American Marketing Association Is Collaborating With JSTOR To Digitize, Preserve and Extend Access To Journal of International Marketing

The Effects of E-Commerce Drivers on Export Marketing Strategy
Author(s): Gary Gregory, Munib Karavdic and Shaoming Zou

Source: Journal of International Marketing, Vol. 15, No. 2 (2007), pp. 30-57
Published by: American Marketing Association
Stable URL: http://www.jstor.org/stable/25049082
Accessed: 07-01-2016 03:47 UTC
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The
of E-Commerce
Effects
Export
on
Drivers
Strategy
Marketing
ABSTRACT
The emergence of e-commerce technology has had a significant

effect on firms' export marketing. However, limited knowledge
as
exists
e-commerce
to how
drivers
keting
strategy. This study develops
model
to delineate
how
affect
e-commerce
drivers
e-commerce
export
mar
and tests a theoretical

drivers
keting strategy. The empirical findings

e-commerce
firm's
suggest
online
(product
increase
directly
affect
export
mar
that internal
and
transferability
assets)
firm's degree
of promo
tion adaptation,
communication
enhance
and distribution
effi
distribution
and improve
ciencies,
greater
support,
facilitate
ventures.
both
Furthermore,
competitiveness
price
for export
internal
and
e-commerce
external
e-commerce
and
infrastructure
the relationships
between
erate
ments
drivers
demand
for
environmental
market
(export
mod
e-commerce)
and
ele
factors
the findings
sup
strategy. Overall,
marketing
e-commerce
constructs
into
port incorporating
existing
theory
on export
The authors
discuss
theoretical
strategy.
marketing
of export
and managerial
and offer directions for further
contributions
research.
Two
Munib
Gary Gregory,
and
Karavdic,
Zou
Shaoming
trends
major
have
landscape:
the advancement
the rapid
global
e-commerce
of e-commerce
technologies
possibilities
their
improve
the
literature,
implications
business
and
technologies
In the first trend,
led to
have
Internet)
(e.g.,
new mar
to access
for exporters
cus
in terms of receiving
efficiency
tomer orders and handling

1997; Prasad, Ramamurthy,
In the
of firms.
expansion
new
entirely
kets and
the modern
characterized
the
inquiries (Bennett 1997; Hamill

and Naidu 2001; Samiee 1998).
several
conceptual
of e-commerce
and
works
the
have
Internet
described
on market
ing strategy (e.g., Hoffman and Novak 1996; Javalgi and Ram
sey 2001; Karavdic and Gregory 2005). Several empirical
studies
firm
have
also
internationalization
2002), perceptions
exporting
ply chains
Submitted
November
January
Accepted
2006
2007
Journal of International
Marketing
)2007, American Marketing
Association
Vol. 15, No. 2, 2007, pp. 30-57
ISSN 1069-03IX
(print)
1547-7215
(electronic)
examined
importance
ties (e.g.,
the
influence
(e.g., Berry
of barriers
and
Brock
Amoroso,
Moen
2004;
in the use of the Internet
the role of the Internet

1997),
(e.g., Bennett
and Oliva
Lancioni,
Smith,
2000),
(e.g.,
on e-commerce
forces
of environmental
Jennex,
on
of e-commerce
and Adelakun
2004;
in
in sup
the
and
Oxley
activi
and
Yeung 2001).
of the world markets
In the second trend, the globalization
to
of
has led
global trade and exporting
explosive growth
30
firms
the world.
around
amount
that
of research has been
affect
exporting
and Piercy
Thus
1996).
are
export
performance
Zou
Stan 1998)
and
(e.g.,
far, research
its export marketing

that a firm's export
and
strategies must fit its internal and external

and Zou 1994).
these
trends
major
research,
it is surprising
integrate
the
integration
little
studies,
firm's export
into
export
appropriate
keting
the
two
current
Because
of
with
about
we
e-commerce
and what
e-commerce
drivers
export
mar
is a major gap in
without
because
as
strategy
environmental
light
how
and
ubiquitous
activities
mercial
electronic
and
has been defined
products,
networks,
computer
and Wetherbe
2002).
simply buying
relevant
partners.
services,
such as the
However,
As
such,
of buying
and
mar
to all
com
E-Commerce
Marketing
e-commerce
and selling
through
(Turban, McLean,
e-commerce
is more
than
Internet
E-Commerce
Drivers
For the pur
as an environment
servicing
and Export Marketing
customers,
Strategy
and
Export
Strategy
or
information
and selling goods electronically.
Drivers
export
it is a universal
is that
e-commerce
of this study, we define
pose
for presenting,
distributing,
trading,
E-Commerce
to the
contribute
marketplace
trading
we
can
strategy,
a
to enhance
used
marketing
can be
as the process
exchanging
mar
the
relationship
strat
export marketing
theoreti
of the proposed
for e-commerce
vision
of export
of
that by focusing on the effects of
and
export
performance
literature.
current
test
empirical
on export
e-commerce
drivers
on
and
of
existing
theory
e-commerce
external
antecedents
the moderators
of
dimensions
the
and
Internal
as the
factors
an
offer
into
them
integrate
and
also
the underlying
identify
and
e-commerce
The
is
framework
a firm's
cal relationship. We believe
keting
e-commerce
into
2005). This
literature
lack
strategy
export marketing
a
e-commerce
influences
to incorporate
theoretical
how
strategy.
marketing
are theorized
both
egy. We
firm's
how
of the
we
to examine
of
the effect
research,
attempt
on a firm's
drivers
strategy.
export marketing
current
Specifically,
shed
related
be biased.
e-commerce
keting
between
marketing
forces (Cavusgil
incorporat
the
strategy,
export marketing
and
would
be
theories
export marketing
incomplete,
of export
of the determinants
perform
knowledge
ance would
export
drivers
strategies
voluminous
the
of research.
(Karavdic and Gregory
ing
current
In the
and
performance,
export marketing
e-commerce
into
of a
to
streams
marketing,
to integrate
in export
that little progress has been made
of e-commerce
is known
2004; Sou
that the key determinants
firm's
Given
factors
Katsikeas,
Leonidou,
(e.g.,
Kaleka, and Katsikeas
has established
marketing
to identify
conducted
performance
1998; Morgan,
and Diamantopolous
chon
a considerable
Correspondingly,
31
and
E-Commerce
with
collaborating
actions
using
business
electronic
and
partners,
trans
conducting
technologies.
On the basis of a literature
review, we
four major
identify
e-commerce
and external,
in terms of
both
internal
drivers,
to export
relevance
Internal
strategy.
marketing
e-commerce
drivers
include
online
product
transferability
e-commerce
and
and
external
drivers
include
assets,
e-commerce
infrastructure
and demand
for e-commerce.
their
Product
uct
is the extent
transferability
over
for
the
transfer
digitized
be
e-commerce
are defined
assets
resources
human
in the
assets
E-commerce
that are critical

market
e-commerce
resources
ties
involved
ket.
Several
a means
of
transactions
Internet
access,
ware
to facilitate
necessary
e-commerce
as the
is defined
in the
involved
e-commerce
on
pressure
because
Strategy
exporters
exporters
success
for their
Export Marketing
e-commerce
for
Demand
There
is a rich
mental
forces
be
to all par
export mar
identified
(e.g.,
soft
infrastructure
Demand
transactions).
extent
to which
business
export
in business
in the
can
infrastructure
layers
for Internet
infrastructure
access
affordable
and
drivers,
export
as the set of
is defined
and
in e-commerce
infrastructure
e-commerce
infrastructure
reliable
resources
to acquire
technical
for external
that enable
prod
firm's
and
technology
of e-commerce
activities.
service
to developing
skill
Internet.
as allocated
represent
sets. As
human
to which
online
can
for
the
parties
a greater
of
usage
and
transactions.
pursue
relationships
puts
development
by importers
e-commerce
to develop
business
tools
on the
continuous
business
importers'
rely
(Samiee
1998).
on
literature
of
body
on export
the
impact
strategy
marketing
of environ
(e.g.,
Cavusgil
and Zou 1994; Crick 1995; Lim, Sharkey, and Kim 1996). A
of a firm's export marketing
strategy is the
key dimension
a
firm adapts its marketing
strategy to the
degree to which
environment
Zou
market
and
1994). Not
export
(Cavusgil
surprisingly,
most
adaptation,
pricing
promotion
adaptation/
adaptation,
as
and distribution
key
adaptation/support
of a firm's export marketing
strategy
(Aaby and
competitiveness,
components
studies
prior
have
considered
product
Slater 1989; Zou and Stan 1998).

In line with
tualizes
the existing
export
strategy
marketing
tor that incorporates Cavusgil

sions
of product
tribution efficiency.
e-commerce
and
of communication
The rationale
to export marketing
in helping
reduce
distribution.
and Zou's
concep
fac
(1994) four dimen

price
as two
adaptation,
adaptation,
promotion
as well
distribution
support,
and
competitiveness,
additional
dimensions
dimensions
the current
study
as a multidimensional
literature,
comprehensive
32 Gary Gregory, Munib
efficiency
for adding
role
of
of communication
export
dis
two efficiency
is the central
strategy
the cost
Karavdic,
and
marketing
and Shaoming
strategy
Zou
should help a firm achieve cost efficiency while maintaining

local
responsiveness.
Industrial organization theory focuses on external markets to

strategy. The
identify drivers of a firm's export marketing
industrial organization framework is captured by the notion
or the fit between a firm's strategy and its
of coalignment,
environment
strategy
nal
industry/market
market
external
Prescott
and
(Venkatraman
as a firm's
is viewed
deliberate
in which
1990),
Strategy
to the exter
response
is that the
The premise
imperatives.
Theoretical
Framework
of e-commerce
of
drivers
Export Marketing
Theoretical
Foundation
selective
(or
pressures
to indus
to which
drivers)
According
respond.
external
environmental
trial organization
factors,
theory,
market
infra
such as export market
export
competitiveness,
structure,
(or industry)
a firm must
technology
of a firm's export
1993). We
egy (Cavusgil, Zou, and Naidu

external
tional
in the current
drivers
to industrial
In contrast
based view
resources
of
strat
marketing
include these tradi
study.
organization
(RBV) considers
(assets,
orientation
and
barriers,
entry
are major
drivers
industry,
imposes
theory,
the
resource
a firm's internal organizational

processes,
capabilities,
attrib
managerial
utes, information, and knowledge) key drivers of its strategy

and performance
(Deligonul and Cavusgil 1997; Wernerfelt
a firm as a unique bundle of
RBV
1984). The
conceptualizes
resources and argues that the differential
of
endowment
resources
strategic
is the ultimate
ance (Grant 1991; Wernerfelt
of its perform
determinant
1984). The RBV regards strategy
on its resources.
to capitalize
accord
Thus,
such as export
internal
factors,
experience,
are
and unique
commitment,
product
offering,
as a firm's move
ing
to the RBV,
management
the major
among
of a firm's
drivers
export
(Zou and Stan 1998). The current

internal
traditional
online
product
nal drivers
e-commerce),
internal
drivers
drivers
internal
include
(e.g.,
and exter
assets)
transferability,
e-commerce
for
demand
infrastructure,
(e.g.,
we combine
and
industrial
theory
organization
e-commerce
a theoretical
the RBV to build

e-commerce
these
study investigates
drivers.
e-commerce
Because
strategy
marketing
drivers
e-commerce
An Integrated
Framework
of the effect of
framework
on export marketing
Given
that
strategy.
as
can be viewed
drivers
organizational
capabilities that can modify the relative power of buyers and

suppliers by lowering the cost of finding and distributing
market
information
to export
just antecedents
e-commerce
between
(Mahadevan
decision
tomers
aids
search
is because
in an e-commerce
for
they
information
drivers
of export
Drivers
than
environment
and make
alter
purchase
market
in interactive
the developments
(Haubl and Trifts 2000). The dissemination

E-Commerce
are more
a firm's
Indeed,
strategy.
marketing
can
the relationship
influence
capabilities
environmental
traditional
ing strategy. This
2000),
how
cus
decisions
of information
Strategy
33
Theoretical
e-commerce
through
strategy
to the
to export
market
enables
further
firms
in the
to adapt
their
environment
market
export
to
customize
and
and
2002)
goods
(Varadarajan
to
customer's
needs
each
services
(Kiang, Raghu,
specifically
as
can function
e-commerce
drivers
and Shang
Thus,
2000).
a
of
"enablers"
of
firm's adaptation
strategy
export marketing
changes
and Yadav
In other
conditions.
to
in addition
words,
e-commerce
strategy
export marketing
directly,
driving
ers also moderate
the effects
of traditional
on export marketing
drivers
internal)
strategy.
driv
and
(external
e-commerce
into the existing
frame
drivers
By integrating
Zou
and
of export marketing
works
strategy
(e.g., Cavusgil
in
we
an
theoretical
framework
1994),
Fig
present
expanded
ure
effects
of
1 to summarize
and moderating
the direct
e-commerce
drivers
contains
framework
erature.
First,
none
on export
marketing
two major
extensions
of the export marketing
This
strategy.
lit
of the existing
frame
strategy
Kat
and Naidu
1993; Leonidu,
Zou,
(e.g., Cavusgil,
in the existing
literature
and Piercy
sikeas,
1998)
incorporate
as drivers
Our pro
e-commerce
of export marketing
strategy.
exter
and
internal
framework
incorporates
explicitly
posed
new
as
e-commerce
to
drivers
nal
antecedents
export market
works
thus
strategy,
ing
the
Second,
existing
Figure 1.
A Contingency
of the
Model
and Drivers of
Antecedents
Export Venture Marketing
expanding
frameworks
the
have
existing
considered
frameworks.
only
direct
Firm
Experience
Exporting
E-commerce
Strategy
Product
Uniqueness
Export Market
Competitiveness
Export Market
Infrastructure
Entry
34
Barriers
Gary Gregory, Munib
Karavdic,
and Shaoming
Zou
of drivers
effects
work
the
enriches
as
drivers
of export
literature
organizational
between
tionships
by
Our
strategy.
marketing
conceptualizing
that moderate
the
capabilities
traditional
frame
e-commerce
rela
drivers and export marketing
strategy.
to e-commerce
In addition
drivers
theoretical
the proposed
strategy,
rates traditional
environmental
have
that
strategy
been
and export
marketing
framework
also
incorpo
drivers
of export
in many
studied
prior
marketing
studies.
of traditional driv
Although there are several classifications
ers of export marketing strategy (Zou and Stan 1998), for the
of this
purpose
internal
gories:
internal
are classified
into two cate
they
external
forces. Among
traditional
research,
forces and
of export marketing
find
research
strategy,
to
that international
suggest
ings tend
experience,
product
are
and
commitment
management
uniqueness,
important
drivers
of export marketing
and
strategy
(Cavusgil
adaptation
Zou
drivers
1994;
Katsikeas,
International
Piercy,
and
refers
experience
Ioannidis
1995).
to the amount
of experience
firm has in international marketing. Experienced

firms are
more likely to identify unique market demand and possess a
of how to adapt to foreign market
better understanding
forces. Product uniqueness, which is defined as the degree to
a
which
product
or to be used
needs
incorporates
for unique
to
features
purposes
satisfy
(Cavusgil,
unique
and
Zou,
in over
firms gain competitive

helps
advantage
and Bakker
(Louter, Ouwerkerk,
1991). Manage
with
attitudes
and
has
commitment,
perceptions,
along
Naidu
1993),
seas markets
ment
been
identified
export
consistently
strategy
marketing
as an important determinant
in prior
studies
(Zou
and
of
Stan
1998). A committed management

gives a higher priority to
exporting with carefully planned business objectives and
tends to adapt marketing
strategies that lead to better per
and Piercy 1998). The
formance
(Leonidou, Katsikeas,
to
factor
this
of
importance
exporting implies that it is desir
able
to extend
this concept
by considering
to e-commerce
in exporting.
mitment
We
include
four traditional
framework:
theoretical
export market
and an export
external drivers
technology
in the proposed
of
orientation
export
competitiveness,
market's
infrastructure.
com
management
market
entry
Technology
industry,
barriers,
orienta
tion of industry refers to the degree to which technological

innovation and application
affect success in the industry
In industries
in which
and
1996).
(Holzmuller
Stottinger
can
use
firms
is
orientation
technology to
high,
technology
to less need
leads
which
for
practices,
and
and
of
Zou,
promotion
(Cavusgil,
adaptation
product
to the
refers
market
Naidu
1993).
competitiveness
Export
shape
intensity
demand
and
of competition
E-Commerce
Drivers
that
a firm
encounters
in the export
Strategy
35
sures
In a highly
necessitate
may
over
rivals
market.
market,
pres
competitive
competitive
to gain an advantage
customization
more
local
conditions
by matching
precisely.
Entry barriers are defined
as the degree
to which
extensive
in the export
exist
technical)
regulations
(e.g., health,
safety,
In an export market
in which
the legal regulations
market.
are extensive,
to modify
firms are forced
their products
and
or
to
meet
technical
health,
programs
promotional
safety,
(Cavusgil and Zou 1994). Although
standards
communication
create
technologies
of electronic
increased
in
advances
distribution
channels
has
efficiencies,
in addi
resulted
usage
concerns
to e-commerce
related
legal and regulatory
and Gregory
infrastruc
(Karavdic
2005). An export market's
ture consists
to
of the systems
and
institutions
necessary
tional
service
and
develop
in a market,
demand
ability and capabilities
the avail
including
and of warehousing
of intermediaries
for success.
In export markets
necessary
transportation
a
standardized
infrastructure,
developed
marketing
a
better
and
could
be
programs
products
marketing
strategic
choice.
and
with
we
discuss
section,
e-commerce
and export
drivers
marketing
the direct effects of traditional
environmental
In
Research
Hypotheses
the
this
internal
and
on
external)
been well
documented
Stan
we
1998),
export
these
drivers
literature
do not
but
(both
have
strategy
marketing
effects
Because
strategy.
in the existing
discuss
between
relationships
(Zou and
advance
spe
cific hypotheses
for them to avoid repeating what has been
in
done
prior studies (for the rationale of these relationships,
see Cavusgil and Zou 1994; Leonidu, Katsikeas, and Piercy
that
1998). Instead, our focus is on developing hypotheses
the moderating
highlight
the relationship
between
marketing
e-commerce
To
Product
Online
Transferability
some
strategy,
drivers
extent,
of e-commerce
effects
these
as well
on export
drivers
on
direct
the
marketing
online
product
traditional
as
on
drivers
on export
of
effects
strategy.
transferability
relies
on
the
is, a
degree of product intangibility or digitalization?that
a
to
Tra
be transformed into digital signal.
product's ability
ditional products and services with significant information
to becoming highly digitized, from
content are susceptible
to production
to delivery
financial
news,
(e.g., music,
design
and
that
information
services),
manage
products
(e.g.,
are
technolo
telecommunications)
copiers,
adopting
digital
online
of their components.
Product
transfer
gies for more
enables
ability
to fit customers'
a marketer
needs
to tailor
in an export
increased
of adaptation,
degree
higher
and even
tribution
support,
uct
more
the products
easily
leads to a
which
market,
a more
online
keting
transferability
positively
In addition,
strategy.
product
efficiency,
competitive
influences
Karavdic,
online
dis
greater
price.
Prod
export
mar
transferability
and Shaoming
Zou
a firm's
facilitates
magnifying
Ha: Product
online
H2: The
of traditional
effects
are
ing strategy
costs
transaction
resource
export market
trans
online
product
when
stronger
product online transfer
technology
to enjoy
tends
creation.
We
a source
assets,
[IT] and e-commerce
of competitive
that
the
overall
argue
not only gives a firm the capability

export
respond
with
marketing
more
effectively
a properly
assets
H4: The
ing
are
Export
also
enables
and
of traditional
effects
a positive,
drivers
are
when
strategy
stronger
e-commerce
than when
high
e-commerce
to respond
flexibility
ciency,
sales activities,
and
support
to
firm
external
forces
strategy. Thus:
direct
on
effect
on
export
e-commerce
infrastructure
provides
market
assets
are
assets
to export market
a structure
creates
the
its
strategy.
marketing
market
technical
have
in value
to be flexible with
adapted export marketing
H3: E-commerce
export
to its
technology)
advantage
internal
but
strategy
a means
technical
of
development
resources
and capital,
human
especially
low.
facilitates
a firm's
demands
for effi
e-commerce
to support
a mechanism
to provide
to foreign distributors
export
online
Export Market
Infrastructure
and subsidiaries.
e-commerce
in an
infrastructures
well-developed
are able to
the full potential
exporters
export market,
exploit
to
their
of e-commerce
export marketing
technologies,
adapt
to
and to make
market
the
fit
conditions,
export
strategies
more
e-commerce
strate
in initiating
effective
technologies
With
to traditional
drivers.
gic responses
e-commerce
in
the
market
which
developed,
choices
and
in
in an export
is poorly
their
to environmental
strategy
con
by traditional drivers. Thus:
e-commerce
H5: Export market
on export
effect
direct
tive,
E-Commerce
In contrast,
infrastructure
are
constrained
exporters
to respond
in their ability
ditions presented
Assets
a result,
it is expected
assets
(i.e., investments
e-commerce
greater
E-Commerce
is that
sets. As
skill
in information
e-commerce
dependent
One
such
2000).
(Tsang
technological
development
assets
E-commerce
represent
to develop
that are critical
assets.
a firm with
are
costs
and management
and resources
resources
to acquire
and human
infrastructure
that
on
drivers
capabilities
with
associated
of e-commerce
direct
strategy.
marketing
ferability is high than when

ability is low.
on a firm's
drivers,
has a positive,
transferability
on export
effect
The
to traditional
response
strategic
the effects of traditional drivers. Thus:
Drivers
infrastructure
marketing
has
a posi
strategy.
Strategy
37
E-Commerce
H6: The
of traditional
effects
are
strategy
ing
e-commerce
when
stronger
market
export
is highly developed
e-commerce
market
market
export
when
infrastructure
export
on
drivers
than
infrastructure
is
poorly developed.
to global competitors
A challenge
Demand
for E-Commerce
ever-increasing
e-commerce
tion
by providing
to
when
in competi
growth
access
to
with
companies
and more
more
a time
at
uncertainty,
particularly
in a remarkable
resulted
has
to respond
is the need
export markets (Etemad and Wright 1999). Because techno

by individual
logical changes are largely uncontrollable
firms
in an export market,
new
borrow
technologies
firms
and/or
with
to changes
customer
(i.e.,
to develop
in cooperation
networks
(Overby and Min
their partners
quickly
form
or products
2001). To respond
preference
and
changes
technological
change), firms need to achieve greater agility
with the help of supply chain partners (Christensen, Da
and Gertner
Rocha,
in an
Powerful
1987).
are
customers
importing
e-commerce
for implementing
position
to
their
dominant
of
because
export processes
position
some
to
channel
activities
dictate
coordinate
extent,
and,
a
on
to
such
and exert
process.
pressure
exporters
adopt
advantageous
based
tates
tions.
to fit customers'
a firm's
drives
export marketing
to changing
response
its strategic
Thus:
has
for e-commerce
H7: Demand
on export marketing
strategy.
H8: The
of traditional
effects
are
strategy
ing
e-commerce
To collect
data
a cross-sectional
and facili
strategy
condi
market
export
on
when
stronger
direct
positive,
drivers
is high
e-commerce
Methodology
puts
tools
development
e-commerce
business
to develop
exporters
their marketing
strategies
demand
on
pressure
to
and
adapt
a
demands.
Such
e-commerce
for
Demand
effect
export market
for
demand
than when
demand
for
is low.
to test our
survey
research
of firms
we
hypotheses,
using
currently
conducted
e-commerce
in exporting. The unit of analysis in the research is the indi

vidual export venture (Cavusgil and Zou 1994). We expect
in our proposed
theoretical
the key variables
e-commerce
traditional
drivers,
drivers,
ing
to vary across
individual
strategy,
keting
thus
Questionnaire
Development
variances
generating
needed
includ
model,
and export mar
ventures,
export
for hypothesis
We conducted
15 interviews with both Australian
manufacturers
and
initial
views
stage
were
e-commerce
38
of research.
(1) to gain
is currently
exporting
area
in the
Sydney
inter
of
these
The major
objectives
an
how
of
understanding
in-depth
in developing
used
export
being
service
Gary Gregory, Munib
firms
in the
testing.
Karavdic,
and Shaoming
Zou
strategy and (2) to identify "key" e-commerce

marketing
drivers (both external and internal). During the interviewing
process,
structs
online
We
we
also
and
explored
con
of prior research
in conducting
issues
the validity
administration
discussed
surveys
incentive,
(e.g.,
timing,
technology).
the initial measures
developed
of export marketing
in accordance
with
and we developed
research,
export
preliminary
ures of e-commerce
in accordance
drivers
with
new
and
strategies
on
ture
e-commerce.
cussed
these
draft
Before
electronic
business
familiar
and
research,
reviewed
other
for its content,
Likert-type
involved
actual
research
(1994)
export
were
measures,
were
into
Traditional
three
and
mitment,
(technology
tiveness,
drivers
(export
product
orientation
for
these
that
the
entry
company
(e.g.,
Hoffman
We
adapted
profile
of the
E-Commerce
The
The
this
study.
related
in
efficiency
and Novak
measures
market
export
and
barriers,
of extant
export
also
drivers
competi
market
and Zou (1994) and

literature.
e-commerce-related
survey
for
com
management
four external
experience,
and
contained
company
profile/characteristics
of export
the number
size,
experience,
the
number
e-commerce.
the basis
additional
adapted
constructs.
collected
export
and
on
them
for
measures
infrastructure) from the work of Cavusgil

expanded
and
oped
and
items
surveys'
industry
or international
markets
uniqueness)
of industry,
market
export
to
related
2002).
Drivers.
Environmental
internal
scales
and distribution
work
previous
and Yadav
Varadarajan
and
follow
consideration
and modified
efficiency
with
and
of prod
to foreign
dis
e-commerce
additional
to communication
1996;
ques
categories.
to be consistent with previ
consideration
developed
accordance
some
measures
(2) previous
into
taken
strategy
and
(3)
necessary,
to e-commerce
in domestic
taken
a five
used
support
We
developed
items using
the
adaptation,
marketing
when
also
marketing
item was
We
responses;
or
included
(1) Scales needed
established
adapted
related
are
who
export
Each
percentages,
competitiveness.
price
e-commerce
new
scale
ing guidelines:
ously
most
instrument
promotion
adaptation,
and
tributor,
some
adapted
We
scope,
to collect
we
survey,
members
experts.
and purpose.
numbers,
dis
into
Strategy. Scales adapted from Cavusgil
Export Marketing
uct
litera
that have adopted
faculty
and/or
industry
scale
Zou's
finalizing
practices,
e-commerce
the
with
the
in companies
it with managers
extant
interviews,
in-depth
and modified
them
measures
preliminary
prior
meas
we
15
In the
questionnaire.
pretested
point
tions
drivers
traditional
We
devel
measures
questions
such
data,
as
of
markets,
years
of
e-commerce,
years
using
experience
of
markets
by
supported
foreign
us understand
the
data helped
additional
sample
Drivers
and
interpret
the results.
Strategy
39
Online Transferability. We developed measures of

online
transferability using Varadarajan and Yadov's
product
framework and in accordance with the
(2002) conceptual
notion of product digitizability. We captured the degree to
transfer and distribute
which firms can and do electronically
two items: the
the
through
following
products/services
using
product online transferability
degree of potential
Product
e-commerce
and
the
of
degree
"actual"
online
product
transferability.
Firm's
Assets.
E-Commerce
is the
basis
from
of input
ing
ment
Internet
vious
measures:
e-commerce
in exporting.
flexibility
assets
research
included
the
export
e-commerce
marketing
export;
in e-commerce,
ees
E-Commerce
Market
Samiee's
following
degree
infrastructure,
Measures
adapted
to dedicated
related
measured
On
Infrastructure.
the basis
we developed
of
the
in the export market,

the
usage
e-commerce
networks,
competi
Internet
to Internet
in the export market,
and the sophistication
in export
infrastructure
in the value
e-commerce
demand
supplier
tor demand
for
interviews
capture
items
that measured
the
developed
the degree
of
for e-commerce,
demand
and the degree
of distribu
for e-commerce,
e-commerce.
suggested
e-commerce
technologies
an
the
revealed
from many
different
as a driver
demand
of
we
that
results
of
markets.
To
chain.
strategy,
of customer
collect
employ
num
the actual
by
The
in-depth
for E-Commerce.
e-commerce
for
is derived
that demand
To
support
of full-time
Demand
Data Collection
to
development,
tion intensity
developed
members.
person
team
in
in an e-commerce
service
pre
(1998) conceptual
e-commerce
degree
from
measures:
of access
sources
the follow
in IT, develop
and the firm's
(Rasheed and Geiger 2001).
ber of employees
Export
we
which
the
directors
established
department;
a firm's number
and
On
and managing
investment
investment
for e-commerce;
nel
assets
resources.
interviews, we
asset
firm's
of the
for e-commerce
basis
managers
export
from the 15 in-depth

e-commerce
The
in e-commerce
investment
firm's
item
data,
channel
also
to measure
we
Furthermore,
preliminary
members'
usage
potential
affects
demand;
usage
potential
employed
a survey
method
of
thus, we also
by value-chain
based
on
the
nationwide
Web-interviewing
a
venture
identified
After
exporters
specific
the computer-assisted
in the survey, we programmed
market
so
venture
market
this
that
Web
(e.g., China)
interviewing
computer-assisted
across Australia.
in bold
appear
automatically
which
both
tions about
this venture,
venture
and provided
of their chosen
text
would
in all
reminded
consistency
Karavdic,
other
ques
participants
throughout
and Shaoming
Zou
the
survey
did
not
meet
exporting
e-commerce
measurement
minimizing
(e.g.,
exporter was not qualified

certain
If an
error).
to take part in the study because

criteria
screening
(e.g.,
venture
of export
experience,
it
minimum
specification
we
in exporting),
usage
programmed
net survey
to terminate
to other
further
responses
error.
thus reducing
frame
sampling
market,
the Inter
questions,
The sampling frame used for this study was the Australian
Suppliers Directory (ASD), created by the Australian Trade
the Australian
Commission
and
considered
the most
exporters
in Australia
from
export
comprehensive
it covers
because
were
Firms
Australia.
target exporters
ence
venture
in a specific
export
e-commerce
used
and currently
Consistent
with
research,
prior
all
industries
of
of
that
in an attempt
screened
a minimum
that had
is
The ASD
government.
source
and extensive
to
three
years'
experi
had a Web
site,
business,
in exporting.
technologies
a spe
was
the unit of analysis
cific export venture, which is defined as the marketing of a

specific product in a specific market (Cavusgil and Zou 1994;
We
and Katsikeas
Kaleka,
Morgan,
man
directors,
export
managing
or
as key
of
because
informants
managers
marketing
in
involvement
extensive
about
company
knowledge
identified
agers,
their
company
an e-mail
sent
We
investigation.
in an online
pate
the
with
involvement
personal
under
1993) and
(Kumar, Stern, and Anderson
the export business

their
2004).
to
survey
senior
venture
export
specific
to partici
invitation
were
who
managers
responsible for export business for the entire 5233 exporting

firms in the ASD. In addition, we added 1600 new contacts
from
and
medium-sized
Who's Who
of Australia
from
companies
large
Business
by Dun & Brad
database, published
to supplement
the ASD
database.
Overall,
on
was
rate
based
30.3%,
response
click-throughs
for which
the range of Internet
well within
surveys,
the
street,
total
is
which
response
rates typically range from 6% to 76% (Simsek and Veiga

2000). After we cleaned up the data and eliminated
responses that did not meet the screening criteria, the final
340
included
sample
on
data
ary
exporters'
export
population
Bureau of Statistics with
Australian
the analysis
characteristics,
data's breadth
the survey
broader
ventures.
compare
characteristics
with
sion analysis
prior
E-Commerce
research,
we
drivers
we
(Murray,
test the following
Drivers
the
used
sample
We
that
a
represents
a
summarize
suggests
in Table 1.
a moderated
(MRA) to test the direct and moderating
of e-commerce
Specifically,
bias
exporters.
profile of the sampled export ventures

Consistent
second
from
this study's final sample
of nonresponse
of the chosen
of Australian
population
Ifwe
Kotabe,
and Wildt
regres
effects
Analysis
and Results
1995).
equations:
Strategy
41
Table
A Profile
of the Sampled
Export Ventures
1.
Percentage
Percentage
of Ventures
of Ventures
Firm Type
48.2
Manufacturer
Services
Less
28.5
organization
Distributor
50%
5.0
Less
Size
Small
50%
28.5
of Export
Sales
by E-Commerce
56.5
20.0
or more
firms
48.8
North
employees)
firms
2.4
employees)
International
Venture
Export
Final
<3
25.6
4-5
17.4
10+
23.2
<3
33.8
Product
Type
consumer
40.9
product
Final
33.8
6-9
17.4
6.4
Other
Operation
27.4
Union
European
Large
industrial
22.6
equipment
Final
consumer
service
E-Commerce
of Using
Regions
America
20.6
of Firm's
23.5
Asia
(20-199
(200+
Revenue
10%
Venture
Export
77.0
employees)
Medium-sized
Years
or more
than
firms
(<20
Years
37.4
10%-50%
of Employees)
(Number
Revenue
34.1
Percentage
Generated
11.8
Sales
10%
6.5
Wholesaler
Retailer
than
10%-50%
and
transport/storage
Firm
of Export
Percentage
8.2
Business-to-business
4-5
45.6
6-9
17.6
10+
service
Other
27.4
.9
3.0
Model
1: y = b0 + bax,
Model
2: y = b0 + bax
Model
3: y = b0 + bax + b2z + b3xz,
+ b2z,
and
where
= the
dependent
ture marketing
(criterion)
(predictor)
independent
mental
forces),
independent
e-commerce
xz = the
predictor
b = the regression
(e.g.,
export
ven
strategy),
x = the
z = the
variable
variable
(e.g.,
environ
variable
(moderator)
(e.g.,
drivers),
x moderator
interaction,
and
coefficient.
Karavdic,
and Shaoming
Zou
To
test
for direct
of e-commerce
effects
we
drivers,
examined
the regression coefficients

for the independent
(moderator)
variable (b2 inModel 2). To test for moderating
effects, we
examined the regression coefficient of the interaction term
effect to be significant, b3
(b3 inModel 3). For a moderating
must be significantly different from zero and have a sign in
the expected direction (Aiken and West 1991). Next, Models
2 and
3 need
to be
in explanatory
changes
(R2).When R-square inModel 3 is greater than that in

2 (R3 > R|), the moderating
effect is supported (Bar
power
Model
and Weinsten
rett, Balloun,
the
hold,
expected
moderating
We
for
compared
do not
If these conditions
2000).
is not supported.
effect
for outliers, normality,

linearity, and
to
the
homoskedasticity
satisfy
underlining
assumptions of
multivariate
data analysis (Hair et al. 1998). To satisfy the
first checked
and
represents
e-commerce
attempt
in an
drivers
some
make
first
modifications
scales
at
some
this
meas
research
measures
at
of
developing
we needed
context,
exporting
of existing
and we
measures,
the standard for judging the acceptability

measurement
per
of prod
product
of products.
for each
factor
online
transferability,
promotion
we
the coefficient
Next,
computed
alpha
measured
with multiple
and we purified
items,
urements
Because
"bad"
items.
by dropping
a
.50
Analysis
we
of linearity
and homoskedasticity,
assumptions
on four variables:
formed
the degree
transformations
uct uniqueness,
the degree
of potential
and actual
online
Preliminary
set
of the reliability
1978).
(Nunnally
to
We
of
com
then
puted variance inflation factors for all factors; they fell well
below the level of 10.0 that Mason and Perreault (1991) sug
We then computed
gest for threshold of multicollinearity.
scores
factor
of multi-item
the
measured
corresponding
factor to reflect
each
centered
scales
all items
that
by summing
we mean
factors.
Finally,
the appropriate
of the factor (Murray, Kotabe, and Wildt

to test
the moderating
effects
representation
1995) before using it
of e-commerce
drivers.
purified measures of all factors and their coefficient

appear in the Appendix.
Using
MRA
to analyze
we
hypotheses,
tional
environmental
ment
three models
drivers
strategy
variables
neously
and with
drivers.
The
included
all
along
e-commerce
E-Commerce
the research
for each
simultaneously
Hypothesis
ele
and
for each
strategy
marketing
we
is,
regres
separate
performed
all
with
driver
terms
product
driver)
representing
simulta
variables
independent
e-commerce
3 (moderating
environmental
e-commerce
Drivers
four
for Model
traditional
the
environmental
of the
each
analysis
each
with
test
(Models 1 and 2) for each of the six dependent
sion analyses
and
and
alphas
that include all tradi
the models
venture
export
driver.
That
of
e-commerce
ously
the
estimated
The
drivers
effects)
simultane
as main
effects,
separately
x
variable
(environmental
of
the moderating
effects
Strategy
43
Testing
e-commerce
type
we
In addition,
drivers.
size
variables?firm
two
included
control
and industry
(number of employees)
and services)?in
all the regression
(manufacturing
models.
2 presents
of the four
Table
each
and
the
results
e-commerce
a moderator.
Each
2) and
ers (inModel
as
variables
variables
in the
and
online
and
as
drivers
the
inde
the
signifi
drivers
(in
of e-commerce
effects
driv
effect is significant, we
2 and
3.
Table 2 shows
Transferability.
the
effects
strategy
As
relationship.
of export venture
communication
the six dimensions

adaptation,
2 shows,
Table
has a direct, positive
transferability
motion
variables
all the
online
of product
transferabil
venture
environmental
drivers-export
and moderating
direct
ity on the traditional
marketing
3) with
report only
of e-commerce
for Models
sepa
represents
we
amoderating
3).When
of Product Online
Effects
table
dependent
e-commerce
for the moderating
the R-squares
compare
for
regression
analyses
as a direct
antecedent
(Model 2 and Model
For simplicity,
variables.
pendent
cant results
for the direct
effects
Model
the
drivers
column
rate regression models

strategy
export
environmental
of
product
effect on four of
pro
strategy:
distribution
marketing
efficiency,
support, and distribution

efficiency. These findings lend
to
With
overall support
effects,
Ha.
regard to the moderating
moderates
the
online
(enhances)
transferability
product
effects
on
of product
uniqueness
promotion
of e-commerce
export
experience
the effects
and it reduces
efficiency,
and
adaptation
on communica
the effects
tion
on distribution
barriers
entry
for entry
barriers
was
reverse
means
of export market
Because
the score
efficiency.
a
scaled,
positive
are reduced,
exporters
that as entry barriers

in distribution
increase
efficiency.
However,
coefficient
an
realize
although
these
results are promising, they provide only partial support for

H2. Overall, the MRA results indicate that not only does
(enhance) the effects
product online transferability moderate
of selected traditional environmental
drivers, but it also
directly
affects
many
more
strategy, with
of export
strategy.
key
pronounced
Assets.
Effects ofE-Commerce
effects
moderating
tal forces-export
The
results
nificant
marketing
efficiency,
of e-commerce
venture
of export
market
as a direct
effects
antecedent
Table 2 depicts
on
assets
the direct and
the environmen
venture
show
effect
elements
strategy
marketing
assets have
that e-commerce
on five
strategy:
of the six dimensions

promotion
distribution
adaptation,
support, distribution
relationship.
a
sig
positive,
of export venture
communication
efficiency,
and
evi
results
These
provide
compelling
competitiveness.
in support
of H3. Furthermore,
the results
of the MRA
assets
the
moderate
indicate
that e-commerce
(enhance)
price
dence
Karavdic,
and Shaoming
Zou
Product
?
Independent
Variables
and H2: Product
Hj
Product
CD
online
Adaptation
Online
Promotion
Product
S
Q
?3
O.
Entry
export
b2
R2 for Model
b3
.251*
.139++
.088*
.659++
.227+++
.095*
b2
2
export
experience
Management
to export
Management
commitment
to e-commerce
Product
b3
E-Commerce
b2
.142*
.296+++
.214***
bo =
b3
.348+++
.132*
infrastructure
R2 for Model
.123+
.046***
.509+++
.209++
.146*
.267*
Infrastructure
E-commerce
b2
.219+++
uniqueness
and H6:
.130*
commitment
R2 for Model
.273*
Assets
assets
E-commerce
H5
Support
b2
bo =
experience
and H4: E-Commerce

E-commerce
Co
Distribution
barriers
G".
?
.198+++
.091*
uniqueness
R2 for Model
H3
Efficiency
Transferability
transferability
R2 forModel 2
E-commerce
Communication
Adaptation
b2
.058**
.336+++
.305***
.058*
O?
Product
Variables
Independent
E-commerce
export
Product
Entry
Export
market
R2 for Model
c
?3
?.
Cr
R2 for Model
&
Q
O
Export
bo =
.306*
for E-Commerce
b2
.058**
bo =
commitment
.295+++
.295*
.214++
to e-commerce
b3
.483ttt
infrastructure
market
R2 for Model
.488+++
.173++
.064*
uniqueness
Management
Q
?
bo =
for e-commerce
Demand
Efficiency
infrastructure
H7 and H8: Demand
Product
Communication
to e-commerce
uniqueness
barriers
Promotion
Adaptation
experience
commitment
Management
Adaptation
.067**
*F is significant at < .05.

**F is significant at < .01.
***F is significant at < .001.
+T is significant at < .05.
at < .01.
++T is significant
+++T is significant at < .001.
.300*
Distribution
Support
to e-commerce
commitment
effects
of management
of the six export marketing
strategy
tion efficiency,
distribution
on
dimensions:
and price
efficiency,
three
communica
competi
e-commerce
In addition,
assets
enhance
the effects
on distribution
to exporting
of management
commitment
on
the effects
of e-commerce
support,
export
experience
tiveness.
product
and
adaptation,
promotion
adaptation.
assets
that e-commerce
internal
the effects
drivers.
environmental
for
strong
internal
on
uniqueness
results
indicate
of product
the MRA
In summary,
moderate
the
(enhance)
the
Although
drivers,
environmental
effects
of all
is
evidence
the
overall
find
ings suggest only partial support for H4.

of Export Market E-Commerce
of the MRA in Table 2 show
Effects
results
e-commerce
infrastructure
tion
efficiency.
of H5.
support
However,
the
enhances
structure
directly
results
the
Thus,
there
Similarly,
market
entry barriers
affects
provide
market
in
evidence
e-commerce
infra
export
experi
and price competitive
efficiency
are
communica
only
little
export
effects
of e-commerce
ence on both distribution

ness.
Infrastructure. The
that export market
effects
moderating
on distribution
with
export
and price
efficiency
the score
because
for entry
Again,
competitiveness.
was
reverse
a
coefficient
scaled,
represents
positive
barriers
a reduc
tion in the effects of export market barriers on both efficiency

and
ture
e-commerce
infrastruc
Export market
on pro
effects
of product
uniqueness
and enhances
the effects
of management
competitiveness.
also enhances
the
motion
adaptation
to e-commerce
commitment
communication
that
overall
market
The
efficiency.
e-commerce
suggest
export
findings
a
the effects
infrastructure
role in enhancing
plays
particular
in
and
of export
of export
the effects
experience
reducing
on distribution
market
barriers
and price
competi
efficiency
of
the results
tiveness,
H6. Notably,
support
providing
partial
e-commerce
that export market
infrastructure
suggest
plays
role as a moderator
than as a direct
antecedent
far greater
venture
export
2 show
in Table
direct
ciency,
ciency.
demand
effects
on both
Consistent
six
management
communication
all
also
on promotion
interacts
with
a firm's
that demand
E-Commerce
export
has
positive,
marketing
distribution
other
Drivers
and
distribution
e-commerce
the effects
enhances
These
a
moderating
effi
drivers,
of product
for
demand
Finally,
adaptation.
infrastructure
export market
competitiveness.
price
has
for e-commerce
to
commitment
of
with
for e-commerce
uniqueness
e-commerce
gest
of the
three
communication
the
e-commerce
enhance
for e-commerce
strategy
effi
efficiency,
results
the
and price
Thus,
provide
competitiveness.
for e-commerce
for H7. Furthermore,
demand
support
impact
dimensions:
partial
enhances
The results of the MRA
for E-Commerce.
that demand
on
of
strategy.
marketing
Effects of Demand
to
sug
findings
effect on
Strategy
47
three
areas
key
venture
of export
communication,
competitiveness,
ciency; this provides

The
Discussion
tally altered
price
effi
partial support for H8.
of e-commerce
emergence
strategy:
marketing
and
distribution
has
technologies
the business models
that many
fundamen
firms have fol
a
and globalization
for achieving
has had
success,
on firms' business
and perform
operations
impact
ance.
How
do e-commerce
influence
firms'
technologies
e-commerce
How
be
should
export
strategies?
marketing
lowed
similar
into export marketing? What
incorporated
to
framework
retical
e-commerce
research
dered
these
questions
goal
of our
key
export
unanswered
drivers
marketing
strategy
theory
in
RBV
as well
theories,
we
research,
developed
e-commerce
drivers
both
treats
export
ship
strategy
marketing
between
traditional
environmental
Based
on a survey
strategy.
marketing
our empirical
in Australia,
extant
model
that
antecedents
of
of the
drivers
of 340
findings
relation
and
export
ventures
export
(partial) evi
provide
e-commerce
that
enhance
between
the coalignment
traditional
environmental
and selected
dimensions.
export marketing
strategy
both
The overall
strategies
ronmental
These
understanding
Indeed,
firms'
incorporated
drivers
need
export marketing
antecedents)
mentation
and
into
their
(as a moderator
the important
implications
influences
can be
e-commerce
relationship.
in that they enhance
these findings
Specifically,
e-commerce
strategy
e-commerce
of how
of export marketing
factor of the envi
moderating
marketing
are significant
findings
drivers
support to the prediction
antecedent
important
drivers-export
marketing.
that
is a direct
is an
and
external
lend general
findings
e-commerce
that
and
industrial
the
dence
forces
internal
direct
as moderators
and
on
as
a theoretical
as
of
role
drivers-export
Building
relationship.
and
organization
e-commerce
environmental
into
the
examining
by
the
into
of the
e-commerce
is to integrate
research
e-commerce
drivers
lack of integration
research
has ren
marketing
in the existing
literature.
and
exporting
existing
integrate
strategy? The
export marketing
is the proper theo
e-commerce
strategy
a firm's
the
export
shed light on the way

into
to be
export
marketing.
incorporated
formulation
into
(as direct
strategy
export marketing
imple
or an enabler).
Next, we highlight
findings of our research and discuss their

and practical
for theory
development
application.
Our findings
The Role of E-Commerce
in Export Marketing
Drivers
Strategy
firm's
and
a
indicate that the internal e-commerce

and
online
e-commerce
assets)
to have
transferability
for e-commerce)
(demand
appear
on selected
direct
strategy
export
impact
a firm's ability
to
transfer
products/
Specifically,
product
driver
external
significant,
dimensions.
drivers
Karavdic,
and Shaoming
Zou
(a
is positively
linked to its promotion
electronically
of
and
support
adaptation strategy
exporting distribution.
ITs provide a relatively
Presumably,
inexpensive way to
services
customize
and
disseminate,
gather,
motional
on
adaptation
the
messages
promotional
directly to individual customers. Exporting

tronically transfer elements of their product
firms that elec

likely find pro
more
Internet
cost
of the product/service
Increased digitizability
a strong,
distribution
on
has
effective.
also
offerings
communication
effect
efficiencies,
positive
It is con
and distribution
efficiencies,
support.
of informa
ceivable
that the Internet
enhances
the exchange
tion between
business
1998; Teich,
partners
(Ratnasingham
in their
1999), leading to greater efficiency
and Wallenius
Wallenius,
communication
stronger
and
support
activities
distribution
to
and
In summary,
of the distributors.
these
find
ings support the contention that product intangibility leads

directly to greater efficiencies in distributing and supporting
digitizable products (Varadarajan and Yadav 2002).
The
a firm's
show
that
the more
also
findings
are developed,
are its degrees
assets
the greater
communication
distri
efficiency,
adaptation,
research
e-commerce
of promotion
bution
efficiency,
tiveness.
Through
and price
e-commerce
support,
of
deployment
become
may
local
exporters
vations,
ties. The
distribution
about
knowledgeable
channels,
then
knowledge
and
distribution
enhanced
competi
assets,
customer
moti
activi
competitors'
to seek
exporters
permits
attain
in
of promotion
efficiency
adaptation,
to dis
and distribution,
offer proper
support
smart and competitive
and make
decisions.
pricing
high
degree
communication
tributors,
These
findings
as
such
IT
are
the Internet
using
of
internal
firm-based
In
forces
to
contrast
e-commerce
sions
demand
(Tiessen,
research
are
serves
fulfill their obligations
use
the
of
environ
2001).
drivers,
in selective
only
strategy. Our findings
in the export market
with
marketing
are external
significant
as an
the
that internal
on
influential
e-commerce
and
successful
export
findings
strategy
and Turner
of export marketing
for e-commerce
demand
on
Wright,
to greater
communication
ventures.
Consistent
export
client
in
resources,
1998). Overall,
than
internal
drivers
factors
vital
far more
in marketing
that
drivers
with
are
factors
e-commerce
the view
(Samiee
e-commerce
strategy are consistent
mental
with
are
infrastructure,
exporting
effects
consistent
distribution
external
dimen
indicate
that
leads
directly
efficiencies
for
recent
important
research,
meeting
motivator
for firms
in Internet-based marketing
to
(Daman
also
Demand
for e-commerce
2001).
pour
implementation
more
to become
firms
forces
price
competitive.
exporting
The general
increases
E-Commerce
view
here
industry-level
Drivers
is that demand
pricing
for online
pressures
pricing
(price
trans
Strategy
and
reduces
search
competition
between
sellers
In addition
to the
parency)
export
direct
experience
three of
by
export
drivers
on
effects
are
The
relationship
export market
and
the
e-commerce
four
e-commerce
transferability,
e-commerce
infrastructure.
market
export
e-commerce
price
internal environ
relationship.
export
is moderated
ing strategy
drivers:
online
product
and
moderating
in the traditional
strategy
drivers-export
e-commerce
between
of e-commerce
several
strategy,
marketing
in greater
resulting
(Varadarajan and Yadav 2002).
effects
found to be significant
mental
costs,
assets,
The
experience
of
impact
on communication
efficiency
is significantly enhanced when exporting firms have a high

degree of product online transferability. This suggests that
for highly digital and digitizable products, firms are better
able to leverage the potential of the Internet to provide infor
mation
and
after-sales
and
(Varadarajan
e-commerce
Yadav
human
more
in adapting
Our
findings
infrastructure
of their
export
reduces
that
more
show
costs,
that
most
drivers
pronounced
occur
in the
management
four of the
tribution
tiveness.
show
six
effects
of
export
e-commerce
commitment
infrastructure
is
experience
in
competitive.
and
distribution
Management
on
rely
moderating
examination
that
efficiency,
and
transactions,
Zott 2001).
Our
find
e-commerce
commitment-export
dimensions:
strategy
efficiency,
transaction
simplifies
(Amit and
when
commitment
management
Our
findings
experience
e-commerce
market
export
exporters
more
price
highly
developed,
e-commerce
to become
The
as
enhances
economies
scale
and
use
make
exporters
developed,
in e-commerce
to improve
distribution
e-commerce
in
available
infrastructure
distribution
also
ings
indicate
Leveraging
markets
further
increases
their
from
products.
becomes
experience
efficiency.
support
infrastructure
to use
able
in the
have
they
e-commerce
be
buyers
more
Exporters
be more
confident
when
adaptation
(internal
and may
resources)
effectively
prospective
with
2002).
also
may
experience
of product
process
e-commerce
assets
to
support
of
the
e-commerce
linkage
between
strategy.
marketing
assets
moderate
the
in
strategy
relationship
communication
and
dis
and price
support,
competi
is one of the most
impor
tant factors (if not the most important) when integrating the
Internet effectively with the strategic marketing plan (Eid,
Trueman,
both
assets,
e-commerce
and
Ahmed
external
infrastructure
drivers
and
demand
commitment
management
communications
efficiency
relationship.
moderate
ment
commitment
assessment
of foreign
to e-commerce
market
to e-commerce
In addition
2002).
e-commerce
(i.e., export market

for e-commerce)
to the e-commerce
Greater
implies
IT infrastructure
Karavdic,
an
manage
appropriate
and a better
and Shaoming
Zou
can facilitate
of what
communication
effi
understanding
e-commerce
to invest
In addition,
commitment
in
ciency.
with
managers
provides
e-commerce
efficiency.
also serves
buyers
The findings
ness
and
that all four e-commerce
in this study confirm
moderate
drivers
appropriate
available
infrastructure?tools
cation
to select
the ability
e-commerce
in the export market
are
that
for greater
communi
required
Demand
for e-commerce
by suppliers/
as an
in this relationship.
impetus
tools
the
promotion
between
relationship
the
When
adaptation.
to concentrate
tends
unique
product
export
on
is
product
management
customizing
to fit foreign buyers'
needs.
is more
This process
promotions
a unique
is
in the case when
efficient
transferable
product
e-commerce
when
the exporter
online,
possesses
significant
unique,
when
assets,
e-commerce
the
customers
export
E-commerce
drivers
clearly
to adapt
customers'
the exporter
to fit foreign
enable
easily
Our findings
important
its promotional
needs.
the
First,
a
theoretical
more
strategy
to the body of knowledge
contribute
areas.
well-developed
or when
infrastructure,
e-commerce
programs.
demand
has
market
export
in several
we
framework
of
extension
devel
the
represents
oped
significant
existing
our framework
of export marketing.
In particular,
theories
e-commerce
into exist
has successfully
drivers
incorporated
as
new
both
antecedents
and
theories,
ing export marketing
a
we
now
as
a broadened
factors. As
have
result,
moderating
of export marketing
theory of drivers
new
first time,
several
and distinctive
e-commerce
oped.
These
existing
see Zou
and
drivers
and
tualized,
their
new
Managerial
Implications
been
have
been
and
complement
concep
devel
extend
the
review,
(for
export
marketing
this research
extends
the
Indeed,
e-commerce
firms'
inter
that
showing
1998).
by
drivers
environmental
have
marketing
measures
preliminary
constructs
Contributions
for the
Second,
strategy.
constructs
to
related
of
knowledge
and Stan
literature
export
nal and external
export
Theoretical
are
forces-export
in the
moderators
important
venture
strategy
marketing
relationship.
an
this research
offers
theoretical
founda
Third,
integrated
e-commerce
tion for combining
and export marketing
studies,
two separate
streams
which
have been
of literature
until now.
Given
the widely
1994; Katsikeas,
role of export marketing
accepted
a firm's
in determining
export
Piercy,
it is possible
1998),
formance
through
performance
and Ioannidis
that e-commerce
their
direct
(Cavusgil
strategy
and Zou
1995; Zou and Stan
drivers
affect
export per
effects
of
and
strategy.
export marketing
literature
by explicating
moderating
to the
this study contributes
Thus,
a
the way
that e-commerce
affects
firm's
for the first
extends
export
the
E-Commerce
performance
existing
Drivers
conceptualization
time.
Fourth,
of export
this
study
marketing
Strategy
51
and
and by adding
strategy by including additional dimensions
new antecedents to it. For example, the findings imply that it
to add communication
and
might be beneficial
efficiency
as new
efficiency
in the e-commerce
distribution
ing strategy
are
who
of export
market
context.
of this study are also of significance
The findings
tives
dimensions
for
responsible
their
to execu
firms'
how
export marketing
between
envi
linkage
the
By demonstrating
is strength
forces
and export marketing
strategy
accentuates
this study
ened by e-commerce,
the point
that
e-commerce
is a business
to
that
firms'
imperative
applies
operations.
ronmental
export
operations.
management's
sary resources
need
managers
and initiatives
Export
commitment
in
terms
of both
e-commerce
to secure
senior
to devote
neces
technology
a firm's
(e.g.,
and
infrastructure)
management
technology
to use e-commerce
resources)
(e.g., human
effectively
for internal
and external
for pro
activities
and
marketing
cesses
to the firm's export market.
relevant
skills
can
managers
a sustainable
achieving
be
Export
tion
of e-commerce
out
in a customized
to be more
expected
in
successful
if the
competitive
integra
advantage
activities
is carried
export marketing
or
a distinc
to achieve
way
strengthen
e-commerce
in the export markets.
With
into
tive
strategic
position
a firm is able to
into export marketing
strategy,
integrated
the time of product
shorten
introduction,
and,
presentation,
to
in some
customers.
Because
distribution
cases,
directly
cannot
exporters
drivers,
management
are
appropriate
must
to
The
accordingly.
e-commerce
market
into
ated.
Finally,
formulation
and
as
then
allocate
strategy,
e-commerce
as
of
for
that must
be
is cre
entry
strategy
have
drivers
both
direct
man
strategy,
into both
strategy
When
processes.
implementation
well
markets
development
the demand
drivers
export marketing
e-commerce
to integrate
strategy
e-commerce
which
managers
assets
customers'
should
and
demand
prod
for
e-commerce
infrastructure,
export markets'
fits these e-commerce
drivers.
that their strategy
in e-commerce
assets
in making
investment
and
sure
coalignment
in the
drivers
for
and Directions
Further Research
and
on
export
marketing
examine
their firms'
products/services
Limitations
the
infrastructure
effects
carefully
uct
transferability,
e-commerce
and
Proper
and
of
level
e-commerce
because
and moderating
agers are advised
to make
consider
to be significant
appear
when
market
consideration
taken
formulating
external
shape
carefully
e-commerce
use
resources
export
e-commerce
or
influence
more
of export
digitized
marketing
should
strategy
and
facilitate
the
environmental
stage.
implementation
Although this study makes important contributions to the lit

erature, it is not without
limitations, but these limitations
can
offer
directions
for
further
research.
Karavdic,
Because
the pro
and Shaoming
Zou
model
posed
encompasses
number
large
of relationships,
there is a trade-off between breadth and depth. We resolved

this issue by testing a set of broad research hypotheses. Thus,
could not be applied.
sophisticated modeling
techniques
Given this limitation, further research should explore the
our broad framework into
of operationalizing
possibility
more
models
and managerial
specific
modeling
sophisticated
and
Another
approaches.
we
context
in which
is the single-country
study
to validate
the data. Further
is needed
research
The
us
allow
research
to make
relationships.
clear,
Further
research
longitudinal
study that would
e-commerce
how
clear, causal
enormous
potential
to improve
find ways
online
surveys.
general
should
observed
to employ
a clearer picture
of
endeavor
provide
not
does
applied
for the
export
Items a
Construct
E-Commerce
Product
and
in a
strategy
marketing
Internet
offer
surveys
Finally,
although
to try to
it is necessary
for researchers,
rates and validate
of
the value
response
influences
linkage.
obtained
country settings.
we
approach
causal
attributions
cross-sectional
of
limitation
our
ize the findings across different
them with
testing
Appendix.
Measures
Drivers
.96
online
transferability
of actual
Degree
assets
E-commerce
of potential
Degree
.77
product
product
team
E-commerce
transferability
of Constructs
transferability
in export
marketing
department
Budget
.75
for e-commerce
Internet
infrastructure
in export
usage
export
E-commerce
for e-commerce
.89
export
intensity
in export
for e-commerce
Customer
demand
for e-commerce
for e-commerce
demand
.70
of firm's
Degree
e-commerce
exporting
experience
.81
experience
of years
sales
Export
Degree
N.A.
uniqueness
.76
to
e-commerce
E-Commerce
networks
demand
Number
Management
commitment
to Internet
Suppliers
experience
Product
in
Drivers
Internal/External
Export
market
infrastructure
competition
market
Distributors
E-commerce
export
market
of access
Degree
Demand
export
of e-commerce
Sophistication
export
for e-commerce
in charge
People
E-commerce
e-commerce
to support
Services
Drivers
Degree
Planning
revenue
of firm's
e-commerce
using
in last financial
exporting
of product
for e-commerce
uniqueness
entry
to export
to invest
commitment
Management
e-commerce
in exporting
year
experience
Strategy
market
in
53
Appendix.
Continued
Items
Construct
.80
Management
commitment
to
Extent
Extent
of entry
to exporting
commitment
of management
exporting
orientation
Technology
N.A.
of technology
Degree
competitiveness
Degree
N.A.
Export market
infrastructure
Export
driven
Product
Product
.57
adaptation
of promotional
Online
technical
competitiveness
support
Quotes
Price
and
.75
Online
Distribution
.60
efficiency
References
efficiency
intensity
after-sales
Online
logistic
channels
support
efficiency
support
reduction
= not
applicable.
N.E.
and
on
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Distribution
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Notes: N.A.
tenders
communication
Online
efficiency
distributor
of foreign
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Price
Communication
forces
to foreign
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Internet
distributor
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Training
.57
approach
on
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Training
Overall
language
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Degree
.83
adaptation
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site
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Communication
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Distribution
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The Effects of E-Commerce Drivers on Export Marketing Strategy

Author(s): Gary Gregory, Munib Karavdic and Shaoming Zou

The emergence of e-commerce technology has had a significant

strategy. This study develops

and tests a theoretical

keting strategy. The empirical findings

and offer directions for further

In the first trend,

tomer orders and handling

inquiries (Bennett 1997; Hamill

in the use of the Internet

the role of the Internet

of research has been

its export marketing

strategies must fit its internal and external

has been defined

For the pur

and Export Marketing

and selling goods electronically.

that by focusing on the effects of

cal relationship. We believe

(Karavdic and Gregory

that little progress has been made

that the key determinants

Kaleka, and Katsikeas

On the basis of a literature

that are critical

Slater 1989; Zou and Stan 1998).

tor that incorporates Cavusgil

(1994) four dimen

32 Gary Gregory, Munib

should help a firm achieve cost efficiency while maintaining

Industrial organization theory focuses on external markets to

egy (Cavusgil, Zou, and Naidu

include these tradi

a firm's internal organizational

utes, information, and knowledge) key drivers of its strategy

ance (Grant 1991; Wernerfelt

1984). The RBV regards strategy

(Zou and Stan 1998). The current

the RBV to build

capabilities that can modify the relative power of buyers and

and Export Marketing

(Haubl and Trifts 2000). The dissemination

ing strategy. This

Gary Gregory, Munib

drivers and export marketing

firm has in international marketing. Experienced

firms gain competitive

1998). A committed management

tion of industry refers to the degree to which technological

and Export Marketing

Entry barriers are defined

(Cavusgil and Zou 1994). Although

ability and capabilities

the direct effects of traditional

36 Gary Gregory, Munib

product online transfer

[IT] and e-commerce

not only gives a firm the capability

adapted export marketing

by traditional drivers. Thus: