Skip to main content
SpringerLink
Log in

Strengthening Innovation for Greater Exporting: A Strategic Path for Developing Country Firms

  • Chapter
  • First Online:
Advances in Global Marketing

  • 2219 Accesses

Abstract

Innovation and exporting together form a strategic path toward growth and competitiveness for developing country (DC) firms. The purpose of this study is to understand ways of strengthening the path of more innovation for greater exporting by examining the roles of DC firm resources and environmental factors in innovation and exporting pursuits. Guided by the Contingency Resource-Based View, we studied these pursuits by Romanian wine companies by conducting interviews with firm managers and industry experts. We determined that innovation-exporting is influenced negatively and positively by five organizational and managerial resources (i.e., international market orientation, production costs, and financial and human resources, passion for excellence, and self-referencing), and six environmental factors at domestic, regional, and global levels (i.e., market development, market integrity, regional funding and regulation, country-of-origin effects, and global competitive intensity). The combination of effects indicates a complex set of dynamics shaping innovation-exporting actions of DC firms. There are several managerial implications of, and future research directions resulting from, our findings.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 219.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 279.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 279.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Allard, G., Martinez, C. A., & Williams, C. (2012). Political instability, pro-business market reforms and their impacts on national systems of innovation. Research Policy, 41(3), 638–651. doi:10.1016/j.respol.2011.12.005.

    Article  Google Scholar 

  • Anderson, K. (2004). The world’s wine markets: Globalization at work. Edward Elgar Cheltenham.

    Google Scholar 

  • APEV. (2010). The Romanian wine industry outlook. Bucharest: APEV.

    Google Scholar 

  • Aragon-Correa, J. A., & Sharma, S. (2003). A contingent resource-based view of proactive corporate environmental strategy. Academy of Management Review, 28(1), 71–88.

    Google Scholar 

  • Barney, J. B. (2001). Is the resource-based ‘view’ a useful perspective for strategic management research? Yes. The Academy of Management Review, 26(1), 41–56.

    Google Scholar 

  • Bartlett, C. A. (2009). Global wine war 2009: New world versus old. MA: Harvard Business Case, 9-910-405, Harvard Business School Publishing.

    Google Scholar 

  • Becker, S., & Egger, P. (2013). Endogenous product versus process innovation and a firm’s propensity to export. Empirical Economics, 44(1), 329–354.

    Article  Google Scholar 

  • Bello, D. C., Radulovich, L. P., Javalgi, R. G., Scherer, R. F., & Taylor, J. (2016). Performance of professional service firms from emerging markets: Role of innovative services and firm capabilities. Journal of World Business, 51(3), 413–424.

    Article  Google Scholar 

  • Bilkey, W. J., & Nes, E. (1982). Country-of-origin effects on product evaluations. Journal of International Business Studies, 13(1), 89–100.

    Article  Google Scholar 

  • Black, J. S., & Morrison, A. J. (2010). A cautionary tale for emerging market giants. Harvard Business Review, 88(9), 99–103.

    Google Scholar 

  • Bravo-Ortega, C., Benavente, J. M., & González, Á. (2014). Innovation, exports, and productivity: Learning and self-selection in Chile. Emerging Markets Finance and Trade, 50(s1), 68–95.

    Article  Google Scholar 

  • Brush, T. H., Artz, K. W. (1999). Toward a contingent resource-based theory: The impact of information asymmetry on the value of capabilities in veterinary medicine. Strategic Management Journal, March 223–250.

    Google Scholar 

  • Carter, L. L. (2014). An analysis of country-related determinants influencing consumer receptivity of foreign products. International Business Research, 7(6), 192–200.

    Article  Google Scholar 

  • Cassiman, B., Golovko, E., & Martínez-Ros, E. (2010). Innovation, exports and productivity. International Journal of Industrial Organization, 28(4), 372–376.

    Article  Google Scholar 

  • Freeman, J., & Styles, C. (2014). Does location matter to export performance? International Marketing Review, 31(2), 181–208.

    Article  Google Scholar 

  • Golovko, E., & Valentini, G. (2011). Exploring the complementarity between innovation and export for SMEs’ growth. Journal of International Business Studies, 42(3), 362–380.

    Article  Google Scholar 

  • Grenier, L., McKay, A., & Morrissey, O. (1999). Exporting, ownership and confidence in Tanzanian enterprises. The World Economy, 22(7), 995–1011.

    Article  Google Scholar 

  • Head, R., & Dougherty, S. (2015). China’s economy: A remarkable transformation, OECD Observer, http://www.oecdobserver.org/news/archivestory.php/aid/1685/China_92s_economy:_A_remarkable_transformation.html. Accessed August 17, 2016.

  • Henard, D. H., & Szymanski, D. M. (2001). Why some new products are more successful than others. Journal of Marketing Research, 38(3), 362–375.

    Article  Google Scholar 

  • Hill, C. W. (2015). International business: Competing in the global marketplace. NY: McGraw Hill Education.

    Google Scholar 

  • Ibeh, K. I. N. (2004). Furthering export participation in less performing developing countries. International Journal of Social Economics, 31(1/2), 94–110.

    Article  Google Scholar 

  • Keil, T. J. (2006). Romania’s tortured road toward modernity. East European Monographs. New York: Columbia University Press.

    Google Scholar 

  • Kohli, A. K., & Jaworski, B. J. (1990). Market orientation: the construct, research propositions, and managerial implications. Journal of Marketing, 54(2), 1–18.

    Article  Google Scholar 

  • Ladaru, G.-R., Beciu, S., Vlad, I. M., & Padure, M.-C. (2014). Aspects regarding wine production and wine sector competitiveness in Romania. Scientific Paper Series Management, Economic Engineering in Agriculture and Rural Development, 14(3), 131–134.

    Google Scholar 

  • Lengler, J. F., Sousa, C. M. P., & Marques, C. (2013). Exploring the linear and quadratic effects of customer and competitor orientation on export performance. International Marketing Review, 30(5), 440–468.

    Article  Google Scholar 

  • Leonidou, L. C., Katsikeas, C. S., & Samiee, S. (2002). Marketing strategy determinants of export performance: A meta-analysis. Journal of Business Research, 55, 51–67.

    Article  Google Scholar 

  • Lynch, R., & Jin, Z. (2016). Knowledge and innovation in emerging market multinationals: The expansion paradox. Journal of Business Research, 69(5), 1593–1597.

    Article  Google Scholar 

  • Marin-Idarraga, D. A., Gonzalez, J. M. H., & Medina, C. C. (2016). The antecedents of exploitation-exploration and their relationship with innovation: A study of managers’ cognitive maps. Creativity and Innovation Management, 25(1), 18–37.

    Article  Google Scholar 

  • Martins, P. S., & Yang, Y. (2009). The impact of exporting on firm productivity: A meta-analysis of the learning-by-exporting hypothesis. Review of World Economics, 145(3), 431–445.

    Article  Google Scholar 

  • McGuinness, N., & Little, B. (1981). The influence of product characteristics on the export performance of new industrial products. Journal of Marketing, 45(2), 110–122.

    Article  Google Scholar 

  • Medina-Smith, E. J. (2001). Is the export-led growth hypothesis valid for developing countries? A case study of Costa Rica. CNUCED: UN.

    Google Scholar 

  • Mengue, N., & Auh, S. (2006). Creating a firm-level dynamic capability through capitalizing on market orientation and innovativeness. Journal of the Academy of Marketing Science, 24, 63–73.

    Article  Google Scholar 

  • Milberg, W., & Winkler, D. (2013). Outsourcing economics: Global value chains in capitalistic development. NY: Cambridge University Press.

    Book  Google Scholar 

  • Miller, D., & Friesen, P. (1982). Innovation in conservative and entrepreneurial firms: Two models of strategic momentum. Strategic Management Journal, 3, 1–25.

    Article  Google Scholar 

  • Morris, D. (2015). Will tech manufacturing stay in China? Fortune. http://fortune.com/2015/08/27/tech-manufacturing-relocation/. Accessed July 31, 2016.

  • Mueller, V., Rosenbusch, N., & Bausch, A. (2013). Success patterns of exploratory and exploitative innovation: A meta-analysis of the influence of institutional factors. Journal of Management, 39(6), 1606–1636.

    Article  Google Scholar 

  • Nakata, C., & Sivakumar, K. (1996). National culture and new product development: An integrative review. Journal of Marketing, 60(1), 61–72.

    Article  Google Scholar 

  • Nakata, C., & Sivakumar, K. (1997). Emerging market conditions and their impact on first mover advantages: An integrative review. International Marketing Review, 14(6), 461–485.

    Article  Google Scholar 

  • Nguyen, A. N., Quang Pham, N., Nguyen, C. D., & Nguyen, N. D. (2008). Innovation and exports in Vietnam’s SME sector. The European Journal of Development Research, 20(2), 262–280.

    Article  Google Scholar 

  • Priem, R. L., & Butler, J. E. (2001). Is the resource-based ‘view’ a useful perspective for strategic management research? The Academy of Management Review, 26(1), 22–40.

    Article  Google Scholar 

  • Ricardo, D. (2004). The principles of political economy and taxation. Dover Publications, work originally published by J.M. Dent & Sons, London in 1911.

    Google Scholar 

  • Rubera, G., & Kirca, A. (2012). Firm innovativeness and its performance outcomes: A meta-analytic review and theoretical integration. Journal of Marketing, 76(2), 130–147.

    Article  Google Scholar 

  • Samiee, S., Walters, P. G. P., & DuBois, F. L. (1993). Exporting as an innovative behaviour: An empirical investigation. International Marketing Review, 10(3), 5–25.

    Article  Google Scholar 

  • Salomon, R., & Shaver, J. M. (2005). Learning by exporting: New insights from examining firm innovation. Journal of Economics and Management Strategy, 14(2), 431–460.

    Article  Google Scholar 

  • Schrage, M. (2011). One point of view: Global innovators from emerging markets. Research-Technology Management, 54(4), 10–11.

    Article  Google Scholar 

  • Smith, A. (2003). The wealth of nations: An inquiry into the nature and causes. Batam Classics, work originally published by William Strahan and Thomas Cadellin 1776.

    Google Scholar 

  • Story, V. M., Boso, N., & Cardogan, J. W. (2015). The form of relationship between firm-level product innovativeness and new product performance in developed and emerging markets. Journal of Product Innovation Management, 32(1), 45–64.

    Article  Google Scholar 

  • Teal, F. (1999). Why can Mauritius export manufactures and Ghana not? The World Economy, 22(7), 981–993.

    Article  Google Scholar 

  • Trade Data and Analysis. (2008). World wine consumption. Accessed December 20, 2010, www.wineinstitute.org.

  • World Bank. (2014). GDP per capita. http://data.worldbank.org/indicator/NY.GDP.PCAP.CD. Accessed July 20, 2014.

  • World Bank 2. (2014). Romania overview. http://www.worldbank.org/en/country/romania/overview. Accessed July 20, 2014.

  • World Trade Organization. (2015). International trade statistics 2015. https://www.wto.org/english/res_e/statis_e/its2015_e/its15_toc_e.htm. Accessed July 31, 2016.

  • Zajac, E. J., Kraatz, M. S., & Bresser, R. K. F. (2000). Modeling the dynamics of strategic fit: A normative approach to strategic change. Strategic Management Journal, 21(4), 429–453.

    Article  Google Scholar 

Download references

Acknowledgements

The authors are grateful for the superb fieldwork and translation assistance of Otilia Flandro and critical organizing efforts of Ioan Stefan in Romania.

Author information

Authors and Affiliations

  1. University of North Carolina at Greensboro, 516 Stirling Street, 348 Bryan, Greensboro, NC, 27402, USA

    Cheryl Nakata

  2. University of Illinois at Chicago, 1603 West Taylor Street, IL, 60612, USA

    Erin Peregrine Antalis

Authors
  1. Cheryl Nakata
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Erin Peregrine Antalis
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Cheryl Nakata .

Editor information

Editors and Affiliations

  1. School of Economics and Management, University of Cyprus, Nicosia, Cyprus

    Leonidas C. Leonidou

  2. Leeds University Business School, University of Leeds, Leeds, USA

    Constantine S. Katsikeas

  3. Collins College of Business, University of Tulsa, Tulsa, Oklahoma, USA

    Saeed Samiee

  4. Faculty of Business, Dokuz Eylül University, Izmir, Turkey

    Bilge Aykol

Rights and permissions

Reprints and permissions

Copyright information

© 2018 Springer International Publishing AG

About this chapter

Cite this chapter

Nakata, C., Antalis, E.P. (2018). Strengthening Innovation for Greater Exporting: A Strategic Path for Developing Country Firms. In: Leonidou, L., Katsikeas, C., Samiee, S., Aykol, B. (eds) Advances in Global Marketing. Springer, Cham. https://doi.org/10.1007/978-3-319-61385-7_7

Download citation

Publish with us

Policies and ethics

Search

Navigation