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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