Which of the following is a reason that firms take a reactive approach to exporting rather than a proactive approach?

Which of the following is a reason that firms take a reactive approach to exporting rather than a proactive approach?

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Which of the following is a reason that firms take a reactive approach to exporting rather than a proactive approach?

Which of the following is a reason that firms take a reactive approach to exporting rather than a proactive approach?

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Highlights

The study suggests three distinct types of exchange modalities used by small exporters based on insights from the Norwegian seafood industry.

Findings indicate that the choice of exchange mode among small exporters is impacted by firm-specific and industry-level contingencies.

Facing resource constraints and increasing global competition, small firms are likely to engage in transactional exchanges.

Casual exchanges with frequent buyers are likely to be favored under conditions of high global supply and demand uncertainty.

Lower product perishability and greater product customization are likely to result in the pursuit of relational exchanges.

Abstract

This study investigates how small, resource-constrained firms identify international marketing strategies for perishable products. Although international marketing of perishable products poses challenges for the exporter, many small companies manage to survive and thrive on an international business arena. Over the past decades, there has been a growing interest in how small firms design their international marketing channels. However, little is known about the conditions leading to the choice of a particular exchange modality. Drawing from the contingency framework, we investigate the role of firm-specific and industry-related factors in the choice of exchange mode among resource-constrained exporters. Based on insights from the Norwegian seafood industry, we introduce a contingency framework and develop a typology of exchange modalities. We suggest that resource-constrained exporters are inclined to engage in a succession of transactional exchanges. We offer propositions on the choice among alternative exchange modalities contingent upon firm and industry factors.

Keywords

Small firms

Exporting

Exchange mode

Contingency framework

Commitment

Trust

Flexibility

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© 2021 The Authors. Published by Elsevier Ltd.

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Abstract

This study presents an investigation of factors that stimulate the decision-making process of exporting firms from a European Lesser Developed Country (LDC) to continue and sustain export activities. The paper explores the existence of dimensions underlying export motivation and identifies potentially significant differences in perceptions of export stimuli based on firm size, degree of export involvement, and exporting experience. The findings point to a more proactive (than reactive) motivation structure underlying the export activities of these manufacturers. While no relationship is found between perceptions of export motivation and firm size, a number of significant differences in ongoing export stimuli are identified between different groups of firms in terms of export involvement and, to a lesser extent, exporting experience. Managerial and public policy implications are discussed, and suggestions for future research directions are outlined.

Journal Information

Journal of International Marketing is an international, peer-reviewed journal that is dedicated to advancing international marketing practice, research, and theory. Contributions addressing any aspect of international marketing are welcome. The journal presents scholarly and managerially relevant articles on international marketing. Aimed at both international marketing/business scholars and practitioners at senior- and mid-level international marketing positions, the journal's prime objective is to bridge the gap between theory and practice in international marketing.

Publisher Information

Sara Miller McCune founded SAGE Publishing in 1965 to support the dissemination of usable knowledge and educate a global community. SAGE is a leading international provider of innovative, high-quality content publishing more than 900 journals and over 800 new books each year, spanning a wide range of subject areas. A growing selection of library products includes archives, data, case studies and video. SAGE remains majority owned by our founder and after her lifetime will become owned by a charitable trust that secures the company’s continued independence. Principal offices are located in Los Angeles, London, New Delhi, Singapore, Washington DC and Melbourne. www.sagepublishing.com

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