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Article
Factors that reduce rigid product adaptation decisions : the case of exporting firms in China
Industrial Marketing Management
  • Ling Yee, Esther LI, Lingnan University, Hong Kong
Document Type
Journal article
Publication Date
5-1-2010
Keywords
  • Export adaptation,
  • threat-rigidity theory,
  • flexibility,
  • export coordination,
  • process control,
  • export performance
Abstract

As a distinct stream of research, export marketing strategy examines management's reaction to environmental threats in the forms of export adaptation strategies. Review studies repeatedly found that product adaptation was correlated with superior export performance. Despite the insights gained from strategic export marketing research, there remains very limited knowledge concerning organizational factors that may reduce rigid product adaptation decisions. Based on the threat-rigidity theory, this study identified two critical factors that reduce rigid product adaptation decisions: export coordination and process control mechanisms. The empirical evidence showed that export venture performance was adversely affected by rigid product adaptation decisions, and such adverse effect was particularly strong when operating under technological uncertainty. Exporting firms are advised to reduce likelihood of rigid product adaptation decisions by expanding export coordination when integrating business functions within the firm and adopting process control when monitoring exchanges with foreign agents.

DOI
10.1016/j.indmarman.2010.02.003
E-ISSN
18732062
Publisher Statement

Copyright © 2010 Published by Elsevier Inc

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Citation Information
Li, L. Y. E. (2010). Factors that reduce rigid product adaptation decisions: The case of exporting firms in China. Industrial Marketing Management, 39(4), 531-537. doi: 10.1016/j.indmarman.2010.02.003