A “strategy tripod” perspective on export behaviors: Evidence from domestic and foreign firms based in an emerging economy

Abstract

Owing to a production error, a number of values were incorrectly shown in Table 6 of this article. A corrected version of this table is given overleaf.

The Resource-based View and SME Internationalisation: An Emerging Economy Perspective

“…Therefore being at a disadvantage in comparison to advanced economy markets, internationalising firms from emerging economies are more likely to exploit their cost advantage and pursue a low-cost strategy when entering advanced economy markets (Aulakh, Kotabe, & Teegen, 2000). Cost advantage, measured by production cost ratio, and selling and administrative cost ratio, was found to have a positive effect on export propensity and intensity in a sample of private Chinese manufacturing firms (Gao, Murray, Kotabe & Lu, 2010). Empirical evidence also shows that the positive effects of the cost-based strategy on export performance are stronger among emerging economy firms that internationalise to advanced rather than other emerging economy markets where domestic firms can also draw on low-cost resources and where a differentiation strategy may therefore be more successful (Aulakh et al, 2000).…”

“…For instance, differentiation competencies, measured by R&D intensity and new product ratio, were found to have a positive effect on export propensity and intensity (Gao et al, 2010), while innovative products and production processes were found to be one of the main sources of positive performance in a case study of Turkish born globals (Kociak & Abimbola, 2009). However, proprietary technology at start-up, like the above mentioned domestic reputation, is found to be more relevant when firms choose to internationalise to other emerging economy markets, as the competitive benefits of such technology are considered to be offering lesser competitive benefits in advanced economies (Yamakawa et al, 2013).…”

Avaliação sobre a instrumentalização empírica do tripé da estratégia: análise das fraquezas e oportunidades

“…Gao et al (2010) apply a complex operationalization of Porter's generic strategies, classifying the strategy undertaken between cost leadership and differentiation. Xie et al (2011) measure the market concentration index when comparing the market share of the companies evaluated.…”

“…From this formulation, the company's competitiveness is influenced by the environment, that is, external factors would determine the company's strategy (Gao et al, 2010). This model has five strengths: threat of new entrants, bargaining power of suppliers, bargaining power of customers, threat of substitutes, and finally all of these define the competitiveness of the industry (Porter 1979: 141).…”

“…This research focuses on the strategy tripod formulated by Peng, et al (2008), for its wide application in the international business literature. It can be observed that several authors use this theoretical basis for the development of studies in the area (Barin Cruz, Boehe, & Ogasavara, 2013, Gao, Murray, Kotabe, & Lu, 2010, Ju, Zhao, & Wang, 2014, Krull, Smith, & Ge, 2012, Xie, Zhao, Xie, & Arnold, 2011. However, in the seminal articles in which the theoretical construct of the strategy tripod is proposed (Peng et al, 2008, Peng, Sun, Pinkham, & Chen, 2009, it is not possible to explain how such an operation would take place.…”