Early economic theory postulated that economic
development was predicated on the surplus of exports over imports (e.g.,
Smith 1776), under a manufacturing mentality in which countries attempt
to minimize production costs to enhance exports (cf., Vernon 1966).
However, in today’s highly competitive global marketplace, focusing solely
on the minimization of production costs may no longer lead to successful
export-driven economic development (Aulakh, Kotabe and Teegen 2000). Scholars
have noted that the ineffectiveness of economies to develop in today’s
globally competitive environment is partially derived from the subjugation
of marketing strategies in favor of manufacturing strategies (Aulakh et
al. 2000; Dominguez and Brenes 1997). In today’s global marketplace,
successful export-driven developing economies are founded, to a degree,
on the marketing strategies employed by the nation’s exporters (Aulakh
et al. 2000). Given the tremendous importance of exports to economic development
(Scholling and Timmerman 1988), the examination of marketing strategies
of exporters in successful export-driven developing economies, become critical
(Aulakh et al. 2000; Glasure and Lee 1999).
The international orientation of a nation is
a precondition for economic success and is embodied within the nation’s
trade policies (Dichtl, Koeglmayr and Mueller 1990; Edwards 1993; Gencturk
and Kotabe 2001). Internationally oriented economies have liberal
trade policies, support international business efforts through export assistance
programs, provide financial assistance, etc. (Dichtl et al. 1990; Gencturk
and Kotabe 2001). Alternatively, nations who are not internationally
oriented employ protectionist policies, characterized by limitations on
imports and exports, lower levels of export assistance programs, etc.
Although the international orientation of a nation is a necessary condition
for the economic development of a nation, it is not sufficient. Rather,
a nation’s economic success is driven by the firms within the nation, who
serve as conduits of a nation’s trade policies. Thus, taken at a
lower level of abstraction, the international orientation of exporters
and other firms that can offer products to foreign markets, play a critical
role in the economic success of a nation (Aulakh et al. 2000).
It could be argued that the international orientation
of exporters can be classified along a continuum from proactive to conservative
(cf., Francis and Collins-Dodd 2000). Further, I wonder if we could develop
credible arguments that those that are proactive aggressively seek out
new export markets, export opportunities and are committed to international
growth, thus employing adaptive and brand building marketing strategies?
Alternatively, could we develop arguments that exporters who fulfill unsolicited
orders, are not engaged in the active search for export opportunities,
export as low-cost suppliers, export as an additional revenue stream to
their domestic operations, etc., could be classified as more conservative?
While this conceptualization differs from the classic definition of proactive
and conservative orientations taken in the literature (e.g., Francis and
Collins-Dodd 2000; Julien et al. 1997; Piercy 1981; Suzman and Wortzel
1984; Tesar and Tarleton 1982; Yeoh and Jeong 1995), I wonder whether it
could be valid.
We know that the international orientation
of an exporter determines the firm’s marketing strategy (Johnston and Czinkota
1982; Katsikeas and Piercy 1993). We could argue that proactive,
international orientated exporters are strongly committed to their international
operations, employing adaptive marketing strategies to more effectively
meet the local demands of each market, thus competitively positioning themselves
in the market to achieve long-term performance success. Alternatively,
firms employing a conservative international orientation engage in marketing
strategies that minimize investment in international markets (e.g., achieving
economies of scale through standardized marketing strategies), often times
serving as low-cost suppliers to importers in other markets. As such,
one could argue that within the context of an export-driven developing
economy, those firms employing adaptive marketing strategies derived from
a proactive international orientation develop a sustainable competitive
position within foreign markets, thus achieving higher performance when
compared to exporters adopting standardized marketing strategies, characteristic
of a more conservative international orientation.
Given the importance of exporting to a nation’s
economic development, a significant amount of research has been undertaken
in this area. Traditionally, academic studies on export marketing
have focused on identifying the profiles of exporters or differences between
exporters and non-exporters (i.e., Aaby and Slater 1989; Bilkey 1978, 1982;
Cavusgil 1984; Ogram 1982; Tesar and Tarleton 1982), the determinants of
export decisions (i.e., Cavusgil and Nevin 1981; Wiedersheim-Paul Olsen,
and Welch 1978), the stages of exporting (i.e., Bilkey and Tesar 1977;
Johanson and Vahlne 1977; Rao and Naidu 1992; Sullivan and Bauerschmidt
1990; Turnbull 1987), and most recently the relationship between export
marketing strategy and export performance (e.g., Aulakh et al. 2000; Cavusgil
and Zou 1994; Francis and Collins-Dodd 2000, etc.). However, with few exceptions
(e.g., Dominguez and Sequeira 1993; Aulakh et al. 2000, etc.), studies
examining the relationship between export orientation’s influence of marketing
strategy and its overall effect on export performance have been conducted
within developed economies as well as have been focused at the firm level.
Here, the question posed is whether we could gain insights into the marketing
strategy to export-driven economy relationship.
Granted, there will be challenges in linking
governmental orientation to firm level marketing strategy as well as linking
firm level marketing strategy to national economic development. Clearly,
unit of analysis issues are raised by what is suggested. However, with
challenge comes reward. In this case, the reward offered is one of understanding
intricate macro and micro level linkages. If you find this interesting
and would like to see if we can work together to more fully develop this
idea, e-mail me.
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