as international marketing strategy, early internationalization, and emerging markets. He is the author of several books and more than 190 refereed articles. His most recent book, International Business: The New Realities, coauthored with Gary Knight and John Riesenberger and published by Prentice Hall, is now in its second edition. Cavusgil served as the inaugural editor-inchief of Journal of International Marketing. An elected Fellow of the Academy of International Business, Cavusgil also serves as a visiting professor at Manchester Business School and was 2007 Gianni and Joan Montezemolo Visiting Chair at the University of Cambridge, United Kingdom.

EXECUTIVE SUMMARIES

Service Quality and Export Performance of Business-to-Business Service Providers: The Role of Service Employee and Customer-Oriented Quality Control Initiatives
Christina Sichtmann, Maren von Selasinsky, and Adamantios Diamantopoulos

he marketing literature has emphasized superior service quality as an important competitive advantage for service firms operating in international markets. However, service employees performance and customers contributions to service delivery may vary across time, organizations, and people, leading to an uncertain outcome of the service delivery process. Sichtmann, Von Selasinsky, and Diamantopoulos focus on the role of quality control initiatives (QCIs) as important quality management practices in the context of the export performance of services. They define QCIs as specific service providerinitiated directives aimed at influencing both employees and customers to perform service delivery in ways that positively affect the quality of the service outcome. Using the facilitiestransformationusage framework of service provision and drawing from control theory, the authors develop a theoretical model of QCIs in the context of services export. They distinguish four types of QCIs depending on their relevance in the stages of the service delivery process and whether they are targeted at the service employees or the customers contributions to

service delivery. They test the model with an empirical study of 129 business-to-business service providers. The results confirm a positive and significant influence of relative service quality on the export performance of services. Relating to the effect of the QCIs on relative service quality, the results indicate that regardless of the degree of customer integration in service provision, export customeroriented training of service employees and work process standardization emerge as significant mechanisms of superior service quality that affect export performance. The customer-oriented QCI of coproduction instructions also has a positive influence on relative service quality. The results indicate that for services with a low degree of customer integration in particular, service exporters should inform customers where, when, and how they should contribute to the service process. Adaptation to export customers coproduction competence and motivation seems to be relevant only in the export of services with a high degree of customer integration. With regard to antecedents of QCIs, the results show that service exporters should actively develop a customeroriented culture in their firms to enhance their quality control efforts. Furthermore, the authors find export commitment to be relevant for the development and implementation of the service employeeoriented QCIsnamely, export customeroriented training and work process standardization.

Journal of International Marketing @2011, American Marketing Association Vol. 19, No. 1, 2011, p. iv ISSN 1069-0031X (print) 1547-7215 (electronic)

iv Executive Summaries

EXECUTIVE SUMMARIES

Analyzing the Diffusion of Global Customer Relationship Management: A Cross-Regional Modeling Framework
V. Kumar, Sarang Sunder, and B. Ramaseshan

ost recent research on customer relationship management (CRM) has been restricted to developed economies such as the United States. Researchers have done little work in studying the growth of CRM in developing markets in Asia and South America, which are becoming extremely relevant to business today. With the changing business climate, firms are beginning to embrace the concept of managing customers rather than products. This leads managers down the path of customer centricity, and here lies the relevance of a truly global CRM (GCRM). The goal of the first phase of Kumar, Sunder, and Ramaseshans study is to understand the landscape of GCRM adoption across regions. To this end, the authors conduct a qualitative study with executives from various firms spanning three regions (Asia-Pacific, Europe, and North America). The managerial interviews suggest that there is a significant cross-regional effect among firms with regard to GCRM adoption. Using these results as motivation, the authors conduct the second phase of the research, in which they quantify the cross-regional effect while accounting for innovation and imitation effects. By developing and applying a unique generalized cross-regional diffusion modeling

framework to CRM licensing sales, they capture not only the intraregional effects but also the learning between regions. The findings suggest that there is untapped market potential in the GCRM market with varying adoption patterns across regions. With regard to the diffusion, North American firms are the most innovative, and those in the Asia-Pacific region are the most imitative. The authors also find that whereas firms in the AsiaPacific region learn from their European and North American counterparts and European firms learn from North American ones, there exists no reverse learning between these regions. Through its quantitative and qualitative robustness, this study highlights the importance of GCRM and its potential. This study also enables managers to make informed global marketing decisions about when and where to introduce a technology to maximize its diffusion. The global cross-regional diffusion model facilitates strategic market entry decisions, such as whether to use the waterfall (sequential market entry) or the sprinkler (simultaneous market entry) strategy. The results of this study suggest that a waterfall entry strategy would be apt when dealing with GCRM technology adoption because there is a systematic learning effect between regions. The authors conclude by providing strategic implications for the implementation and calibration of GCRM technology, while recognizing avenues of further research in this nascent area of international marketing.

Journal of International Marketing @2011, American Marketing Association Vol. 19, No. 1, 2011, p. v ISSN 1069-0031X (print) 1547-7215 (electronic)

Executive Summaries v

EXECUTIVE SUMMARIES

When Exporting Manufacturers Compete on the Basis of Service: Resources and Marketing Capabilities Driving Service Advantage and Performance
Anna Kaleka

ontinuous incremental developments have led researchers to proclaim service as the dominant logic in the marketing discipline, and widely available economic indicators reveal a similarly relentless increase in the contribution of services in the global gross domestic product. In this climate, achieving competitive advantage in the international markets depends to a great extent on the level of service the firm offers its customers. Kaleka discusses the idiosyncratic nature of service advantage in the context of manufacturing firms exporting their products through independent distributors. The author acknowledges the role of end customers as the ultimate judges of the relative market position of the service component of the offering, which is delivered with input from both the manufacturer and the distributor. In this context, service advantage comprises both marketing and logistics service quality elements. There is a strong indication that achieving positional service advantage in overseas markets leads to superior

export performance in those markets. There are several avenues for achieving export service advantage. It largely depends on three key marketing capabilities: embedded processes for developing market intelligence, experience with exporting, and financial resources. Firms with embedded processes that facilitate the development of export market intelligence can use both the processes and the developed knowledge to improve their ability to relate to customers and their ability to develop, modify, and adapt products. Then, these customer relationship development and product development capabilities are likely to lead to the achievement of service advantage. In general, experience with exporting, and with the specific export market in particular, nurtures customer relationship and informational capabilities. Financial resources facilitate informational and product development capabilities, which in turn enable exporters to achieve service advantage and superior export performance in the overseas markets.

Journal of International Marketing @2011, American Marketing Association Vol. 19, No. 1, 2011, p. vi ISSN 1069-0031X (print) 1547-7215 (electronic)

vi Executive Summaries

EXECUTIVE SUMMARIES

Prior Relationships and Consumer Responses to Service Failures: A Cross-Cultural Study

Michael K. Hui, Candy K.Y. Ho, and Lisa C. Wan

lthough previous research has indicated that strong customer relationships provide considerable value to service firms, researchers have also noted that the value of customer relationships can vary among customers with diverse cultures. Hui, Ho, and Wan examine the mitigating effect of a prior relationship between service providers and customers on the negative consequences of service failures as a function of interdependentindependent self-construal. The authors conceptualize prior relationship as the length of past patronage of a service provider. They propose that both the strength (i.e., how strong the effect is) and the scope (i.e., the range of situations under which the effect occurs) of the mitigating effects of prior relationship on consumer responses to service failures are stronger among consumers with interdependent self-construal (interdependent consumers) than among those with independent self-construal (independent consumers). They argue that this is not because of the prior relationship per se but rather because of the trust established in the prior relationship, which poses stronger effects among interdependent than among independent consumers. The results of two experiments indicate that prior relationship can better mitigate the complaint intentions of

interdependent (vs. independent) participants. The authors reason that this is because interdependent (vs. independent) consumers have a greater tendency to avoid conflict with those with whom they are personally connected. In addition, prior relationship can better mitigate interdependent (vs. independent) participants switching intentions, and this effect is contingent on the types of failure. In particular, although this mitigating effect manifests among independent participants in process failures, which primarily involve sociopsychological loss, such effect is extended among interdependent participants to outcome failures, which primarily involve economic loss. This is because interdependent consumers have a greater tendency to construe interpersonal trust as both a sociopsychological and an economic resource. Importantly, the authors demonstrate that the variation in the mitigating effect of prior relationship on complaint and switching intentions can be attributed to the differential impact of trust in the service provider on interdependent and independent consumers. Collectively, these findings can help international service firms formulate their strategies and distribute more resources to interdependent (vs. independent) consumer markets, which give greater value to relationships, and can help them develop effective relationship marketing programs.

Journal of International Marketing @2011, American Marketing Association Vol. 19, No. 1, 2011, p. vii ISSN 1069-0031X (print) 1547-7215 (electronic)

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EXECUTIVE SUMMARIES

Convergence and Divergence: Developing a Semiglobal Marketing Strategy

Susan P Douglas and C. Samuel Craig .

pportunities in developed countries have diminished because of a plateauing of growth, intense competition, and market saturation. As a result, U.S. and European multinational corporations (MNCs) have increasingly focused on expansion in emerging markets, such as the BRIC countries (Brazil, Russia, India, and China), in particular, China and India. More recently, firms have also focused on second-tier emerging markets, including countries such as Turkey, Egypt, Mexico, and Vietnam, all of which have growth rates significantly higher than those in the United States, Europe, and Japan. Douglas and Craig examine the implications of these dramatic changes for the marketing strategies of large U.S. and European MNCs. The new reality implies that companies need to radically revise their perspective and reformulate their global marketing strategies to focus on incorporating these new opportunities into their plans and operations. In turn, this poses several important challenges. On the one hand, MNCs need to continue to stimulate demand and compete for market share in their traditional markets in developed countries and in relation to the newly emerging global consumer market segments. On the other hand, they need to develop radically different marketing strategies, reorganize their operations, and acquire new resources in terms of capabilities and skills to target growing con-

sumer markets in a range of different emerging market economies. Adding to the complexity, these emerging markets differ significantly in terms of the nature of consumer demand, competition, market infrastructure, and environmental context. The authors examine these challenges, identifying five major spheres of operation, including four that encompass emerging markets. They consider the economic and cultural environment in each of these markets, emphasizing their diversity both within and across the countries. Then, they discuss strategic imperatives for each of these types of markets, emphasizing the importance of developing and implementing different strategies in relation of each. They draw conclusions with regard to the need to develop a coherent set of divergent strategies for world markets and the obstacles to overcome in the process. They emphasize the importance of relying on local management input and know-how with regard to both understanding the local market conditions and formulating effective strategies to tap these markets. The authors advocate the development and implementation of a semiglobal marketing strategy, which entails developing divergent strategies in relation to each type of market while creating a synthesis of these strategies and operations on a worldwide basis.

Journal of International Marketing @2011, American Marketing Association Vol. 19, No. 1, 2011, p. viii ISSN 1069-0031X (print) 1547-7215 (electronic)

viii Executive Summaries

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