The interplay between market intelligence activities and sales strategy as drivers of performance in foreign markets

Abstract

Purpose Exporting is a popular foreign market entry mode, especially among small- and medium-sized enterprises (SMEs). The success of SME exporters depends on their ability to establish and maintain profitable long-term relationships with foreign customers. This study aims to propose that the development of an effective export sales strategy can contribute greatly toward this aim. The study also demonstrates that export market intelligence generation and export market intelligence dissemination activities are important drivers of export sales strategy. Export sales strategy comprises three dimensions, which are expected to have a positive influence on export performance. Design/methodology/approach The study uses survey data obtained from 168 exporting firms based in Greece, to test a set of research hypotheses. Structural equation modeling procedures are used. Findings Findings indicate that export market intelligence generation and dissemination activities support and facilitate the development of effective export sales strategies, tailored to serve individual foreign accounts. Furthermore, all strategic dimensions of export sales strategy demonstrate significant positive effects on export performance. Research limitations/implications The research underlines the importance of incorporating export sales strategy in studies that aim to investigate the drivers of export performance. Practical implications The findings also indicate that exporting firms must actively engage in market intelligence activities to reinforce their strategic decision-making process. Originality/value The study emphasizes the crucial importance of export sales strategy in achieving superior export performance. The study provides a theory-driven conceptualization and operationalization of export sales strategy and offers an empirical assessment of a comprehensive model that includes the key antecedents and performance outcomes of export sales strategy.

Home country institutional drivers and performance outcomes of export market orientation: the moderating role of firm resources

“…In addition, the knowledge-based benefits acquired through export market-oriented activities permit firms to specialize marketing strategies (e.g. marketing-mix adaptation and export sales strategy) and to communicate better with target markets (Katsikea et al, 2019;Navarro et al, 2010).…”

Export market orientation and its consequences: a meta-analytic review and assessment of contextual and measurement moderators

“…On the other hand, export market orientation is primarily related with firms’ attempts to engage marketing concept in exporting operations (Cadogan et al , 2009) and it pays much more attention to export markets rather than domestic ones (Cadogan et al , 2003). Being export market-oriented is particularly critical for firms operating in export markets, as it enables firms to gather market knowledge related to target customers, to meet the foreign customers’ expectations and determine suitable strategy in international markets (He et al , 2013; Katsikea et al , 2019). Firms with greater export market orientation tend to foster market research within the firm with intent to adapt their strategies and address with the different customers’ needs in export markets (Murray et al , 2011; Olabode et al , 2018).…”

“…In this regard, export market orientation has been widely recognized as a firm’s attempts to apply the marketing concept to the export field (Cadogan et al , 2009), with a special emphasis placed on export markets rather than on domestic markets (Cadogan et al , 2003). Market orientation competency is of great significance notably for exporting firms owing to the fact that it provides opportunity to collect the up-to-date information about target markets, comprehend the essentials of consumer demands and formulate a strategy to successfully stand out among competitors in overseas markets (He et al , 2013; Katsikea et al , 2019; Yayla et al , 2018).…”

Performance enhancement in international markets

“…The review is based on: "The interplay between market intelligence activities and sales strategy as drivers of performance in foreign markets", by Katsikea et al (2019), published in European Journal of Marketing. Acquiring intelligence about targeted foreign markets and subsequently disseminating the information across different functions can enable a firm to develop an effective export sales strategy (ESS) and boost export performance as a result.…”