How knowledge acquisition creates a competitive edge? A qualitative inquiry from international consultancy alliance

PurposeThe current study attempts to bridge the existing gap related to the role of knowledge acquisition from international alliance partners to improve competitiveness by examining the distinct processes of knowledge acquisition and the challenges confronted in this learning process in order to enhance local and international market performance.Design/methodology/approachFollowing case-study approach based on systematic combining, the study presents a case of knowledge acquisition and learning in the context of an international consultancy alliance between leading Pakistani and Chinese engineering firms using six in-depth interviews of key engineers to explore the dynamic mechanisms for knowledge acquisition and learning from the Chinese firm. Grounded analysis drawn upon the Straussian version of grounded theory (GT) {{Strauss, 1990 #136} Strauss, 1998 #139} is used for data analysis in this research.FindingsIt was found that the processes of explicit and implicit knowledge acquisition from Chinese firms are integrated consultancy working, social and technical adaptability and seeking confirmation about the work done and knowledge/theories and models used in work. However, these processes are quite complex, posing serious challenges for National Engineering Services, Pakistan to acquire the required knowledge, which can be addressed through partners' motivation to share and acquire knowledge, cultural intelligence and friendship and informal association. The study also found that the knowledge acquired from technologically advanced international organizations by the host partner in the international strategic alliance not only provides a competitive edge to the local host in its local market but also builds its capacity to undertake similar projects in other parts of the world, substantially enhancing its market success.Originality/valueAdding up to the current literature that focuses on knowledge acquisition in a parent-subsidiary relationship, the current research proposes a framework for knowledge acquisition in the unique context of international strategic alliances. The research provides managerial guidelines to manage knowledge acquisition for gaining a competitive edge that would be helpful for the managers in the era of growing interdependence among the organizations across the borders.

Eyes open and hands on: market knowledge and marketing capabilities in export markets

PurposeDrawing on the knowledge-based view of the firm (KBV) and Dynamic Marketing Capabilities (DMC), this paper examines the role of key internationalization knowledge absorption processes as learning strategies, namely market exploitation and market exploration in enabling internationalization knowledge absorption in export-oriented firms involved in manufacturing goods or producing electrical/engineering products.Design/methodology/approachThe data were gathered via a cross-sectional survey using a questionnaire (i.e. n = 315) on a sample of Bangladeshi manufacturing firms exporting in US and European markets.FindingsThe findings suggest that an export firm's internationalization absorption strategies are positively associated with export performance. The authors also found that the mediator, DMC, strengthened the relationship between knowledge absorption and export performance. Moreover, the findings of moderated mediation model revealed that the direct and indirect effects of market exploitation on export performance are more prevalent when competitive intensity is low. While competitive intensity is high, the direct and indirect effects of market exploration on export performance are more prevalent.Practical implicationsBy introducing a higher-level dynamic marketing capability approach and linking it to ambidexterity constructs (learning though exploration and exploitation), export business professionals should appreciate the full spectrum of mid-level marketing capabilities they need to develop alongside their exploration and exploitation strategies to improve their export performance. This study directs attention to the competitive intensity conditions the exporting firm is facing. When export business professionals are faced with high-level of competitive intensity in the market, they should establish a clear focus on their exploration learning strategies if they wish to enhance their export performance.Originality/valueThe authors contribute to two broad domains of literature: organizational learning and DMC strategy. The study results show that how the two components of international ambidexterity as organizational learning constructs (i.e. market exploration and exploitation) influence knowledge management processes within firms through a firm's possession of a fine configuration of higher-level marketing capability. This study also theoretically and empirically examines how higher-level DMC strategy can mediate the consequence of international knowledge absorption mechanism on firm export performance. From a practical perspective, this study provides useful lessons for exporting firms wishing to enhance their performance.

Different roots, intertwined branches: linking International Business and Economic Geography through the Uppsala Model and Global Production Network

PurposeThe aim of this study is to propose a link between international business (IB) and economic geography, which are two streams of thought that have developed without one acknowledging the other. We use the Uppsala model and the Global Production Network as pillars to sustain this link. We expect that this research triggers a collaboration with allied social sciences in important debates surrounding the business-societal interface.Design/methodology/approachWe selected papers produced by Johanson and Vahlne to understand the development of the Uppsala model over 40 years. The same was done with the Global Production Network, where we scrutinized the work of Henderson, Coe, Dicken, Hess and Yeung – scholars from the Manchester School of Geography – in the last twenty years. Based on Humphrey et al. (2019), we applied an inductive and inferential approach to uncover similarities and differences between the Uppsala model and Global Production Network.FindingsThe Uppsala model reinforces the strategic role of network position in the internationalization process, while the Global Production Network aims to explain how the governance of global firms scattered world-wide affects the development and upgrading opportunities of the various regions and firms involved. Despite these clear differences, the geographical nature of IB and shared similarities accounting the network as a channel to foster and provide access to important resources and practices regarding management, coordination and governance of dispersed parts of multinational enterprises give room to using these two theories as pillars to link IB and economic geography.Originality/valueWhile attempts to link IB and economic geography are not new, none of these studies have focused on the Uppsala model and Global Production Network as pillars to create a link. We foresee an intense cross collaboration and an even possible renaissance of IB and economic geography to target the ever-changing business environment and its impact on social and economic development.

The myth of the universal millennial: comparing millennials’ perceptions of luxury across six countries

PurposeThe purpose of this research is to challenge the popular belief among luxury practitioners and researchers that millennials are a homogeneous and disruptive generation of consumers which is redefining luxury according to its terms.Design/methodology/approachThis study first presents comparisons of luxury perception among 1,450 actual luxury consumers between the ages of 18 and 34 years in six main luxury markets, eastern and western, mature and emerging (United States, China, Japan, Germany, France and Brazil). Within each country, millennials' perception of luxury is then compared to the perception held by previous generations (Gen X, baby boomers and seniors).FindingsThe results clearly demonstrate that millennials' definition of luxury is not internationally homogeneous; millennials do not hold a global vision that transcends frontiers. Furthermore, comparisons of luxury perceptions among nonmillennials from the same countries reveal that millennials match their national culture more than a cohesive age culture.Research limitations/implicationsThis research has two main limitations linked to the limited number of surveyed countries, along with a limited sample size of millennials per country. Nonetheless, the results give additional support to the glocalization hypothesis. Yet, as millennials represent 44% of personal luxury goods purchases, they catch attention from both luxury sellers and researchers. Evidence indicates the notion of a “millennial luxury consumer” could be still an empty label.Practical implicationsThe extensive use of the “millennial” label across countries implies generational homogeneity across borders, whereas reality is more diverse. Also despite the fact that luxury brands are highly globalized, the perception of what defines luxury – the hierarchy of its most salient attributes – does vary per country, thus needs specific attention.Originality/valueThe current findings reveal that millennials from the six surveyed countries do not share the same perceptions of luxury traits. Moreover, millennials' definition of luxury mirrors the definition held by nonmillennials from their own country, suggesting a strong cultural influence in each country.

How do foreign customers' perceptions of product-harm crises affect their transfer of capability- and character-based stigma?

PurposeCustomers often trace a product-harm crisis to the deviant firm's capability- or character-relevant issues. This study examines how capability- and character-based stigma associated with product-harm crises influence foreign customers' product preferences (i.e. brand affect and purchase intention) for other firms from the same country of origin.Design/methodology/approachQualitative survey data are used to test hypotheses with a structural equation model.FindingsThe authors find that negative capability judgment significantly affects foreign customers' product preferences for other firms from the same country of origin, whereas negative character judgment does not. However, customers' national animosity and product knowledge moderate the stigma spillover effects. Specifically, national animosity and product knowledge weaken the spillover effects of capability-based stigma but strengthen those of character-based stigma.Research limitations/implicationsFuture research could examine strategies for uninvolved firms to avoid the stigma-by-association effect. Moreover, due to the lack of resources to collect data, this study does not investigate how customers' generalized favorability and familiarity with crisis-stricken firms and uninvolved firms moderate the stigma-by-association effect.Originality/valueThe findings of this study advance our knowledge on product-harm crises and the stigma-by-association effect.

Market knowledge acquisition and transfer in international SMEs: peculiarities, specifications and linkages to market success

PurposeThis paper aims to systematically review and evaluate extant literature on knowledge acquisition and transfer in international small-to-medium enterprises (SMEs) and to identify the requisite types of knowledge acquired and transferred in this context. The research further determines the mechanisms enabling SMEs to process this knowledge, unpacks the benefits of both knowledge acquisition and transfer for international SMEs and links them to the market success.Design/methodology/approachThe research has conducted a comprehensive systematic review of existing literature on market knowledge acquisition and its transfer, in the context of international SMEs, utilizing peer-reviewed articles published in top tier journals without any custom range of time.FindingsThe search strategy resulted in 37 reviewed academic articles, whose analysis identifies and elucidates on the best practices of knowledge acquisition and transfer in the context of international SMEs; the type of the knowledge acquired and transferred; the form and mechanism of the intersection of these processes; and the benefits gained. The findings, crucially, also identify and illuminate extant research gaps and insufficiencies and develop a comprehensive research agenda for the way forward.Originality/valueThe present study offers a uniquely comprehensive perspective on a topic of diachronic and, currently, rising significance to scholars and practitioners alike. Transcending its descriptive value, though, it further identifies extant knowledge deficiencies, it distils and consolidates critical knowledge and prescribes avenues for research towards the growth and development of international SMEs and born globals.

Impact of knowledge sharing on employees' service quality: the moderating role of artificial intelligence

PurposeA growing number of international travellers have influenced how hotels manage their customer satisfaction reviews and ratings. This study examines the influence of knowledge sharing on employee service quality and customer satisfaction in the hotel industry. Another purpose of this study is to investigate the moderating effect of artificial intelligence (AI) system quality on the relationship between knowledge sharing on employee service quality and customer satisfaction.Design/methodology/approachThe research design was developed using the positivism approach and quantitative method. Data were collected via a self-administered survey from Vietnamese hotels that used AI systems in employees' work tasks. Three hundred and fifty pairs of questionnaires for frontline employees and customers were collected and used for the data analysis. Structural equation modelling was accessed to examine the framework model.FindingsThis research shows that the increase of knowledge sharing behaviours significantly influenced customer perceptions of employees' service quality. Furthermore, employee service quality positively affected customer satisfaction. An indirect impact of knowledge sharing on customer satisfaction via employee service quality was found. AI system quality moderated the effect of knowledge sharing on employee service quality whereby the higher the AI system quality, the stronger the impact of knowledge sharing on employee service quality. Therefore, a moderated mediation of employee service quality was found in examining the relationship between knowledge sharing and customer satisfaction.Research limitations/implicationsThis study's findings direct hotel knowledge management and marketing strategies to attract international customers. The study provides hotel managers with directions to increase customer satisfaction to create a competitive advantage in international marketing strategies.Originality/valueThis study's distinctive contribution lies in examining the phenomenon of employee service quality at the intersection of knowledge sharing and customer satisfaction and the use of AI systems from an emerging market context. Furthermore, the moderation role of AI quality has rarely been explored.

How international marketers make decisions: exploring approaches to learning and using heuristics

PurposeThe paper addresses the following research question: how do decision-makers use heuristics in their international business (IB) environment? Whereas, the literature has focused on entrepreneurial companies, here contrasting approaches to learning and using heuristics in international marketing (IM) decisions are examined and discussed.Design/methodology/approachThe paper aims to address a gap in the study of micro-foundations of internationalization, exploiting research from other disciplinary fields. It combines a multidisciplinary literature review and longitudinal case studies to illustrate different approaches in learning and using heuristics by international marketers.FindingsInternational marketers can adopt “closed” heuristics that are consolidated and consistently followed, or “open” heuristics, which are constantly being adapted and learned. Established multinationals learn heuristics in international marketing decision-making, following both “closed” and “open” models.Originality/valueThis paper offers an original contribution by presenting different approaches not yet examined in the literature, focusing on how international marketers make decisions through learning and using heuristic rules. The focus is on established exporters, in contrast to the literature that has largely paid attention to the effectiveness of heuristics in new entrepreneurial firms.

Digital tools and smart technologies in marketing: a thematic evolution

PurposeThis paper aims to analyze the evolution of digital and smart technologies and their relationship with different themes within marketing journals. In addition, this study has included the evolution of digital and smart technologies in relevant International Marketing (IM)/International Business (IB) journals to describe the impact of technology on this specific area to draw some interesting conclusions.Design/methodology/approachA bibliometric approach is applied in this research using science mapping analysis to visualize and reveal the evolution of smart and digital technologies in this specific academic area.FindingsBy combining science maps with performance indicators, the results of this study suggest that new technologies are related to eight main topics within marketing journals: implementation-completion, perceptions, behavior, market competition, adoption-diffusion model, social media, competitive advantage and disruptive technology. Additionally, this work provides new avenues for future research. When analyzing IM and IB journals, the findings highlight six thematic areas: perceptions-eWOM relationship, innovative foreign markets, performance determinants, Japan, industrial research and China.Originality/valueThis study contributes theoretically to developing and describing a framework for research in smart and digital technologies in the general marketing and international marketing/business fields. It adds a coherent perspective on the points of contact in marketing evolution, where smart technology has a meaningful role. This study outlines the changing questions surrounding the touchpoints as well as emerging research topics.

The role of socio-psychological and personality antecedents in luxury consumption: a meta-analytic review

PurposeThis paper conducts a meta-analytic review of literature focused on the salient socio-psychological and personality antecedents of luxury purchase intention. It investigates the role of moderators that can assist an effective market segmentation of the luxury market in both emerging and developed economies.Design/methodology/approachThe final analysis includes 95 effect sizes from 42 studies conducted in 15 countries, spanning 5 continents, from 2000 to 2020. The review examined moderating role of Hofstede's cultural dimensions, market type (emerging vs developed) and other study characteristics.FindingsFindings show that socio-psychological antecedents had a more salient role than personality antecedents in driving luxury purchase intention (LPI), across both emerging and developed markets. Normative influence, status consumption and materialism exhibited a stronger influence on LPI in emerging markets than developed markets. Further, stronger effects for normative influence and status consumption on LPI were found in high power distance cultures. The role of seeking uniqueness was more salient and the role of normative influence was less salient in studies with a higher percentage of females. Conspicuous consumption was a stronger driver of LPI for fashion luxury products than other luxury products. The study also proposes distinct definitions of status and conspicuous consumption as there is often theoretical overlap of these constructs in literature.Research limitations/implicationsA meta-analytic review may leave blind-spots due to lack of sufficient number of studies investigating certain theoretically relevant moderators. The authors discuss these gaps, along with study limitations.Originality/valueTo the best of the authors’ knowledge, no previous study has conducted a meta-analytic review of the antecedents and moderators of LPI. With the extension of luxury demand beyond the developed countries in the West to the “new rich” consumers in the East, it becomes imperative to conduct a meta-analysis for a richer understanding of the drivers of luxury demand across different cultural orientations and market segmentations.