Traditional economic theory predicts that factor cost advantages, coupled with an open economy, are crucial to the development of an efficient export sector. Porter's recent work has offered a more coherent hypothesis. This study of nontraditional exporters from Central America finds support for Porter's work. External environmental factors per se do not translate into competitive advantage; they do so only insofar as they translate into managerial competencies and appropriate marketing strategies. Policy guidelines are developed from these findings.
Investigates export marketing performance and internationalisation
strategies of Central American firms engaged in non‐traditional exports
to developed countries. A five‐country survey of Central American firms
identified three patterns of export performance. Each performance
pattern is associated with distinct marketing strategies and
organisational characteristics. The evidence is consistent with the
notion of a stage‐wise internationalisation process. The discussion
points out how the transition from low‐price and cost‐oriented exporting
to differentiated marketing poses hurdles which many currently
successful exporters have yet to overcome.
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