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Theory posits that export commitment is key to the effective implementation of resource-led strateg y. The authors
investigate the role of export commitment, considered a multidimensional construct, in linking export resources and
capabilities to positional advantages achieved in foreign markets. They test their resource-based view assertions among a
multi-industry sample of 150 Spanish exporters. The results show that experiential resources, specific export capabili-
ties, and export market orientation (EMO) reinforce export commitment, which exerts a positive effect on perceived
positional advantages. These perceptions also are likely to be positive if the firm adapts its marketing mix to the needs
of its foreign markets. Moreover, the results show that EMO exerts a positive influence on marketing-mix adaptation.
Resources linked to experience and informational knowledge about foreign markets foster the development of capabili-
ties (i.e., specific export capabilities and/or EMO). Finally, the results indicate that specific export capabilities influence
EMO. The authors conclude with a discussion of practical implications for facilitating export competitive strategy and
success.
Keywords: export commitment, perceived positional advantages, adaptation of marketing strategy, export market
orientation, specific export capabilities, export resources, dynamic capabilities view
E
xporting is the basic entry mode into foreign
markets, and traditionally, this field has generated management exercises. Indeed, the literature treats
great managerial and scholarly interest. Internal drivers management attitudes as malleable elements that can
of export outcomes have received the bulk of research foster the progress of the company in its export
attention because they are the primary control market operations (Lages, Jap, and Griffith 2008).
Among these attitudes, Aaby and Slater’s (1989) and
Zou and Stan’s (1998) reviews give a main role to
Antonio Navarro is Associate Professor of Marketing and export commitment. The public policy implications of
Market Research (e-mail: anavarro@us.es), and F rancisco export commitment are understood. By assessing
J. A ce do is Associate Professor of Strategic Management firms’ levels of export commitment, national govern-
(e-mail: fjacedo@us.es), Business Management Faculty,
ments can identify appropriate forms of assistance (e.g.,
University of Sevilla.
educational programs focusing on the attractiveness of
Matthew J. Robson is Professor of Marketing, Leeds Uni- exporting, funding to go to international trade fairs)
versity Business School, University of Leeds (e-mail: (Singer and Czinkota 1994).
M.J.Robson@lubs.leeds.ac.uk).
Emilio Ruzo is Associate Professor of Marketing and Market
Research (e-mail: emilio.ruzo@usc.es), danFernando Losad a Journal of International Marketing
is Associate Professor of Marketing and Market Research ©2010, American Marketing Association
(e-mail: fernando.losada@usc.es), Business Management Vol. 18, No. 3, 2010, pp. 41–61
Faculty of Lugo, University of Santiago. ISSN 1069-0031X (print) 1547-7215 (electronic)
Firms’ Export Commitment 41
Inspection of the exporting literature reveals studies Third, we develop a multidimensional conceptualization
(e.g., Beamish et al. 1999; Styles and Ambler 2000) that of export commitment that takes into account current
theorize that export commitment is a direct antecedent and anticipated commitment levels. Existing conceptu-
of performance. However, prior research has concen- alizations emphasize export venture planning and
trated on the role of strategy in general and marketing resource levels within unidimensional measurements.
program adaptation/standardization in particular in With few exceptions—such as O’Cass and Julian’s
leading to export performance outcomes (Hultman, (2003) measure, which includes an item on resources
Robson, and Katsikeas 2009; Sousa, Martinez-Ló pez, available for export development—previous studies
and Coelho 2008). In line with the influential structure– have concentrated on current commitment. Notwith-
conduct–performance framing, several studies (e.g., standing the importance of current behavioral commit-
Lages, Jap, and Griffith 2008; Lages and Montgomery ments, the commitment literature (e.g., Kim and Frazier
2004; Naidu and Prasad 1994; O’Cass and Julian 2003) 1997) has also highlighted the importance of the stabil-
treat export commitment as an antecedent or contin- ity of attitudinal commitment sentiments.
gency factor that affects international marketing
strategy, which in turn determines performance. We organize the remainder of the article as follows: The
Exporters could be forgiven for finding it easier to for- next section discusses the nature of export commitment.
mulate strategies that outline how they intend to achieve Then, we present the theoretical background of the con-
their goals than to implement strategies using appropri- ceptual model using the RBV, along with study hypothe-
ating mechanisms (Beamish et al. 1999; Vorhies and ses. Next, we explain the research methods involved in
Morgan 2003). developing our data from a multi-industry sample of
150 exporters. We follow this with the study results and
Using the resource-based view (RBV), we theorize a a discussion that draws conclusions from these and pro-
central role for export commitment in the effective vides implications for theory and management practice.
implementation of resource-led strategy. Export com- The work ends with limitations and suggested future
mitment is defined as the willingness of a firm’s manage- lines of research.
ment to devote adequate financial, managerial, and
human resources to exporting activities (Donthu
and Kim 1993). Our study makes three main contribu- EXPORT COMMITMENT: CONCEPT
tions. First, prior work has found that export commit- AND NATURE
ment increases the likelihood of success in foreign mar-
kets. However, this work assumes a direct link with
performance outcomes, and as yet, studies have not A review of the literature reveals two main approaches
linked export commitment to positional advantage to conceptualizing export commitment. First, studies
in export markets. Our RBV framing is the first to have depicted commitment as an attitude—as an endur-
stipulate this. ing positive disposition held by management toward the
act of exporting. For example, Bello and Barksdale
Second, the study is novel in investigating the role (1986) argue that committed exporters believe strongly
of export commitment, alongside marketing-mix that exporting can contribute to achievement of their
adaptation, in mediating the relationships of resources firms’ goals, and Cavusgil and Nevin (1981) argue that
(scale, experiential, structural, and informational) and committed exporters are willing to devote necessary
capabilities (specific export capabilities and export resources to exporting. Second, a stream of studies has
market orientation [EMO]) with perceived positional conceptualized export commitment as a behavior, focus-
advantages. Previous studies (Cavusgil and Zou 1994; ing on manifestations of the construct. Cavusgil and
Zou and Stan 1998) have explained that managers Zou (1994), as well as recent studies employing their
committed to exporting carefully plan the entry and measures (e.g., Lages, Jap, and Griffith 2008), capture
allocate sufficient managerial and nonmanagerial commitment as the amount of planning, financial, and
resources to their export ventures. This means that managerial resources the firm allocates to exporting.
resource strategy can be implemented effectively. Such Despite the performance relevance of behavioral com-
an implementation-related performance effect comple- mitment, theorists (e.g., Leonidou, Katsikeas, and Piercy
ments the formulation-related outcomes of marketing- 1998) argue that a comprehensive picture of commit-
mix adaptation frequently observed in the exporting ment can only be obtained by incorporating attitudes as
literature. well as behaviors.
R esources
Firm
size
Export
experience
Export
commitment
Export
department
Perceived
Information
system positional
advantages
Specific export
capabilities
Marketing-mix
adaptation
EMO
Capabilities
channels, and the broader export market environment formance outcomes (Cavusgil and Zou 1994; Donthu
can help reduce uncertainty in export marketing and and Kim 1993; Lages, Jap, and Griffith 2008; Stump,
enable efficacy in the design and implementation of Athaide, and Axinn 1999). Still, the influence of export
responses directed toward export markets (Cadogan, commitment on positional advantages has not been
Diamantopoulos, and De Mortanges 1999). studied in the literature, and thus additional research is
required. Our framing of positional advantage as an
Export Commitment and Perceived outcome variable of note is consistent with the RBV that
Positional capabilities’ contribution to performance should be
Advantages investigated by disaggregating firm performance into
key processes that are less distal from the resources
A firm possesses a competitive advantage when it has (Ray, Barney, and Muhanna 2004).
certain resources and capabilities that are unique and
difficult to imitate and it can present an offer to the mar- Cavusgil and Zou (1994) point out that firms commit-
ket that provides more value to its customers than com- ted to exporting carefully plan entry tasks and allocate
peting offers (Barney 1991). Kaleka (2002) points out essential managerial and nonmanagerial resources to
that the positional advantages derived from exporting their export ventures. For example, firms committed to
constitute the position the firm achieves in relation to their export activity tend to offer strong support to their
the combination of cost, product, and service elements distribution partners in foreign markets, enhancing the
in a particular foreign market. As such, we define export exchange of information to overcome resource deploy-
positional advantage as managerial perceptions of the ment issues. In addition, firms committed to exporting
firm’s competitive strength (e.g., cost and product are likely to develop value-adding services (e.g., post-
advantages) relative to its competitors in export markets sales support, customer attention). These services tend
(Albaum et al. 2003). to be highly valued by customers in foreign markets,
influencing their degree of loyalty (Beamish, Craig, and
Studies have demonstrated that export commitment McLellan 1993). Export commitment serves to increase
exerts a positive effect on financial and operational per-
1 2 3 4 5
Notes: The bold number on the diagonal is the square root of the AVE; off-diagonal elements are correlations among constructs. N.A. = not applicable.
Composite
Reliability
CONSTRUCT /Dimension/Indicator VIF Weight Loading ( c) AVE
EXPORT COMMITMENT(second-orderreflective construct) .84 .73
Export Market Responsiveness (first-order reflective construct) 1.28 .50 .93 .82
RESP1 .91
RESP2 .81
RESP3 .60
RESOURCES
Size 1 1 1 1
Export experience 1 1 1 1
Export department 1 1 1 1
Information system 1 1 1 1
positive influence on export commitment. In contrast, support of H9d. The other three resources—firm size
the bulk of the resources—that is, firm size ( = –.01, p ( = –.04, p > .05), export experience ( = –.02, p > .05),
> .05), export department ( = .13, p > .05), and infor- and export department ( = .08, p > .05)—had no role
mation system ( = .01, p > .05)—were not determinants in driving EMO, failing to support H9a, H9b, and H9c.
of export commitment. Thus, H4a, H 4c, and H4d cannot
be accepted. Marketing-mix adaptation linked strongly The formative measures and resource antecedents together
to positional advantages ( = .47, p < .01), which con- explained 46.5% of the variance in specific export capa-
firms H5. Taken together, the formative measures, bilities. The resources that linked significantly to this con-
export commitment, and marketing-mix adaptation struct were the firm’s export experience ( = .16, p < .01)
explained 39.2% of the variance in perceived positional and information system ( = .58, p < .01), in support of
advantages. H10b and H10d. However, neither firm size ( = –.01, p >
.05) nor the existence of an export department ( = .06,
The formative measures and structural relationships p > .05) shaped managerial capabilities required in export-
accounted for 19.2% of the variance in marketing-mix ing activity. Therefore, H10a and H10c cannot be accepted.
adaptation. The results show that EMO was positively
associated ( = .36, p < .01) with marketing-mix adap- Our structural model results imply mediation roles of
tation, confirming H6. However, contrary to H7, specific export commitment and marketing-mix adaptation in
export capabilities were not linked to marketing-mix linking export experience, specific export capabilities,
adaptation ( = .10, p > .05). and/or EMO to perceived positional advantages.
Nonetheless, in line with Zhao, Lynch, and Chen
The explained variance for EMO was 44.9%. In addi- (2010), we reran the analysis to obtain Baron and
tion to the formative dimensions, two elements were Kenny’s coefficients “a” (for independent variable–
revealed as key antecedents of EMO. First, specific mediator paths), “b” (for mediator–dependent variable
export capabilities influenced EMO activities ( = .39, p paths), and “c” (for independent variable–dependent
< .01), confirming H8. Second, the resource related to variable paths). The Sobel z-test, applied to our boot-
organized foreign market research (i.e., an information strap output, confirmed that there is indirect-only medi-
system) linked positively ( = .32, p < .01) to EMO, in ation (i.e., significant a ⋅ b, together with nonsignificant
Path t-Value
Hypothesis Coefficient () (Bootstrap) Support
H1: Export commitment positional advantages .27 3.25* * Ye s
H2: EMO export commitment .36 3.79* * Ye s
H3: Specific export capabilities export commitment .25 2.37* * Ye s
H4a: Firm size export commitment –.01 .13n.s. No
H4b: Export experience export commitment .13 2.06* Yes
H4c: Export department export commitment .13 1.59n.s. No
H4d: Information system export commitment .01 .11n.s. No
H5: Marketing-mix adaptation positional advantages .47 6.46* * Ye s
H6: EMO marketing-mix adaptation .36 3.20* * Ye s
H7: Specific export capabilities marketing-mix adaptation .10 .79n.s. No
H8: Specific export capabilities EMO .39 3.65* * Ye s
H9a: Firm size EMO –.04 .43n.s. No
H9b: Export experience EMO –.02 .29n.s. No
H9c: Export department EMO .08 1.22n.s. No
H9d: Information system EMO .32 3.16* * Ye s
H10a: Firm size specific export capabilities –.01 .23n.s. No
H10b: Export experience specific export capabilities .16 3.00* * Yes
H10c: Export department specific export capabilities .06 1.02n.s. No
H10d: Information system specific export capabilities .58 8.89* * Yes
*p < .05.
**p < .01.
Notes: Items marked with superscript n.s. are not significant (based on t(999), one-tailed test).
c effects, at p < .05) of export commitment in the rela- gerial and nonmanagerial resources to their ventures.
tionships of export experience, specific export capabili- We extend prior research on the role of export commit-
ties, and EMO with positional advantage and of ment as an organizing structure (e.g., Beamish et al.
marketing-mix adaptation in the link between EMO 1999; Cavusgil and Zou 1994) by revealing mediating
and positional advantages. mechanisms through which export commitment con-
nects resources and capabilities to positional advan-
tages. As such, export commitment enables firms to
DISCUSSION AND CONCLUSIONS effectively implement resource-led strategy.
This study makes several contributions to existing In particular, significant recent research has focused on
theory on export marketing strategy management. the relationship between EMO and performance. Stud-
First, although the exporting literature has consis- ies (e.g., Cadogan, Diamantopoulos, and Siguaw 2002)
tently emphasized the criticality of marketing-mix have shown that firms that are market oriented can rec-
strategy–performance relationships (Sousa, Martinez- ognize and respond to global opportunities more effec-
Lopez, and Coelho 2008), far less is known about tively in today’s competitive environment. We add to the
strategy implementation–related outcomes. The study is emerging understanding of EMO by revealing that
novel in theorizing that managers committed to export- market-sensing capabilities may be leveraged produc-
ing carefully plan the entry and allocate sufficient mana- tively through export commitment.
Appendix
. M easu res
Export Commitment
The following blocks of questions aim to determine your firm’s commitment to export activity. Please answer on a scale of 1–7
(1 = “very low,” and 7 = “very high”).
Current Export Commitment
COMM 1 The level of time and effort our firm’s management currently commits to export activity is ...
COMM 2 The level of financial resources currently committed to export activity is ...
COMM 3 The level of human resources currently committed to export activity is ...
COMM 4 Compared to the Spanish market, the resources currently committed to export activity are ...
PerceivedPositionalAdvantages
Indicate generally your firm’s competitive position compared to its main rivals in its foreign markets with respect to the follow-
ing concepts, using a scale of 1–7 (1 = “much worse,” and 7 = “much better”).
ADV1 Product differentiation
ADV2 Price
ADV3 Distribution
ADV4 Promotion or communication
ADV5 Human resources
ADV6 Costs
Marketing-Mix Adaptation
The following block of questions aims to find out the extent to which your firm adapts the four marketing-mix variables in its
foreign markets compared to its home market. Please answer on a scale of 1–7 (1 = “not at all,” and 7 = “substantially”).
PROD Product
PRIC Price
DIST Distribution
PROM Promotion or communication
EMO
The following blocks of questions aim to evaluate your firm’s level of export market orientation, using a scale of 1–7 (1 =
“totally disagree,” and 7 = “totally agree”).
Export Intelligence Generation
GEN1 In our firm, we systematically collect information about our foreign markets (needs, desires, level of satisfaction
with our products, etc.).
GEN2 In our firm, we systematically collect information about our rivals’ actions in our foreign markets (price policy,
product, market segments targeted, etc.).
GEN3 In our firm, we systematically collect information about any changes in our export environment (technologies,
regulations, economic aspects, etc.).
Export Intelligence Dissemination
DIS1 In our firm, there is a fluid communication between the different departments/employeesabout any changes occur-
ring in our export markets (customers, competitors, environment).
DIS2 In our firm, we have regular meetings to discuss the trends and developments in our export markets.
DIS3 In our firm there is a strong collaboration between staff involved in the export activity and the other departments
(R&D, finance, accounting, etc.).
Export Market Responsiveness
RESP1 Our firm tends to respond quickly to changes detected with respect to our foreign customers.
RESP2 Our firm tends to respond quickly to changes detected with respect to our foreign rivals’ actions.
RESP3 Our firm tends to respond quickly to changes detected in our export environment.
SpecificExportCapabilities
The following block of questions aims to evaluate managerial capabilities related to export activity, using a scale of 1–7 (1 =
“totally disagree,” and 7 = “totally agree”).
CAP1 Our managers dedicated to exports have strong knowledge of: foreign languages, foreign trade techniques, etc.
CAP2 Our managers with responsibility for exports visit our foreign markets regularly and/or participate regularly in
international trade fairs.
CAP3 Our export managers have a strong knowledge of the values, culture, and customs prevalent in our foreign
markets.
R esources
Firm size Total number of employees in the firm
Export experience Number of years’ exporting
Export department Firm has export department (yes/no)
Information system Our firm has a system to collect information allowing us to investigate and assess foreign markets (1
“totally disagree,” and 7 = “totally agree”).
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