Export intensity and marketing in transition economies: Evidence from China

• Published in: Industrial marketing management Vol. 40; no. 4; pp. 593 - 602
• Main Authors: Ellis, Paul D., Davies, Howard, Wong, Ada Hiu-Kan
• Format: Journal Article
• Language: English
• Published: New York Elsevier Inc 01-05-2011; Elsevier Sequoia S.A
• Subjects: China; Export intensity; Export performance; Exports; International market; International marketing; Knowledge; Knowledge management; Marketing; Organizational learning; Studies; Transition economies; China; International marketing; China; Export intensity; Transition economies
• ISSN: 0019-8501; 1873-2062
• DOI: 10.1016/j.indmarman.2010.10.003

Firms in transition economies face a common adaptation problem of having to compete within increasingly marketized environments. This creates a need for managers to learn skills associated with marketing, such as those pertaining to the development of new and better products. Although distance is usually a barrier to learning, we propose that in exchange situations involving transition economy firms, the benefits of long-distance trade may outweigh the costs of knowledge acquisition. We find support for this proposition in this study by establishing a link between the export intensity of Chinese exporters and their acquisition of marketing know-how. We also find evidence that the marketing knowledge of transition economy firms has a positive effect on overall performance.
► In transition economies export exposure aids the acquisition of marketing know-how. ► Export intensity is positively related to development of new and better products. ► Export intensity is also positively related to customer orientation. ► In transition economies, marketing know-how positively affects firm performance.