The literature suggests that the greater the perceived novelty of a firm’s products and markets, the greater the potential value to the user (Lepak et al., 2007). In this study we analyze the extent to which breakthrough innovation (both tech-innovation and market-innovation) has a positive impact on both economic and strategic export performance. Tech-innovation incorporates technological developments to improve customer benefits versus existing alternatives in the market. Our findings reveal that tech-innovation has a positive impact on the economic and strategic export performance of firms. This relationship becomes stronger when more human resources are available and the exporter becomes more oriented toward the importer. In less competitive markets, the positive relationship between tech-innovation and both types of export performance becomes even stronger.Market-innovation occurs when the product concept or benefits depart from serving existing or conventional markets. Market-innovation was found to be negatively associated with strategic export performance, as it requires major learning effort by importers. This suggests that to create value, exporters need to develop solutions jointly with importers. Overall, these findings suggest that value creation in terms of both tech-innovation and market-innovation needs to involve importers to achieve expectations, thereby leading to improvement in a firm’s short-term and long-term export performance.

Purpose – The purpose of this paper is to build on the resource-based view to analyze the influence of location effects on a firm's ability to develop export-related resources and capabilities which then impacts on export performance. Design/methodology/approach – To test the proposed hypotheses, a sample of small-to-medium exporting firms located in Australia is analyzed using partial least squared modeling. Findings – The findings show that access to location specific advantages (i.e. access to sources of supply, government agencies, export-related services and infrastructure, managerial labor skills, and network opportunities) are essential antecedents for the firm's ability to develop export-related resources and capabilities which in turn drives export performance outcomes. Research limitations/implications – Results from this study are from one state in Australia, and caution should be exercised when generalizing findings to other geographic regions. Practical implications – These findings suggest that location effects do indeed present challenges to regional SME firms. Indeed the substantial impacts of sourcing experienced managerial staff with export-related skills affirm the critical role of human resources. This offers insights concerning the recruitment and reward policies for remote firms having to compete with firms in more attractive or sort after metropolitan locations. Also the findings suggest that managers should give serious thought to the appropriateness of the resources and capabilities needed to increase their export performance. Originality/value – Even though the role and importance of firm location has been highlighted in the export literature, previous export studies have not focussed on dimensions of location as antecedents to firm resources and capability development.

Despite burgeoning research in international entrepreneurship (IE), very little is known about the processes of how entrepreneurs recognize and pursue opportunities in international markets. To provide an answer to this “opportunity process gap,” we drew on the idea sets framework from the entrepreneurship literature to longitudinally examine a serial entrepreneur who achieved international market success with little industry-specific knowledge, networks, and resources. The research demonstrates the efficacy of the new approach as a lens and methodological framework to advance process-driven explanations and research in IE. These preliminary results reveal a new concept labeled here as opportunity portfolio processing, which involves discovery, creation, prototyping, pruning, and broadening of opportunity sets, that underpins the fundamental processes but not previously documented mechanisms in IE. Our study allowed us to induce a set of IE opportunity portfolio measures — volume, flow rate, novelty, magnitude, and geographical coverage — that offers an alternative framework for measuring and predicting IE performance. In developing the arguments, we present six findings including the role of prior history that, taken together, move us closer to an opportunity portfolio perspective in IE.

PurposeThe purpose of this research is to explore how location – regional vs metropolitan – impacts a small to medium‐sized enterprise (SME)'s access to firm resources and capabilities, and in turn its export performance.Design/methodology/approachThis study involved collecting qualitative data from an expert panel of government trade advisors, as well as managers of SME exporters in Australian regional and metropolitan areas. The data were used to explore three propositions relating to the impact of location.FindingsThe data provides support for the propositions that location impacts SME exporters’ access to networks and export related infrastructure/services, and in turn export performance. Firms in metropolitan areas have an advantage over those in regional areas. However, contrary to expectations, the relatively lower level of competition in regional areas did not appear to have a negative impact on the export performance of firms located in these areas.Research limitations/implicationsThe study confirms the importance of exploring the impact of location on export performance. However, the exploratory nature of the study means that results cannot necessarily be generalised beyond the setting in which the data were collected. Future research should examine the impact of location for exporters in a broader sample of countries.Practical implicationsThe disadvantages for SME exporters located in regional areas that come from a lack of networks and export related infrastructure/services need to be recognized and addressed by the managers of SME exporters and their advisors. The study also highlights the importance of the location decision for these firms.Originality/valueThis study is one of the first to explicitly focus on the impact of location on the export performance of SMEs. While exploratory in nature, it highlights the need for further research to better understand this potentially critical moderating variable and both its practical and theoretical implications.

This article aims to better understand patterns of rapid internationalization by using the emerging international entrepreneurship paradigm. This involves (1) taking an opportunity-based view (OBV) rather than just the firm as a focal point of analysis, (2) focusing on dynamic entrepreneurial processes, and (3) stressing the importance of history. The authors gathered empirical evidence from 15 case studies of small and medium-sized enterprises in Australia. They find support for the central proposition that behind the gradual or rapid internationalization process lies a path-dependent process of opportunity development and cross-border venturing activities that is shaped by the domestic and international networks in which the key actors and organizations have operated in the past and in which they are currently operating. The evidence leads the authors to question the notion that rapid internationalization is indeed rapid. Importantly, it reveals that rapid internationalization seems to be a truly rapid process only when not taking an OBV. In doing so, the authors demonstrate that the OBV is a fruitful avenue of enquiry to advance knowledge in this area and underscore the importance of the entrepreneurial process and firm history.

Abstract While many definitions of emerging markets exist, all tend to have three characteristics in common: (i) rapid economic growth; (ii) proactive adoption of market‐based frameworks; and (iii) being in a transition phase between developing‐ and developed‐country status. The so‐called BRIC countries (Brazil, Russia, India, and China) have been highlighted as exemplars of emerging markets. It is projected that by 2050 the BRIC economies have the potential to overtake the current richest countries in terms of economic wealth. Markets within the emerging category have been further classified on the basis of national income and progress on market infrastructure development. For example, the FTSE index divides emerging markets into advanced emerging, emerging markets, and frontier markets. The key challenges facing emerging markets include governance, political risk, rapid urbanization, a shortage of highly skilled labor, poor infrastructure, and more recently, the global economic slowdown that began in 2008.

PurposeThis paper aims to complement existing theories of internationalization by studying an important aspect which has been neglected in previous studies: the process of international entrepreneurial opportunity recognition. International market entry is conceptualized as an entrepreneurial, innovative act; and opportunity recognition consists of both discovery as well as deliberate and systematic search.Design/methodology/approachThe methodology employed involves eight case studies of small and medium‐sized enterprises (SMEs) operating in knowledge‐based industries in Australia. The unit of analysis is the “opportunity‐firm” nexus.FindingsThe paper finds that firms with little or no prior international knowledge tend to make use of opportunity discovery rather than deliberate/systematic search. In contrast, firms with extensive prior international experience and knowledge were found to deliberately search and discover their first international opportunity. International opportunity discovery did not occur simply through serendipitous encounters with new information from networks or referrals but involved interpreting possible matches between pre‐existing means (resources, skills, new technologies) and new ends (international markets) in a problem solving process. It favours those with the requisite prior knowledge and entrepreneurial orientation.Practical implicationsThe paper offers guidelines on what business practitioners and export promotion agencies can and cannot do to influence opportunity recognition process. Particular attention was paid to strategies to avoid costly deliberate search among resource‐stricken SMEs.Originality/valueThis study introduces Knightian uncertainty and Kirznerian discovery as the conceptual cornerstones of internationalization that can help account for the lack of incrementalism and optimizing logic in internationalization among smaller firms.

The interdependence between varying participants in exporting networks that has resulted from processes of globalization magnifies the inadequacies of using single-item measures and internally oriented perspectives to assess export performance. In order to overcome these concerns, we developed a network export performance (NEP) scale using as a basis network theory, a diversity of network-oriented indicators and different types of respondents. The final multi-dimensional NEP Scale includes 25 items grouped into five dimensions: (a) overall export venture performance, (b) relationship performance with the importer versus competitors, (c) relationship performance with the supplier, (d) product quality performance of the supplier, and (e) importer's satisfaction with the quality of the supplied product. Findings reveal that the flow of communication and interaction within exporting networks is positively and significantly associated with all of the five dimensions of the NEP Scale. Discussion centers on implications of this scale to network theory, international business, and to the managerial development of exporting strategies. The article closes with directions for future research.

Drawing from the resource-based view and a contingency approach, the authors develop and test a model of the antecedents of client-perceived value in the context of international, professional business-to-business services (consultants, engineers, project management, IT consultants, etc.) in a developing economies setting. Further, we examine the effects of key moderators (e.g., country-of-origin (COO), firm's international experience, client's buying experience) on client-perceived performance and value. The results generally support the hypotheses that client-perceived performance is impacted by a firm's internal resources (e.g., technical skills, customer orientation, innovation). In addition, this relationship is contingent upon the COO effect, while client-perceived value is moderated by the client's buying experience. The findings can guide practitioners as to the key drivers of client-perceived value, and under what conditions this value is maximized.

Purpose - This paper aims to complement existing theories of internationalization by studying an important aspect which has been neglected in previous studies: the process of international entrepreneurial opportunity recognition. International market entry is conceptualized as an entrepreneurial, innovative act; and opportunity recognition consists of both discovery as well as deliberate and systematic search.Design/methodology/approach - The methodology employed involves eight case studies of small and medium-sized enterprises (SMEs) operating in knowledge-based industries in Australia. The unit of analysis is the "opportunity-firm" nexus.Findings - The paper finds that firms with little or no prior international knowledge tend to make use of opportunity discovery rather than deliberate/systematic search. In contrast, firms with extensive prior international experience and knowledge were found to deliberately search and discover their first international opportunity. International opportunity discovery did not occur simply through serendipitous encounters with new information from networks or referrals but involved interpreting possible matches between pre-existing means (resources, skills, new technologies) and new ends (international markets) in a problem solving process. It favours those with the requisite prior knowledge and entrepreneurial orientation.Practical implications - The paper offers guidelines on what business practitioners and export promotion agencies can and cannot do to influence opportunity recognition process. Particular attention was paid to strategies to avoid costly deliberate search among resource-stricken SMEs.Originality/value - This study introduces Knightian uncertainty and Kirznerian discovery as the conceptual cornerstones of internationalization that can help account for the lack of incrementalism and optimizing logic in internationalization among smaller firms.

The authors employ a resource-based view perspective to understand how a set of capabilities (organizational learning, relationship, and quality capabilities) influences product strategy (product quality and product innovation) and export performance (relationship performance and economic performance). Using two types of respondents from the same firm, they find strong support for the capability–strategy–performance link. The results indicate that managers should invest in relationship management capabilities to improve product innovation and product quality, which in turn leads to export performance enhancement. Furthermore, the findings reveal that though product quality is a critical aspect in international markets, both product innovation and relationship performance play a greater role in enhancing economic performance. The authors conclude with implications for international marketing theory and practice.

This article uses the international entrepreneurship framework developed by Jones, M. V., & Coviello, N. E. (2005). Internationalization: Conceptualizing an entrepreneurial process of behavior in time. Journal of International Business Studies, 36(3): 284–303, to explore the internationalization of high technology firms created through the commercialization of academic research. In particular, the effect of networks and entrepreneurial orientation is explored. Theoretical sampling resulted in four cases being studied. The data suggests that the “fundamental” networks of the academics involved in the firms assisted in the identification and exploitation of initial opportunities to internationalize. The research also suggests that only certain dimensions of entrepreneurial orientation impacted the internationalization of firms. Specifically, risk taking, technological innovativeness, and autonomy in certain parts of the organization assist in the entrepreneurial stages, while proactiveness and product–market innovativeness assist the success of firms internationally.

Export performance models anchored in the industrial organization and resource-based theories have previously been developed and tested. Thus far there have been no empirically tested export performance models that have reflected the core tenets of the relational, or behavioral, paradigm. Drawing from relational exchange theory, a model that includes reciprocal perceptions that relate to both past and future exchanges is developed. This model is tested with dyadic data from 125 West–East (Australia–Thailand) exporter–importer partnerships, reflecting the increasing importance of West–East exchange relationships. Results support the theory's contention that commitment (to future exchanges) is associated with export performance, and is itself driven by a reciprocal cycle of each partner's perception of the other's commitment, relationship-specific investments and dependence. This cycle of commitment is in turn influenced by each partner's trust in the other (from past exchanges), with different types of trust linked to different types of commitment. Trust and commitment are then found to be related both to interpersonal factors (i.e., effective communication, cultural sensitivity and likeability of partner) and to firm factors (reputation and competencies of partner).

Purpose - Entrepreneurship is a growing phenomenon in world markets. In response, the past two decades have seen increasing attention given to research and theory development in the area of international entrepreneurship. However, contributions from marketing scholars have been minimal. The purpose of this paper is to define the emerging research field of international entrepreneurship and to explore opportunities for contribution to that field from marketing scholars.Design/methodology/approach - An overview of the field of entrepreneurship highlights the central notions of opportunity, human action, learning, and creativity and innovation. To this is added value exchange, a core focus of marketing theory. These concepts are then used to define international entrepreneurship and highlight opportunities for marketing researchers.Findings - There is considerable scope for marketing academics to contribute to the nascent field of international entrepreneurship which would, in turn, advance marketing theory.Originality/value - The paper encourages scholars in marketing to join with colleagues from other disciplines and countries to add to these international resources.

Despite the growing importance of service exports in the world economy, there is limited research into the unique success factors in this sector. This article reports the key lessons from 17 Australian exporters of knowledge-based services (e.g., market research, legal, advertising, engineering) that conduct business in Southeast Asia. The authors selected the cases in accordance with Patterson and Cicic's (1995) classification scheme, which recognizes key differences across service types. Analysis of the data shows that though there are some common success factors across service types, services characterized by high tangibility on the one hand and low tangibility on the other hand derived additional success factors on the basis of their tangible and intangible assets, respectively, Furthermore, the performance of firms with high face-to-face contact during service manufacturing and delivery was enhanced by personnel-related factors. This suggests a "contingency guide" to knowledge-based service exports.

Recent years have seen increasing attention on measuring the returns on marketing. The authors propose a concept labeled Global Network Equity as one way to measure these returns for multinational companies. This concept builds upon previous metrics - brand equity in particular - and reflects the realities of the network economy where the firm is the focal point of an extended enterprise. Measurement of global network equity will allow multinational companies to manage their network relationships in a way that builds the most value.

Purpose – To highlight the relative importance of service‐specific export performance drivers that help successful exporting.Design/methodology/approach – A gap between the antecedents of manufacturing and service firms was identified via an extensive review on the export performance as well as services literature. Taking the resource‐based view and the contingency approach, a series of research propositions relating to the determinants of export performance among service firms are developed.Findings – This paper suggests that traditional export performance models, developed for and tested with manufacturing firms, cannot be assumed to apply equally well in service settings. Further, service specific export theory needs to adopt a contingency approach which in turn provides insightful and value‐added research for academics and practitioners in the services exporting sector.Originality value – The paper provides recognition of the relative importance of the different export performance and value drivers; v...

Many international joint ventures are unsuccessful, and managers partly blame the “softer” issues related to partner relationships. The authors study these relational (behavioral) aspects of the formation process using seven international joint ventures involving Australian and Malaysian firms. During the five stages of formation (i.e., need determination, partner search, partner selection, negotiations, and operations), four dimensions of trust (i.e., personal, competence, contractual, and goodwill) and three dimensions of commitment (i.e., intentions based, contractual, and affective) play prominent roles. Managers need to focus on these dimensions during the five stages of formation to improve chances of success.