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Linking Market Orientation to International Market Selection and International Performance

Lookup NU author(s): Dr Xinming He

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Abstract

One key strategic decision in a firm’s internationalization process is the international market selection (IMS). IMS must match the firm’s own-specific resources and capabilities for optimal performance. This research, drawing on the resource-based view, investigates how a firm’s market orientation (MO) resources and capabilities influences the firm’s IMS between culturally close and distant markets and how the matching of MO and IMS impacts on its international performance. We hypothesize that market-oriented firms tend to choose culturally distant markets that help them exploit their MO. Firms with a fit between MO and IMS tend to perform better internationally than those without such a fit. Both hypotheses are supported by our database of Chinese manufacturing firms expanding internationally.


Publication metadata

Author(s): He X, Wei Y

Publication type: Article

Journal: International Business Review

Year: 2011

Volume: 20

Pages: 535-546

Print publication date: 20/11/2010

ISSN (print): 0969-5931

ISSN (electronic): 1873-6149

Publisher: Pergamon

URL: http://dx.doi.org/10.1016/j.ibusrev.2010.10.003

DOI: 10.1016/j.ibusrev.2010.10.003


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