A Dynamic View of Marketing Capabilities for SMEs’ Export Performance

Abstract

The aim of this paper is to analyse marketing capabilities, through the dynamic capabilities framework, in order to increase understanding of how gradual global SMEs operating in traditional sectors can improve their export performance.The work is based on the exploratory, descriptive, qualitative method of a case study. An Italian SME has been selected on the basis of its export performance and marketing activities. The study has been conducted through secondary data analysis and a semi-structured in-depth interview with the CEO, with the aim of highlighting the relevance of emerging dynamic marketing capabilities connected with international performance.The results show that a SME, which lacks resources for international expansion, can improve its export performance by adapting, integrating, building, and reconfiguring its existing internal and external marketing capabilities for international markets.The principal limitation of this work is that, by analysing a company belonging to the alcoholic beverage sector, where price decisions are often left to importers, it was not possible to analyse dynamic pricing capabilities. This paper offers a contribution to the discussion of the internationalization of gradual global SMEs from the perspective of marketing and dynamic capabilities, missing from the literature, which is mainly focused on the study of multinational and born global enterprises.

Dynamic Capabilities, Environmental Dynamism and Small and Medium Enterprises’ Internationalization Level

“…This research builds on the conceptualization dynamic capabilities presented by Teece (2007). Relevant literature reveals that SMEs' owners/managers use their export related dynamic capabilities to provide a substitute for deficiency and other resources and to enhance export performance of their SMEs (Moretta & Formisano, 2018). This research argues that sensing, seizing and reconfiguring capabilities allow owners/managers of SMEs to increase their level of firm internationalization through effective discovery and exploitation of international opportunities.…”

“…Teece (2007) argues that dynamic capabilities ensure long-term advantages since they allow firms to match external opportunities with internal strengths derived from reconfiguring its internal resources. SMEs can enhance their export performance by incorporating, integrating, and reconfiguring their external and internal marketing capabilities to reach and compete global markets (Moretta & Formisano, 2018). Thus, the third research hypothesis can be stated as follows:…”

“…However, most of SME's internationalization research focused only on high tech industries and are carried out in western and developed contexts (Lisboa, Skarmeas & Lages, 2013) with limited research on gradual internationalization of SMEs operating in traditional industries (Moretta & Formisano, 2018;Villar et al, 2013). Reduction in trade barriers, intensive competition from foreign companies, and technological advancement have paved the way for SMEs to adopt international strategy in order to survive and grow.…”

The Cascading Effect of Static and Dynamic Marketing Capabilities on the International Performance: Analyzing Market Orientation as an Antecedent

“…Therefore, DMC is a quick reaction of the company, using and rearranging internal resources to obtain a competitive advantage (Baden-Fuller & Teece, 2020;Morgan & Slotegraaf, 2012). 63 (1) | 2023 | 1-25 | e2021-0711 eISSN 2178-938X Although previous research found a positive relationship between DMC and firms' performance (Buccieri, Javalgi, & Cavusgil, 2020;Guo et al, 2018), the effects of DMC need to be further consolidated in the literature, especially when it involves SMEs (Tartaglione & Formisano, 2018). Therefore, we propose the following hypothesis: H2: Dynamic marketing capabilities (DMC) have a positive effect on international performance (IP).…”

“…In globalized markets, organizations that take risks in the internationalization process are confronted with the need to develop capabilities and resources capable of responding quickly to the needs of the market (Kowalik, Danik, & Francioni, 2020). To obtain a sustainable competitive advantage in the face of intense international competitiveness, such market requirements become essential aspects when we analyze the context of small and medium-sized enterprises (SMEs) in businessto-business (B2B) trade (Guo et al, 2018;Tartaglione & Formisano, 2018). Understanding which resources and skills allow the construction of a solid competitive advantage and consequently able to reflect positively on performance is one of the keys to the success of the internationalization of these companies (Acikdilli, Mintu-Wimsatt, Kara, & Spillan, 2020;Guo et al, 2018).…”