Becoming a Global SME: Determinants of SMEs' Decision to Use E‐Intermediaries in Export Marketing

Abstract

Technological advances have made it feasible for small and medium‐sized enterprises (SMEs) to become active in global markets through information technology (IT)‐mediated electronic intermediaries (e‐intermediaries) instead of relying only on traditional export channels. E‐intermediaries may offer SMEs a level playing field for competing with their larger competitors. Based on transaction cost economics (TCE), this study develops a model that can address the question of which transaction costs and characteristics are closely related to e‐intermediary use by SMEs. In addition to providing a better understanding of e‐intermediaries, the study explores the relationships between e‐intermediary use, transaction costs, and transaction characteristics in the context of Korean SMEs. © 2013 Wiley Periodicals, Inc.

A review of the empirical research on export channel selection between 1979 and 2015

“…Being the most popular analysis method, regression analysis offers a simple and convenient way to measure the sample and predict the direct causal relationship between variables (Cooper, Schindler, & Sun, 2006). Compared with the multivariate techniques such as regression analysis, the more advanced methodology like SEM is used in only two studies (Cho & Tansuhaj, 2013;Li & Li, 2003). Although regression is an advanced analysis method compared with correlation analysis and descriptive analysis, it remains limited when dealing with issues such as multiple independent variables and the indirect effect between variables (Cooper et al, 2006;Zou & Stan, 1998).…”

“…The unpredictability and changeability of environmental conditions create difficulty for transaction parties in drafting/amending/implementing a contract given their bounded rationality (Klein, 1989;Rindfleisch & Heide, 1997). Nine studies consider external uncertainty (e.g., Cho & Tansuhaj, 2013;Rialp et al, 2002), five of which examine the influence of the two dimensions of external uncertainty: volatility and diversity, on export channel selection (e.g., Bello & Lohtia, 1995;McNaughton, 1996). To our surprise, only three studies identify that external uncertainty positively leads to the selection of hierarchical channel/internet as the intermediary/single channel significantly.…”

The relevance of international marketing strategy to emerging-market exporting firms: from a systematic review towards a conceptual framework

“…The empirical research on international marketing strategy in the context of emerging economies was primarily channeled into testing the influence of transaction characteristics and costs on export distribution/market selection strategy (e.g. Cho and Tansuhaj, 2013; He et al , 2016). Aside from these, by centering specifically on the bounded rationality perspective, the linkage between environmental circumstances and international marketing strategy standardization also drew research attention in the extant literature (e.g.…”

“…He et al , 2013, 2018). Furthermore, being strictly integrated with the growth of e-commerce, in spite of its importance in current decades, the subject of e-intermediaries took part only in one article (0.6%), comparing a rather novel channel of distribution with traditional ones (Cho and Tansuhaj, 2013). Finally, channel intensity – the number of export middlemen included in the distribution process – (0.6%) (e.g.…”

“…O'Cass and Julian, 2003; Shoham, 1999; Sibanda et al , 2011). Nevertheless, regulatory and normative institutions were failed to produce any significant influence on e-intermediary use (Cho and Tansuhaj, 2013).…”