Emerald | International Marketing Review

Editorial

John W. Cadogan — 2012-04-20 00:00:00.0

Abstract

Not available.

Brand as Credible Commitment in Embedded Licensing: A Transaction Cost Perspective

Marshall S. Jiang, Bulent Menguc — 2012-04-20 00:00:00.0

Abstract

Purpose - The purpose of this paper is to study brand embedded licensing (technology licensing and brand licensing combined) and its theoretical difference from standard licensing (technology licensing only). The following research questions are asked: What makes embedded licensing theoretically different from standard licensing, and what determines a licensor’s decision to select brand embedded licensing over standard licensing?Design/methodology/approach - This paper compares brand embedded licensing to standard licensing and argues that brand embedded licensing is a quasi-hierarchical organizational structure while standard licensing is a market-based structure. Brand embeddedness in licensing serves as a credible commitment from the licensor and induces the licensee to invest sufficiently in complementary assets. Drawing on the transaction cost perspective, the determinants of embedded licensing are examined.Findings - Embedded licensing is determined by both the licensee’s characteristics and the licensor’s brand characteristics. The licensor is more likely to utilize embedded licensing or the licensee is more willing to demand embedded licensing when (1) the licensee’s specific complementary investment is high, (2) the licensee’s complementary capacity is high, (3) the market entry is at a late stage, (4) the licensor uses separate branding, (5) the extent of product differentiation is high, and (6) the stage of brand globalization is advanced. A strong intellectual property rights regime and a fast pace of technology change enhance the effects of these six determining factors on the licensor’s selection of embedded licensing.Originality/value - This paper challenges the classical view that licensing is a market-based relationship by revealing that embedded licensing is a quasi-hierarchical organizational structure.

Korean International Joint Ventures; How the Exchange Climate Affects Tacit Knowledge Transfer from Foreign Parents

Chan Soo Park, Ilan Vertinsky, Chol Lee — 2012-04-20 00:00:00.0

Abstract

Purpose - This study develops and tests a theoretical model to examine how exchange climate attributes and contextual factors between two parent firms in an international joint venture (IJV) affect tacit knowledge transfer. We investigate how this tacit knowledge, which comprises international marketing expertise, knowledge about foreign cultures and tastes and managerial practices, impacts IJV performance.Design/methodology/approach - Based on data from a survey of IJV managers in 334 Korean firms from a variety of industries, we use structural equation modeling (AMOS 18.0) to test our hypotheses. Findings - Our findings show that conflict resolution and cooperation positively affect tacit knowledge transfer, but communication does not. We found that the difference in the relative levels of economic development in the environments of partners significantly influences tacit knowledge acquisition, but cultural distance does not. Tacit knowledge acquisition positively influences IJV performance.Practical implications - Originality/value - We fill a gap in the literature by articulating the relationships between exchange climate attributes and tacit knowledge acquisition. Exchange climate, characterized by behavioral processes that directly impact knowledge transfer, constitutes an important missing link in prior research about tacit knowledge transfer. Our study contributes to a better understanding of the dynamic relationships among relational capital, exchange climate and tacit knowledge transfers. The model we develop and test has important implications for the design of organizational processes that facilitate tacit knowledge transfer.

Learning orientation in export functions: Impact on export growth

Anne Souchon, Joseph Sy-Changco, Belinda Dewsnap — 2012-04-20 00:00:00.0

Abstract

Purpose - The purpose of this study is to examine how the learning orientation of export functions affects their growth performance.Design/methodology/approach - A mail survey of 354 exporters was conducted, and the data were analyzed using confirmatory factor analysis and structural equation modeling.Findings - Results show that the link between response to export information and export growth is quadratic (U-shaped), and that this relationship is moderated by use of export memory. Export memory itself was found to be beneficial to export growth when responsiveness to export information is low, but detrimental under high levels of export information responsiveness. In turn, response to export information is driven by export information acquisition and distribution, as well as by the management of mental export models. Export memory use is also enhanced by the latter and the integration of export information within organizational systems.Research limitations/implications - We examine learning orientation in the context of export functions for the first time, and in doing so, uncover specific relationships that export learning constructs have with the growth performance of export firms. In addition, most of the organizational learning literature focuses on the information-processing behaviors of firms (e.g., acquisition, dissemination, use), overlooking the important discipline-based constructs such as the management of mental models. We show how important the challenging of mental export models is for maximizing response to export information and use of export memory.Practical implications - High levels of (human and financial) investment in export information processing are important for export growth. Export memory use should be encouraged, but only to confirm or triangulate new information. In addition, export staff should be formally training in challenging the preconceptions they may have developed about their export markets. Originality/value - This study is the first to consider the learning orientation of export functions, and to do so from a holistic (both information processing- and discipline-based) perspective.

Kirznerian and Schumpeterian entrepreneurial-oriented behavior in turbulent export markets

Sanna Sundqvist, Kalevi Kyläheiko, Olli Kuivalainen, John W. Cadogan — 2012-04-20 00:00:00.0

Abstract

Purpose - To shed light on the mechanisms by which entrepreneurial oriented behaviors enhance international business performance. In so doing, we demonstrate that different dimensions of entrepreneurial-oriented behavior 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 entrepreneurial-oriented behavior and business performance are assessed.Findings - Kirznerian manifestations of entrepreneurial-oriented behavior have stronger positive relationships with export profits when markets are relatively stable, whereas Schumpeterian manifestations of entrepreneurial-oriented behavior 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 approach to the study of a strategic orientation, we use a theoretically derived partial aggregation approach. As a result, entrepreneurial-oriented behaviors are grouped into two kinds, and the latter are show to behave differently with respect to relationships with performance outcomes. The study limitations include single source data and its cross sectional design. Practical implications - When markets are relatively stable, businesses need to emphasize the Kirznerian manifestations of entrepreneurial-oriented behavior (i.e., display high levels of competitive aggressiveness and proactiveness), and downplay Schumpeterian manifestations of entrepreneurial-oriented behavior (i.e., reduce innovativeness, risk taking and autonomy). However, in highly dynamic markets, managers should focus on Schumpeterian manifestations of entrepreneurial-oriented behavior at the expense of Kirznerian entrepreneurial-oriented behavior.Originality/value - This paper introduces Schumpeterian and Kirznerian entrepreneurial behavior in an international marketing context, and analyses the effects of these activities on international performance under varying levels of environmental turbulence.