Is Facebook an effective tool to access foreign markets? Evidence from international export performance of fashion firms

Abstract

Social networks are a driving force of digital transformation and offer firms the opportunity to market products and services to both international consumers and providers, establish durable relationships with them, and improve their own competitiveness. The study analyzes the role played by the use of Facebook for online advertising, building interaction and brand communities, implementing social CRM activities, and conducting market research, as well as a sales channel alternative to physical presence, in firms’ international export performance, both in terms of managers’ perceptions and Facebook buy button conversion rate. A survey-based empirical analysis of 105 fashion firms operating worldwide was conducted. The results of multiple regression analyses show that building conversations and brand communities positively affects international export performance, while advertising via Facebook yields mixed results. By comparing firms that have a physical presence with those that do not, the former turned out to benefit from especially in-store advertising and promotions to enhance their Facebook buy button conversion rate; while the latter can improve their performance mainly by adopting outdoor and transit advertising and digital marketing. The research contributes to the existing body of knowledge on social media marketing and international business and, by adopting a firm-level perspective, provides interesting insights for practitioners since it allows to understand how to develop an effective Facebook strategy to succeed in foreign markets.

Introduction to the Special Issue: “The age of digital internationalization—Strategic capabilities, cultural distance and customer value”

“…The paper by Mazzucchelli et al (2021) examines how the broad use of Facebook in online advertising may help firms in building interactions and brand communities, in implementing social CRM activities and in conducting market research, thereby improving their international export performance. Mazzucchelli et al administered a survey-based empirical analysis of 105 fashion firms operating worldwide.…”

“…In this figure, according to their respective content and aim, we have also succeeded in positioning all the seven papers in this issue. Three of them (Bertello et al, 2021;Martinelli et al, 2021;and Moi & Cabiddu, 2021) are located in the strategic capabilities quadrant, two (Mariani & Matarazzo, 2021;Bergamaschi et al, 2021) are situated in the cultural distance section and finally the remaining two (Mazzucchelli et al, 2021;Penco et al, 2021) are inserted in the customer value orientation segment. Beyond the real and concrete positioning, we have reasons to believe that this interpretation of ours bears a symbolic and evocative character.…”

Social media adoption and export intensity: the moderating role of firm size

“…Most of the previous studies found a positive relationship between SM adoption and export performance (Alarc on-del-Amo et al, 2018;Alarc on-del Carmen et al, 2015;Berthon et al, 2012;Karavdic and Gregory, 2005;Mazzucchelli et al, 2021;Zeriti et al, 2014). Okazaki and Taylor (2013) claim that SM adoption has unique implications for improving export performance.…”

“…For instance, Twitter messages may influence the behaviors of other consumers and may push firms to adopt new policies on meeting the needs of customers. Studies show that firms that do not have physical presence abroad may achieve better export performance by digital marketing (Aronica et al , 2021; Cassetta et al , 2020; Mazzucchelli et al , 2021). Durkin et al (2013) analyzed the SM adoption of the Irish firms and indicated that different approaches to SM vary according to customers’ profile, firm resources and competency levels, showing that RBV is an appropriate option.…”

“…Recent development in information and communication technologies has created revolutionary changes in business environment and has transformed the interaction of companies and people by digital means such as smartphones, social media (SM), Web blogs and other internet-based applications, resulting in striking influences on business practices (Aronica et al , 2021; Kane, 2015; Mazzucchelli et al , 2021). Many firms launch Facebook pages, Instagram accounts and YouTube channels to improve customer relationship.…”