An investigation of the impact of competitive strategy on export performance: A literature review in the period 1998-2018

Abstract

Competitive strategy is considered to be one of the most important determinants of export performance (EP). The last literature review on the link between competitive strategy and EP was provided by Zou and Stan (1998) based on empirical papers published from 1987 until 1997. The aim of this paper is to uncover scientific findings in this field in the period 1998-2008. In order to find empirical studies published in the observed period, a computer and manual bibliographic search was used. In total, 17 empirical studies on the observed topic were revealed. In order to systematize the results of the found studies, a vote-counting technique was used, supplemented with a narrative approach. Several gaps in the literature have been identified and based on them the recommendations for further research in this area are proposed.

Product and business process innovation, competitive advantage and export performance

“…Competitive advantage comprises any feature that puts a company in a better marketplace position. There is a broad consensus in the strategic management literature, based on the RBV, that innovation is one of the main determinants of competitive advantage (Damanpour and Evan, 1984; Keupp et al , 2012) and that having a competitive advantage positively influences firm performance (Barney, 1991; Grant, 1991; Teece et al , 1997) in domestic and international markets (Keskin et al , 2021; Njegic and Ravic, 2019). However, the relationship between innovation and competitive advantage has little empirical support, and research on this issue “appears fragmented and out of focus,” according to Chatzoglou and Chatzoudes (2018).…”

“…This is the fundamental assumption of the monopolistic advantage theory, which states that to access new markets, compete successfully with local firms and manage the liabilities of foreignness, companies must have a monopolistic advantage over local firms. The literature defends that differentiation advantage influences customers’ behavior because they prefer higher value products and services and will pay more for them, which has a positive effect on firms’ performance (Keskin et al , 2021; Njegic and Ravic, 2019). With some exceptions (Leonidou et al , 2011), the research provides evidence supporting a positive relationship between differentiation advantage and export performance, especially when export performance is measured using strategic or market indicators (Keskin et al , 2021; Ling-Yee and Ogunmokun, 2001; Murray et al , 2011).…”