Change in international market strategy as a reaction to performance decline

Luís Filipe Lages, José Mata, David A. Griffith

Research output: Contribution to journalArticle

14 Citations (Scopus)

Abstract

While a great deal of research has explored how international marketing strategy influences performance, researchers have paid scant attention to understanding changes to international marketing strategy resulting from firm reaction to past performance. In this study, organizational learning theory addresses when and how international marketing strategy will change. Employing data from over 500 exporters, the results, which are consistent with theoretical predictions, indicate that (1) firms are generally not prone to inertia and do, in fact, change their international marketing strategy when facing declines in performance, and (2) that the direction of change depends on the level of competition in the specific foreign market, with firms adapting their international marketing strategy in low competitive markets and standardizing their international marketing strategy in highly competitive markets. The paper includes implications for academics and practitioners.

Original languageEnglish
Pages (from-to)2600-2611
Number of pages12
JournalJournal of Business Research
Volume66
Issue number12
DOIs
Publication statusPublished - 1 Dec 2013

Keywords

  • Adaptation/standardization
  • Competitive intensity
  • International marketing
  • Local/global strategy
  • Organizational learning
  • Strategic change

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