Market intelligence effect on perceived psychic distance, strategic behaviours and export performance in industrial SMEs

Purpose This paper has two objectives in the area of industrialised small- and medium-sized industrial company (SME) export activity. First, it responds to the gap in the literature on the role of market intelligence in the interrelations between perceived psychic distance, marketing mix decisions a...

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Bibliographic Details
Published in:The Journal of business & industrial marketing 2016-01, Vol.31 (3), p.365-380
Main Authors: Navarro-García, Antonio, Peris-Oritz, Marta, Barrera-Barrera, Ramón
Format: Article
Language:English
Subjects:
Adaptation
Advertising
Communication
Competition
Consumers
Cultural values
Decision making
Distribution channels
Exports
Hypotheses
Intelligence
Literature reviews
Market shares
Market strategy
Marketing
Objectives
Perceptions
Product lines
Profitability
Purchasing power
Small & medium sized enterprises-SME
Studies
Success
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Summary:Purpose This paper has two objectives in the area of industrialised small- and medium-sized industrial company (SME) export activity. First, it responds to the gap in the literature on the role of market intelligence in the interrelations between perceived psychic distance, marketing mix decisions and export performance. The second objective concerns the influence of resource heterogeneity (size and export department) in the proposed model. Design/methodology/approach The current paper tests a posited research model and its hypotheses using the data from a multi-sector sample of exporters (196 Spanish industrial SMEs). The data are analyzed using a partial least squares approach. Findings The results of the empirical study show that: strategic decisions to adapt marketing mix elements to suit foreign markets have a positive effect on export performance; strategic adaptations are more numerous when export managers perceive a greater psychic distance; an export department helps develop market intelligence ability, which positively moderates the impact of strategic adaptations on export performance; and size does not have a significant effect on the interrelations studied. Practical implications Export managers in industrial SMEs can use the results and conclusions of this present paper to systematise their decision-making in export activity. Originality/value This paper makes a significant contribution towards covering an important gap in research into industrial SME exporters, by demonstrating the importance of market intelligence in export activity.
ISSN:0885-8624
2052-1189
DOI:10.1108/JBIM-03-2013-0065