Change in international market strategy as a reaction to performance decline

Luis Lages (), José Mata and David A. Griffith

Journal of Business Research, 2013, vol. 66, issue 12, 2600-2611

Abstract: While a great deal of research has explored how international marketing strategy influences performance, researchers have paid scant attention to understanding changes to international marketing strategy resulting from firm reaction to past performance. In this study, organizational learning theory addresses when and how international marketing strategy will change. Employing data from over 500 exporters, the results, which are consistent with theoretical predictions, indicate that (1) firms are generally not prone to inertia and do, in fact, change their international marketing strategy when facing declines in performance, and (2) that the direction of change depends on the level of competition in the specific foreign market, with firms adapting their international marketing strategy in low competitive markets and standardizing their international marketing strategy in highly competitive markets. The paper includes implications for academics and practitioners.

Keywords: International marketing; Strategic change; Competitive intensity; Adaptation/standardization; Local/global strategy; Organizational learning (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:66:y:2013:i:12:p:2600-2611

DOI: 10.1016/j.jbusres.2012.05.018

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