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Journal of Marketing Management

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Domestic competitive strategy and export marketing strategy: The impact of fit on the degree of internationalisation of SMEs
David B. Stewart
a a

Faculty of Business Administration, Memorial University, St John's, Canada, A1B 3X5

Version of record first published: 06 May 2010.

To cite this article: David B. Stewart (1997): Domestic competitive strategy and export marketing strategy: The impact of fit on the degree of internationalisation of SMEs, Journal of Marketing Management, 13:1-3, 105-117 To link to this article: http://dx.doi.org/10.1080/0267257X.1997.9964461

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Journal of Marketing Management, 1997, 13, 105-117

David B. Stewart
Faculty of Business Administration, Memorial University, St John's, Canada A1B 3X5

Domestic Competitive Strategy and Export Marketing Strategy: the Impact of Fit on the Degree of Internationalisation of SMEs
A model to explain the degree of internationalisation of SMEs is proposed and tested using data obtained from a survey of 207 Canadian exporters. Certain aspects of the domestic competitive strategy employed by a SME are shown to have a significant effect upon the chosen export marketing strategy. In turn, the degree of internationalisation attained by the SME is shown to be influenced by two aspects of export marketing strategy, namely the level of support offered to the foreign distributor, and the pricing strategy adopted for the chosen export market.

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Introduction The link between export performance and various levels of strategy has found some support in the literature. For example, Aaby and Slater (1989) conclude that export performance is influenced directly by business strategy. With particular reference to marketing strategy, Cavusgil (1983) illustrated a link between aspects of the marketing mix1 and a successful export venture. Building upon these findings, Cavusgil and Zou (1994) indicate that much of the extant literature on the export marketing strategy-performance interface has been constrained by a number of factors, including a failure to consider the full range of goals that a firm may set. They argue that there has been a tendency to focus purely upon the economic goals of the firm, and ignore strategic goals. Consequently, export performance has been measured in financial or economic terms, rather than in terms of achieving strategic goals such as the desire to enter a particular foreign market, or the need to increase international activity, generally. This study is concerned with goals such as the latter, namely, the desire of the firm to become more involved in international activity, and in exporting in particular. Consequently, the performance measure of interest here is the degree of firm internationalisation, rather than, purely, the financial return realised from an export venture. While the above cited work of Cavusgil and Zou (1994) substantiated the link between a firms's export marketing strategy and the performance of an export venture, it also provided a paradigm that can be used to explore the impact that strategic coalignment has upon performance. Their paradigm is based upon the strategic management framework of strategyenvironment co-alignment, (see, for example, Venkatraman and Prescott 1990). As
Successful exporting was shown to be conditioned by: (i) the nature of the product offering; (ii) foreign channel linkages; (iii) export promotion and pricing strategy.

0267-257X/97/010105 + 13 $12.00/0

1997 The Dryden Press

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such, higher performance in an export venture may be expected if the exporting firm achieves a "fit" between its export marketing strategy and its internal and external environments. The internal environment may be defined in terms of characteristics of the firm, and also of its product offering; whereas the external environment may comprise the industry and the chosen export market(s). Consequently, Cavusgil and Zou (1994) perceive export marketing strategy as a mediator between the firm's internal environment and the performance of an export venture. In this paper, the above paradigm is extended to reflect the impact that the fit between the firm's domestic and export marketing strategies has upon performance. In particular, it examines the effect that the type of competitive strategy adopted by a firm in its domestic market has upon its export marketing strategy and, ultimately the rate of internationalisation of the firm. Consequently, it is hypothesised that export marketing strategy acts as a mediator between the domestic strategy adopted by a firm and performance in international markets. The measure of performance used in this context is the degree of internationalisation of the firm. If particular types of domestic competitive strategy could be shown to be associated with rapid internationalisation, then firms pursuing domestic strategies that are linked with rapid internationalisation could be made aware of the opportunities presented by exporting, and informed that they have a favourable profile for success in such ventures. Therefore, this research has practical as well as theoretical significance. Alternatively, if pathways between particular domestic strategies and high levels of internationalisation can be established, government assistance could be more efficiently channeled towards domestic firms exhibiting such strategies. Finally, the paradigm developed and tested here is designed for small and medium-sized enterprises (SMEs) since exporting is a major form of foreign market entry for such firms, and because it was desirable to explore whether an amended form of Cavusgil and Zou's paradigm could be applied to such enterprises. Seventy-three percent of firms sampled by Cavusgil and Zou had annual revenues in excess of $10 million, thus, in Canadian terms, would not be regarded as small firms.

Research Objectives This research addresses the following questions: Are there linkages between aspects of domestic competitive strategy, and the chosen export marketing strategy for an export venture? If there are, what is the nature of these linkages? Does the "fit" between domestic competitive strategy and export marketing strategy influence the degree of internationalisation of a firm? Are there particular types of domestic competitive strategies that are associated with a rapid rate of internationalisation for SMEs? In general, what are the factors that contribute to higher levels of internationalisation of SMEs? The above objectives are addressed through the creation and testing of a paradigm explaining the degree of internationalisation of a SME.

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A Proposed Framework for the Degree of Internationalisation of SME's Before proceeding with the development of the paradigm of degree of internationalisation (DOI), it is necessary to define what is meant by that term. The literature is replete with many measures of DOI. A review of these is presented by Sullivan (1994). His review suggests that the DOI of a firm has three attributes: (1) performance (what goes on overseas); (2) structural (resources placed overseas); and (3) attitudinal (top management's attitude towards international business). Consequently, Sullivan argues that the DOI construct requires multiple measures to assess it. In this study, the DOI of a firm was measured using a variation of Sullivan's instrument, suitably amended for exporting and SMEs. In particular, the performance dimension is assessed by the percentage of total sales coming from exports (EXPORT) and by the number of foreign export markets entered (FOREIGN); the attitudinal aspect, by top management's international experience (TMIE). It is now necessary to discuss two of the other components of the proposed model of internationalisation, namely, domestic competitive strategy and export marketing strategy.

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Domestic Competitive Strategy There is a substantial literature upon the dimensions of competitive strategy Biggadike (1976), MacMillan and Day (1987), Hambrick (1983), and also with a particular emphasis upon the SME, [Dess and Davis (1984), Robinson and Pearce (1988), McDougal and Robinson (1990)]. For the purposes of this research it was necessary to find a minimal system of constructs that reflects the domestic business strategy of a SME, and that can be reliably measured. Given that SMEs seek competitive advantage, the concept of the value chain provides a system of constructs that describes the basic activities of a firm, Porter (1985). In particular, the five primary activities of the value chain inbound and outbound logistics, operations, marketing and service provide a conceptual basis for assessing competitive strategy. McDougal and Robinson (1990) provide a system of 26 competitive methods that relate to these primary activities and that have been thoroughly tested for reliability. Consequently, the domestic strategy of each SME was broken down into five constructs based upon the primary activities of the value chain, and each of these constructs was assessed using the item scales developed by McDougal and Robinson (1990). The CEOs of a random sample of small and medium-sized exporters were asked to rate their firms on each of the 26 competitive methods on a five-point semantic differential scale. An example relating to product strategy, and consequently the marketing construct of the value chain, is given below: Providing a narrow range of products 1 2 3 4 5 Providing a broad range of products

Respondents were requested to select an appropriate response upon the five-point scale that reflected their product mix.

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Export Marketing Strategy The second strategic concept that is of relevance to the development of the paradigm is export marketing strategy. Cavusgil (1983) has demonstrated that export marketing strategy can be reduced to: (1) basic company offering; (2) contactual link with foreign distributors /agents; (3) export promotion; and (4) pricing considerations. Further, Cavusgil and Zou (1994) provide both a theoretical basis for a model of export performance and a means of measuring the export marketing strategy construct. Their research instrument is based upon 13 dimensions of export marketing strategy, and is thoroughly tested. An example of one of these dimensions (overall support to foreign distributor/agent) is given below. None 1 2 3 4 5 Considerable The model displayed in Figure 1 can be thought of as a particular realisation of the coalignment principle from strategic management. This principle states that the fit between strategy and its environment has a positive impact upon the performance of the firm. Exporting is seen as a strategic response by the owners/management of the SME to the interaction of forces both internal and external to the firm. Internal forces are represented by characteristics of the firm, together with features of the product offering. External forces consist of the industry in which the SME operates together with characteristics of the primary export market for the firm. Under strategy-environment co-alignment, both domestic and exporting strategies are designed to fit with these environmental forces. In addition, the "fit" between domestic and export marketing strategy is posited to have an effect upon performance, i.e. upon the DOI. Hofer and Schendel (1978), for example, have indicated that strategies at different levels need to be coherent to ensure competitive advantage. Consequently, applying this to domestic competitive strategy and export marketing strategy, it is hypothesised that the degree of internationalisation (DOI) of a firm is partially shaped by the coherence between the adopted domestic and export marketing strategies. In particular, Figure 1 illustrates the following hypothesised relationships: The degree of internationalisation (DOI) is dependent upon the chosen export marketing strategy;

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Internal Factors Product Aspects Firm Aspects Domestic Competitive Strategy External Factors Industry Export Market Figure i. A paradigm of degree of internationalisation. Export Marketing Strategy

Domestic

Competitive

and Export

Marketing

Strategy

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-Export marketing strategy is determined by co-alignment with the export market; the nature of the industry; the resource mix of the SME; and, finally, the fit with domestic competitive strategy of the SME. -Domestic strategy is determined jointly by the nature of the industry, and the resource mix of the firm.

Methodology
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Five-hundred-and-seventeen questionnaires were mailed out to a sample of firms randomly selected from the WIN database of exporting firms held by Industry Canada. Two-hundred-and-seven useable responses were obtained, giving a response rate of 40%. Table 1 illustrates some of the demographics of the sampled firms. Firms were selected randomly with the following restrictions: (1) firms having less than 120 employees; (2) firms having total annual revenues less than $10 million. Only firms that derived at least 5% of total annual revenue from exporting were included in the sample; firms earning more than 75% of total revenue from exporting were excluded. The last restriction was placed in order to ensure that the sampled firms operated in both export and domestic markets. Construct Measurement The three measures used for DOI have been discussed earlier. Table 2 contains the measures used to assess the five primary activities of the firm's value chain, and the four elements of the export marketing mix product and promotional adaptation; pricing strategy and foreign distributor support. One o the features of the estimation procedure (PLS) used to test the model presented in Figure 1 is that it permits an assessment of the reliability of the individual items used to measure a construct. The procedure produces factor loadings of each item on the constructs. Consequently, item scales that do not load
Table 1. Number of employees Characteristics of exporters

Number of exporters

<11
11-20 21-100 100+ Total

56 53 82 15 206

% 27 226 40 7

Sales ($000) <$500 $500-1000 $1001-2000 $2001-5000 $5000+ Total

Number of exporters

Percentage of exporters

24 29 34 52 66 205

12 14 17 25 32

Years in International Trade Years Number of of exporters 68 61 77 % 33 30 37

% Sales from Exports

<6
6-10

% <11
11-30 31-50

Number of exporters

Percentage of exporters

10+
Total

206

50+
Total

53 49 42 60 204

26 24 21 29

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highly on a construct can be considered for deletion. Similarly, this preliminary step permits an analysis of cross-loadings, i.e., an item (say product labelling) may load higher upon another construct (adaptation of promotion, rather than product adaptation). As a result, an item may be moved over to become a measure of another construct (from product adaptation to promotional adaptation). Initially, 25 items were used to measure the five constructs of the value chain, used to represent domestic competitive strategy; examination of the loadings reduced this to the 15 items listed in the table in Appendix A. Similarly, 10 items were used to measure the four constructs of export marketing strategy all 10 were retained but one of the
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Table 2. Measures of domestic competitive strategy and export marketing strategy A Domestic Competitive Strategy: The Value Chain 1. Marketing Strateby (MARKETG) Number of customers Geographic scope of market Level of promotional activity Level of brand identification/recognition Extent of NPD Width of product mix 2. Outbound Logistics (OUTBND) Number of distribution Channels used Innovativeness of channel selection 3. Service (SERVICE) Level of customer service provided Frequency of customer purchase 4. Inbound Logistics (INBND) Level of subcontracting used Nature of buyer contracts 5. Operations (OPER) Capacity utilisation Innovativeness of process Policy on cost control Total Items = 25 B Export Marketing Strategy 1. Product Adaptation (PADAPT) Degree of initial product adatation Degree of product adaptation subsequent to entry 2. Promotional Adaptation (PRADAPT) Degree of adaptation of label Degree of adaptation of promotion Degree of adaptation of packaging Degree of adaptation of product position 3. Distributional Support (SUPPORT) Amount of training for foreign distributor Amount of promotional support for foreign distributor Level of overall support for foreign distributor 4. Export Pricing Strategy (PRICE) Degree of price competitiveness in export market Total items = 20 C Degree of Internationalisation (DOI) % Total Revenue from Exporting Number of foreign markets entered regularly Number of years involved in international trade

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[ OPER

Figure 2. Path diagram: domestic, export strategies and DOI.

items initially measuring product adaptation was more highly loaded on the promotional adaptation construct.2 Similar analyses were conducted for the exogenous constructs defining the internal and external environments faced by each firm. As a result, an initial system of 55 items was reduced to the 48 listed in Appendix A. The final measures used for the strategy constructs and DOI are listed in Table 2, since these are the main interest in this paper. Using the concepts developed above for DOI, domestic strategy and export marketing strategy, the operational path model presented in Figure 2 was developed. The path model was estimated using partial least squares (PLS), Lohmoller (1989). PLS is an iterative technique that combines principal component analysis relating measurement variables to their constructs, and path analysis permitting the Unking of a system of constructs. The estimation of the parameters representing the measurement and path relationships is accomplished using OLS. Particular advantages of PLS are that it is not necessary to assume multivariate normality of the data, and it can be applied to relatively small data sets. A PLS model is analysed in two stages, first, the reliability and validity of the measurement model is considered, and second, the structural model is discussed. This procedure ensures that we have both reliable and valid measures for the various constructs before attempting to draw conclusions regarding possible relationships amongst the constructs. Because of space limitations only the final structural model will be discussed in detail. A brief discussion of the analysis of the measurement model was presented around Table 2 above. PLS does not produce statistical tests of the estimated measurement and structural coefficients, however, it is possible to use a jackknifing technique to generate such tests. In jackknifing, a number of sub-samples are produced by removing one or more cases from the original data set. In this case, 39 sub-samples were created by removing three cases at a time from the original set. PLS is used to estimate the parameters for each sub-sample, these values are used to form means and standard errors for each estimated parameter. Consequently, f-tests can be applied to test for
2 The level of change required of product labelling was more highly correlated with the adaptation of promotional activity construct.

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statistical significance, Fornell and Barclay (1983). Figure 2 illustrates relevant significant paths for the proposed model for internationalisation.

Empirical Results Since many of the path coefficients are significant, only significant paths that lead, directly or indirectly, to DOI have been included in Figure 2 in the interests of clarity. Each of these will be discussed in turn, starting from the right-hand side of the diagram with direct paths into DOI, the criterion variable. We shall work backwards, from right to left.

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The Effect of Exporting Marketing Strategy upon DOI

The diagram illustrates those paths that were statistically significant between elements of export marketing strategy and DOI. Since firms exhibiting higher degrees of internationalisation are of prime interest in this study, the significant paths between SUPPORT, PRICE and DOI provide a means of assessing which types of export strategy are associated with higher levels of internationalisation. Considering the role of the SUPPORT construct first of all. This construct refers to the amount of support given to foreign distributors by the exporter, and was measured by three variables: distrib = overall support given to foreign distributor; tfor = the amount of training given to the foreign distributor; pfor = the amount of promotional support given to the foreign distributor. As can be seen from the loadings presented in the table in Appendix A, all three of these measures make a positive contribution to the construct. Hence high values of the SUPPORT construct are reflected in high values of the above three aspects of distribution strategy. Consequently, since the sign of the path coefficient between SUPPORT and DOI is positive (see Fig. 2), it can be concluded that exporters providing high levels of overall support to their foreign distributors (distrib), in particular salesforce training (tfor) and promotional support (pfor), have attained a higher degree of internationalisation. Discussion of the construct assessing the exporter's pricing strategy (PRICE) is easier, given that it is denned by a single measure, the degree of price competitiveness in the export market. Higher degrees of internationalisation are obtained if the exporter has selected target markets with low levels of price competition. In other words, more highly internationalised firms tend to select export markets in which the nature of competition is defined by factors other than price. This suggests that the price competitiveness of a market tends to act as a barrier to internationalisation of the firm, at least amongst small and medium-sized Canadian exporters. It is worth noting that neither the product nor the promotional adaptation components of export marketing strategy were shown to have any effect upon the degree of internationalisation of an exporter. This is not to say that these issues are unimportant. It is certainly possible that they are essential in most export ventures irrespective of the exporter's international experience. Perhaps these aspects of export marketing strategy form the core competencies of exporting they are

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essential, but not the source of competitive advantage. However, they do not appear to explain differences in the degree of internationalisation amongst the sampled exporting firms. In summary, these results indicate that two particular elements of export marketing strategy play key roles in explaining the degree of internationalisation of the firm. Highly internationalised firms have an export marketing profile based upon high levels of support to their foreign distributors, and competing upon a nonprice basis. There is one other direct path to DOI, namely the one representing the impact of the firm's commitment to international ventures (COMMIT). Commitment was assessed in terms of: (1) the level of sales goals set; (2) the number of export customers served by the venture; (3) the level of planning that went into the venture; and (4) the clarity of definition of the target market. AU of these factors contribute positively to the measurement of management commitment to exporting. Again, the path coefficient is positive, indicating that planning of the venture; setting ambitious sales goals for clearly defined targets, lead to a higher degree of internationalisation. Firms that set high sales goals and have a large number of export customers tend to reap the rewards of high degrees of internationalisation. Such firms tend to plan the venture well and have a clear idea of their target market(s). Having examined the nature of the linkages between DOI and export marketing strategy, we can now investigate the impact that elements of domestic competitive strategy have upon the latter, and, hence, upon the degree of internationalisation. Significant paths between activities of the value chain and SUPPORT, PRICE are shown in Figure 2.

Effect of the Fit of Domestic Competitive Strategy and Export Marketing Strategy

Domestic competitive strategy was assessed in terms of the five basic activities of the firm's value chain. The measures used for each element of the chain are contained in Table 2. Figure 2 illustrates significant paths between elements of domestic strategy and the two dimensions of export marketing strategy that are related to DOI. It should be noted that only paths that were highly significant were included in the figure.3 There are four significant paths to the PRICE construct from elements of the value chain. The first of these establishes a link between domestic marketing strategy and the export pricing strategy of the firm. Once again focusing upon highly internationalised firms, the negative coefficient between MARKETG and PRICE suggest that firms adopting marketing strategies that emphasise: (1) promotional expenditures to develop brand recognition; (2) the provision of a broad range of products; (3) target broad geographic markets; (4) practise continued new product development, tend to avoid competing on the basis of price in export markets, and, thus attain higher degrees of internationalisation. These results indicate that in export market situations where price is not the only key success factor, firms that have developed sound domestic product and promotion strategies grounded in points (l)-(4) above, are also able to apply these successfully in export markets to
3

Since the pseudo t-statistics produced by jackknifing may be inflated, Wildt et al. (1982) only paths with t-values in excess of 4-0 were included, rather than those exceeding 2-00 (1-96).

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attain higher degrees of internationalisation. In essence, this suggests that one path to internationalisation is to seek out markets in which domestic marketing strategy is likely to be successful, rather than adapting or devising strategy to fit a particular market. Given the resource poverty that many SMEs experience, one can see why this approach may be preferred. The second significant path to PRICE links service strategy in the domestic market to export pricing strategy. The evidence suggest that firms marketing products that are frequently purchased and require minimal customer service are able to compete in export markets on a non-price basis, and, hence, obtain higher degrees of internationalisation. Inbound logistics is a third element of the value chain that is linked to export pricing. This construct was assessed by two factors: the level of subcontracting used by the firm, and length of contracts that the firm has negotiated with its suppliers. Higher degrees of internationalisation were attained by firms that were able to subcontract a high proportion of their production, and had obtained longer term contracts with their suppliers. The final significant path to PRICE, reveals that firms whose domestic operational strategy was configured to rely upon proven manufacturing/production processes (as opposed to innovation and the minimisation of unit costs), were more highly internationalised. Since high values of the construct, SUPPORT are associated with higher degrees of internationalisation, it can be seen that two aspects of domestic strategy have the potential to influence the level of support provided to foreign distributors. These are customer service (SERVICE), and the marketing/sales strategy (MARKETG) adopted in the domestic market. Consideration of the signs of the two path coefficients to SUPPORT permits an analysis of the impact that the relationship between domestic and export strategy has upon the degree of internationalisation of a firm. First, the positive path coefficient, together with the measures used for MARKETG, indicate that exporters utilising more proactive marketing strategies in their market base tend to make higher levels of support available for the foreign component of the marketing channel. In this context, a pro-active strategy consists of the use of aggressive promotional expenditures designed to improve brand recognition in a domestic market that is both large and spread over a wide geographic area. Product strategy consists of offering a wide range of products with the continuing development of new product additions. Firms using such marketing strategies tend to provide higher levels of support for foreign distributors, and, consequently have a higher degree of internationalisation. Second, the link between SERVICE and SUPPORT suggests that exporters offering minimal levels of customer service in their domestic market, adopt a different practice when entering export markets, if they wish to become more internationalised.

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Conclusions This exploratory study has contributed to the literature on internationalisation of SMEs in a number of ways. First, it has revealed that links exist between export marketing strategy and the degree of internationalisation for SMEs. The results indicate that the foreign distributor support and pricing elements of the chosen export strategy play significant roles in determining the level of internationalisation achieved by a SME. Second, the study illustrates how particular aspects of domestic

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strategy are linked to "successful" export marketing strategies. Success in this context means achieving higher degrees of internationalisation. Finally, the research provides a theoretical basis for future studies of internationalisation. For example, the model can be extended to permit an exploration of the effects of DOI on the (financial) performance of the export venture.

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Appendix A: Loadings for All Constructs

Bold loadings refer to the corresponding construct Firm Competencies (COMPETCE) Sales 556 43 120 156 65 103 255 163 133 -58 76 113 Position 750 124 74 151 178 116 253 313 209 280 32 125 Patent 408 70-102 -14 129 97 -18 252 74 180 78 -37 Growth 437 124 112 129 -44 31 212 139 93 62 -15 -42 Management Commitment (COMMIT) Plan 156 699 37 137 99 242 202 110 88 99 54 90 Target 19 579 170 -56 148 184 109 44 -77 -19 80 -56 Expcus 111 748 -14 150 9 239 290 420 324 89 31 121 Expgoal 137 824 -60 201 98 290 255 264 236 16 65 81 Product Experience (EXPER) Estab 43 26 863 -59 -103 24 90 18 -163 -46 79 -37 Page 89 -13 730 -29 -105 -13 54 -15 -12 -80 -28 -109 Product Features (PCOMP) Special 139 -5 35 343 42 112 218 130 196 9 39 219 Support 118 155 -52 823 281 211 133 226 247 217 -116 42 Train 150 162 -61 755 197 153 86 253 211 229 -80 105 Industry (INDUST) Techind 148 124-164 273 952 145 142 127 115 184 178 64 Pcompet 140 -45 92 101 296 117 280 29 121 63 6 130 Export Market Attractiveness (ATTRACT) Potent 45 295 24 43 140 624 418 215 237 -77 110 106 Sophist 204 280 36 143 115 760 498 210 126 65 -51 179 Barrier 71 122 -36 274 103 628 252 138 193 -3 -10 68 Export Market Competitiveness (COMPET) Intense 221 111 54 127 166 537 865 214 245 59 125 253 Exposur 268 453 103 171 199 381 752 285 108 -13 20 120 Domestic Strategy: Marketing & Sales (MARKETG) Advert 349 258 76 246 125 238 278 737 325 201 -59 79 Brand 182 138 -41 85 70 83 56 603 322 162-142 -29 Geomark 189 257 -56 27 200 74 70 390 247 75 46 -26 neust 282 199 65 257 -16 177 173 652 505 106 17 131 npd -170 -131 209 -128 -96 -201 -183 -447 -189 -136 126 -95 prange 165 161 95 231 6 99 197 469 254 5 89 99 Domestic Strategy: Outbound Logistics (OUTBND) schan 216 204 -85 212 112 175 139 441 810 45 -6 146 channel 199 223 -120 310 135 267 238 491 883 210 -47 196 Domestic Strategy: Service (SERVICE) freq 8 15-102 146 142 -8 -11 -8 72 599 15 -96 cservice 301 81 -17 216 137 11 51 281 147 800 -24 42 Domestic Strateby: Inbound logistics (INBND) subcon 86 74 42 -105 174 -3 97 -64 -33 -10 1000 36 contract 110 77 22 101 145 114 -18 -3 72 -1 122 -50 Domestic Strategy: Operations (OPER) caputil 111 -36 14 -30 7 -109 -43 -24 -71 18 91 -408 process 148 145-109 174 248 -83 55 152 113 125 19 509 ucost 114 36 -12 62 -10 226 273 49 171 -97 99 775 Export Strategy: Product Adaptation (PADAPT) adaptl 73 372 -61 227 124 44 110 123 169 66 -57 150 adapt2 85 451 -64 197 50 223 188 241 233 60 -58 112 Export Strategy: Promotional Adaptation (PRADAPT) label 11 232 -17 -44 -74 160 108 35 -99 -11 53 83 posit 163 472 -39 288 50 275 293 264 214 45 18 169 package 126 233 -69 69 80 274 256 173 183 -73 202 206 promo 221 416 -56 175 73 214 193 332 241 87 65 55 Export Strategy: Distributor Support (SUPPORT) disrrib 194 414 -111 236 242 227 234 292 279 63 58 137 tfor 290 324-108 400 255 307 154 331 274 119 13 19 pfor 250 324-148 324 123 277 234 351 310 151 -48 113 Export Strategy: Price Competitiveness (PRICE) eprice 16 105 54 35 117 159 413 107 152 134 102 420 Degree of Internationalisation (DOI) export 62 422 -35 121 228 189 209 159 134 -43 44 81 foreign 244 85 -34 231 244 159 139 195 217 97 10 35 trade 50 135 222 50 198 -9 61 31 -60 27 -74 -19 60 157 133 84 69 57 120 144 82 -9 -13 118 240-128 183 123 25 101 -32 64 336 185 361 370 369 181 404 387 274 48 166 131 40 139 357 143 371 337 49 396 73 55 5 -48

Downloaded by [University of Stirling Library] at 14:47 15 September 2012

-45 0 -103 -70 -119 -126

30 102 65 137 -52 244 214 319 4 179 134 107 296 1 137 118 69 224 54 345 -64 -13 92 216 -96 16 154 193 136 176 88 227 217 192 170 186 243 222 -3 61 57 225 156 482 36 239 270 241 146 378 169 239 367 63 228 252 57 87 150 153 153 183 -55 -180 -193 157 128 8 112 160 -37 102 -32 124 140 77 -10 -170 102 0

196 184 221 105 124 184 205 329 148 137 100 -59 69 52 48 11 88 108 128 -41 -63 -2 99 12 102 49 143 -4 23 69

-25 14 42 -264 -42 141 138 134 149 75 90 162 86 324 28 900 229 273 104 143 923 393 360 102 203 148 408 240 171 618 834 660 816 162 98 -2 418 207 146 267 153 101 408 63 209

365 413 842 116 231 233 352 882 -25 243 323 435 875 57 124 113 178 53 1000 -40

187 202 219 -24 940 99 66 226 -71 477 43 -23 -38 -2 396