A theoretical model of the formation and dissolution of emerging market international marketing alliances

Purpose The purpose of this paper is twofold: to publish scholarly works that extend knowledge on the drivers, consequences and boundary conditions of international marketing strategies employed by emerging market firms of all sizes and types; and to advance a narrative for future research on emerging market firms’ international marketing activities. Design/methodology/approach To achieve this agenda, the authors invited scholars to submit quality manuscripts to the special issue. Manuscripts that addressed the special issue theme from varied theoretical perspectives and methodological approaches were invited. Findings Out of 70 manuscripts reviewed, 7 are eventually accepted for inclusion in this special issue. The papers touched on interesting research topics bothering on international marketing practices of emerging market firms using blend of interesting theoretical perspectives and variety of methods. Key theoretical perspectives used include resource-based theory, internationalization theory, institutional theory and corporate visual identity theory. The authors employed unique sets of methods including literature review, surveys, panel data, and process-based qualitative and case-study enquiries. The authors used some of the most advanced analytical techniques to analyze their data. Originality/value This introduction to the special issue provides a review of the extant literature on the international marketing strategy of emerging market firms, focusing on summarizing key empirical contributions on the topic over the last three decades. Subsequently, the authors discuss how each paper included in this special issue helps advance the agenda to develop scholarly knowledge on emerging market firms’ international marketing strategy.

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Effects of Corporate Governance Guidelines on Investors: An Experimental Examination of Bangladeshi Investors’ Decisions

10.26686/wgtn.17060102 ◽

2021 ◽

Author(s):

◽

ATM Tariquzzaman

Keyword(s):

Decision Making ◽

Corporate Governance ◽

Theoretical Model ◽

Insider Trading ◽

Emerging Market ◽

Governance Structure ◽

Developed Countries ◽

Financial Condition ◽

The Impact ◽

Investor Decisions

<p>The main purpose of the study is to examine whether investors assign importance to corporate governance in making investment decisions. The study involves a 2x2x2 between-participant experiment on real investors that examines the effects of corporate governance structure, financial condition and insider trading on individual investor decisions. The findings of this study extend the literature on corporate board practices and investor perceptions by providing evidence from this emerging economy that strong corporate governance has a positive impact on investor decisions. The study also confirms the findings of prior literature that financial condition of a company positively influences investor decisions. Hence, the results provide insights into the effects of strengthening corporate governance guidelines and of variation in financial condition on investor decisions. The study provides evidence that the common occurrence of illegal insider trading in the emerging market of Bangladesh does not appear to impact on investor decision making, unlike in developed countries. The results of this study also contribute to understanding of how the quality of corporate governance impacts on decision making. It appears that governance directly impacts the perceived reliability of financial reports and trust in the board and management and that these factors fully mediate the impact on investor decision making. The theoretical model and instrument developed for this study will be useful for further studies to explore the impact of other corporate governance factors on investor decisions. Furthermore, the theoretical model and instrument will also be useful for further studies in other developed and developing countries, particularly where insider trading is regarded by investors as being a concern and to investigate the impact of other corporate governance factors on investors and financial analysts.</p>

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Innovative product marketing strategy: multinational companies in Bangladesh

Journal of Asia Business Studies ◽

10.1108/jabs-07-2018-0193 ◽

2019 ◽

Vol 13 (4) ◽

pp. 656-671

Author(s):

Maria Fregidou-Malama ◽

Ehsanul Huda Chowdhury ◽

Akmal S. Hyder

Keyword(s):

Emerging Market ◽

International Marketing ◽

Multinational Companies ◽

Emerging Market Economies ◽

Local Market ◽

Data Set ◽

Content Type ◽

Market Economies ◽

Marketing Literature ◽

Product Marketing

Purpose This paper aims to deal with international marketing of products, analyzing how adaptation/standardization and network development are achieved when marketing products in Bangladesh. Design/methodology/approach By applying a qualitative method, the study was conducted at four multinationals, British American Tobacco, Perfetti Van Melle, Tetrapak and Reckitt Benckiser, operating in Bangladesh. Data were collected through semistructured interviews, direct observation and official documents. The analysis was conducted through construction of themes that were identified from the data set. Findings The study demonstrates that business relationships related to a local market should be adapted to customer preferences. The research suggests that a balanced combination of product quality and development of new, innovative products adapted to the needs of the market and the customers establishes trust and networks. Cultural and market context were found to influence multinational companies (MNCs)s to standardize the quality of the products and adapt marketing mix components to the needs of consumers. Research limitations/implications The paper contributes to international marketing literature with a model of product marketing based on context, trust, networks and adaptation/standardization. The model introduces the cultural dimension of femininity/ masculinity and the innovation of products and market structure. The study is limited to one emerging market. Further studies should explore other emerging market economies and MNCs. Practical implications The results suggest that to meet the challenges of emerging market economies and achieve success, managers should take people and market needs into consideration. Originality/value This paper extends product marketing literature by presenting a context-based model for MNCs’ product marketing.

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International Marketing Strategy in Emerging-Market Exporting Firms

Journal of International Marketing ◽

10.1177/1069031x18812731 ◽

2019 ◽

Vol 27 (1) ◽

pp. 20-37 ◽

Cited By ~ 14

Author(s):

Saeed Samiee ◽

Suthawan Chirapanda

Keyword(s):

Emerging Markets ◽

Marketing Strategy ◽

Emerging Market ◽

International Marketing ◽

Superior Performance ◽

Market Conditions ◽

Developed Markets ◽

Advanced Economies ◽

International Marketing Strategy ◽

Emerging Market Firms

Unlike their counterparts in developed markets, emerging-market firms are characterized by limited resources, including international experience and access to relevant information, which are essential for developing suitable international marketing strategy (IMS). Under such circumstances, strategies are expected to produce suboptimal results, especially when targeting competitive markets in advanced economies. Prior IMS research has largely focused on developed markets. In contrast, the authors examine IMS of exporters in Thailand, an emerging market. Despite major differences in environments and processes in emerging markets, they establish that Thai exporters that match their IMS to local market conditions realize superior performance, as predicated by strategy coalignment. The authors validate these results and discuss emerging-market firms’ capacity to adapt their strategies and succeed in highly competitive advanced economies, despite relative inexperience, volatility, and information asymmetry at home. Exporting remains of critical importance to the economies of emerging markets, and the findings provide greater optimism for their firms’ ability to address host-market conditions in their marketing strategies, as well as pointing to the competitive threat posed by these emerging-market neophytes.

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Organisational learning and export performance of emerging market entrepreneurial firms

European Journal of Marketing ◽

10.1108/ejm-08-2017-0496 ◽

2019 ◽

Vol 53 (2) ◽

pp. 257-278 ◽

Cited By ~ 6

Author(s):

Henry F.L. Chung ◽

Zhujun Ding ◽

Xufei Ma

Keyword(s):

Decision Making ◽

Theoretical Model ◽

Direct Effect ◽

Learning Theory ◽

Emerging Market ◽

Export Performance ◽

Organisational Learning ◽

Research Setting ◽

Nation Wide Survey

Purpose The purpose of this paper is to integrate the resource-based view (RBV) with organisational learning theory by investigating the role of the RBV mechanism in the preceding performance-current performance linkage. The authors further examine the role of the decision-making approach on the RBV-prior-current performance paradigm. Using China as the research setting, they empirically test the theoretical model based on 229 firms selected from a nation-wide survey. Design/methodology/approach This study has used China as the research setting. The authors empirically test the theoretical model based on 229 firms selected from a nation-wide survey. Findings This study reveals that prior export performance is a key determinant of current export performance, and this effect is enhanced by product certification (an internal RBV mechanism) and the intention to make an initial public offering (and external RBV mechanism). Moreover, the internal RBV-prior-current performance paradigm is positively moderated by the delegated decision-making approach, while the external RBV-prior-current performance paradigm is negatively moderated by this decision-making approach. Research limitations/implications The results related to RBV and prior organisational learning also extends the extant literature and offer implications in two important ways. One, this research advances existing research that has only considered the direct effect of organisational learning on current performance ( Lages et al., 2008 ). In addition to its direct effect, this study suggests that the interplay of organisational learning and resource commitment also provides important determinants of export performance. These new results imply that future research should not only explore the effect of organisational learning theory but also that of firm resource in the research on the prior-current performance dyad ( Lages et al., 2008 ). Two, this study also advances the theoretical development of the export venture resource and management commitment research by revealing two new factors ( Cavusgil and Zou, 1994 ). As a result, when conducting exporting activity from an emerging economy, exporting firms should consider committing their resources on acquiring international certification and seeking external funding. These new findings provide new guidance on the choice of the type of resource commitments and their roles in the prior-current performance conceptualisation when operating in the emerging markets. Practical implications The results also contribute to the conceptualisation of the decision-making literature in the context of emerging economies ( Garnier, 1982 ; Kao, 1993 ; Redding, 1993 ; Solberg, 2000 ), where an owner decision-making approach is associated with a number of negative effects ( Kao, 1993 ; Redding, 1993 ). This study suggests that an owner decision-making approach can actually help firms to implement the effect of external RBV’s influence in the prior-current performance framework. As a result, the findings imply that researchers and managers of EMEFs should now consider including the effect of decision-making governance when exploring the interactive effect of RBV and organisational learning in export performance research ( Lages et al., 2008 ). Originality/value This three-way interaction results have implications for the development of organisational learning theory, the RBV, decision-making, export performance and emerging market literature.

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A game-theoretical model of bank foreign direct investment strategy in emerging market economies

International Journal of Bank Marketing ◽

10.1108/ijbm-08-2013-0077 ◽

2014 ◽

Vol 32 (3) ◽

pp. 194-222 ◽

Cited By ~ 2

Author(s):

Aidan O’Connor ◽

Francisco J. Santos-Arteaga ◽

Madjid Tavana

Keyword(s):

Theoretical Model ◽

Emerging Market ◽

Banking System ◽

Financial System ◽

Investment Strategy ◽

Foreign Banks ◽

Emerging Market Economies ◽

Content Type ◽

Market Economies ◽

Game Theoretical Model

Purpose – The purpose of this paper is to propose a game-theoretical model for commercial bank foreign direct investment strategy, government policy and domestic banking industry interactions in emerging market economies and demonstrate the application of this strategy to the banking system. Government policy and domestic banking industry interactions in emerging market economies and demonstrate the application of this strategy to the banking system. Design/methodology/approach – The paper develops a game-theoretical model to analyze the optimality of the limiting entry strategy followed by a given domestic institutional sector when considering the entry applications of foreign banks in the domestic financial system. The model analyzes the strategic options available to an emerging market country with a relatively underdeveloped banking system when deciding whether or not and to what extent allow for the entrance of better reputed and more technologically advanced foreign banks in its domestic financial system. Findings – The paper shows that the progressive liberalization of entry restrictions would define the perfect Bayesian equilibria of the subsequent set of continuation games and the respective payoffs derived from this liberalization as the domestic economy integrates and competes within the global financial system. Originality/value – Banks operating in the international financial market have incentives to invest directly in emerging market economies and governments have incentives in allowing foreign banks entry to their market. As banking systems in these economies are generally underdeveloped, opening the financial system to foreign competitors could lead to a decrease in the market share of local banks. Eventually foreign banks could control the banking system and could de facto control the money supply.

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“Monica and Friends”: the challenge to internationalize

Emerald Emerging Markets Case Studies ◽

10.1108/eemcs-06-2016-0139 ◽

2017 ◽

Vol 7 (2) ◽

pp. 1-26

Author(s):

Maria Luiza Carvalho de Aguillar Pinho ◽

Angela Maria Cavalcanti da Rocha ◽

Celso Roberto de Aguillar Pinho ◽

Cristiane Junqueira Giovannini

Keyword(s):

International Business ◽

Emerging Market ◽

International Marketing ◽

Comic Book ◽

Entry Mode ◽

International Market ◽

Decision Processes ◽

Market Selection ◽

Content Type ◽

Animation Industry

Subject area International business or International marketing. Study level/applicability The case is recommended for undergraduate and graduate courses in the fields of international business and international marketing. The aim is to show students the problems that a family business in the animation industry faces while growing and internationalizing. Specifically, the case discusses the entry mode selection and market selection challenges faced by an emerging market company in the comic book and animation industry to operate overseas and compete with entertainment giants such as Disney and DC Comics. The case enables the instructor to discuss international market selection theories and evaluate entry modes. For graduate students, the international market selection can be further developed by using more robust concepts such as psychic and cultural distance. Case overview This case examines the trajectory of a pioneering company in the comic book and animation industries, and in the licensing of trademarks in Brazil. Mauricio de Sousa Productions was founded in 1959 and is considered to be one of the most successful cultural producers in the country. According to a leading Brazilian public opinion research agency, 97 per cent of Brazilian children and 96 per cent of their parents are familiar with the Monica and Friends characters. As one of the main players in the publishing market, with 86 per cent of market share, Mauricio de Sousa Productions has a product portfolio that goes beyond Monica and Friends comic strips: the company’s show on the Cartoon Network ranks third in audience viewing in the country and the company has produced animated movies, books, shows and games. However, despite its experience in publishing comic books in several countries, Mauricio de Sousa Productions (MSP)’s worldwide operations have not been as profitable and sustainable as expected. Aiming at expanding its global presence, MSP’s top management decided in 2014 to review the company’s internationalization strategy and operations to enhance the firm’s performance. Expected learning outcomes The case highlights the key factors facing firms when expanding from an emerging markets. Students are expected to discuss and evaluate options, thus developing their knowledge and decision processes related to family-owned business challenges and opportunities, international market selection theories and international market entry mode. Developing strategies to face challenges as those presented by competitors such as Disney should bring opportunities to students to think outside models and weigh risks. Finally, the case gives students opportunity to base their decision processes and evaluations on logistics problems as well as psychic and cultural distances. It also compels the students to appreciate the various challenges involved in exploiting international market with animation content and intellectual properties as a service. Supplementary materials Company presentation to use in the discussion introduction can be found in: www.monicaandfriends.com/content/video.php Subject code CSS 5: International business.

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Brand equity of commoditized products of famous brands

Marketing Intelligence & Planning ◽

10.1108/mip-02-2019-0115 ◽

2019 ◽

Vol 38 (3) ◽

pp. 296-309

Author(s):

Emerson Wagner Mainardes ◽

Atílio Peixoto Soares Júnior ◽

Daniel Modenesi Andrade

Keyword(s):

Theoretical Model ◽

Brand Equity ◽

Purchase Intention ◽

Emerging Market ◽

Perceived Value ◽

Subjective Norms ◽

Added Value ◽

Equation Modeling ◽

Content Type ◽

Premium Price

Purpose The purpose of this paper is threefold: first, to identify the influence of brand equity (BE) of commoditized products of famous brand on purchase intention and willingness to pay a premium price in an emerging market; second, to identify the relationship between the BE of these products and their antecedents; and third, to identify the influence of subjective norms on purchase intention and BE. Commoditized products are bought due to necessity and not desire, are homogeneous, produced on a large scale, and have low added value. Design/methodology/approach A theoretical model is proposed contemplating the constructs: BE, purchase intention, premium price, perceived quality, brand recall, perceived value and subjective norms. We performed a quantitative study with 432 respondents. We used questionnaires, and we analyzed the data using the structural equation modeling with partial least squares. Findings The results indicate a positive relationship between BE and purchase intention, BE and premium price, perceived value and BE, subjective norms and purchase intention and subjective norms and BE. It should be noted that an emerging market has characteristics distinct to that of a mature market, justifying specific research in this context. Originality/value The study brought a theoretical model relating antecedents and consequents of BE in the segment of commoditized products. Furthermore, it indicated the strength of the brand of the commoditized products in an emerging market scenario.

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Country of Origin Image and Foreign Markets Strategy: Analysis of the Brazilian Cosmetics Company Natura

Revista Brasileira de Marketing ◽

10.5585/remark.v14i3.2834 ◽

2015 ◽

Vol 14 (3) ◽

pp. 393-406 ◽

Cited By ~ 1

Author(s):

Mariana Bassi Sutter ◽

Maria Laura Ferranty MacLennan ◽

Carolina Cristina Fernandes ◽

Moacir Miranda de Oliveira Jr.

Keyword(s):

Marketing Strategy ◽

Single Case ◽

Emerging Market ◽

International Marketing ◽

Country Of Origin ◽

International Strategy ◽

Foreign Markets ◽

Strategy Analysis ◽

International Marketing Strategy ◽

Country Of Origin Image

This study investigates the use of country of origin image (COI) by an emerging market multinational (EMMN) on their internationalization process.To this end, we integrateCOIliteraturewith the attributes that make up Brazils image abroad.This study conducts aqualitative and descriptive approach using the single case study on the case of the Brazilian company Natura CosmticosS.A. Caseanalysis,relying on discourse analysis, allowed us to find out that the company uses COI as part of its international strategy; COI attributes can be used positively by an EMMN and might contribute to their image abroad.About the first finding, thestudy also points out ways Natura integrates Brazilianness attributes into its international marketing strategy, since Naturas competitive differential is sustained onproductdevelopment based on the biodiversity of Brazilian fauna and flora. Our study shows ways how an EMMN might use COI concept into their international marketing strategy in order to build their image abroad and differentiate itself positively.

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Technological knowledge and internationalization: evidence from India

International Marketing Review ◽

10.1108/imr-02-2021-0082 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Saurabh Bhattacharya ◽

Arpita Agnihotri ◽

Natalia Yannopoulou ◽

Georgia Sakka

Keyword(s):

Stock Exchange ◽

Emerging Market ◽

Linear Regression Analysis ◽

International Marketing ◽

Technological Knowledge ◽

Management Tool ◽

Knowledge Capital ◽

Competitive Intensity ◽

Content Type ◽

Contingency Effect

PurposeThe authors combine institutional theory with resource-based theory to explain how emerging market firms (EMFs) manage their technological knowledge capital by venturing into international markets. The authors further explore the contingency effect of international marketing knowledge and competitive intensity in the home country in influencing technological knowledge capital and internationalization relationship.Design/methodology/approachThe study employs multiple linear regression analysis using a dataset consisting of 326 Bombay Stock Exchange-listed A and B category stocks for a six-year period (2010–2016).FindingsThe study finds that with an increase in technological knowledge capital, the internationalization of Indian firms increases. Furthermore, international marketing knowledge and competitive intensity positively moderate this relationship.Research limitations/implicationsThe study finds that with an increase in technological knowledge capital, the internationalization of Indian firms increases. Furthermore, international marketing knowledge and competitive intensity positively moderate this relationship.Practical implicationsThe authors’ findings increase international marketing managers' awareness of how internationalization acts as a knowledge management tool for EMFs under the contingency effect of international marketing knowledge and competitive intensity.Originality/valueThe study provides novel insights into the technological knowledge capital management strategy by EMFs through internationalization and the role of international marketing knowledge and competitive intensity in increasing firms' ability to even better manage technological knowledge capital.

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