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Linking market orientation to international market selection and international performance

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JournalInternational Business Review
DatePublished - Oct 2011
Issue number5
Volume20
Number of pages12
Pages (from-to)535-546
Original languageEnglish

Abstract

Abstract
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.

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