Influence of internationalization orientation on export performance: in the perspective of Malaysian manufacturing firms

Abstract

Purpose – The purpose of this paper is to investigate several concepts of inward and outward internationalization and their impact on export performance in the context of Malaysian manufacturing exporting firms. Design/methodology/approach – Mail survey was administered to gather data from the Malaysian manufacturing firms that have been identified to have business export trading to the major oil and gas producer countries in the Middle East. A total of 120 respondents were received and further analysis was tabulated. Findings – Findings revealed that the outward internationalization is positively related to economic and non-economic measures of export performance. It indicates that an outward internationalization related to organizational capability has a major contribution to the export performance of Malaysian manufacturing and exporting firms. On the other hand, top management international orientation as an inward internationalization is negatively and significantly associated with economic measures, but not in the non-economic measures of the export performance. Research limitations/implications – The cross-sectional nature of this study may have limitations with respect to examining the direction and causality of some of the variables. The findings are limited to Malaysian manufacturing firms exporting to targeted markets. The significant of this study emanates from its expected theoretical implications to knowledge and practical implications to business and public organization. It lends support to the internationalization theory and contributes to a firm’s performance and enhances their export marketing knowledge with useful implications for international and relationship marketing. Originality/value – The results support the proposition that internationalization of firms from emerging nations are dependent on learning, acquiring and applying the knowledge from other firms particularly from firms originating from advanced developed nations.

Born global: the influence of international orientation on export performance

“…Previous research proposes a positive relationship between international orientation and export performance (Behyan et al., 2015; Jantunen et al., 2008; Knight and Kim, 2009; Sorensen and Madsen, 2012; Martin et al., 2018; Racela and Thoumrungroje, 2014), suggesting that the way that managers think reflects the international strategies that have been adopted by their firms. Furthermore, the international orientation of the firm can lead to the promotion of opportunity-seeking in foreign markets among employees.…”

International experience, commitment, distribution adaptation and performance: a study of Ghanaian firms in B2B export markets

“…Consequently, as previously noted, this investigation considers how selected capabilities potentially influence performanceenhancing decisions regarding adaptation of distribution strategies in reaching customers in overseas markets. In terms of performance measurement (that includes gaining a competitive advantage), this varies in existing studies between objective and subjective criteria (Jones and Crick, 2001;Julian and Ahmed, 2005;Spence and Crick, 2006;Eusebio et al, 2007aEusebio et al, , 2007bLeonidou et al, 2011;Behyan et al, 2015;Anning-Dorson, 2018). Factors leading to a respective decision makers' perceived export performance are potentially diverse because considerations are partly dependent on the particular firm's resources and capabilities, the environmental conditions, industry structure, objectives and strategy (Cavusgil and Zou, 1994;Ibeh, 2003a;Ibeh, 2003b;Leonidou et al, 2002;Bell et al, 2004;Ogunmokun and Ng, 2004;Spence and Crick, 2006).…”

Examining the role of international entrepreneurial orientation, domestic market competition, and technological and marketing capabilities on SME’s export performance

“…Recent scholarship on the internal and external determinants of export performance has grown considerably (Behyan et al ., 2015; Brouthers et al ., 2015; Chen et al ., 2016; Hart and Tzokas, 1999; Jantunen et al ., 2005; Lefebvre et al ., 1998; Lisboa et al ., 2011; Navarro-García et al ., 2016; Zou et al ., 2003). In particular, the relationship between organizational capabilities and export performance is crucial because a firm that has attained the former often achieves higher economic value than that of its competitors.…”

“…SMEs require different sets of skills and knowledge when competing in international markets; accordingly, various capabilities related to marketing, technology, operations, etc., may be needed (Day, 1994). Despite the significance of organizational capabilities to a firm’s successful export performance (Behyan et al ., 2015; Knight and Cavusgil, 2004; Rodriguez and Rodriguez, 2005; Zhou et al ., 2010), the specific development of these different capabilities remains underdeveloped. According to contingency theory, firms establish optimal strategies in response to organizational and environmental conditions (Harvey, 1982), which are mediated by managerial perception (Penrose, 1959).…”