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Linking market orientation to international market selection and international performance

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Author Info

  • He, Xinming
  • Wei, Yingqi

Abstract

One key strategic decision in a firm's internationalization process is the international market selection (IMS). IMS must match the firm's own-specific resources and capabilities for optimal performance. This research, drawing on the resource-based view, investigates how a firm's market orientation (MO) resources and capabilities influence the firm's IMS between culturally close and distant markets and how the matching of MO and IMS impacts on its international performance. We hypothesize that market-oriented firms tend to choose culturally distant markets that help them exploit their MO. Firms with a fit between MO and IMS tend to perform better internationally than those without such a fit. Both hypotheses are supported by our database of Chinese manufacturing firms expanding internationally.

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Bibliographic Info

Article provided by Elsevier in its journal International Business Review.

Volume (Year): 20 (2011)
Issue (Month): 5 (October)
Pages: 535-546

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Handle: RePEc:eee:iburev:v:20:y:2011:i:5:p:535-546

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Related research

Keywords: China Hierarchical binary logistic regression analysis International market selection International performance Market orientation Resource-based view Structure equation modeling;

References

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Citations

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Cited by:
  1. Wei, Yingqi & Zheng, Nan & Liu, Xiaohui & Lu, Jiangyong, 2014. "Expanding to outward foreign direct investment or not? A multi-dimensional analysis of entry mode transformation of Chinese private exporting firms," International Business Review, Elsevier, vol. 23(2), pages 356-370.
  2. Chi, Ting & Sun, Yao, 2013. "Development of firm export market oriented behavior: Evidence from an emerging economy," International Business Review, Elsevier, vol. 22(1), pages 339-350.
  3. Musso, Fabio & Francioni, Barbara, 2012. "How Do Smaller Firms Select Foreign Markets?," MPRA Paper 49117, University Library of Munich, Germany, revised 02 Nov 2012.

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