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254 European J. International Management, Vol. 7, No. 3, 2013
Copyright © 2013 Inderscience Enterprises Ltd.
The importance of an export-oriented culture
for export performance
Antonio Navarro-García*,
F. Javier Rondán-Cataluña and
Francisco J. Acedo-González
Departamento de Administración de empresas y
Comercialización e Investigación de Mercados,
University of Seville,
Av. Ramón y Cajal, 1, 41018 Sevilla, Spain
Email: anavarro@us.es
Email: rondan@us.es
Email: fjacedo@us.es
*Corresponding author
Abstract: The prevailing corporate culture of an organisation plays a
fundamental role in the generation and exchange of knowledge and can have a
crucial effect on business performance. In the export field, corporate culture
usually influences the levels of strategic orientation of organisations and affects
decision-making and the outcomes associated with the exporting activity. In
this context, the aim of this paper is to propose and test a model examining the
implications of strategic export orientation on (a) export commitment; (b) the
extent of marketing-mix adaptation to the international context; (c) perceived
competitive advantage in foreign markets; and (d) export performance. To
analyse the data and evaluate the relationships between the different constructs,
we chose structural equation modelling via PLS (partial least squares). Using a
sample of 150 Spanish export firms, the results corroborate the important role
of strategic export orientation in the success of firms in foreign markets, and
yield important implications for export managers.
Keywords: export proactivity; export market orientation; marketing-mix
adaptation; perceived competitive advantages; export performance; international
management.
Reference to this paper should be made as follows: Navarro-García, A.,
Rondán-Cataluña, F.J. and Acedo-González, F.J. (2013) ‘The importance of an
export-oriented culture for export performance’, European J. International
Management, Vol. 7, No. 3, pp.254–277.
Biographical notes: Antonio Navarro-García is Associate Professor in the
Department of Business Management and Marketing at the University of
Seville (Spain). He was awarded his PhD in Business Administration from the
University of Seville in Spain. His research interests are international
marketing, franchising and retailing. His work has been published in journals
such as Journal of World Business, Journal of International Marketing, Journal
of Marketing Theory & Practice, Management Research Review, The Service
Industries Journal, Management Decision, International Entrepreneurship and
Management Journal, International Journal of Retail & Distribution
Management, etc.
The importance of an export-oriented culture 255
F. Javier Rondán-Cataluña is Associate Professor in the Department of
Business Management and Marketing at the University of Seville (Spain). He
received his PhD in Marketing from the University of Seville in Spain. His
research interests are franchising, price management and consumer behaviour.
His work has been published in journals such as Journal of Business Economics
and Management, Computers & Education, The Service Industries Journal,
International Journal of Service Industry Management, Behaviour &
Information Technology, Management Decision, Electronic Commerce
Research and Applications, Service Business, Journal of Consumer Behaviour,
International Entrepreneurship and Management Journal, International
Review of Retail Distribution and Consumer Research, Journal of Product and
Brand Management, etc.
Francisco J. Acedo-González is Associate Professor of Strategic Management
at the University of Seville (Spain). He holds a PhD in Business Administration
from the University of Seville in Spain. His research interest is focused mainly
on the internationalisation process of SMEs and the role of time in the
international growth of firms. He has published in Strategic Management
Journal, Journal of Management Studies, Journal of World Business,
International Business Review, Journal of International Marketing, etc. He is
also Honorary Research Fellow at the Centre for Internationalisation and
Enterprise Research at the University of Glasgow.
1 Introduction
Organisations are dynamic entities that struggle every day to ensure their survival. To
achieve this goal they develop their own personality, which reflects the company’s way
of thinking and doing business. This is the organisational culture that determines the
behaviour, values and desirable attitudes of the organisation through the convictions
shared by top managers regarding the best practices for managing the firm. The
organisational culture must be conceived from a dynamic perspective, as it affects the
organisation’s structure, strategy and operations (internal environment), and maps the
interactions with the external environment (task and legitimisation environment) (Dauber
et al., 2012). Corporate culture extends throughout the whole organisation, but is
especially relevant in corporate strategic orientation, where it determines decision-
making, and as a consequence, business performance (Deshpandé et al., 1993). In this
context, the success (or failure) of firms operating in a given environment depends on the
strategic orientation of the organisation (Porter, 1980; Knight, 1995), which is imbued
with the organisational culture (Morgan and Strong, 2003). The focus of this research
stream has been confined to domestic markets (Douglas and Rhee, 1989; Cavusgil and
Zou, 1994), and there has been little development in the field of international markets
(Wood and Robertson, 1997). According to this perspective, further studies are required
that analyse the antecedents and consequences of organisational culture and strategic
orientation in the context of international marketing. Trying to fill this gap, and focusing
on exports as the traditional way of accessing foreign markets, a first objective of this
paper is to analyse the impact of strategic export orientation on (a) export commitment,
(b) the degree of marketing-mix adaptation to the international context, (c) perceived
competitive advantage in foreign markets, and (d) export performance.
256 A. Navarro-García, F.J. Rondán-Cataluña and F.J. Acedo-González
Strategic orientation has been conceptualised in a variety of ways. However, two
perspectives predominate in the literature. Firstly, many researchers have attempted to
capture the frame of mind, or mental ‘orientation’, that managers bring to the strategic
development process (Wood and Robertson, 1997). In this context, strategic orientation is
defined as the specific managerial perceptions, predispositions, tendencies, motivations
and desires that precede and guide the strategic planning and development process, and,
ultimately, the direction of the organisation (Gabarro, 1973; Wood and Robertson, 1997).
Secondly, the strategic orientation of the organisation has been associated with the degree
of market orientation and this topic is conceived as a key determinant of business success
(Cadogan et al., 2002). In this paper, we use both perspectives to define strategic export
orientation. According to Francis and Collins-Dodd (2000), strategic export orientation
can be conceptualised as the degree to which various aspects underlie export behaviour
(proactive or conservative). Three aspects stand out from the rest: (a) those associated
with the importance to the organisation of export sales and foreign markets, (b) those
related to identifying opportunities in foreign markets via market research and permanent
contact with distributors and consumers in foreign markets, and (c) the orientation of the
information-seeking approach. Furthermore, these three aspects are the origin of the
managerial behaviours related to export market orientation (EMO). In this context,
following Cadogan et al. (2001), the strategic orientation of the exporting company is
determined by managerial behaviours related to the collection and use of information
regarding the needs of foreign consumers in order to design offers and services that
generate a higher value for these consumers than its competitors.
Therefore, this research will evaluate strategic export orientation through two
separate but interrelated components: (a) export proactivity, and (b) EMO. The main
contributions of this study are as follows: (a) it will help to fill an important gap in the
literature, demonstrating that strategic export orientation is infused with the dominant
culture of the organisation, and reflects managerial attitudes (proactive or conservative)
towards export activity; (b) tactical and strategic decisions adopted by organisations and
export performance depend on the orientation and culture regarding export activity;
(c) the exporting activity should be conceived from a dynamic perspective, to the extent
that culture and strategic orientation can be changed over time.
In order to achieve these objectives, the paper is organised in four parts. Firstly, the
concepts of strategic export orientation and the other variables studied have been defined
from the literature review. The specification of the theoretical framework of the research
leads on to the proposition of the conceptual model and the hypotheses to be tested.
Secondly, the research methodology, sample, information obtained and data analysis
tools used to test the hypotheses and to segment the sample are described. Thirdly, the
results obtained are presented, from which the main conclusions and managerial
implications are extracted. In the fourth and final phase, the main limitations of the study
and future research are outlined.
2 Conceptual model and hypothesis
2.1 Export performance
Cavusgil and Zou (1994) define export performance as the extent to which the firm
achieves its objectives when exporting a product to a foreign market. Economic (profits,
The importance of an export-oriented culture 257
sales, costs, etc.) or strategic (expansion of market, increase in market share abroad, etc.)
considerations through the planning and execution of its international marketing strategy
are the focal points.
Although the majority of researchers accept that export performance is multi-
dimensional in nature, it can be conceptualised and operationalised in many ways (Rose
and Shoham, 2002; Sousa, 2004). Export performance must include managerial
satisfaction because it provides a benchmarked measure of performance against
organisational expectations and affects the selection of future strategies (Shoham, 1999).
In particular, one approach that is increasingly relied upon is the aggregation of
satisfaction with various performance measures into a single measure of export
performance (Katsikeas et al., 2000; Diamantopoulos and Winklhofer, 2001). This is the
approach adopted here; this dimension of export performance is called qualitative export
performance. Satisfaction is defined as a compound psychological variable assessing
the effectiveness of a marketing programme in terms of performance (Lages and
Montgomery, 2004). Furthermore, the measurement of export performance should
include quantitative indicators that objectively reflect the results of firms in foreign
markets. These indicators are related to sales, market share, etc. (Leonidou et al., 2002).
In this study, the growth of export sales over three years have been included as
quantitative indicators. This dimension is called quantitative export performance. Export
performance is therefore measured as a construct consisting of two dimensions:
qualitative (satisfaction with export performance) and quantitative (growth in export sales
over three years).
2.2 Perceived positional advantages in foreign markets
Kaleka (2002) and Morgan et al. (2004) point out that the competitive advantages derived
from exports constitute the position the firm achieves in relation to the combination of
cost, product and service elements in a particular foreign market. Cost advantage involves
the resources consumed in producing and marketing the value offered and affects the
price and perceived value in the export market. Product advantage denotes quality,
design, and other product attributes that differentiate the value offered from those of the
firm’s competitors. Service advantage includes service-related components of the value
offered, such as delivery speed and reliability and the quality of after-sales service.
Moreover, evaluating a firm’s competitive advantage implies collecting information
about customers’ perceptions of the firm’s products and services, or investigating the
explanatory factors (resources and capabilities) of each firm’s position in the market
compared to its competitors. For that reason, we have adopted an approach taken by
previous research (Ling-Yee and Ogunmokun, 2001; Albaum et al., 2003). We define
export competitive advantage as a firm’s perceived (the managers’ perceptions)
competitive strength relative to competitors in export markets.
Perceived competitive advantages in foreign markets are direct antecedents of export
performance, because the relative superiority of the value offered by a firm determines
the target customers’ buying behaviour and the outcomes of this behaviour for the export
performance (Cavusgil and Zou, 1994; Zou et al., 2003). The above leads us to the first
research hypothesis:
H1: Perceived competitive advantages in foreign markets have a positive effect on export
performance.
258 A. Navarro-García, F.J. Rondán-Cataluña and F.J. Acedo-González
2.3 Adaptation of export marketing-mix
The standardisation marketing programme involves offering identical product lines at
equivalent prices through identical distribution systems, supported by similar promotional
programmes in several different countries (Levitt, 1983). Various researchers recommend
using a standardisation strategy when the firm’s target foreign markets behave similarly
(Kustin, 2004; Özsomer and Simonin, 2004). Opponents of standardised strategies have
pointed out that although socioeconomic trends in some market segments may be
converging, national cultures, local market conditions, public policies and regulations
across markets and consumer reactions to standardised strategies may be diverging
(Douglas and Wind, 1987; Griffith et al., 2006). For this reason, Albaum and Tse (2001)
point out that adaptation is inevitable after a firm successfully enters its foreign markets.
The adaptation of the export marketing-mix requires changes to any attribute of the
product (label, brand name, etc.), price, distribution and/or promotional programme to fit
the particularities of each country-market (culture, individual income, consumer tastes
and preferences, etc.).
In any event, two extreme positions, standardisation versus adaptation, are impossible
to implement strictly, because, as the contingency approach indicates, the degree of
adaptation versus standardisation is a function of the products’ characteristics, industry,
market, organisation, and environmental characteristics (Calantone et al., 2006). In this
context, researchers prefer to speak of different degrees of standardisation or adaptation
in the export marketing strategy (Theodosiou and Leonidou, 2003; Lages and
Montgomery, 2004). Consequently, we evaluate the export marketing strategy along the
standardisation-adaptation continuum, focusing on the degree of adaptation of four
marketing tactics (product, price, distribution and promotion). In this sense, we view
the adaptation of an export marketing strategy in terms of the degree to which the
marketing tactics are adapted to enable export markets to accommodate differences in
environmental forces, consumer behaviour, usage patterns, and competitive situations
(Cavusgil and Zou, 1994).
The literature suggests that a firm’s capability to achieve and sustain positional
advantages in foreign markets is closely linked to the efficient and effective execution of
a planned export marketing strategy (Sousa et al., 2008). In this context, some authors
(e.g. O’Cass and Julian, 2003; Morgan et al., 2004) argue that developing a differentiated
marketing strategy in foreign markets requires the firm to adapt to the needs and desires
of the target markets. More specifically, when the firm adapts its marketing-mix elements
to the idiosyncrasies of the different country markets, its products are more likely to be
perceived as offering superior value compared to those of its rivals, and positive
outcomes can be expected for the firm (Theodosiou and Leonidou, 2003). Therefore, we
hypothesise the following:
H2: The export marketing-mix adaptation is positively related to perceived positional
advantages in foreign markets.
Several benefits can be derived from the adaptation of export marketing tactics: (a) they
allow the firm to adjust its offer to the particular characteristics of each market, which
reduces foreign consumers’ uncertainty, or psychological distance (Madsen, 1998); (b)
The importance of an export-oriented culture 259
they improve relationships with local intermediaries (Shoham, 1999); and (c) the firm can
attain a greater profitability, as a better product-market match can result in greater
customer satisfaction, which can give greater pricing freedom vis-à-vis competitors
(Leonidou et al., 2002). Therefore, the adaptation of export marketing tactics enhances
export performance (Zou and Cavusgil, 2002). For this reason, we propose that adapting
the price, communication, product and distribution to the needs and expectations of
foreign consumers is positively associated with performance in international markets, and
the following research hypothesis captures this idea:
H3: Adapting the export marketing-mix elements has a positive effect on export
performance.
2.4 Export commitment
Export commitment is a strategic factor that determines the resources allocated to the
firm’s foreign trade operations and it is fundamental for progress and continuous
improvement in export markets (Navarro et al., 2010b). Researchers consider
commitment from two different perspectives: attitudinal and behavioural (Stump et al.,
1999). From the attitudinal perspective, export commitment can be defined as managers’
willingness to dedicate financial, managerial and human resources to the export activity
(Donthu and Kim, 1993). On the other hand, from the behavioural perspective (used in
this study), export commitment is defined by the resources (financial, managerial and
human) the firm currently dedicates to foreign trade operations to achieve the results
expected by its managers, as well as the difficulty in finding alternative uses for these
resources (Pauwels and Matthyssens, 1999).
A firm’s export commitment can be shown in many different ways, but nothing
reflects a firm’s export commitment more than its desire to adapt to meeting the wants,
needs and expectations of its foreign customers, which will mean adapting those elements
of the marketing programme that require modification (Navarro et al., 2010b). The
following research hypothesis encapsulates this idea:
H4: The firm’s export commitment has a positive effect on the adaptation of the export
marketing-mix elements to the needs of foreign markets.
On the other hand, export commitment serves to increase and configure the information
flow from the marketplace to reduce the uncertainty and risks related to exporting. It
enables a firm to allocate resources correctly and proactively to ongoing exporting
activities (Styles and Ambler, 2000) and to achieve positional advantages overseas. In
summary, export commitment enables a firm to organise marketing strategy activities so
that these can be implemented, with less difficulty, to achieve advantage in competitive
export markets. These arguments give rise to the following hypothesis:
H5: Export commitment is positively related to perceived positional advantages in
foreign markets.
Moreover, export commitment will increase managers’ willingness to strive to achieve
the international objectives they have set for their firm, offering strategic guidelines that
will orientate their decision-making in the foreign markets (Lages and Montgomery,
260 A. Navarro-García, F.J. Rondán-Cataluña and F.J. Acedo-González
2004). All this will improve the efficiency and effectiveness of the resource allocation,
providing an essential stimulus to boost both international sales and managers’
satisfaction with the firm’s export performance. Various studies find evidence of this
positive relation between export commitment and export performance (e.g. Donthu and
Kim, 1993; Cavusgil and Zou, 1994; O’Cass and Julian, 2003; Navarro et al., 2010a).
Consequently, we propose the following research hypothesis:
H6: The firm’s export commitment has a positive effect on export performance.
2.5 Export-oriented culture and strategic export orientation
Strategic orientation is usually conditioned by the trust, values and behaviours prevailing
in the organisation, namely, by corporate culture (Deshpandé et al., 1993). In general, this
strategic orientation may be conservative or proactive, searching the markets for business
opportunities, as well as managing and sharing knowledge. Strategic orientation is based
on two basic elements with regard to export activity: (a) the level of market orientation of
the firm; and (b) managerial attitudes and perceptions towards exporting activity.
2.5.1 Export market orientation
In recent decades, market orientation has been one of the largest contributions of
marketing from the corporate culture perspective, because it defines the business
philosophy associated with the generation, dissemination and exchange of information
within organisations. The purpose of this information management is to respond quickly
to the requirements of markets (clients, suppliers, competitors, etc.) (Slater and Narver,
1995).
In line with Cadogan et al. (1999), we define EMO activities as (a) the generation of
market intelligence pertinent to the firm’s exporting operations; (b) the dissemination of
this information to appropriate decision makers; and (c) the design and implementation of
responses directed towards export customers, export competitors, and other extraneous
export market factors that affect the firm and its ability to provide superior value to
export customers. Carrying out EMO activities in the organisation reduces the
psychological barriers associated with internationalisation processes and increases
confidence in decision-making (Cadogan et al., 2002). One of the main consequences is
its reinforcement of managers’ commitment to seek and exploit commercial opportunities
in foreign markets (Martín-Armario et al., 2008). In this sense, EMO can be conceived as
a dynamic capability that, associated with organisational learning, reinforces the
managers’ commitment to the export process and so increases the level of financial,
human, and managerial resources the managers dedicate to exporting (Navarro et al.,
2010b). These ideas are reflected in the following hypothesis:
H7: EMO is positively related to export commitment.
On the other hand, firms with a strong EMO will be more active in their search for, and
better able to identify and take advantage of opportunities emerging in overseas markets
than firms lacking this capability. The generation of knowledge about foreign markets
can effectively reduce the levels of uncertainty and risk associated with export activity.
The importance of an export-oriented culture 261
Knowledgeable firms should behave more proactively and confidently in adapting to the
desires and needs of each national market (Racela et al., 2007). Specifically, firms that
have relevant information about their foreign markets are likely to be more willing to
adapt their products, prices, promotions, and so on, than other firms that lack such
information and base their decisions on intuition (Cadogan and Diamantopoulos, 1995).
Therefore, we hypothesise the following:
H8: EMO is positively related to export marketing-mix adaptation.
2.5.2 Export proactivity
Filatotchev et al. (2009) show that a firm’s progress through its internationalisation
process is strongly associated with its managers’ perceptions, attitudes, and orientations,
which tend to reflect the prevailing corporate culture of the organisation. In this context,
export proactivity can be defined as the degree to which the firm sees exports as a logical
source of expansion for its business. Export proactivity affects the resources dedicated to
investigating the needs of foreign markets with the aim of identifying commercial
opportunities and facilitating the firm’s international positioning (Francis and Collins-
Dodd, 2000).
The firm’s export proactivity reduces the psychological barriers in the decision-
making associated with the internationalisation process, making the management adopt a
more active, dynamic behaviour in the search for business opportunities in foreign
markets. Managers consequently develop more effective practices for capturing and
processing information about the needs and preferences of foreign consumers (Zou and
Cavusgil, 2002). This allows the organisation to design better, faster responses to
customers, competitors, and other external factors of the foreign markets (Cadogan and
Cui, 2004). Therefore, we hypothesise the following:
H9: Export proactivity has a positive effect on EMO.
Moreover, these proactive behaviours of export managers will generate positive
expectations about export activities, encouraging the company to commit a greater
number of financial, human and managerial resources in their foreign trade operations
(Francis and Collins-Dodd, 2000; Navarro et al., 2010a). This will result in a greater
commitment to exporting activities, supporting the following research hypothesis:
H10: Export proactivity has a positive effect on export commitment.
Finally, export proactivity also influences strategic marketing decisions. When export
managers’ behaviours are conservative or reactive, the executive team of the exporting
company is likely to be reluctant to make the changes or adjustments required to the
product, price, etc., to meet the requirements of foreign markets (Griffith et al., 2006).
The reverse occurs when the motivations and behaviours of export managers are
proactive towards exports. These arguments lead to the following research hypothesis:
H11: Export proactivity has a positive effect on marketing-mix adaptation.
Figure 1 shows the proposed conceptual model.
262 A. Navarro-García, F.J. Rondán-Cataluña and F.J. Acedo-González
Figure 1 Graphical description of the model
H1
H2
H3
H4
H5
H6
H7
H8
H9
Export Proactivity Export Market
Orientation
Export
Commitment
Marketing-Mix
Adaptation
Perceived Posit ional
Advantages
Export
Performance
H11
H10
3 Methodology
3.1 Measurement scales
We based the measurement perspectives developed for our multi-item measures on
MacKenzie et al.’s (2005) recommendations for distinguishing formative and reflective
variables. First, we captured the perceived positional advantages, marketing-mix
adaptation, and export proactivity as first-order formative constructs. Each of these items
is related to a specific aspect of the measured construct, so they are not interchangeable
(e.g. competitive advantage in costs does not necessarily confer an advantage on
distribution). Following Navarro et al. (2010a), we measured competitive advantages in
foreign markets using the perception that the managers responsible for exports have about
their firm’s position compared to their main rivals and with respect to six areas: product
differentiation, price, distribution, promotion, human resources, and cost. Following the
recommendations of various authors (Leonidou et al., 2002; Theodosiou and Leonidou,
2003; Lages and Montgomery, 2004), adaptation of the marketing strategy to foreign
markets was measured by the degree to which the firm adapts its marketing-mix elements
(product, price, distribution, and promotion) to the requirements of the foreign markets.
Export proactivity was measured using four indicators. The first one, export propensity
(export sales/total sales), reflects the company’s reliance on export sales (Bodur, 1994).
The other three indicators: importance attributed to foreign markets compared to the
home market; efforts dedicated to systematic investigation of foreign markets; and
frequency of contact with/visits to international distributors, were obtained from the
article by Francis and Collins-Dodd (2000). Second, we treated EMO as a second-order
formative construct (Cadogan et al., 2008; Cadogan et al., 2009) with three reflective
dimensions (export intelligence generation, export intelligence dissemination, and export
market responsiveness). We measured each dimension of EMO using three-item scales
based on Cadogan et al. (1999). Third, export performance was considered as a second-
order formative construct, with two formative dimensions (qualitative and quantitative
export performance). Following Cadogan et al. (2002), qualitative export performance
was measured through export managers’ satisfaction with the effectiveness of a
marketing programme in terms of five objectives: growth of export sales, image of the
The importance of an export-oriented culture 263
firm in foreign markets, profitability of the export business, market share, and
international expansion. Quantitative export performance was measured using the
variables of the export sales growth over three years (Cavusgil and Zou, 1994). Finally,
we considered export commitment as a first-order reflective construct. We measured
export commitment from the behavioural perspective, defining the variable on the basis
of the level of the financial, human, and managerial resources that the firm currently
allocates to its export activity (Stump et al., 1999). Appendix A describes the scales used
to measure every construct included in the conceptual model. Measurement scales used
are seven-point Likert-type, allowing managerial perceptions of the variables analysed to
be identified. This helps to ensure reliability in the statistical analysis and comparability
of the results obtained when working with standardised data.
3.2 Data collection
We carried out an empirical study of Spanish export firms. The sample is representative
of the population of exporters whose headquarters are in Spain. With regard to the
activity of Spanish export firms in general, data from the Ministry of Industry, Tourism
and Commerce (2010) reveal a strong concentration of export activity in a small number
of firms (1% of the exporters generate 64% of total exports) and a strong geographic
concentration in foreign markets (70% of the exports go to other European Union
countries). The main sectors are capital goods (22%), automobiles (18%), and food
(14%). Having compiled and refined the export firm data, the total population consisted
of 1734 firms. We used a multi-industry sample to increase observed variance and to
reinforce the generalisation of the findings (Morgan et al., 2004). Data were collected
through personal interviews with the export managers of 150 firms selected randomly
(sampling error: ±7.65%). The majority of the sample firms were small (68% with fewer
than 50 employees) and allocated a small number of employees to the execution of
export-related tasks (81% had fewer than five export-related employees). More than half
(59%) had assigned export managers, although a minority (33%) had an export
department. Most firms had a great amount of experience in their business (66% with
more than 16 years in their sector), but firms with a great amount of experience in
international business were in the minority (59% with less than 10 years of exporting).
Finally, the majority of sample firms had a strong concentration of export sales in a few
markets (93% exported to five or fewer countries).
We selected a single key informant in each firm to report on its export activity. Use of
a knowledgeable, single key informant can reduce the potential for systematic and
random sources of error (Huber and Power, 1985). To ensure the reliability of the data
source, we required the respondents to be senior managers with a responsibility for
exporting. A specific section of the questionnaire asked respondents for their job title
and assessed their competency in terms of knowledge of, involvement with, and
responsibilities in exporting. High scores on the competency questions indicated that
potential sources of measurement error attributable to the key informant were minimised.
3.3 Data analysis techniques
To analyse data and evaluate the relationship between the different constructs we chose
structural equation modelling via PLS (partial least squares), in view of the
264 A. Navarro-García, F.J. Rondán-Cataluña and F.J. Acedo-González
characteristics of the model and sample. As Reinartz et al. (2009) show, variance-based
techniques (such as PLS) offer better estimation than other techniques in samples under
250. In addition, the use of PLS rather than other types of structural equation modelling
tools is also appropriate here because (Diamantopoulos, 1999; Diamantopoulos and
Winklhofer, 2001): (a) this work is exploratory; (b) compared to other tools (AMOS,
EQS, etc.), PLS does not require large samples (this work uses 150 cases); (c) the
proposed model considers formative and reflective scales together, and the use of PLS
avoids the indeterminacy problems of other techniques such as EQS or LISREL (Jarvis
et al., 2003); and (d) PLS is a nonparametric technique, so researchers do not need to
guarantee the normality of the data. Moreover, this technique is becoming more
important, as can be seen from the number of publications using it in the main journals
(Henseler et al., 2009). We used the statistics package SmartPLS 2.0 M3 (Ringle et al.,
2005) to carry out the empirical analysis.
3.4 Evaluation of the measurement model
To interpret and analyse the proposed model using PLS the analysis went through two
distinct stages (Barclay et al., 1995): (a) evaluation of the measurement model; and (b)
analysis of the structural model. This sequence ensures that the proposed measurement
scales are valid and reliable before testing the hypotheses. For the reflective scales, the
factor loadings were all above the recommended 0.7 (Carmines and Zeller, 1979). The
composite reliability and average variance extracted (AVE) values also exceeded the
recommended values of 0.7 and 0.5, respectively (Fornell and Larcker, 1981). Thus, the
results support the convergent validity of the reflective scales considered in this study
(the three dimensions of EMO and export commitment) (Table 1). Finally, to ensure the
discriminant validity, we confirmed that the squared correlations between each pair of
constructs did not exceed the AVE (Barclay et al., 1995). We also checked that the inter-
correlations between constructs were significantly different from one, which provided
additional evidence of the discriminant validity. In addition, none of the correlations
between constructs reaches 0.6 score (Table 1).
To validate the formative scales we followed Diamantopoulos et al. (2008)
recommendations. We could not omit or eliminate any of the indicators of the scales
because the information was important, so we ensured the absence of multicollinearity
using the variance inflation factor (VIF). In all cases (first- and second-order formative)
the VIF was less than the recommended value of 10 (Kleinbaum et al., 1988) (Table 2).
Table 1 Correlations between constructs
Construct 1 2 3 4 5 6
1. Export Proactivity 1
2. Export Market Orientation 0.26 1
3. Marketing-Mix Adaptation 0.35 0.07 1
4. Export Commitment 0.24 0.53 –0.05 1
5. Perceived Positional Advantages 0.12 0.30 0.09 0.41 1
6. Export Performance 0.04 0.57 0.04 0.34 0.06 1
The importance of an export-oriented culture 265
Table 2 Evaluation of measurement model
CONSTRUCT/Dimension/Indicator
Variance
Inflation
Factor
Weight Factor
Loading
Composite
Reliability
(
c)
Average
Variance
Extracted
EXPORT PROACTIVITY
(formative construct) n.a. n.a.
EP1 1.727 0.075
EP2 1.846 0.472
EP3 1.823 0.483
EP4 1.352 0.182
EXPORT MARKET ORIENTATION
(Second-order formative construct) n.a. n.a.
Generation of market intelligence
(first-order reflective construct) 1.981 0.423 0.942 0.846
GEN1 0.869
GEN2 0.937
GEN3 0.950
Dissemination of market intelligence
(first-order reflective construct) 2.379 0.074 0.909 0.768
DIS1 0.852
DIS2 0.903
DIS3 0.873
Response to market
(first-order reflective construct) 2.143 0.615 0.949 0.861
RESP1 0.905
RESP2 0.934
RESP3 0.943
EXPORT COMMITMENT
(reflective construct) 0.844 0.577
COMM1 1.457 0.735
COMM2 1.476 0.692
COMM3 1.792 0.874
COMM4 1.460 0.725
ADAPTATION MARKETING-MIX
(formative construct) n.a. n.a.
PROD 2.418 0.288
PREC 2.014 0.219
DIST 2.313 –0.032
PROM 1.648 0.677
266 A. Navarro-García, F.J. Rondán-Cataluña and F.J. Acedo-González
Table 2 Evaluation of measurement model (continued)
CONSTRUCT/Dimension/Indicator
Variance
Inflation
Factor
Weight Factor
Loading
Composite
Reliability
(
c)
Average
Variance
Extracted
PERCEIVED COMPETITIVE ADVANTAGES
(formative construct) n.a. n.a.
ADV1 1.167 0.152
ADV2 1.539 0.179
ADV3 1.896 –0.193
ADV4 1.986 0.349
ADV5 2.192 0.510
ADV6 1.694 0.284
EXPORT PERFORMANCE
(Second-order formative construct) n.a. n.a.
Quantitative Export Performance
(formative construct) 1.061 0.219 n.a. n.a.
Crev_2000 1.602 0.810
Crev_2001 2.493 0.421
Crev_2002 1.793 0.740
Qualitative Export Performance
(formative construct) 1.061 0.933 n.a. n.a.
SAT1 1.023 0.136
SAT2 1.222 0.352
SAT3 1.393 0.038
SAT4 1.421 0.556
SAT5 1.194 0.343
Note: n.a.: not applicable.
4 Results
4.1 Hypothesis tests: parameters of structural model
Having ensured the convergent and discriminant validity of the measurement model, we
tested the relationships between the different variables. We started by calculating, using
the bootstrap method (1000 sub-samples), the different statistical parameters (Table 3).
Although many researchers opt for 500 sub-samples in their studies, and this is sufficient,
in the current work we decided to use 1000 to reduce randomness (Davidson and
MacKinnon, 2000).
The importance of an export-oriented culture 267
Table 3 Parameters from hypothesis tests
Hypothesis β t-value Supported
H1: Perceived competitive advantages in foreign markets-
export performance 0.292 2.304*** Yes
H2: Marketing-mix adaptation-perceived competitive
advantages in foreign markets 0.569 9.070*** Yes
H3: Marketing-mix adaptation-export performance 0.077 0.755ns No
H4: Export commitment-marketing-mix adaptation –0.025 0.228ns No
H5: Export commitment-perceived competitive advantages in
foreign markets 0.151 1.764* Yes
H6: Export commitment-export performance 0.404 5.567*** Yes
H7: EMO-export commitment 0.480 5.815*** Yes
H8: EMO-marketing-mix adaptation 0.361 2.892*** Yes
H9: Export proactivity-EMO 0.715 16.793*** Yes
H10: Export proactivity-export commitment 0.213 2.391*** Yes
H11: Export proactivity-marketing-mix adaptation 0.176 1.324ns No
Notes: ns = not significant (one-tailed t(999) test), ***p < 0.001, **p < 0.01,
*p < 0.05
Figure 2 Graphical structural model
H7
β7 = 0.480
H8
β8 = 0.361
R
2
=
0.376
R
2
=
0.399
R
2
=
0.
422
R
2
=
0.
2
37
R
2
= 0.512
H1
β
1 = 0.292
H2
β2 = 0.569
H3
β
3 = 0.077
H4
β4 = –0.025
H5
β5 = 0.151
H6
β
6 = 0.404
H9
β9 = 0.715
Export Proactivity Export Market
Orientation
Export
Commitment
Marketing-Mix
Adaptation
Perceived Positional
Advantages
Export
Performance
H11
β
11 = 0.176
H10
β
10 = 0.213
The hypothesis tests considered the sign and significance of t-values in each relationship
(β coefficient). Of the eleven proposed hypotheses, eight were verified with the
postulated sign. The rejected hypotheses are: hypothesis H3, which states that adapting
the marketing-mix elements has a positive effect on export performance; hypothesis H4,
which postulates that export commitment has a positive effect on the adaptation of the
marketing-mix elements; and hypothesis H11, proposing that export proactivity has a
positive effect on marketing-mix adaptation. The variance explained values of the
different endogenous constructs are given in the discussion section.
268 A. Navarro-García, F.J. Rondán-Cataluña and F.J. Acedo-González
5 Discussion and contributions
The discussion is organised around the main objective of this research. The first of these
is the validation of the proposed theoretical model. This model offers a suitable
framework to explain how the strategic orientation of export firms is an antecedent of
business behaviour, the achievement of competitive advantages and export performance.
Focusing on the relationships between variables and taking the global model as a
reference, a number of conclusions can be drawn.
First, the dimensions and scales proposed to assess the export performance are
appropriate, and they are conceived as a multidimensional construct (second-order
formative construct). Export performance has a variance explained of 37.6% (R2 = 0.376)
and is positively influenced by export managers’ perceptions of competitive advantages
in foreign markets (β = 0.292, t-value = 2304), thus confirming H1. In this context, the
competitive position plays an important role in determining export performance, and,
from a strategic point of view, the company must develop operations oriented to
achieving those advantages over competitors in foreign markets (Morgan et al., 2004).
The variance explained of perceived competitive advantages in foreign markets is 39.9%.
Second, although the marketing literature increasingly recommends adapting the
marketing tactics to the wants and needs of foreign markets rather than relying on
standardisation (Shoham, 1999; Lages and Montgomery, 2004), this research is not able
to confirm the superiority of one strategy over the other (standardisation versus
adaptation), since this variable does not exert a direct effect on export performance
(β = 0.077; t-value = 0.755) and we therefore reject H3. This may be due, as Leonidou
et al. (2002) indicate, to the moderating effect that other factors may exert on the
international marketing strategy, such as size, international experience, managers’
perceptions of internationalisation, the organisation’s objectives in foreign markets, or the
competitive intensity and other variables of the environment (Cavusgil and Zou, 1994;
O’Cass and Julian, 2003). However, this research has found that firms that adapt their
marketing mix perceive that they obtain greater competitive advantages than their rivals
in foreign markets (β = 0.569; t-value = 9.070), confirming H2. The reason for this is that
adapting the marketing-mix elements to the idiosyncrasies of the different country
markets reduces the so-called psychological distance, which makes it more likely that
consumers will perceive that the firm’s products or services offer greater value than those
of its competitors (Theodosiou and Leonidou, 2003). This indicates the existence of an
indirect relationship between the adaptation of elements of the marketing programme and
the export performance via perceived competitive advantages. The variance explained of
marketing-mix adaptation is 23.7% (R2 = 0.237).
Third, export commitment, which has a variance explained of 42.2% (R2 = 0.422),
has a positive effect on managers’ perceptions about the achievement of competitive
advantages in the foreign markets and export performance, which supports hypothesis H5
(β = 0.151; t-value = 1.764) and H6 (β = 0.404; t-value = 5.567). This conclusion
confirms the importance that other research has attributed to export commitment as a
determinant of the international success of export firms (e.g. Cavusgil and Zou, 1994;
Lages and Montgomery, 2004, Navarro et al., 2010a). Nevertheless, export commitment
has no effect on the strategic decisions in international marketing, which depend
exclusively on the firm’s EMO activities. Thus hypothesis H4 is rejected (β = –0.025;
t-value = 0.228).
The importance of an export-oriented culture 269
Fourth, as postulated, EMO is an essential determinant of the firm’s strategic
orientation – having a positive effect– with regard to both export commitment and the
strategic decisions associated with adapting the marketing-mix elements to the
requirements of the foreign markets. These results support hypotheses H7 (β = 0.480;
t-value = 5.815) and H8 (β = 0.361; t-value = 2.892). The acquisition and dissemination
of relevant market information reduces the uncertainty and risks associated with export
activity (Cadogan et al., 2002; Racela et al., 2007). This fact helps the firm to
demonstrate a greater commitment to dedicating the resources required for exporting, and
makes the firm more likely to adapt to the needs and desires of each country market
(Martín-Armario et al., 2008). The variance explained of the EMO construct is 51.2%
(R2 = 0.512).
Finally, export proactivity, as an essential component of an organisation’s strategic
orientation towards exports, is an important determinant of entrepreneurial behaviour in
the international arena. In this context, the managers’ strategic orientation can be seen as
proactive when they attach great importance to export activity in relation to the domestic
market, and when they tend to carry out systematic research of foreign markets,
maintaining permanent contact through visits to overseas distributors and consumers
(Francis and Collins-Dodd, 2000). This will reflect positively on the practice of collecting
and disseminating market intelligence, as well as on the design of quick marketing
responses consistent with the requirements of foreign markets. That is to say, export
proactivity positively influences EMO activities (β = 0.715, t-value = 16.793), confirming
H9. Likewise, export proactivity positively affects the business behaviour related to
committing financial, human and managerial resources to export activity. This behaviour
is export commitment (β = 0.213, t-value = 2391), confirming H10. However, a pro-
export policy does not affect strategic decisions (standardisation vs. adaptation) regarding
the marketing-mix (β = 0.176, t-value = 1324), rejecting H11.
In summary, strategic export orientation is an essential antecedent of organisational
behaviour in foreign markets, because it determines the commitment of financial, human
and management resources that a company devotes to export activities. Furthermore, this
orientation influences the strategic decisions aimed at adapting the elements of the
marketing mix to the needs of foreign markets. This adaptation depends on the
possession, interpretation and dissemination of relevant information on competitors and
foreign consumers, i.e. EMO. Companies engaged in export activity and adjusting
marketing-mix elements to the demands of foreign markets are more likely to build
sustainable competitive advantages in foreign markets. This is the result of a proactive
orientation of export managers and the development of EMO within the organisation.
This is indispensable for the continuous improvement of the organisation and therefore
for increasing the profits of firms in the international context.
6 Implications for managers
Managers can use our findings to systematise decisions and actions associated with their
firms’ export activity and specific implications can be drawn from the study.
First, managers should promote a corporate culture based on values, attitudes and
proactive behaviour that are searching for international market opportunities. The
generation and exchange of knowledge can play a key role in responding appropriately to
foreign market requirements. In this context, managers should note that proactive
270 A. Navarro-García, F.J. Rondán-Cataluña and F.J. Acedo-González
behaviours and EMO practices are fundamental to the success of strategic exporting
actions, achieving competitive advantages in foreign markets, and for continuous
improvements to export performance. Therefore, it is advisable to foster a corporate
culture based on the promotion of values and a proactive behaviour in export managers
towards foreign markets. This culture should be focused on removing the psychological
barriers to exporting, on maintaining constant contact and a continuous exchange
of information with foreign agents and distributors, and on increasing international
business activity. These attitudes, motivations and proactive behaviours encourage the
development of EMO practices in organisations and constitute a major component of an
organisation’s successful strategic direction.
Second, export commitment mediates the relationships between strategic export
orientation, perceived positional advantages in foreign markets and export performance.
Likewise, export commitment increases with the proactive behaviours of export
managers and EMO or market-sensing activities. In summary, several of the firm’s
knowledge resources and processes require this export commitment to be translated into
the managers’ perceptions of greater positional advantages in foreign markets.
Third, the firm can satisfy the needs and desires of foreign consumers more
effectively than its competitors if it adapts elements of its marketing mix. To this end, we
reveal that EMO is the sole driver of marketing-mix adaptation, which mediates the
pathway between EMO, positional advantage and export performance. Again, it is
important for managers to place an emphasis on obtaining relevant information about the
market and enhancing the speed of response to changes in the environment. Both
acquiring and disseminating relevant market information encourages the firm to behave
more proactively in adapting to the desires and needs of each export market.
7 Limitations and future lines of research
This study offers important and novel contributions to the export marketing literature, but
it has a number of limitations, which could be the starting point for future lines of
research. The first limitation concerns the type of study carried out, since it is based on
information obtained at a specific moment in time. It would be advisable for future work
to carry out a longitudinal study to analyse how variations in the organisation’s strategic
export orientation affect: (a) company behaviour in the international scope; (b)
achievement of competitive advantages in foreign markets; and (c) export performance.
The second limitation concerns the fact that the sample is drawn from a single country. In
order to generalise the conclusions drawn here, firms from a wider geographic area
should be included in the analysis. The third limitation concerns the measurement of the
adaptation of the marketing-mix elements, since the decisions about price, product,
promotion and distribution are considered globally, on one scale. It might be more
appropriate to analyse individually the degree of adaptation of each marketing component
to the needs of the foreign markets (Lages and Montgomery, 2004). The final limitation
concerns the potential effect on the variables examined here of other factors not
considered in this study. Thus in future works researchers could consider, for example,
the characteristics of the product exported, the sector of activity, the quality of the
relationships with the international distributors, or the organisation’s dynamic capabilities
(Leonidou et al., 2002).
The importance of an export-oriented culture 271
8 General summary
Corporate culture must be conceived from a dynamic perspective, affecting the structure,
strategy, and operations of an organisation (internal environment) and the map of
interactions with the external environment (task and legitimisation environment).
Corporate culture extends throughout the whole organisation, but is especially relevant in
corporate strategic orientation, affecting decision-making, and consequently, business
performance. In this context, the success (or failure) of firms operating in a given
environment depends on the strategic orientation of the organisation, which is imbued
with the organisational culture. The focus of this research stream has so far been confined
to domestic rather than international markets.
It is necessary to develop studies analysing the antecedents and consequences of
organisational culture and strategic orientation in the context of international marketing.
In an attempt to fill this gap, and focusing on exports as the traditional way of accessing
foreign markets, a first objective of this paper is to analyse the impact of strategic
orientation on: (a) export commitment; (b) the degree of marketing mix adaptation to the
international context; (c) perceived competitive advantage in foreign markets; and (d)
export performance. This research evaluates strategic orientation through two separate
but interrelated components: (a) Export Proactivity, and (b) Export Market Orientation.
This paper is relevant for academics and managers alike. For academics, the paper
offers a suitable framework for explaining how corporate culture and the strategic
orientation of export firms are antecedents of business behaviour, competitive advantage
and export performance. For managers, knowledge generation and exchange can play a
key role in responding appropriately to foreign market requirements. In this context,
managers should note that proactive behaviours and export market orientation practices
are fundamental for the success of their firms’ strategic action, for achieving competitive
advantages in foreign markets, and continuously improving export performance.
Therefore, it is advisable to foster a corporate culture based on promoting values and
proactive behaviour in export managers towards foreign markets. This culture should
focus on removing psychological barriers, on maintaining constant contact and a
continuous exchange of information with foreign agents and distributors, and on
increasing international business activity. These attitudes, motivations and proactive
behaviours encourage the development of export market orientation practices in
organisations and they constitute a major component of the successful strategic
management of organisations.
The main contributions of this study are as follows: (a) it helps to fill an important
gap in the literature, showing that strategic orientation is infused with the dominant
culture of organisations, and reflects managerial behaviours (proactive or conservative)
towards export activity; (b) tactical and strategic decisions adopted by organisations and
their export performance depend on orientation and culture; and (c) exporting activity
should be conceived from a dynamic perspective, because culture and strategic
orientation can change over time.
This paper shows that strategic orientation is an essential antecedent of organisational
behaviour in foreign markets, because it determines the commitment of the financial,
human and management resources that companies devote to export activities.
Furthermore, this orientation influences the strategic decisions aimed at adapting the
elements of the marketing mix to the needs of foreign markets. This adaptation depends
on the possession, interpretation and dissemination of relevant information regarding
272 A. Navarro-García, F.J. Rondán-Cataluña and F.J. Acedo-González
competitors and foreign consumers, that is, the export market orientation. Companies
engaged in export activity and adjusting the marketing-mix elements for foreign markets
are more likely to build a sustainable competitive advantage in these markets. This is the
result of export managers’ proactive orientation and the development of an export market
orientation within the organisation. These attributes are indispensable for the continuous
improvement of the organisation and therefore for increasing profits.
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Appendix A Measurement scales
Export proactivity
EP1 Firm’s export propensity (export sales/total sales)
EP2 Importance of foreign markets compared to home market (1=Much less;
7= Much more)
EP3 Efforts expended by firm to investigate foreign markets systematically (1= None;
7= Considerable)
EP4 Frequency of visits/contacts with foreign distributors in foreign markets (1= None;
7= Very high)
Export market orientation
The following block of questions evaluates your firm’s level of export market orientation
using a scale 1–7 (1= totally disagree; 7=totally agree)
Generation of market intelligence
GEN1 My firm systematically collects information about its foreign markets (needs, desires,
satisfaction with its products…)
GEN2 My firm systematically collects information about the actions of its rivals in the
foreign markets (price policy, product, market segments targeted…)
GEN3 My firm systematically collects information about the changes occurring in its export
environment (technology, regulations, economic aspects…)
Dissemination of market intelligence
DIS1 In my firm, there is a fluent communication between the different departments/staff
about the changes occurring in its export markets (competition and environment)
DIS2 In my firm, meetings are held periodically to discuss the trends and developments of
its export markets
DIS3 In my firm, there is a strong cooperation between staff responsible for exports and
other departments (R&D, finance, accounts…)
Response to market
RESP1 My firm tends to respond rapidly to changes detected in relation to its foreign
customers
RESP2 My firm tends to respond rapidly to changes detected in relation to its foreign rivals
RESP3 My firm tends to respond rapidly to changes detected in its export environment
Export commitment
Answer the following questions using a scale 1–7 (1=Very low; 7=Very high)
COMM1 The level of time and effort the managers dedicate to the firm’s export activity is...
COMM2 The level of financial resources currently dedicated to the firm’s export activity is…
COMM3 The level of human resources currently dedicated to the firm’s export activity is…
COMM4 Compared to the Spanish market, the resources dedicated to the firm’s export
activity are…
The importance of an export-oriented culture 277
Adaptation of Marketing-Mix Elements
Answer the following questions using a scale 1–7 (1=None; 7=Considerable)
Adaptations made in…
PROD Product
PRIC Price
DIST Distribution
PROM Promotion
Perceived competitive advantages in foreign markets
Indicate your firm’s competitive position in its foreign markets in relation to its main
rivals using a scale 1–7 (1=Much worse; 7=Much better)
ADV1 Product differentiation
ADV2 Price
ADV3 Distribution
ADV4 Promotion
ADV5 Human resources
ADV6 Costs
Export performance
Quantitative dimension: State growth in your firm’s export sales in each of past
three years: (a) negative; (b) zero; (c) 1–5%; (d) 6–10%; (e) 11–15%; (f) 16–20%;
(g) > 20%
Qualitative dimension: state managers’ satisfaction with results of your firm’s export
activity: scale 1–7 (1=Totally unsatisfied; 7= Totally satisfied)
SAT1 Growth in export sales
SAT2 Awareness and image of firm in foreign markets
SAT3 Profitability of export activity
SAT4 Market share
SAT5 Firm’s international expansion
