DOES ENTREPRENEURIAL MARKETING MATTER? : A STUDY ON EXPORT PERFORMANCE

Reynaldo Dannecker Cunha,Sergio Garrido Moraes 글로벌지식마케팅경영학회 2014 Global Marketing Conference Vol.2014 No.10

Although many studies were conducted to understand the relationship between Export Marketing Strategies (EMS) and Export Marketing Performance (EMP) (Cavusgil & Zou 1994; Zou & Stan 1998) the majority involved medium-large size companies and took place on developed countries (Cunha, Rocha & Moraes, 2012). The role of managers on influencing marketing strategies (considering marketing mix decision about adaption or standardization) was not comprehensively analyzed. In order to fulfill some gaps Cunha (2012) developed a research to understand the empirical link on Micro and Small Enterprises (MSE) from emerging countries, but the role of entrepreneurs was not completely understood. In order to clarify this link, the reference model used was redesigned to explore Entrepreneurial Marketing (EM) and its influence on EMS and EMP. The relevance of MSE on emerging markets, especially in Brazil, is frequently explored considering number of existing companies and job generation in local market (according to SEBRAE & DIEESE (2013) MSE represent 99% of all Brazilian companies - 6.3 million firms, 52% of formal jobs and 40% of total wage paid in previous year). Together they represented 25% of GDP. Concerning internationalization and export activities, nineteen thousand companies generated US255 billion at foreign markets. More than 61% of them were MSE, but its sales participated with only 1% of this total (SEBRAE 2012). The EM construct has its foundations on studies developed by Hills and Hultman (2011) who tried to bring a consensus to definition, based on the mainstream concerns regarding this subject. They highlighted two complementary competences: planning (Filion 2000; Dornelas 2008; Nassif, Andreassi & Simões 2011); and intuition (Mitchell, Friga & Mitchell 2005; La Pira 2011; Nassif, Andreassi & Simões 2011). Both affect EMS and EMP differently. Our research was conduct with 173 MSE in order to examine the influence of entrepreneurial marketing on export marketing strategies and also the influence of EM and EMS on export performance. The results indicate that both entrepreneurs’ competences have a significant impact (Hair et al. 2009) on export marketing performance as anticipated in our hypothesis. Firstly, planning competence has a direct and positive effect on EMP because of a strategic variable related to perceived success of its international venture, and also because of an economic indicator related to exportation growing rate; it can be explained by the fact that a well and careful planning, allied to an high entrepreneurs’ commitment level may result on more success. The evidences are explained by strong training and support to intermediaries (distribution channel), that will help them better understanding and commercializing products - and through product strategy and packaging adaptation to the new market. Secondly, we also identified an unexpected effect caused by intuition - despite significance the influence was negative. Considering that we measured variables and perception in a three-year period, decisions based on intuition tend to be less result-oriented and carefully taken and results evaluation doesn’t have strong comparison bases. We observed an important effect of EM on export marketing strategy. (1) Product adaptation is strong and positively influenced by manager’s international competence (Douglas & Craig 1989; Cavusgil, Zou & Naidu1993). The entrepreneurs understand market rules, try to enhance competitiveness, respect local barriers and adapt offers diminishing risks. Investments reflect need or concern of matching market needs - i.e. label translation to local language. (2) Communication adaptation is positively influenced by entrepreneurs’ competence (high on planning and low on intuition), despite limited budget. (3) Price competitiveness is strong and positively influenced by entrepreneur planner. This expected effect corroborated the study of Cunha (2012), which identified the importance of adaptation of this marketing mix element to MSE, and also the relationship with pricing strategy as followers internationally (Solberg, Stöttinger & Yaprak 2006; Cunha & Moraes, 2011). (4) Considering distribution there is no influence of planner on support to intermediary. On the other hand, it is strong and negatively affected by intuitive entrepreneurs (our findings lead us to a conclusion that a lack of planning might jeopardize process of distribution adaptation). Our literature review showed that relationship and support to intermediaries is a key-success factor (Rosson & Ford 1982; Christensen, Rocha & Gertner 1987; Solberg, Stöttinger & Yaprak 2006). The negative result drove us to the importance of a well established relationship among exporters and intermediaries, as identified on the impact of export marketing performance by support to intermediaries -we expected to identify it on our research, but it seems that, if a company wants to succeed abroad it is mandatory to carefully manage this marketing element - one reason for our conclusions is supported by the Theory of Networks (Johanson & Vahlne 1990; Andersson, Forsgren & Holm 2002). All in all, our assumptions about the existent influence of entrepreneurial marketing on export marketing strategy and export marketing performance was supported in our study developed with MSE from emerging markets. We also observed the positive effect of EMS on EMP that fulfills our research objectives.

DOES ENTREPRENEURIAL MARKETING MATTER? A STUDY ON EXPORT PERFORMANCE

Reynaldo Dannecker Cunha,Sergio Garrido Moraes 글로벌지식마케팅경영학회 2014 Global Marketing Conference Vol.2014 No.7

Although many studies were conducted to understand the relationship between Export Marketing Strategies (EMS) and Export Marketing Performance (EMP) (Cavusgil & Zou 1994; Zou & Stan 1998) the majority involved medium-large size companies and took place on developed countries (Cunha, Rocha & Moraes, 2012). The role of managers on influencing marketing strategies (considering marketing mix decision about adaption or standardization) was not comprehensively analyzed. In order to fulfill some gaps Cunha (2012) developed a research to understand the empirical link on Micro and Small Enterprises (MSE) from emerging countries, but the role of entrepreneurs was not completely understood. In order to clarify this link, the reference model used was redesigned to explore Entrepreneurial Marketing (EM) and its influence on EMS and EMP. The relevance of MSE on emerging markets, especially in Brazil, is frequently explored considering number of existing companies and job generation in local market (according to SEBRAE & DIEESE (2013) MSE represent 99% of all Brazilian companies – 6.3 million firms, 52% of formal jobs and 40% of total wage paid in previous year). Together they represented 25% of GDP. Concerning internationalization and export activities, nineteen thousand companies generated US255 billion at foreign markets. More than 61% of them were MSE, but its sales participated with only 1% of this total (SEBRAE 2012). The EM construct has its foundations on studies developed by Hills and Hultman (2011) who tried to bring a consensus to definition, based on the mainstream concerns regarding this subject. They highlighted two complementary competences: planning (Filion 2000; Dornelas 2008; Nassif, Andreassi & Sim?es 2011); and intuition (Mitchell, Friga & Mitchell 2005; La Pira 2011; Nassif, Andreassi & Sim?es 2011). Both affect EMS and EMP differently. Our research was conduct with 173 MSE in order to examine the influence of entrepreneurial marketing on export marketing strategies and also the influence of EM and EMS on export performance. The results indicate that both entrepreneurs’ competences have a significant impact (Hair et al. 2009) on export marketing performance as anticipated in our hypothesis. Firstly, planning competence has a direct and positive effect on EMP because of a strategic variable related to perceived success of its international venture, and also because of an economic indicator related to exportation growing rate; it can be explained by the fact that a well and careful planning, allied to an high entrepreneurs’ commitment level may result on more success. The evidences are explained by strong training and support to intermediaries (distribution channel), that will help them better understanding and commercializing products - and through product strategy and packaging adaptation to the new market. Secondly, we also identified an unexpected effect caused by intuition – despite significance the influence was negative. Considering that we measured variables and perception in a three-year period, decisions based on intuition tend to be less result-oriented and carefully taken and results evaluation doesn’t have strong comparison bases. We observed an important effect of EM on export marketing strategy. (1) Product adaptation is strong and positively influenced by manager’s international competence (Douglas & Craig 1989; Cavusgil, Zou & Naidu1993). The entrepreneurs understand market rules, try to enhance competitiveness, respect local barriers and adapt offers diminishing risks. Investments reflect need or concern of matching market needs - i.e. label translation to local language. (2) Communication adaptation is positively influenced by entrepreneurs’ competence (high on planning and low on intuition), despite limited budget. (3) Price competitiveness is strong and positively influenced by entrepreneur planner. This expected effect corroborated the study of Cunha (2012), which identified the importance of adaptation of this marketing mix element to MSE, and also the relationship with pricing strategy as followers internationally (Solberg, St?ttinger & Yaprak 2006; Cunha & Moraes, 2011). (4) Considering distribution there is no influence of planner on support to intermediary. On the other hand, it is strong and negatively affected by intuitive entrepreneurs (our findings lead us to a conclusion that a lack of planning might jeopardize process of distribution adaptation). Our literature review showed that relationship and support to intermediaries is a key-success factor (Rosson & Ford 1982; Christensen, Rocha & Gertner 1987; Solberg, St?ttinger & Yaprak 2006). The negative result drove us to the importance of a well established relationship among exporters and intermediaries, as identified on the impact of export marketing performance by support to intermediaries –we expected to identify it on our research, but it seems that, if a company wants to succeed abroad it is mandatory to carefully manage this marketing element - one reason for our conclusions is supported by the Theory of Networks (Johanson & Vahlne 1990; Andersson, Forsgren & Holm 2002). All in all, our assumptions about the existent influence of entrepreneurial marketing on export marketing strategy and export marketing performance was supported in our study developed with MSE from emerging markets. We also observed the positive effect of EMS on EMP that fulfills our research objectives.

DOES COUNTRY OF ORIGIN MATTER IN FACE OF STRONG GLOBAL BRANDS?

Sergio Garrido Moraes,Vivian Iara Strehlau,Reynaldo Dannecker Cunha 글로벌지식마케팅경영학회 2014 Global Marketing Conference Vol.2014 No.7

This paper aims to compare the impact of country of origin and brand’s aspects on young consumers’ willingness to buy global brands. We chose the United States because this country is the origin of the most valuable global brands, besides arousing contradictory opinions and feelings, as well as reactions of love and hate. The brands Apple, Levi’s and McDonald's, represent products and services, all of them recognized as global and US iconic brands, at the same time: Apple has been admired and followed; McDonald’s has been used as a symbol in political demonstrations against the United States or against globalization, while some protesters wear Levi’s jeans. The tested constructs include aspects related to country of origin (Country Image, Country Affinity, Ethnocentrism) and brand (Brand Personality and Self-Brand Connection). We conducted a survey with 367 students, potential consumers of the brands, and applied Structural Equation Modelling to analyze the impacts of constructs on their willingness to buy. The results indicate that consumer-brand relationship showed greater strength and significance than other constructs, highlighting that during purchasing it is more important how the consumer perceives himself in relation to the brand than the way he perceives or feels about brand’s country of origin. We deliberately chose brands of high brand equity for analysis, but in the future, the model could be applied to low brand equity brands, not-iconic brands, other countries and its brands, and other product categories.

DOES COUNTRY OF ORIGIN MATTER IN FACE OF STRONG GLOBAL BRANDS?

Sergio Garrido Moraes,Vivian Iara Strehlau,Reynaldo Dannecker Cunha 글로벌지식마케팅경영학회 2014 Global Marketing Conference Vol.2014 No.2

This paper aims to compare the impact of country of origin and brand’s aspects on young consumers’ willingness to buy global brands. We chose the United States because this country is the origin of the most valuable global brands, besides arousing contradictory opinions and feelings, as well as reactions of love and hate. The brands Apple, Levi’s and McDonald's, represent products and services, all of them recognized as global and US iconic brands, at the same time: Apple has been admired and followed; McDonald’s has been used as a symbol in political demonstrations against the United States or against globalization, while some protesters wear Levi’s jeans. The tested constructs include aspects related to country of origin (Country Image, Country Affinity, Ethnocentrism) and brand (Brand Personality and Self-Brand Connection). We conducted a survey with 367 students, potential consumers of the brands, and applied Structural Equation Modelling to analyze the impacts of constructs on their willingness to buy. The results indicate that consumer-brand relationship showed greater strength and significance than other constructs, highlighting that during purchasing it is more important how the consumer perceives himself in relation to the brand than the way he perceives or feels about brand’s country of origin. We deliberately chose brands of high brand equity for analysis, but in the future, the model could be applied to low brand equity brands, not-iconic brands, other countries and its brands, and other product categories.