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O’Donnell’s Study Examines Firms’ Export Performance

What can small and medium size firms (SMFs) do to improve their export performance?  This is the research question posed in a new study by Turner College marketing professor Ed O’Donnell that appears in a recent issue of the International Journal of Business Management and Commerce.  O’Donnell’s study posits that SMFs that adapt the visible peripheral attributes of their products, such as brand name and packaging, to comply to host market norms will experience higher levels of export performance than those that adapt their physical product or that use some other strategy.  To test this theory, he examines data on exporters in the U.S., China and Romania.  The U.S. was used to represent developed markets because it is one of the largest global markets with an income per capita that is comparable to other developed markets.  O’Donnell chose Romania and China because they represent two distinct types of emerging markets with respect to market size and growth rate.  Statistical analysis discussed in the study suggests that SMFs’ export performance is positively and significantly related to peripheral product adaptation, while no relationship was found between core product adaptation and SMF export performance.  When separate tests are conducted for the U.S. only and for both Romania and China, empirical support for the main hypothesis is again found.  As O’Donnell concludes his study, the evidence indicates that emerging market SMFs and developed market SMFs both stand to benefit by following this product adaptation strategy
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