Olli Kuivalainen

Export Market-Oriented Behavior and Export Performance: Quadratic and Moderating Effects Under Differing Degrees of Market Dynamism and Internationalization

In general, findings in the market orientation research stream indicate that market orientation has a positive linear relationship with business success, and managers have been urged to be more market oriented, regardless of the firms current market orientation level. The authors develop a theory that predicts that the relationship between market orientation and business performance is an inverted U shape, such that high levels of market orientation may reduce performance. The authors’ empirical study of firms’ export market-oriented (EMO) activities in their export operations finds support for the hypothesized inverted U-shaped relationship between EMO behavior and export sales performance. They show that the inverted U-shaped relationship becomes greater in magnitude (more pronounced) as market dynamism increases and that the optimal value of EMO behavior (i.e., the value that generates the highest performance return) decreases as market dynamism increases and increases as exporting firms’ internationalization increases. Therefore, they conclude that managements task is not to aim for ever-increasing levels of market orientation but to manage market orientation so that its level is optimal given the firms environment and the international diversification strategy being pursued.

Dynamic knowledge-related learning processes in internationalizing high-tech SMEs

Abstract This paper studies the internationalization of high-tech small- and medium-sized firms (SMEs). The traditional internationalization theories suggest that the firms international involvement increases in stages as a result of incremental learning. However, the small information and communications technology (ICT) companies are often characterized as born globals , showing very rapid and intensive international growth enabled by the use of external resources, such as partnerships and networks. Adopting a knowledge-based view of the firm has proved to be a useful way to theoretically explain the internationalization process of these ICT SMEs. However, in our view, the crucial dynamic aspects of knowledge development have not received enough attention in previous empirical studies, which have typically been more like static snapshots. In this paper, we will first launch an evolutionary knowledge management model, derive then its basic theoretical propositions and finally test them empirically in terms of a longitudinal survey of small- and medium-sized software and content providers in the Finnish ICT-sector (from the year 1999 to 2001). Most of the results are straightforward and show that at least some of the proposed knowledge-related determinants really have significant effects on the dynamics of internationalization.

Internationalization patterns of small and medium‐sized enterprises

Purpose – The purpose of this paper is to present an overview of the conceptual frameworks and concepts with which the research on internationalization patterns of small and medium‐sized enterprises (SMEs) should be conducted.Design/methodology/approach – A comprehensive overview of concepts and a conceptual framework to study internationalization patterns of SMEs is offered.Findings – The complexities of existing definitions and methodologies for researching internationalization patterns are highlighted, and a synthesis of the issues is provided. An integrative model of internationalization pathways, and their antecedents and outcomes is presented.Research limitations/implications – It is recommended that future research focuses especially on the time dimension of internationalization patterns. Future research can contribute to the literature by adopting a longitudinal approach with larger samples and more detailed cases to capture the dynamics of internationalization.Practical implications – Practitione...

Kirznerian and Schumpeterian entrepreneurial‐oriented behavior in turbulent export markets

Purpose – The purpose of this paper is to shed light on the mechanisms by which entrepreneurial‐oriented behaviours (EOB) enhance international business performance. In so doing, the authors demonstrate that different dimensions of EOB may need to be emphasized or dampened, depending on the environmental conditions facing the firm.Design/methodology/approach – A survey of 783 Finnish exporters is undertaken, and the relationships between the dimensions of EOB and business performance are assessed.Findings – It is found that Kirznerian manifestations of EOB have stronger positive relationships with export profits when markets are relatively stable, whereas Schumpeterian manifestations of EOB have stronger positive relationships with export profits when markets are more dynamic.Research limitations/implications – The study has implications for researchers studying multidimensional strategic orientations. The approach adopted is novel, in that instead of adopting a fully aggregated or fully disaggregated app...

The Role Of Dynamic Capabilities In Developing Innovation-Related Capabilities

The purpose of this study is to explore the role dynamic capabilities have in the development of innovation-related operational capabilities. As dynamic capabilities by nature are processes and practices that advocate change, we aim to uncover the actual practices through which change strategies are implemented. Our research includes a single case study from the publishing industry. Building on a data set of interviews and secondary data we track down the development of the capabilities over the time period of five years. The results of the study imply that dynamic capabilities act as a catalyst and spark off the mechanisms of operational capability development. Our study demonstrates how different types of dynamic capabilities (sensing, seizing and reconfiguring) all have an impact of the development of market and technological capabilities.

Antecedents of social media B2B use in industrial marketing context: Customers’ view

Purpose – The purpose of this study is to clarify business-to-business (B2B) customers’ behavior regarding their social media use for B2B purposes and the antecedents of this behavior in the industrial marketing setting. It explores the influence of corporate culture, colleagues’ support and personal and psychological factors on customer behavior toward social media business use. Design/methodology/approach – The authors conducted an online questionnaire survey among key customer accounts of an information technology service company (N = 82). Partial least squares (PLS) path modeling was utilized to analyze the relationship between the dependent variable (social media business use) and the independent variables. Findings – Results show that private social media usage has the most significant relationship with the social media business use. Colleagues at work are also supporting B2B social media use and personal characteristics are also of importance. Surprisingly, perception of usability of social media f...

A knowledge-based view of growth in new ventures

Purpose – The establishment and growth of new ventures play a major role in wealth creation in most industrialized economies. Consequently, there is much emphasis these days on how to foster their growth, and on determining the fundamental prerequisites. The purpose of this paper is to propose an evolutionary knowledge‐based framework for understanding and testing the linkage between the nature of the firms knowledge and its growth.Design/methodology/approach – The empirical analysis is based on an extensive survey of 171 new ventures in the information and communications technology industry.Findings – The findings indicate the existence of a relationship between some of the proposed knowledge determinants and new venture growth. For example, the ability to scale the firms knowledge‐based resources in economic terms has an effect on past and future growth as well as on growth orientation.Research limitations/implications – Whereas there is growing interest in the growth of entrepreneurial new ventures, ...

The effect of website usage and virtual community participation on brand relationships

The purpose of this study is to explore the impact of website visits and virtual community participation on the development of brand relationships. Building on the literature on relationship marketing, we model brand trust as a mediator and brand loyalty and Word-of-Mouth (WOM) as the final outcomes in our research model. The hypotheses are tested with structural equation modelling on four independent datasets collected from the consumer magazine industry. The results are identical in all four datasets: Both the frequency of website visits and the time spent on the website per visit strengthen brand trust and consequently also brand loyalty and WOM. However, neither posting nor lurking on the virtual community has an effect on brand trust. All in all, the results provide support for the mediating role of brand trust between consumer-brand online interactions and brand loyalty and WOM. The study contributes to the existing literature on relationship marketing by showing that consumer-initiated online interactions also support the development of the brand relationship.

International new ventures: rapid internationalization across different industry contexts

Purpose – The purpose of this article is to, first, offer insights into the relationship between industry idiosyncrasies and international new ventures (INVs), and then present a research conceptual framework that identifies the role of industry factors in new venture internationalization processes and strategies. Second, the authors introduce the content of this special issue. Design/methodology/approach – This conceptual article builds on extant studies on INVs operating in different industrial contexts. Particular attention is given to the role of industry influences in the processes of new venture internationalization, in terms of speed, geographical scope and entry strategy. Such factors are discussed to formulate a conceptual framework as a basis for further research. Findings – The conceptual framework identifies key industry factors as well as emergent factors that influence the new venture internationalization process, in terms of speed, geographical scope and entry strategy. Such key influencing...

The Effect of Magazine Web Site Usage on Print Magazine Loyalty

The purpose of this study is to explore the impact of magazine Web site usage on print magazine loyalty and word-of-mouth intentions. Thus, the key question is whether active Web site visitors are more likely to buy the magazine in the future. The research framework builds on the literature on relationship marketing and brand relationships, and is tested on a sample of the online users (n = 2,351) of 24 Finnish consumer magazines. This study uses structural equation modeling (LISREL 8.50) and simultaneously tests the hypotheses on 2 sub-samples: current subscribers of the magazine (n = 1,068) and non-subscribers (n = 1,283). Significant differences were found between the 2 samples. Most important, the impact of Web site usage on print magazine loyalty was found to differ. There was a negative effect in the non-subscriber sample, whereas there was no evidence of such an effect in the subscriber sample. Thus, it seems that magazine Web site usage may substitute the print magazine for non-subscribers.