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Lookup NU author(s): Dr Xinming He
Purpose: Firms from emerging markets, like China, have difficulty exporting their products because they tend to lack a competitive advantage. In this paper we suggest that one advantage they might be able to exploit internationally is market orientation. But to be effective these firms need to choose exporting channels that complement the level of market orientation the firm possesses.Methodology: We developed our questionnaire based on literature and employed survey to collect data from Chinese manufacturing firms entering international markets. Logistic regression, structural equation modeling (SEM), and two-stage OLS regression were conducted to test our hypotheses.Findings: We note that firms with higher market orientation advantages tend to prefer hierarchical exporting channels while those with lower level market orientation advantages prefer hybrid channels. Moreover, the analysis also shows that decisions that create a fit between market orientation advantages and export channel choice yield better export performance.Research limitations/implications: This research explains how resource-based advantage such as market orientation structured in the right way can help exporting firms from China compete with their rivals in international markets.Practical implications: When firms expand internationally, they should consider how best to structure their foreign operation to get the most out of their resource-based advantage.Value: This study shows one way in which firms from emerging markets, i.e., China, can have a significant impact in the global marketplace.
Author(s): He X, Brouthers KD, Filatotchev I
Publication type: Conference Proceedings (inc. Abstract)
Publication status: Published
Conference Name: China Goes Global 2009 Conference
Year of Conference: 2009
Date deposited: 29/10/2010