Peter Gabrielsson

Marketing strategies for foreign expansion of companies originating in small and open economies: The consequences of strategic fit and performance

This study examines the marketing strategies of companies originating in small and open economies as they expand into foreign markets. It distinguishes two major globalization paths (that of born globals and that of globalizing internationals), contrasts them with traditional internationalizers, and describes their characteristics. It then outlines a framework and hypotheses regarding the marketing strategies used in foreign expansion and examines them empirically in the information and communication technology field. The authors examine two important strategic marketing issues: the breadth of product offering and the standardization of marketing strategies across countries. The empirical results show that foreign expansion path, foreign business experience, and external globalization pressure have an impact on the selection of marketing strategies. The study also finds that the fit between these contextual factors and the standardization of marketing strategy has a positive effect on performance. The novel results regarding the importance of foreign expansion paths in the selection of marketing strategies have important implications for both academicians and practitioners in the field of international marketing.

Globalizing internationals: product strategies of ICT manufacturers

Purpose – A highly interesting research problem relates to how international information and communication technology (ICT) manufacturers from small and open economies (SMOPECs) can meet the huge globalization challenge of developing products and managing them during global expansion. In particular, how do product strategies change when these companies move from international to global and why?Design/methodology/approach – A theoretical framework and propositions are constructed, which are then examined in a multiple case study of Finnish ICT manufacturers.Findings – The results confirm that the globalizing internationals, i.e. companies that first internationalize after the domestic period and then globalize their operations outside the domestic continent, develop towards standardized product strategy alternatives, wider product assortment and advanced product categories.Research limitations/implications – This study contribute by providing a deeper understanding of the impact of the explanatory factors ...

Survival and Failure of Born Globals: The Case of Software Firms

(Sapienza et al., 2006; Mudambi and Zahra, 2007). This aspect is important since only those that survive can benefit their national economies. As they move toward ‘adulthood’, born globals face three risks: (a) they do not succeed in growing beyond their initial phase and hence become more like traditional internationalizing firms; (b) they run into financial problems and are acquired by a larger firm; or (c) they go bankrupt. Hence, the objective of this chapter is to understand (i) what born globals become after their early international growth period and (ii) the extent to which this trajectory is influenced by the age at which the foreign business began, and the resources, capabilities and lateral rigidity of the firm and its founder.

Globalizing Internationals: Standardization of Product and Marketing Strategies in the ICT Field

In the information and communication technology (ICT) industry the pressure to globalize an already international business is great. The industry consists of a range of different companies from manufacturers to service providers, but the focus in this research is on manufacturers of ICT equipment including network infrastructure systems, terminals and personal computers. International companies in particular in these sectors need a well-planned global strategy to be able to leverage their potential fully. The companies have to decide about global market participation, global product and marketing strategies, and the global location of activities as well as global competitive moves. In the ICT field, effective product and marketing strategies are especially important.

Multiple Sales Channel Strategy and Performance: The Moderating Role of International Experience and Globalization Potential

Globalization and technological advancement have led to an increase in the numbers of channels available for firms expanding to foreign markets. Although research has started to address strategic choice, the implications for performance have not been adequately investigated. This study examines multiple sales channel structure selection and standardization across foreign markets and the role of foreign knowledge and industry globalization potential in determining the most profitable alternative.

Hybrid Competitive Strategies for Achieving Superior Performance During Global Expansion: Small and Medium-Sized Enterprises Originating in SMOPECs

The ongoing almost three decade’s lasting debate around whether a firm should rely on a`single’ (or pure) generic competitive strategy of either differentiation or cost leadership, or whether a combined ‘hybrid’ (or dual) competitive strategy should be used is far from being resolved. Porter (1980, 1985) originally postulated that a firm must make a choice between the two or it will become stuck in the middle (Porter, 1985, p. 16). With stuck in the middle he refers to a firm that attempts to achieve both cost leadership and differentiation advantage and as an end result fails in achieving any competitive advantage leading to below-average performance. Researchers have been heavily divided with respect to this issue (Campbell-Hunt, 2000). Researchers that support Porter’s view have in fact found empirical evidence of firms applying a hybrid strategy to underperform their rivals that follow either a cost leadership or a differentiation strategy (Kim and Lim, 1988; Aulakh and Teegen, 2000). In contrast, the opposing researchers claim that a combination of differentiation and low-cost position may lead to superior performance (Hill, 1988; Murray, 1988; Miller and Dess, 1993; Spanos et al. 2004). The interest in the SMOPECs can be understood from the view point that tentative qualitative research from leading Finnish and Greek firms indicate that use of hybrid strategy can be highly profitable (Salonen et al. 2007; Spanos et al. 2004). The study, however, suggest that the results of this chapter are particularly relevant for SMEs originating in Finland, Sweden, Denmark, Norway, Greece, New Zealand, Israel and 14, other SMOPEC countries.