Linking market orientation to international market selection and international performance

• Published in: International business review Vol. 20; no. 5; pp. 535 - 546
• Main Authors: He, Xinming, Wei, Yingqi
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 01.10.2011; Elsevier
• Series: International Business Review
• Subjects: Business management; China; China Hierarchical binary logistic regression analysis International market selection International performance Market orientation Resource-based view Structure equation modeling; Cultural factors; Economic performance; Hierarchical binary logistic regression analysis; International market selection; International performance; Internationalization; Manufacturing; Market analysis; Market entry; Market orientation; Resource-based view; Strategic planning; Structure equation modeling; Market orientation; Structure equation modeling; Hierarchical binary logistic regression analysis; China; International market selection; International performance; Resource-based view
• ISSN: 0969-5931; 1873-6149
• DOI: 10.1016/j.ibusrev.2010.10.003

One key strategic decision in a firm's internationalization process is the international market selection (IMS). IMS must match the firm's own-specific resources and capabilities for optimal performance. This research, drawing on the resource-based view, investigates how a firm's market orientation (MO) resources and capabilities influence the firm's IMS between culturally close and distant markets and how the matching of MO and IMS impacts on its international performance. We hypothesize that market-oriented firms tend to choose culturally distant markets that help them exploit their MO. Firms with a fit between MO and IMS tend to perform better internationally than those without such a fit. Both hypotheses are supported by our database of Chinese manufacturing firms expanding internationally.