ECONOMIC ANTECEDENTS OF LOW CUSTOMER ORIENTATION LEVEL OF FIRMS IN THE BRICS: PRELIMINARY HYPOTHESES

다국어 초록 (Multilingual Abstract)

This research is aimed at finding the economic antecedents of comparatively low level of customer orientation of the firms in the BRIC countries. To generate propositions regarding antecedents, the market environment and conditions for doing business, and management practices and entrepreneurial activity in BRICs are compared based on the cross country studies by the World Economic Forum, the World Bank and the Global entrepreneurship monitor consortium. Also the conclusions regarding the consumer products markets and firm market strategies in emerging countries are generated on the basis of academic literature review in comparative strategic management and expert views on management in emerging countries. The outcome of the research is a group of propositions on the economic determinants of gaps in the level of customer orientation between the developed and the emerging markets. Three potential causes of the comparatively low customer orientation related to the management practices of firms can be hypothesized. First, the level of business management sophistication in the BRIC countries is assessed to be lower compared to the developed countries. Second, the state capitalism, the dominant economic paradigm of the BRIC countries is not conducive to fostering the quality of business management. Third, local entrepreneurs enter the markets being necessity-driven and have relatively low capabilities and are less skilled in the application of the modern management practices. The development of markets in the BRIC countries also could be informative for explaining the relatively low average level of customer orientation of the emerging market companies, and one can infer three potential causes. First, the consumer markets in the BRICs are growing with a fast pace, so suppliers are more powerful than consumers. Second, the intensity of competition at the BRIC markets is comparatively low. Third, the emerging markets today are represented by the less demanding consumers, and on such markets mass marketing might be a winning strategy. Further study could potentially allow us to improve and test empirically the above formulated propositions regarding the sources of gaps in the level of customer orientation between the companies of the developed and emerging markets.