The EMAP-Model
EXECUTIVE SUMMARY
Gaining deeper insights on the information needs of exporting firms is
essential for governments. It allows a better use of the limited governmental resources
for export promotion programs. Very often, resources that are available for this
purpose are not used in the most efficient way, leading to a situation where
governmental funds and efforts are sometimes spent, serving no purpose.
As the integration of public funds for export promotion has to take place in the
commercial business arena, this study explores effectiveness of government export
promotion programs on both governmental and firm level. This is done by means of
the influence of Export Marketing Assistance (EMA) on Export Performance. This
research paper attempts to explore the direct link between EMA and Export
Performance as well as the indirect link between these two concepts through Export
Marketing variables.
First, the theoretical interrelationships between governmental EMA, Export
Marketing and Export Performance are established in a theory review. After that, a
conceptual framework and hypotheses will be derived from the literature study. This
conceptual framework is named the EMAP-Model, establishing a point of reference
for future research in the field of export promotion.
A quantitative research amongst Brazilian exporters will be conducted to test
the EMAP-Model. Next, analysis of both quantitative and qualitative data will be
conducted to derive conclusions about Qualifiers, Success Factors and Obsoletes in
governmental EMA.
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The EMAP-Model
TABLE OF CONTENTS
EXECUTIVE SUMMARY
1
TABLE OF CONTENTS
2
1 INTRODUCTION
6
1.1 Research Objectives and Problem Statement
6
1.2 Research Question
7
1.3 Conceptual Framework
8
1.4 Thesis Outline
10
2 GOVERNMENTAL EXPORT PROMOTION
11
2.1 Introduction
11
2.2 Export Marketing Assistance
12
2.3 Variables of Governmental EMA Programs
13
15
2.3.1 Information Provision
2.3.1a Publications
15
2.3.1bTrade fairs
15
2.3.1c Market visits
16
2.3.1d Customs related information
16
2.3.1e Contact Information
16
2.3.2 Financial Support
16
2.3.2a Loans
17
2.3.2b Guarantees
17
2.3.2c Project participation
17
18
2.3.3 Management Support
2.3.3a market research
18
2.3.3b Assistance in the establishment of foreign sales offices
19
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The EMAP-Model
3 EXPORT MARKETING AND EXPORT PERFORMANCE
20
3.1 Introduction
20
3.2 Strategic Export Marketing Variables
20
3.2.1 Export Market Segmentation
20
3.2.2 Market Segmentation and EMA
21
3.2.2a Country Screening
22
3.2.2b Market Research
22
3.2.2c Market Entry
22
3.2.2d Positioning
23
3.2.2e Marketing Mix
23
23
3.3 International Market Entry Strategies
3.3.1 Factors influencing the choice of entry mode
23
3.3.2 Transaction Cost Theory
24
3.3.3 Market Commitment
25
3.3.4 Management Control
26
3.3.5 Market Entry Strategy and EMA
27
3.3.5a Exporting
28
3.3.5b Contractual entry modes
29
3.3.5c Investment Entry Modes
30
30
3.3.6 Summary
31
3.4 Tactical Export Marketing Variables
3.4.1 The Marketing Mix
31
3.4.2 Marketing Mix Adaptation
32
3.4.2a Product Adaptation
33
3.4.2b Pricing Adaptation
33
3.4.2c Promotion Adaptation
33
3.4.2d Distribution and Transport Adaptation
34
34
3.4.3 Summary
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The EMAP-Model
34
3.5 Export Performance Measurement
3.5.1 Definition
35
3.5.2 The EXPERF-Scale
36
3.5.3 Summary
37
4 CONCEPTUAL FRAMEWORK AND HYPOTHESES
39
4.1 Introduction
39
4.2 EMA and Export Marketing
39
4.3 Export Marketing and Export Performance
44
4.4 EMA and Export performance
46
4.5 Qualifiers, Success Factors and Obsoletes in EMA
48
5 METHODOLOGY
50
5.1 Introduction
50
5.2 Research design
50
5.3 Data collection method
52
5.4 Sample Selection
52
5.5 Sampling Procedure
53
5.6 Constructs and measures
54
5.6.1 EMA Variables
54
5.6.2 Strategic Export Marketing Variables
54
5.6.3 Tactical Export Marketing Variables
55
5.6.4 Export Performance Variables
56
5.6.5 Classification Variables
56
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The EMAP-Model
6 DATA ANALYSIS
57
6.1 Introduction
57
6.2 Summary: EMA and its Implications
57
6.3 EMA in Brazil
58
6.3.1 Information Provision in Brazil
58
6.3.2 Financial Support in Brazil
58
6.3.3 Management Support in Brazil
59
60
6.4 Sample Population
6.4.1 Employees
60
6.4.2 Export Percentage
62
63
6.5 Data Analysis
6.5.1 Parameters
64
6.5.2 The Effect of EMA on Export Marketing
64
6.5.3 The Effect of Export Marketing on Export Performance
65
6.5.4 The Effect of EMA on Export Performance
66
67
6.6 Discussion of the Results
6.6.1 EMA and Export Marketing
67
6.6.2 Export Marketing and Export Performance
70
6.6.3 EMA and Export Performance
72
73
6.8 Limitations and Future Research
75
7 CONCLUSION
7.1 Qualifiers, Success Factors and Obsoletes of EMA Programs
75
7.2 Conclusion
77
LITERATURE LIST AND OTHER REFERENCES
78
APPENDIX I – QUESTIONNAIRES
82
APPENDIX II – RELIABILITY ANALYSES
88
APPENDIX III – STATISTICAL TESTS
93
APPENDIX IV – RESEARCH EVALUATION
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The EMAP-Model
1 INTRODUCTION
This study will aim at a further integration of government export information
with the information needs of exporters. As the terms Export Assistance, Export
Promotion and Export Incentives are often used interchangeably, the definition given
by Seringhaus (1986) will be used. Export Promotion refers to all public measures
that actually or potentially enhance exporting activity either from a firm, industry or
national perspective (Seringhaus, 1986; Diamantopoulos, 1993). Better targeting of
information and a more efficient allocation of governmental resources for export
promotion will lead to better export assistance programs, more export involvement
and, thus, more export sales (Krick, 1995; Singer, 1992).
1.1 Research Objectives and Problem Statement
The literature in the field of governmental export promotion has traditionally
focused on the way in which firms had to behave in order to make use of
governmental export assistance. (Czinkota, 1981) The flaw of this approach is,
however, that it does not provide for an exploration of possibilities for governments to
make their programs more effective. So far studies have pointed out relationships
between the use of export promotion programs and firm characteristics like the stage
of export involvement (Diamantopoulos, 1993), the size of the exporting company
(Diamantopoulos, 1993), behavioral aspects of management towards governmental
export assistance (Singer, 1994) and environmental factors (Wood, 2000).
According to Crick and Czinkota (1995), research in the field of export
marketing and Export Marketing Assistance (EMA) has come to a point where the
need for a more longitudinal approach instead of a snapshot of requirements is
needed. Regardless of whether firms should change their behavior towards export
assistance programs, governments should gain a better understanding about the needs
of exporting companies (Krick and Czinkota, 1995). Many attributes that are
perceived to have performance improvement possibilities may be known to
governments, but are not accounted for in the programs for export development and
stimulation (Crick and Czinkota, 1995).
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The EMAP-Model
Following these indicators, the question of whether exports are promoted in
the most appropriate way should be asked (Czinkota, 1981). The aim of this study is
to create profiles of successful exporters that use or have used governmental Export
Marketing Assistance (EMA). Company profiles of successful export information
users will allow governments to optimize the allocation of export information to
firms. In this way, Qualifiers, Success Factors and Obsoletes in Export Assistance
Programs can be identified. In order to determine profiles of exporters that made
successful use of Governmental Export Assistance, their information needs and
applications will be explored. This study will compare the offerings and the actual
usage of governmental export information by categorizing EMA variables which are
expected to affect export performance of firms on both governmental and firm level.
By conducting a study along these lines, we will answer the following research
problem:
What are Qualifiers, Success Factors and Obsoletes in Governmental Export
Marketing Assistance?
1.2 Research Question
From the discussion above, the exploration of which aspects of export
promotion programs are most useful for exporters is pertinent. In order to do this, this
study investigates which specific aspects of export promotion lead to the highest
export success. The following research question can be asked:
Research question 1: “How do governmental export promotion programs relate to
information needs of exporters?”
Answering this question will give us insight into the factors associated with
successful export promotion. In order to do so a conceptual framework has to be built,
which will be referred to as the EMAP-Model.
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The EMAP-Model
1.3 Conceptual Framework
The EMAP-Model represents the effectiveness of governmental Export
Marketing Assistance on government, firm and on an outcome level. The model
represented in figure 1 will act as the theoretical base for this research paper. To
illustrate: EMAP refers to the effect that Export Marketing Assistance has on a firms’
Export Performance by means of strategic and tactical marketing variables. The
EMAP-Model will form the basic clipboard upon which this study will be conducted.
Government level
Firm Level
Outcome
STRATEGIC EXPORT
MARKETING DECISIONS
GOVERNMENTAL EMA
EXPORT
PERFORMANCE
TACTICAL EXPORT
MARKETING DECISIONS
Figure 1.
The EMAP-Model
The model in Figure 1 categorizes EMA information on both governmental
and on a firm level. Governmental EMA variables are expected to influence both
strategic and tactical marketing variables, which in turn result in Export Performance
of companies. By using this approach, this study will present EMA variables for
government-level and firm-level Export Marketing decisions. Furthermore the study
will present variables for the measurement of Export Performance.
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The EMAP-Model
Additionally, this study will identify a qualification model for the outcome
variables that will be addressed. By doing so, we will formulate a point of reference
for the qualification of effectiveness of Governmental EMA efforts. These
information variables are expected to be comprehensive with the proposed
qualification dimensions in Table 1. By using this approach in combination with the
EMAP-Model, Qualifiers, Success Factors and Obsoletes in Governmental EMA
programs can be defined and an insight into the effectiveness of different EMA
activities can be acquired.
To illustrate: a Qualifier for governmental export promotion is an aspect of
governmental export promotion that is used by both high and low achieving exporters.
A Success Factor is an aspect of governmental export promotion that is specifically
used by high achieving exporters, whereas the low achievers do not use it. Obsoletes
in governmental export promotion are the aspects that are actually offered by
governments, but which are only used by low achieving exporters. A schematic
overview of the analysis is given in table 1 below.
High Performing
Low Performing
Exporters
Exporters
Qualifiers
+
+
Success-factors
+
-
Obsoletes
-
+
+ = Governmental EMA Service Element used by Exporters
- = Governmental EMA Service Element not used by Exporters
Table 1.
Qualification Model of Governmental Export Information
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The EMAP-Model
1.4 Thesis Outline
In order to find answers to the research problem regarding Success Factors for
Export Marketing Assistance (EMA) programs, this research paper will proceed in a
theoretical elaboration of the variables in the EMAP-Model. In the next chapters, this
model will be theoretically explained for the specific EMA categories on
governmental level and for the Export Marketing variables on a firm level. After
determining and explaining these factors, the concept of export performance will be
explored, as it will be the dependent variable in this research paper. Once this
theoretical base is established, the EMAP-Model will be tested in a quantitative study
amongst Brazilian exporters.
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The EMAP-Model
2 GOVERNMENTAL EXPORT PROMOTION
This section will elaborate on the theoretical background for the EMAPModel. First, Export Promotion programs and their applications will be considered.
By doing so, it will define key categories in governmental EMA programs that affect
Export Marketing variables and Export Performance. Later, marketing literature will
be considered, in order to create a measurable theoretical background for this study.
Also the concept of Export Performance measurement will be addressed.
2.1 Introduction
Seringhaus (1986) makes an accurate distinction in governmental information
that is provided to exporters. The strong point of this study is the separation of
governmental Export Assistance for marketing purposes from other activities in the
business process of exporters. The structural measures of which Export Promotion
mainly consists are: Tax Incentives, Technology Innovation Support, Export
Financing and Insurance, Trade Aid Linkage through multilateral and bilateral
channels and Export Marketing Assistance (EMA).
For the purpose of this study, this point of view is convenient. It distinguishes
very clearly between several main activities of Governmental Export Promotion.
Following this structure, it becomes clear that EMA is only one aspect in the overall
offerings of governmental export promotion program offerings. In this respect,
governmental promotion programs should be seen as a resource for exporters. As
stated above, export promotion refers to all public measures that actually or
potentially enhance exporting activity either from a firm, industry or national
perspective (Seringhaus, 1986).
As the particular research field of marketing is relatively established,
Governmental Export Marketing Assistance (EMA) will have the main focus in this
study. It plays a direct role in the relations between a firm and its market (Seringhaus,
1986). In the following, agreement will be reached about specific EMA research
categories.
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The EMAP-Model
2.2 Export Marketing Assistance
Governmental EMA comprehends direct and indirect promotion and service
programs. Direct EMA includes standardized and customized market information and
guidance on exporting and Export Marketing. Direct EMA is designed to enhance a
firm’s competitiveness from exporting. It serves the purpose of reducing uncertainty
in the process of decision-making. Examples of these Direct EMA services, given by
Seringhaus (1986 and 1991) include:

Research of specific foreign

markets
Seeking foreign contacts and
representatives

Publications

Individual market visits

Trade mission Market visits

Financing

Trade fairs

Insurance for export

Assistance in the actual entry of

Assistance in establishing
foreign sales offices
transactions
the foreign market
Indirect EMA, on the other hand, comprehends all programs and services that are
not specifically designed for export but could, nevertheless, generate future export
benefits (Diamantopoulos, 1993). Examples of indirect EMA are activities related to:

Productivity

R&D

Technology Innovation Support

Manpower Planning

Regional/ Sectoral
Development

Fiscal measures
Besides the distinction between direct and indirect EMA, a distinction in
information that is provided to exporters by governments can be made as well.
According to their studies, Singer and Czinkota argue that knowledge needed for
overseas expansion can be distinguished into two types. First there is objective market
knowledge, which refers to knowledge that can be thought or obtained from
secondary or primary sources.
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The EMAP-Model
Empirical knowledge, on the other hand, can only be learned by personal
experience for it relies on personal involvement (Singer and Czinkota, 1994).
Furthermore, the information that is provided in the form of EMA can be either
customized or standardized. Standardized information is general information, widely
available, particularly from secondary sources. Customized information, on the other
hand, refers to data personally acquired through direct market/customer contact by
firms’ staff (Diamantopoulos, 1993).
The role that EMA plays can, thus, be distinguished in three respects
(Seringhaus, 1986). First it aims to place risk and opportunities in foreign market into
perspective, developing a broad awareness of export opportunities and to stimulate
interest for export in the business community. Second, EMA's role of assisting firms
in the planning and preparation for export market involvement is to stimulate a firms'
interest in and commitment to exporting. Third, the role of EMA is to act as an
external resource, to build knowledge and experience that is vital for successful
foreign market involvement.
2.3 Variables of Governmental EMA Programs
In order to derive research variables, this study will focus on the direct aspects of
governmental EMA. Following Diamantopoulos (1993) it can be observed that a very
accurate and clear reflection of direct EMA measures is given. According to
Diamantopoulos (1993), measures to directly promote firm’s export competitiveness
are threefold. First, there are government departments and offices that supply
standardized and customized market information and advice on exporting in general
or export marketing in particular. Second, programs that attempt to cover firms’
financial risk through insurance and finance arrangements can be identified. Third
there are programs which render assistance to firms, ranging from awareness creating
to actual market entry.
The first measure is aimed at providing and facilitating informational
requirements to improve firms’ export marketing decisions (Information Provision).
The second measure is there to provide firms with financial backup in order to reduce
risk in export operations (Financial Support). The third group of services also assists
firms’ export operations, however through the assistance in the actual management
process of export operations (Management Support)(Diamantopoulos, 1993).
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The EMAP-Model
For convenience of the model, these categories that distinguish governmental
EMA programs will be used. Indicators for these information categories are
represented in table 2 below. Although this list is not exhaustive, these information
categories are assumed to give a good representation of governmental EMA activities.
The following section will provide a further foundation and explanation for these
factors.
Information
Trade Fairs Publications
Market Visits
Provision
Financial Support
Loans
Guarantees
Identification of
Contact
Import duties
Information
Project
Participation
Management Support
Researching
Establishing
Specific Foreign
Foreign Sales Offices
Markets
Table 2.
EMA Categories and Variables
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The EMAP-Model
2.3.1 Information Provision
EMA by means of Information Provision to exporters will be explored
according to the variables: publications on export matters, trade fairs, individual
market visits, trade mission market visits, identification of import duties and seeking
foreign contacts and representatives.
2.3.1a Publications
Publications on export matters can be regarded as a very basic element in
EMA. A publication, as a form of governmental information provision, is either a
market guide for specific geographic locations, a market opportunity study, an export
handbook or how-to booklets about trips and other publications in the field. By
making use of publications, exporters can be assisted in locating opportunities,
developing contacts and implementing export activities. By definition, publications
generally contain information about market size, composition, culture, distribution
channels and environmental data regarding the potential export market (Darling,
1985).
2.3.1bTrade fairs
Trade fairs act as a good point of reference for this EMA category as they
provide exporters and potential exporters with accurate contacts in a mostly
specialized business sector. A trade fair can be defined as a dynamic event that
attracts "state-of-the-art" exhibitors and visitors, creating an intensely competitive
arena (Seringhaus, 2001). By devoting governmental resources to trade fairs, accurate
information on export matters is perceived as a potential for EMA success. This
assumption is expected to hold as exhibitors on trade fairs are challenged to make
favorable impressions, to attract potential buyers to the booth, and to deal with visitors
in an effective manner. Additionally, experience in trade fair participation
significantly adds to potential success in the achievement of business objectives
(Seringhaus, 2001). From this discussion it can be assumed that Information Provision
by means of EMA for trade fair participation enhances the export process.
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The EMAP-Model
2.3.1c Market visits
Market visits are a more customized way of EMA. Here the distinction can be
made between individual and trade mission market visits. Apparently the individual
market visits are a more customized manner of EMA, compared to trade mission
market visits. It can be questioned, though, whether individual trade missions are
more effective considering that the chances for networking have higher potential in a
group process of trade mission market visits. Market visits are believed to be a very
good source of information for exporters as face to face contact with potential
overseas customers is expected to lead to potential success in international sales and
Marketing (IOMA´s Managing Exports, 2003).
2.3.1d Customs related information
Identification of import duties and other customs related information can be
regarded as an important form of export information provision as well. This holds true
because trade offs in the management of the exporting process need to be made due to
formalities that have to be overcome when entering foreign countries.
2.3.1e Contact Information
Another aspect of export information provision in EMA programs is the
exploration of business contacts and representatives. This process is, just like customs
information, a standard procedure for governmental institutions that provide EMA.
Institutions like chambers of commerce and the like, conduct these services on a daily
basis.
2.3.2 Financial Support
The second category of EMA that is distinguished in the EMAP-model is
Financial Support. Financial Support as a factor for EMA mainly comprises the
reduction of risk in the exporting process. Financing can be regarded as a crucial
export marketing consideration, as the financial risk in business transactions increases
when a firm internationalizes.
Financing considerations thus play a major role in the exporting process of
firms as different environmental conditions (such as political and monetary structures)
create uncertainty for exporters (Crick and Czinkota, 1995). Due to these reasons,
financial EMA is a form of export promotion that is often most preferred by
governments.
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The EMAP-Model
The advantage of financial export support mechanisms is that the riskiest part
of the export business, which is foreign sales receivables, is protected and that it
stimulates exporters to engage in international transactions. Besides it provides
protection of political and commercial risks, over which the exporter has no control. A
third advantage of EMA by means of financing is that internationalizing through
exports is encouraged as firms have a better possibility to make competitive offers.
Fourth, potential markets are broadened due to lower export risk and, fifth, it creates
the possibility of leveraging exporter accounts receivable (Czinkota, 1998).
On the other hand, governmental financing might put firms at a competitive
advantage, leading to unfair competition in the market. A balance should be found
between supporting exporters financially and export subsidizing. Obviously the latter
may lead to a distortion in international trade. Due to this reason, export subsidizing
on a large scale should not have priority. Stemming from literature and practice, the
following Financial EMA variables can be distinguished: financial support by means
of a loan or in the form of a guarantee.
2.3.2a Loans
In a loan, the government provides funds to finance the sale and charges
interest on those funds on a stated rate. In these transactions, the government lender
accepts the risk of the transaction (Czinkota, 1998).
2.3.2b Guarantees
In a guarantee, a private sector lender provides the funds and sets the interest
rate. The government will however reimburse the lender if the loan is unpaid. Thus, in
the case of a guarantee, the government does not provide the funds but the risk
protection (Czinkota, 1998).
2.3.2c Project participation
Furthermore, governments provide financial EMA in the form of financial
support for project participation in trade fairs and for market visits (AHK São Paulo,
2003; Seringhaus, 1986). Financial support by means of funding project participation
is regarded as a variable as it is expected to lead to more export involvement of
companies. Project participation does often have the form of a subsidy to lower the
participation cost for potential exporters.
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The EMAP-Model
This form of financing can, thus, be distinguished for both trade fair
participation and market visits (AHK São Paulo, 2003; Seringhaus, 1986).
2.3.3 Management Support
Governmental export promotion in the form of management support is a
relatively new phenomenon. The reason for this is that international market
liberalization in the second half of the 20th century has made governments more
pragmatic to the business arena. Management support by governments is however
received with skepticism, as companies fear a loss of control in their own business
process. Besides do most governmental and semi-governmental organizations, which
engage in the process of export promotion, lack the organizational structure to directly
support management in exporting (Crick and Czinkota, 1995; Czinkota. 1996;
Rattink, 2002).
Export related problem areas comprehend logistics, legal procedures, export
servicing, sales promotion and foreign market intelligence (Czinkota, 1996). In this
respect, this study selects the following variables of governmental EMA for
management support: specific market research and the establishment of sales offices
abroad.
2.3.3a Market Research
Marketing research activities contain the search for market information and
thus create a direct point of reference with governmental EMA programs. It can be
defined as the informational needs of the forecasting task to provide guidance of how
to gather, collect, and report data relevant to marketing decision making (Boyd,
2002). Gathering data and information, in this respect, is crucial for the
internationalization process of the firm as the external environmental factors in the
process of exporting do strongly influence the choices that have to be made by
exporters. The assessment across different types of markets determines the degree of
success or failure achieved in the international arena (Wood and Robertson, 2000).
Market research can vary from very customized to very standardized, depending on
the focus of the governmental institution and on the nature of the requesting firm.
Generally, however, the governmental institution helps managers to streamline the
process of finding a suitable business partner, by means of matchmaking (AHK São
Paulo, 2003).
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The EMAP-Model
Furthermore can market research be used in the exploration of market
potential and for the purpose of forecasting sales for both new and existing products
and services of a firm. An estimate of market potential often serves as a starting point
for preparing a sales forecast. In addition to that is the size of the market that is
actually penetrated very relevant for firms as well, as size and market share are
determinant for the effectiveness of particular marketing actions (Boyd, 2002).
2.3.3b Assistance in the establishment of foreign sales offices
Export Marketing Assistance in establishing foreign sales offices is another
way of Management Support. By doing so, a government can support management of
exporting firms in the actual entry of the foreign market. Consideration about renting
real estate, employing foreign personnel and thus legal issues can be overcome in this
way (Seringhaus, 1986, AHK-São Paulo, 2003).
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The EMAP-Model
3 EXPORT MARKETING AND EXPORT PERFORMANCE
3.1 Introduction
Now that an approach for a qualification of governmental export information
is defined, this study will proceed by elaborating on specific export marketing
variables that are comprehensive with the proposed classification model. According to
the EMAP-Model particular Governmental EMA activities have an influence on
marketing decisions of exporters, which in turn affect Export Performance. Support
for this view can be found in marketing literature for both strategic and tactical
marketing considerations (Crick and Czinkota, 1995; Papadopoulos, 2002). Next to
this indirect link, the EMAP-Model also states a direct relationship between EMA and
Export Performance. This section will provide further support for the EMAP-model,
focusing on three main concepts: Strategic Export Marketing, Tactical Export
Marketing and Export Performance.
3.2 Strategic Export Marketing Variables
International Market Selection is said to be the first and most important step in
export strategy, making it a critical success factor for both small exporters and mature
multinational firms (Papadopoulos, 2002). Besides the strategy that a firm uses to
enter a foreign market is of crucial importance for export success (Zahn, 1999).
Strategic marketing considerations are aspects that deserve special attention in the
exploration of governmental EMA effectiveness (Papadopoulos, 2002). For this
matter, the strategic marketing concepts of market segmentation strategies and market
entry strategies will be explored.
3.2.1 Export Market Segmentation
To start out our discussion of strategic export marketing, the basic concept of
market segmentation will first be evaluated. After a general understanding on the
concept is acquired, we will elaborate on the specific market segmentation variables
that exporters encounter on the international market. Segmentation decisions are
amongst the most important decisions in the business process of a company that
internationalizes. Whereas tactical decisions like pricing policies can relatively easily
be changed, strategic (segmentation) decisions are far more difficult to redress.
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The EMAP-Model
Strategic considerations that the firm has to keep track of are the selection of a
target/ product market, the goals of the target market, the mode of entry, time of entry
and a control system to monitor the performance in the entered market (Kotabe,
1998).
Market Segmentation is the process by which a market is divided in distinct
subsets of customers with similar needs and characteristics that lead them to respond
in similar ways to a particular product offering and marketing program (Boyd, 2002).
As can be derived from marketing literature, market segments can be defined by
means of several characteristics. These characteristics are demographic descriptors,
geographic descriptors and behavioral descriptors of market segments. In Export
Marketing, geographic descriptors are most relevant. Market segments are often
geographically described as different locations vary in several respects. To illustrate:
different geographic locations can easily generate different sales potential, growth
rates, customer needs, cultures, climates, service needs and competitive structures.
Furthermore are varying purchase rates very often a reason for geographical market
segmentation (Boyd, 2002). The advantages that market segmentation brings to
companies are opportunities for new product development, enhanced marketing
programs through homogeneous groups of customers and a strategic allocation of
marketing resources (Boyd, 2002).
3.2.2 Market Segmentation and EMA
According to Kotabe (1998), market segments should be measurable, sizable,
accessible, actionable, posses a competitive intensity and have growth potential
(Kotabe, 1998). The main reasons for applying market segmentation in international
markets can theoretically be identified according to five factors which are: Country
Screening, Global Market Research, Entry Decisions, Positioning Strategy and
Marketing Mix Policy (Kotabe, 1998). According to these factors, the EMAP-Model
relates Governmental EMA to Export Performance by means of strategic marketing
decisions.
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The EMAP-Model
3.2.2a Country Screening
Companies usually do country screening in order to identify attractive market
opportunities for their product or service. For this purpose, market analysts rely on a
few indicators, for which information can easily be gathered from secondary data
sources. Depending on the nature of the product, companies will use different criteria
to screen countries (Kotabe, 1998). For example, a company that plans to export a
high-tech business-to-business product will evaluate a market according to different
specific business standards than an exporter of fast moving consumer goods.
3.2.2b Market Research
In international marketing research, segmentation plays a major role too.
Companies are putting more and more effort into designing different products and
services to meet the needs of customers in different countries. In the light of
standardization of the product and regarding the applicable marketing mix and
communication strategies, marketing research is of critical importance. In order to
make marketing research for these purposes possible, international markets are
segmented into clusters with homogeneous characteristics that are relevant for the
company. Market segmentation is thus important to gain a better understanding of the
foreign market (Kotabe, 1998).
3.2.2c Market Entry
As a third point of reference, international market segmentation is important
for market entry decisions. When a firm has to decide to expand operations into more
markets than the ones it already serves, it is easier to manage business by means of
segmented variables. When a market, similar to the market that is already served, is
available for a product, a company might have a chance of increasing the total sales
by applying the same strategy in the new market as well. A potential risk in this case
is however that structural variables might differ in such a way that the similarities
according to which the segment is defined might not hold and that entry in the new
market can be harmful for the company. This makes consideration about the variables
to use in segmentation very important (Kotabe, 1998). Market entry strategies will be
due to further analysis in the next section of this chapter.
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The EMAP-Model
3.2.2d Positioning
International market segmentation can also significantly influence the positioning
strategy that a company pursues. This holds as the positioning of a product or service
in the minds of prospective target customers is strongly effected by environmental
changes and shifts in consumer preferences (Kotabe, 1998).
3.2.2e Marketing Mix
Finally, international marketing mix issues are strongly influenced by
segmentation and positioning issues. In the light of international marketing mix
variables, the decision of whether to standardize or to customize products and services
to a particular market is of major importance. In order to strike a balance between
standardization and customization of marketing programs, a clear insight on the
foundations of a particular international market segment is important (Kotabe, 1998).
As marketing mix issues are of major tactical concern for exporters, the concept of
marketing mix adaptation will be further analyzed later on in this text.
3.3 International Market Entry Strategies
Companies become committed to international markets only when they no
longer believe that they can attain their strategic objectives by remaining at home. It is
important to have a clear entry strategy for the new market. An entry strategy for
international markets is a comprehensive plan. It sets forth the objectives, goals,
resources, and policies that will guide a company’s international business operations
over a future period long enough to achieve sustainable growth in world markets.
Entry strategies have to be planned for each product in each individual market. Once
all the individual product/ market strategies are completed, they should be combined
into one corporate international market entry strategy (Root, 1987).
3.3.1 Factors influencing the choice of entry mode
Once the foreign market is chosen, external factors like market size and
growth are mostly a key determinant in the choice of how to enter a market. Large
markets justify major market commitments in the form of joint ventures or wholly
owned subsidiaries as these market entry strategies involve a high level of interaction
between the company and the foreign market. The risk factor in a particular market is
a second major concern in the respect of market entry strategy.
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The EMAP-Model
Risk mostly relates to the political and economic conditions that a firm
encounters in a foreign market. Generally it holds that the greater the resource
commitments, the higher the risk, and thus Market Commitment to the country
concerned (Kotabe, 1998).
It can be concluded that the internationalizing firm has to balance its decision
between offering mainly human and financial resources to the entry strategy in the
foreign market on the one hand and to control considerations over the foreign
activities on the other hand. In this regard, a useful concept to resolve this dilemma is
the Transaction Cost Analysis (TCA) perspective. This analysis is based on the idea
that the desirable governance structure of high versus low control mode will depend
on the comparable transaction cost.
3.3.2 Transaction Cost Theory
Transaction cost in the situation of market entry is the cost of running the
operation (Kotabe, 1998). The underlying assumption of the TCA perspective is that
the foreign market is competitive. For this reason, market pressure minimizes the need
of control, as it is believed that the partners in the business process perfectly comply
with the business objectives in the process. Arguably this condition should hold due to
the mutual benefits of competing in a competitive market. As soon as the market
mechanism fails, high-control entry modes become more desirable. From the TCA
perspective, market failure typically happens when transaction specific assets become
valuable. These assets are only valuable for a very narrow range of applications,
including know-how, proprietary technology or brand equity. When these types of
assets become very important the firm is better off choosing a high control marketentry strategy. The reason for this is that the internationalizing firm as the owner of
these assets has to protect itself against opportunistic behavior and uncertainty
(Kotabe, 1998).
To illustrate: Multi National Companies (MNC´s) are most likely to enter a
foreign market with wholly owned subsidiaries when the entry involves an R&D
intensive line of business. Furthermore does research support the view that an
advertising intensive line of business with high brand equity does also prefer a market
entry strategy with wholly owned foreign subsidiaries. A last condition that supports
the TCA approach is that MNC´s prefer a wholly owned subsidiary abroad when they
have accumulated substantial experience in entering foreign markets (Kotabe, 1998).
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The EMAP-Model
Partnerships are most likely to be the preferred market entry strategies if the
entry is in a high risk country. Also the entry in a socio-culturally distant country or
into a country that imposes legal restrictions on foreign ownership of assets, is mostly
done in the form of a partnership (Kotabe, 1998). Regardless of the conditions that an
exporter faces, market commitment and management control are main drivers in
market entry decisions. The next paragraphs will elaborate on these themes.
3.3.3 Market Commitment
The concept of market commitment deserves further attention as it is an
important factor in the determination of the most appropriate entry strategy to
penetrate the foreign market (Root, 1987). Research points out that commitment has a
positive effect on performance of companies that engage in international business. As
such, relationship commitment represents an essential part of successful long term
business relationships and it facilitates the smooth organization and coordination of
economic activities between trading partners (Skarmeas et al., 2002). Market
commitment can be defined as the extent to which a firm is dedicated to a close and
enduring relationship with a market. In management literature, commitment has often
been conceptualized as a cognitive-affective
state, composed of continuance,
affective and normative dimensions (Skarmeas et al., 2002).
Continuance commitment is defined as the desire to continue the relationship
with the overseas supplier (Skarmeas et al., 2002). The continuance dimension refers
to an awareness of the costs associated with leaving the market. Firms with a strong
continuance commitment towards a particular market continue their commitment
because they need to be or stay in that market. Behavioral commitment on the other
hand, reflects the extent to which the exporter provides special help to its overseas
business partner.
In this respect it can be said that behavioral commitment is instrumental in
nature. Third, affective commitment refers to the sense of unity binding the exporter
to its overseas business partner. The affective dimension of market commitment refers
to the emotional attachment to a market. Firms with a strong affective commitment
towards a particular market continue their commitment because they really want to be
in that market (Skarmeas et al., 2002).
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The EMAP-Model
In the light of marketing strategy and governmental EMA, the extend to which
an exporter gives special attention to its foreign partners plays a crucial role. For
exporters, the behavioral component of commitment gives a very accurate reflection
of commitment as it is rather instrumental. Governmental EMA programs have the
potential to add significantly in this respect as exporters are facilitated with financial,
information and management resources that allow for a better interaction with
overseas business partners. This conceptualization gives rise to further exploration of
the concept.
3.3.4 Management Control
Management control over foreign operations is a second variable influencing
the choice of a Market Entry Strategy. The first criterion that can be identified for the
choice of market entry mode, is the corporate objectives of the firm. Depending on
the aspirations of the firm it might choose a mode of entry that allows for a lot of
control over the foreign operations or one with less control in that respect (Kotabe,
1998). Management control can be defined as the process by which management
assures that the organization carries out its strategies (Thomas, 1985).
Stemming from this observation, the need for management control can be
mentioned as a determinant for market entry strategy selection. As control over
marketing mix elements is desirable, firms have to make a trade off between control
over foreign operations and resource participation in the foreign market. Higher
resource commitment leads to more control over foreign operations of a firm (Kotabe,
1998).
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The EMAP-Model
3.3.5 Market Entry Strategy and EMA
Governmental EMA can arguably influence considerations about market entry
strategies in foreign countries in the light of market commitment and management
control over foreign operations. Since EMA through information provision, financial
support and management support enhances the information and knowledge resources
of the exporter, strategic marketing decisions are supposed to improve. Governmental
EMA inputs are also expected to lead to a higher export performance, as a better
business decision can be made on market entry strategy. Figure 2 gives a graphical
representation of the relationship between Market Entry Strategies and the concepts of
Market Commitment and Management Control.
Control
Branch Export/
Subsidiary
•
• Sole Venture
• Joint Venture
•
•
Licensing
Agent/ Distributor Export
• Indirect Export
Commitment
Figure 2.
Evolution of a Manufacturer’s Decision on Entry Mode
Source: Root, 1987
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The EMAP-Model
As it can be seen in the figure above, every single market entry mode that a
firm chooses implies different levels of market commitment and management control.
The remainder of this sections will give some more insight into the concepts
concerning the modes of market entry, as shown in figure 2. From a management
perspective, three main entry modes can be identified, that lead to a higher market
commitment and more management control. These are respectively exporting,
contractual and investment entry modes (Root, 1987).
3.3.5a Exporting
In exporting, a distinction can be made between indirect and direct exporting.
In indirect exporting, the foreign sales contact, contract negotiations and product
delivery are left to an intermediary that is located in the domestic market. The
manufacturer actually consummates a domestic sale that, in turn, results in an export
sale by someone else. Possible intermediaries that can be used in indirect exporting
include commission-buying agents, country controlled buying agents, export
management companies, export merchants, export agents and export trading
companies. The advantage of indirect exporting is that the process is much less
expensive, compared to establishing direct distribution channels. This advantage
stems from the condition that the costs of penetrating the foreign market are due to the
intermediary. Furthermore is an advantage of indirect exporting that it provides a firm
with a good opportunity to test the foreign market. A major disadvantage however is
that there is a big loss of opportunity gain; the intermediary has total control over
pricing in the foreign market which leads to big potential profit for this party.
Furthermore does indirect exporting imply a loss of control over the image of the
producer as the intermediary reflects the image of the "exporter" in the foreign market
(Walvoord, 1984; Kotabe, 1998).
Direct exporting on the other hand, implies that the manufacturer maintains
the responsibility for the foreign sales contact, contract negotiations and overseas
shipment of the product. In this case the manufacturer also assumes the responsibility
and the risk for getting paid. Usually, direct exporting includes the use of a foreign
partner. Possible partners through whom direct exports can be distributed to the
foreign market include foreign sales representatives, foreign sales agents and
distributors (Walvoord, 1984; Kotabe, 1998). The biggest advantage of direct
exporting is that it brings a higher potential profit.
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The EMAP-Model
As the producer is in charge of pricing other marketing related considerations,
the potential for profit maximization becomes bigger compared to indirect exporting.
Furthermore is the partners´ knowledge of the foreign market a big advantage over
indirect exporting. As the partner has this knowledge, he is able to inform the
producer about local customs, methods and special product needs. These extra
insights create a great potential for closer customer relations and thus for higher
potential sales. The disadvantage of direct exporting on the other hand is that it
requires higher initial start up costs (Kotabe, 1998). Furthermore does the difference
in politics, economics, market potential, culture, infrastructure and legislation between
countries lead to potential disadvantages in case of direct exporting (Wood and
Robbertson, 2000).
3.3.5b Contractual entry modes
Contractual entry modes are long term non-equity associations between an
international company and an entity in a foreign target country that involve the
transfer of technology or human skills from the former to the latter. Contractual entry
modes are distinguished from export entry modes because they are primarily vehicles
for the transfer of knowledge and skills, although they may also create export
opportunities. Investment entry modes on the other hand are also different from
contractual entry modes as they do not involve equity investment by the international
company (Root, 1987). According to Root (1987), contractual entry modes can
consist of licensing agreements, Franchising, Technical agreements, Service contracts,
Management contracts, construction/ turnkey contracts, contract manufacturing, coproduction agreements and the like. Evidently, contractual agreements imply a higher
Market Commitment and more Management Control.
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The EMAP-Model
3.3.5c Investment Entry Modes
These entry modes involve the ownership by an international company of
manufacturing plants of other production units in the target country. In terms of the
production stage, the subsidiaries may range all the way from simple assembly plants
that depend entirely on imports of intermediate products from the parent company to
plants that undertake the full manufacture of a product. In case an investment entry
mode is chosen to establish an assembly plant, as in the first case, this can be regarded
as an extension of the export entry mode. Foreign production affiliates can be
classified as sole ventures with full ownership and control by the parent company. A
sole venture can be started from scratch, being a new establishment, or by acquiring a
local company, being a acquisition (Root, 1987). Evidently, the investment entry
modes rank highest in terms of Market Commitment and Management Control.
3.3.6 Summary
Regarding the information needs of exporters, EMA can significantly help in
solving strategic marketing problems. formation provision, financial support and
management support will stimulate exporters in their strategic decision making. For
Market Segmentation, Country Screening and Market Research are expected to be
positively influenced by EMA. In turn it is also believed that Country Screening and
Market Research lead to a higher Export performance as financial, strategic and
satisfaction performance measures will rice. Thus, these concepts are expected to give
an appropriate reflection of Segmentation decisions for this study.
As can be derived from international marketing literature and from the
discussion above, the right Market Entry strategy does also significantly add to the
firm's success in foreign markets. This section provided a deeper insight into related
concepts of Market Entry strategies in foreign markets. For the purpose of developing
a structure for research, the concepts of Market Commitment and Management
Control were presented. These concepts can be used as intermediate variables for the
measurement of the influence of EMA on export performance. For the EMAP-Model,
behavioral commitment will be used in order to derive viable conclusions for market
entry strategies and governmental EMA.
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The EMAP-Model
3.4 Tactical Export Marketing Variables
Besides strategic export marketing variables, tactical export marketing
categories that relate to governmental EMA have to be considered. According to the
EMAP-Model, governmental EMA can have an influence on these variables by means
of information provision, financial support and management support. Whereas
marketing decisions on the strategic level are concerned with the planning of the
marketing process, tactical marketing decisions address the actual execution of the
marketing plan. To illustrate: once markets are segmented and a market entry strategy
is chosen according to criteria described in the previous chapter, tactical
considerations have to be made about how the particular product should be marketed
within that setting. For these decisions in exporting companies, typically marketing
mix issues should be considered (Boyd, 2002; Crick and Czinkota, 1995). Marketing
mix variables can provide a good point of reference for the governmental EMA
effectiveness regarding the degree of adaptation in the foreign market. As knowledge
of a market is crucial in the decision whether to adapt or standardize a marketing
program, EMA can be regarded as an important input in the decision making process.
3.4.1 The Marketing Mix
Defining tactical marketing variables for the EMAP-Model requires a deeper
understanding of the marketing mix. The marketing mix can be defined as the set of
controllable marketing variables that the manager uses to carry out a marketing
strategy in pursuit of the firm’s objectives in a given target market (Boyd, 2002).
Marketing literature broadly supports the view that these variables are defined by the
four P’s, which stand for Product, Price, Promotion and Place. This section will
briefly explain this concept by a literature review from an Export Marketing
perspective.
In the marketing plan, the product comprises the tangible and intangible
attributes that that confer benefits on users (Root, 1987) Product decisions that are
important in the respect of marketing concern issues like quality, product features,
style, options, brand name, packaging, warranties and services (Boyd, 2002). Theory
and practice point out that pricing decisions are amongst the most difficult decisions
in the marketing process since price levels can be influenced by a large number of
factors. As companies have several motives to charge different prices to different
customers, a price structure is important.
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The EMAP-Model
A price structure establishes guidelines for adapting the price to variations in
cost and demand across different markets (Boyd, 2002). Prices are not established
uniformly throughout different business settings, marketers have to make some price
adjustment decisions to accommodate differences across geographic territories,
national boundaries, types of customers and items within the product line (Boyd,
2002).
Distribution and transport decisions are very important in tactical marketing
considerations as well. The general goals of a proper transport and distribution system
comprise product availability, promotional support from channel members, market
information throughout the distribution channels, cost effectiveness and flexibility
(Boyd, 2002).
The last factor that is identified in the marketing mix, is Promotion.
Depending on strategic considerations such as which market entry strategy to pursue
and how to segment the international target market for export activities of a firm,
promotion mix decisions have to be made in the effort to market products and services
internationally. A promotion plan can be defined as a process of building and
reinforcing mutually profitable relationships with employees, customers, other
stakeholders, and the general public by developing and coordinating a strategic
communications program that enables them to make constructive contact with the
company brand through a variety of media (Boyd, 2002). Developing a promotion
mix requires a sequence of steps that have to be followed, ranging from the
determination of the target market to budgeting for promotional activities better
knowledge and understanding on these factors in the foreign market.
3.4.2 Marketing Mix Adaptation
For Export Marketing, the variables that are discussed in the previous
paragraph require further discussion in the light of adaptation of marketing activities.
The degree of standardization vs. adaptation of marketing programs in the foreign
market is of major importance for an exporting company. The better a firm knows the
foreign market requirements, the better it will be able to be successful in that market.
In case a company decides to apply a standardized marketing mix policy, it uses the
same marketing mix approach in all the international markets that it serves.
Standardization of marketing mix policy brings several advantages to internationally
operating firms.
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The EMAP-Model
The most important advantage in the execution of the marketing program is,
however, that economics of scale can be realized, resulting in lower costs (Boyd,
2002). Adaptation of the marketing mix to the local market, however, accounts for
cultural differences in preferences, values, attitudes and beliefs of the target market
(Boyd, 2002).
3.4.2a Product Adaptation
Regarding the product offering in the marketing mix of exporters, literature
points out that a high degree of product adaptation is found under specific
circumstances. When the firm is internationally competent, the product is unique,
new, or culture specific, the industry is less technology intensive or the export market
is competitive, product adaptation is applicable. A product that is unique to the
domestic market, new to the company, or culture specific could have limited
acceptance in the export market. In other words, product adaptation to a particular
export market is most likely to be successful if the firm is able to respond to the local
conditions by an adaptation strategy (Cavusgil, 1994).
3.4.2b Pricing Adaptation
In the light of adaptation of export pricing policy, the technology orientation
of industry has a big influence. Research points out that managers are not resorting
necessarily to price as a competitive weapon as a result of either market pressures or
higher commitment to the venture, which could reflect a preference for non-price
competition. However, it is also shown that a competitive pricing strategy is used
more frequently in technology intensive industries.
This observation implies that firms try to recover their investments in
technology by broadening the customer base in export markets via competitive pricing
(Cavusgil, 1994).
3.4.2c Promotion Adaptation
The competitive pressures in the export market determine adaptation of
promotion, As well as media availability in the export market. It is shown that
promotion adaptation tends to be high for established products. Presumably, greater
experience with the product gives management a better understanding of what can
facilitate or hinder a product's potential in the export markets (Cavusgil, 1994).
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The EMAP-Model
3.4.2d Distribution and Transport Adaptation
Adaptation in relation to distribution and transport decisions of exporters boils
down to initiating and sustaining strong and mutually beneficial relationships with
foreign partners, as it is of major importance. These channel relations comprehend
support to foreign distributors and subsidiaries in the form of sales force training,
technical assistance, marketing know-how and promotional support. The most critical
determinant of such support is management's commitment to the export venture
(Cavusgil, 1994).
3.4.3 Summary
In tactical decisions regarding Marketing Mix Adaptation, EMA can play a
significant role. EMA programs can influence decisions related to the foreign product
offering of a firm. Here it can be argued that EMA programs could provide extra
information to produce the product in the foreign market. This information can
improve the servicing of technical advise to international customers, help in
streamlining the supply process of eventual parts that are required in the maintenance
of the product and in repair services (Crick and Czinkota, 1995). Also Pricing
decisions as well as distribution decisions can be enhanced as exporters can gain
insights through contacts and financial aid by making use of EMA programs. The
same holds for the adaptation of promotional activities as a good knowledge of the
foreign market conditions is required to be successful.
In order to define what successful means in this respect, the following section
of this research paper will address the concept of Export Performance Measurement
by a literature review. It will introduce the EXPERF Scale, developed by Zou (1998).
3.5 Export Performance Measurement
This section will discuss the concept of export performance measurement in
order to establish a theoretical clipboard upon which conclusions about export
performance in the EMAP-Model can be measured and generalized. The study by Zou
et al., (1998) will be used for the purpose of export performance measurement. It
provides a synthesis of several attempts to define a measure for export performance.
The measure that these authors provide is called the Export Performance Scale, or
EXPERF-Scale.
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The EMAP-Model
In the research that has been conducted in the field of export marketing so far,
many researchers have tried to measure export performance. A big inconsistency for
verification of these data is however, that most studies explored the concept of export
performance according to different independent measures such as export sales, export
growth, export profitability, export market share, attainment of market goals, export
intensity and perceived success among other exporters. Although these are good
indicators for a firms' success in exporting operations, a clear-cut definition for a valid
and general approach to the measurement of export performance cannot be
distinguished. This has led to multiple results that could not be generalized, due to
different interpretations that are given to the concept. A further drawback of previous
work is that most studies have conducted research in a one-country context. Due to
this fact, export marketing research has lead to incomparable conclusions as it has
been conducted in multiple countries, which place different emphases on exporting
(Zou et. al., 1998).
A unified concept of export performance measurement is important for policy
makers, both on a micro as well as on a macro level. On the macro level, governments
around the world are concerned with ways to improve their firms' performances in
export markets, as exports are considered an engine of economic growth. On a micro
level, it is more and more recognized by firms, that success in the domestic market
does not guarantee success in foreign markets (Zou et. al., 1998).
3.5.1 Definition
Export Performance can conceptually be defined as the composite outcome of
firms' international sales (Shoham, 1998). This definition is based on five shared
themes that determine export performance.
First, the central importance of export performance has to be recognized in the
respect of strategy and thus international strategy. This statement holds due to the fact
that performance is a pivotal outcome construct in the study of international strategy.
Second, the definition of export performance should depend on firm and marketing
performance. This observation is due as firms should be consistent in performance
measurement in both national and international operations. Third, export performance
should be defined in such a way that allows for proper interpretation for both internal
and external stakeholders of a firm. Fourth, the definition of export performance is
context specific.
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The EMAP-Model
This condition should be regarded as the performance definition depends on
the research context of a given study. The last factor that is argued to be important in
defining export performance is that the concept might be problem driven, rather that
theory driven. Although this condition supports the definition that is stated above, it is
not comprehensive for a structured and scientific approach to the concept (Shoham,
1998).
3.5.2 The EXPERF-Scale
The EXPERF-Scale comprises three dimensions along which export performance can
be measured simultaneously. The dimensions are financial export performance,
strategic export performance and satisfaction with the export venture (Zou et. al.,
1998). This paragraph will provide a theoretical review of this concept.
Measurement of export performance according to financial factors is most
common as it is argued that exporting is part of a firms' marketing program. This
condition makes export performance measurement subject to the measurement of
marketing performance, which usually happens in financial terms. Indicators of
financial export performance measurement are export sales, export sales growth,
export profits and export intensity (Zou et. al., 1998).
The second measurement dimension of export performance is the strategic
outcome of exporting. The main consideration in this measurement-dimension is that
firms often have strategic goals in exporting. The indicators that can be identifies in
this respect are market share, strategic presence in the foreign market and competitive
position (Zou et. al., 1998).
Third, satisfaction with the export venture can be used as a unified benchmark
for the measurement of export performance. Under this exploration variable,
perceptual and attitudinal measures of performance are addressed. The foundation for
this concept lies in evidence that a positive attitude toward exporting, satisfaction with
the export venture operations is a strong indication for successful exporting (Zou et.
al., 1998). Direct indicators for this dimension of Export Performance are perceived
export success and satisfaction with the export venture. Indirect indicators for this
behavioral variable are propensity to export, attitude to exporting and attitude towards
overcoming barriers to exporting. To illustrate: Higher management involvement is
associated with more export success, as it is believed to lead to higher export sales.
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The EMAP-Model
With this approach, this paper follows the Model of the Role of Export
Promotion, developed by Singer and Czinkota (1994). According to their model,
increasing, accelerating, or even substituting for management export knowledge and
experience, export assistance is thought to stimulate positive perceptions of, and
attitudes toward exporting (Singer and Czinkota, 1994). Here, the authors show that
management commitment is of crucial importance to the effectiveness of export
assistance, leading to higher export sales (Singer and Czinkota, 1994).
3.5.3 Summary
Concluding from the discussion above, this study will apply the EXPERF-Scale. The
three dimensions of export performance, identified by Zou et al. (1998) will be used
in the EMAP-Model. The application of the EXPERF-Model can lead to an
advancement of the knowledge of exporting in at least three ways. First, because the
EXPERF-Scale integrates previous approaches to measuring export performance, it
can facilitate the comparison of both past research and future work. Second, the
relative importance of the different determinants of export performance can be
explored more specifically with the EXPERF-Scale, due to the clearly defined and
measurable factors that it comprehends.
Third, the EXPERF-Scale facilitates comparison of research studies,
conducted in different countries (Zou, 1998). Table 3 lists the dimensions of the
EXPERF-Scale with the indicators that belong to each category.
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The EMAP-Model
Financial factors
Strategic Outcome of Exporting
Satisfaction with the Export
Venture
Export sales
Market share
Perceived Export success
Export sales growth
Strategic presence in the foreign
Satisfaction with the Export
market
Process
Competitive position
Propensity to export
Export profits
Export intensity
Attitude to exporting
Attitude towards overcoming
barriers to exporting
Table 3.
Export Performance Measurement;
Dimensions and Indicators
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The EMAP-Model
4 CONCEPTUAL FRAMEWORK AND HYPOTHESES
4.1 Introduction
From the theory review in the preceding chapters, we can derive that a
relationship between Governmental EMA and Export Performance can be expected. It
can also be concluded that a clear relationship between governmental EMA and
Export Marketing decisions does exist, both on strategic and tactical firm level. In
turn, both strategic and tactical marketing decisions can enhance export performance
of companies. For support of the EMAP-Model, hypotheses for further research will
be formulated. This section will evaluate the relationships and outcomes of EMA. For
this purpose, the expected effects of the key concepts will be discussed.
4.2 EMA and Export Marketing
Proposition 1: “More Governmental information provision improves strategic and
tactical marketing decisions of exporters.”
Management control and market commitment are important factors for
strategic export marketing because they directly affect market entry decisions. EMA
stimulates market commitment by means of giving exporters better insights into
market conditions as more information about a market will lead to a higher level of
identification of the exporter with the export market and thus to a higher market
commitment. In the light of market entry considerations, EMA through information
provision also gives marketing managers more market knowledge. In other words, it
can be expected that the use of more Governmental Export Information leads to more
management control of exporters as well. Regarding market segmentation, it can be
expected that exporters can make better strategic export marketing decisions through a
more intensive use of governmental export information. Gains in this respect are to be
expected for both country screening and market research, as these activities become
more effective when more information is available. From these observations, the
following hypotheses can be formulated:
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The EMAP-Model
H1a
Using more Governmental Export Information leads to more
Management Control
H1b
Using more Governmental Export Information leads to more Market
Commitment
H1c
Using more Governmental Export Information leads to better Country
Screening
H1d
Using more Governmental Export Information leads to Better Market
Research
On the tactical export marketing level, EMA through Governmental Export
Information provision can be expected to have a positive influence on adaptation of
the marketing mix. When Exporters have more information about internal and
external market variables, it is to be expected that it is easier to adapt the marketing
mix variables to the export market conditions.
H1e
Using more Governmental Export Information leads to more Product
Adaptation
H1f
Using more Governmental Export Information leads to more Price
Adaptation
H1g
Using more Governmental Export Information leads to more
Promotion Adaptation
H1h
Using more Governmental Export Information leads to more Place
Adaptation
For the second EMA variable, financial support, a positive effect on Export
Marketing success can be expected. Generally speaking we can arrive at the following
proposition.
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The EMAP-Model
Proposition 2: “More Governmental EMA through Financial Support improves
Strategic and Tactical marketing decisions of exporters”
Export managers can enhance their export strategies with more financial
resources. From an EMA perspective, it seems plausible that financial support for
market visits gives export managers a better insight in foreign business practice.
Furthermore can governmental guarantees also be expected to lead to better strategic
export marketing. Financial governmental guarantees are a form of risk protection for
the exporter and less risk leads to more market commitment and more management
control. Country screening and market research can also be positively influenced by
financial governmental support. It allows export managers to put more financial
resources and time in these activities. We hypothesize:
H2a
More Governmental EMA through Financial Support leads to more
Management Control
H2b
More Governmental EMA through Financial Support leads to more
Market Commitment
H2c
More Governmental EMA through Financial Support leads to better
Country Screening
H2d
More Governmental EMA through Financial Support leads to better
Market Research
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The EMAP-Model
The expected effect that financial governmental EMA has on tactical export
marketing decisions is also positive. Financial support for market visits give the
exporter an incentive for more personal involvement in the execution of the export
marketing plan, leading to more marketing mix adaptation. Furthermore do
governmental guarantees reduce the risk of investing in activities for marketing mix
adaptation in the foreign market.
H2e
More Governmental EMA through Financial Support leads to more
Product Adaptation
H2f
More Governmental EMA through Financial Support leads to more
Price Adaptation
H2g
More Governmental EMA through Financial Support leads to more
Promotion Adaptation
H2h
More Governmental EMA through Financial Support leads to more
Place Adaptation
Proposition 3: “More Governmental Management Support improves strategic and
tactical marketing decisions of exporters”
Stemming from the literature review, assisting exporters in the establishment
of a foreign sales office is an example of governmental management support. A
foreign sales office provides exporters with a physical representation in the export
market. In this way, it gives them a possibility to gain a better insight in the
complexity of the export markets. In other words, a foreign sales office makes
exporters more responsive to the external export environment, which positively
affects both strategic and tactical marketing activities. It can be assumed that
exporters gain a better competitive position in this way.
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The EMAP-Model
Export managers gain more management control and market commitment
through this support. Marketing control will improve through the direct
communication and power relationship between the company and its sales office.
Resource commitment is evidently also higher in case of a sales office in a foreign
market, compared to, for example, using a commission agent. Country screening and
market research are also expected to become more effective, as foreign sales offices
bring exporters a physical workspace in the foreign market for the execution of their
market segmentation strategies through market research and country screening. In the
light of these arguments, we arrive at the following hypotheses:
H3a
More Governmental EMA through Management Support leads to more
Management Control
H3b
More Governmental EMA through Management Support leads to more
Market Commitment
H3c
More Governmental EMA through Management Support leads to better
Country Screening
H3d
More Governmental EMA through Management Support leads to better
Market Research
Presence in a foreign market can play an important role in the adaptation
process of the marketing mix of an exporter as well. The exporter has a more direct
connection to the foreign market through the sales office and is thus more aware of
overseas market conditions. This awareness will enhance marketing mix adaptation in
the marketing process of the exporter. In this way, governmental support in the
establishment of the foreign sales office is directly enhancing the adaptation of the
marketing mix to the export market. We hypothesize:
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The EMAP-Model
H3e
More Governmental EMA through Management Support leads to more
Product Adaptation
H3f
More Governmental EMA through Management Support leads to more
Price Adaptation
H3g
More Governmental EMA through Management Support leads to more
Promotion Adaptation
H3h
More Governmental EMA through Management Support leads to more
Place Adaptation
4.3 Export Marketing and Export Performance
The outcome of the EMAP-Model comprehends Export Performance,
measured by the EXPERF-Scale. The scale consists of three factors that are Financial
factors, Strategic Outcome of exporting and Satisfaction with the export venture.
Strategic marketing variables can be expected to influence these variables.
First of all, Management Control, as a second strategic marketing factor, can
also lead to a higher export performance. Each type of market entry strategy brings
different means of control over foreign operations to the exporter. According to the
EXPERF-Scale, performance can be measured through export sales and export sales
growth. From a transaction cost perspective, it can be argued that more control leads
to more sales, sales growth and thus to a higher export performance. This assumption
can be made as more control through a particular market entry strategy is supposed to
reduce opportunistic behavior of foreign channel members. In order to prove this we
hypothesize:
H4
More Management Control leads to a higher Export Performance
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The EMAP-Model
Market commitment can have an influence export performance. The more
committed a firm is to the market, the more likely it will be that the firm’s foreign
partner will cooperate in the achievement of the firms strategic goals. Thus, through
high commitment, export performance is expected to improve. It can mainly be
expected that satisfaction with the Export venture, as a measure on the EXPERFScale, can be improved. From this, we draw the following hypothesis:
H5
More Market Commitment leads to a higher Export Performance
In case a firm is able to segment its international markets effectively, it can
perform better. As the literature study pointed out, market segmentation is enhanced
by means of country screening and market research. From this observation, we draw
the following hypotheses:
H6
Better Country Screening leads to a higher Export Performance
H7
Better Market Research leads to a higher Export Performance
Adaptation of the marketing mix can also be expected to lead to higher export
performance. Adaptation in the marketing mix leads to a higher product acceptation
since the export product accounts for cultural differences in preferences, values,
attitudes and beliefs of the target market. Adaptation of the marketing mix is
important for exporters because they are mainly small and medium sized companies.
From this condition, selling products and services in the export market requires a
good understanding of cultural differences. Arguably, this understanding is more
important then scale advantages in export marketing. From these advantages of
marketing mix adaptation, we draw the following hypotheses:
H8
More Product Adaptation leads to a higher Export Performance
H9
More Price Adaptation leads to a higher Export Performance
H10
More Promotion Adaptation leads to a higher Export Performance
H11
More Place Adaptation leads to a higher Export Performance
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The EMAP-Model
4.4 EMA and Export performance
Regardless of marketing variables in the export process, a direct effect of
EMA on export performance can be expected as well. Due to the nature of the
governmental services that are provided, support should have a positive effect on
performance in any particular way.
H12
More Governmental EMA through Management Support leads to a
higher Export Performance
H13
More Governmental EMA through Financial Support leads to a higher
Export Performance
H14
Using more Governmental Export Information leads to a higher Export
Performance
Summarizing, Figure 3 represents the operational model that can be derived from the
discussion above.
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The EMAP-Model
Government level
Firm Level
Outcome Level
H1a(+)
H2a(+)
H3a(+)
H1b(+)
H2b(+)
Management
Control
Market
Commitment
H4(+)
H5(+)
H3b(+)
H1c(+)
H2c(+)
H3c(+)
Information
Provision
H1d(+)
H2d(+)
H3d(+)
Country
Screening
Market
Research
H6(+)
H7(+)
Export
Performance
H1e(+)
Financial
Support
H2e(+)
H3e(+)
Product
Adaptation
H8(+)
H1f(+)
H2f(+)
H3f(+)
H1g(+)
H2g(+)
Management
Support
H3g(+)
H1h(+)
H2h(+)
H3h(+)
Price
Adaptation
H9(+)
Promotion
Adaptation
H10(+)
Place
Adaptation
H11(+)
H12(+)
H13(+)
H14(+)
Figure 3.
The EMAP-Model; Conceptual Model
- 47 -
The EMAP-Model
4.5 Qualifiers, Success Factors and Obsoletes in EMA
By means of the EMAP-Model above, Research Question 1 is answered and a
theoretical clipboard for this study is developed. This section will end this chapter
with formulating a set of hypotheses to derive an answer to the Research Problem as
stated in Chapter one.
The research must be conducted in such a way that it allows for a clear
distinction between two groups of high and low performing exporters. This is possible
with the EXPERF Scale. After we have gained this insight, the analysis of the
responses should proceed in such a way that it becomes clear which elements of EMA
were used by each sub-group (hence: high and low performing exporters). Factor
analysis can be used to refine the data. By doing so, qualifiers, success factors and
obsoletes in governmental EMA can be distinguished. As already stated before, a
qualifier for governmental export promotion is an aspect of governmental export
promotion that is used by both high and low performing exporters. A success factor is
an aspect of governmental export promotion that is specifically used by high
performing exporters, whereas the low performers do not use it. Obsoletes in
governmental export promotion are the aspects that are actually offered by
governments, but which are only used by low performing exporters. A schematic
overview of this is given in Table 4 below.
High Performing
Low Performing
Exporters
Exporters
Qualifiers
+
+
Success-factors
+
-
Obsoletes
-
+
+ = Governmental EMA Service Element used by Exporters
- = Governmental EMA Service Element not used by Exporters
Table 4. Qualification Model of Governmental Export Information (Repeated)
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The EMAP-Model
In accordance with this classification model, the following hypotheses will be
due to analysis. For convenience, this set of hypotheses is listed with roman numbers
to make a distinction with the hypotheses that were formulated for the theoretical
framework above.
EMA and Export Marketing
H I.
EMA services are equally important for exporters with high Management
Control and exporters with low Management Control
H II.
EMA services are equally important for exporters with high Market
Commitment and exporters with low Market Commitment.
H III. EMA services are equally important for exporters with a high degree of
Product Adaptation and exporters with a low degree of Product Adaptation
H IV. EMA services are equally important for exporters with a high degree of Price
Adaptation and exporters with a low degree of Price Adaptation
H V.
EMA services are equally important for exporters with a high degree of
Promotion Adaptation and exporters with a low degree of Promotion
Adaptation
H VI. EMA services are equally important for exporters with a high degree of Place
Adaptation and exporters with a low degree of Place Adaptation
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The EMAP-Model
Export Marketing and Export Performance
H VII. Management Control is equally important for high performing exporters and
Low performing exporters
H VIII. Market Commitment is equally important for high performing exporters and
Low performing exporters
H IX. Product Adaptation is equally important for high performing exporters and
low performing exporters
H X.
Price Adaptation is equally important for high performing exporters and low
performing exporters
H XI. Promotion Adaptation is equally important for high performing exporters and
low performing exporters
H XII. Place Adaptation is equally important for high performing exporters and low
performing exporters
EMA and Export Performance
H XIII. Governmental EMA is equally important for Exporters with a high
Export Performance and Exporters with a low Export Performance
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The EMAP-Model
5 METHODOLOGY
5.1 Introduction
So far, this research paper was of explorative nature in order to build a
theoretical foundation for this study. Emerging from the discussion, it can be
concluded that the research field Governmental Export Promotion is lacking a
structured and quantitative approach to the matter. As the literature study revealed a
conceptual model (EMAP-Model) with a rich theoretical foundation, we will now
proceed with a quantitative research to test its applicability. This section will act as a
basis for a more conclusive research to test the conceptual model with a quantitative
study. First a deeper insight into the setting of the research and its respondents will be
presented. Then, the practical preparations that had to be made in order to conduct the
research will be addressed. Third, the EMAP-Model will be explained by means of its
constructs and measures.
5.2 Research design
Testing the EMAP-Model has to be done in three steps. The first emphasis of
testing the model should be on the effects that EMA has on Export Marketing. The
analysis as described above, can be verified by means of strategic and tactical export
marketing variables in the EMAP-Model. Obviously there should be a positive
relationship between the EMA services (governmental level) and the marketing
variables (firm level). Second, the effects of Export Marketing on Export Performance
should be investigated. This is done to verify the importance of each marketing
variable in the export process. The relationships between the variables in the light of
market entry strategies can become clearer by means of the effects of market
commitment and management control on export performance. Besides this, testing the
effects of Marketing Mix adaptation can act as a confirmatory basis to test the EMAPModel. Third, the direct relationships between EMA and Export Performance has to
be investigated.
Testing the EMAP-Model in this way can be done with a study of cross
sectional design, which means that the investigation involves ”a sample of elements
selected from the population of interest which are measured at a single point in time
(Churchill, 1996).”
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The EMAP-Model
5.3 Data collection method
The data were collected through a self-administered online questionnaire
carried out via a website of Maastricht University. The two reasons for using an
online questionnaire were costs and reach. Due to a very limited budget it is
impossible to use any other survey method other than an online one. Further, a much
larger population can be reached and the data processing is facilitated as it is already
in an electronic format. According to Churchill (1996), data collection via a structured
questionnaire where the questions are asked in a prearranged order ensures the highest
possible comparability between the individual research results (Churchill, 1996).
5.4 Sample Selection
The database that was used consisted of Brazilian exporting companies from
all industries. A research amongst Brazilian exporters is applicable as the export
activity of the country is rapidly increasing, with a growing and strong support by
governmental and semi-governmental institutions. The promotion of Brazilian
exporters has a strong focus in economic policy of the country. In January 2003, the
Ministry of Development, Industry and Trade (MDIC) announced that the government
aimed to increase exports by ten percent that year, create 400,000 new export related
jobs, and strengthen official institutional support in terms of trade finance and export
promotion. Export success would be key to realizing the government’s announced
social and economic objectives, and also serve as a positive signal to international
markets in terms of Brazil’s commitment to growth, attracting foreign direct
investment and avoiding a default on its debt (Doctor, 2003). To illustrate the strong
focus on export promotion in Brazil: “50% of all export companies in Brazil account
for less than 0,5% of all exports (Brazil4export.com).”
The industries that were chosen for this research were the Brazilian Clothing
and Shoe industry and the Brazilian machinery industry, as these sectors prove to
have a high export potential in the country (www.ahkbrasil.com; www.evd.nl). The
contact data were provided by the Departamento de Operações de Comércio Exterior
(Foreign Trade Operations Department) (DECEX), a branch of the Secretaria de
Comércio Exterior (Secretary of Foreign Trade) (SECEX) of the Brazilian Ministry of
Development, Industry and Foreign Trade (MDIC) (www.brazil4export.com).
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The EMAP-Model
5.5 Sampling Procedure
In order to obtain reliable data, it was decided to send out electronic
questionnaires to 468 Brazilian exporters. The database of which these addresses were
extracted contained more than this amount of potential respondents, but due to a focus
on the Brazilian export industries that engage most in export promotion programs of
he Brazilian government, this sample was formed. Furthermore the extraction of the
contact data from the database was very time consuming, leading to this sample size.
The questionnaire was developed in English and later translated into
Portuguese as Brazilian managers might have problems with an English version of the
text. The text was translated after positive feedback from Maastricht University. The
translation was done by an experienced Brazilian translator. After that, it was verified
by a Brazilian manager from the German Brazilian Chamber of Commerce and Trade
for its specific technical interpretation for exporters.
When the translation was finished, the questionnaire was put online on the
server of Maastricht University. Respondents received an email with an introduction
letter, including a link to the online questionnaire. In order to attain a higher response
rate, the logos of the German Brazilian Chamber of Commerce and Trade and
Maastricht University were added at the bottom of the introduction letter in the email
and on the end of the questionnaire. By this means the research was expected to
communicate its credibility to the respondents as the two institutions are established
in the research field and have a good name. After the questionnaire was sent once, a
reminder was sent twice, after one and two weeks respectively.
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The EMAP-Model
5.6 Constructs and measures
The respondents were asked to give their opinion to 29 statements on 5-point
Likert scales, varying from “strongly disagree” (1) to “Strongly agree” (5), concerning
EMA, foreign Market Entry, Marketing Mix Adaptation and Export Performance (129). In order to gain a better understanding of the internal reliability of the research, a
reliability analysis was conducted. Reliability analysis is used to evaluate a multi item
scale for its reliability. It determines the extent to which the items in the questionnaire
are related to each other and identifies problem items that should be excluded from
the scale. It provides an overall index of the repeatability or internal consistency of the
scale as a whole. The overall index, referred to as Cronbach Alfa, varies from 0 to 1,
and a value of 0.6 or less generally indicates unsatisfactory internal consistency
reliability (Malhotra and Briks, 1999) (appendix III).
5.6.1 EMA Variables
The applicability of EMA was assessed on the basis of three main fields. The
categories of EMA that were due to research were information provision (questions 15), financial support (questions 6-8) and management support (questions 9-10) and
were derived from a study of Diamantopoulos (1993). Reliability analysis proved that
the constructs of Information Provision and Financial Support were reliable, showing
a Cronbach Alpha of .8799 and .6507 respectively. Also the construct of Management
Support proved to be reliable with an alpha of .6282. The constructs could be
improved by leaving question 3 out for Information Provision (resulting in an alpha of
.8800) and question 8 for Financial Support (resulting in alpha .7047) (appendix III).
5.6.2 Strategic Export Marketing Variables
Next, the degree of strategic considerations in the export marketing process of
the Brazilian exporters had the main focus. In order to determine directions of
strategies for market entry, the questionnaire contained three questions measuring the
degree of management control and three questions for market commitment.
Management control was measured on a three item, 5-point, Likert scale,
originally developed by Bateson and Hui (1992) (questions 11-13). As a Likert scale
was used, it was easy to word questions in the other direction. It prevented the
respondents from simply checking the same alternative for each question when filling
out the questionnaire. For this reason question 12 was worded negatively, in contrast
to the other questions that ended positively.
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The EMAP-Model
Hence, the scores were recoded accordingly, the lowest value was transformed
into the highest value and vise versa. Regarding the validity of the scale it has to be
stressed that the original scale was used. This scale did not posses a high proved
validity (Bateson and Hui, 1992). This condition is reflected in the low Cronbach
alpha of only .3128 (appendix III).
Subsequently, three questions measuring the (behavioral) market commitment
of the exporters were included in the questionnaire. These data were acquired by
asking the level of agreement to statements in accordance with Skarmeas (2002)
(questions 14-16). Although the original measure contains a four item, 5 point Likert
Scale, this research only applied a three item scale. This adaptation was made to limit
the questions in the questionnaire so that a minimum of the respondent’s time was
required in answering the questions, ensuring a higher response rate. Leaving the item
out did not reveal any problems, as the alpha in the reliability analysis of the scale is
as high as .8665 (appendix III).
For convenience of the study, the effects of strategic marketing considerations
of exporters are explored by means of Market Entry Strategy decisions. Hence,
although the concept of International Market Segmentation is an important part of the
EMAP-Model, it was not subject to this quantitative research. Including the construct
would have resulted in a questionnaire that would be too long and time consuming to
answer for the respondents.
5.6.3 Tactical Export Marketing Variables
The degree of adaptation of the marketing mix in the foreign market was
chosen as a construct to reflect tactical export marketing decisions. The four P’s in the
marketing mix of a firm were explored with seven statements in the questionnaire.
Questions 17 till 19 concerned product adaptation. Adaptation of sales promotion and
advertising strategies was explored in questions 20 and 21. For adaptation of the
distribution function, only one question was added (question 22). The last concept of
the marketing mix adaptation theory, pricing, was tested with one question as well
(question 23). These measures were derived from a research conducted by Zou
(2002). Reliability analysis of these scales resulted in a good internal validity of both
Product Adaptation and Promotion adaptation, showing an alpha of .9338 and .8568
respectively (appendix III). The reliability analysis for Price Adaptation and Place
adaptation was not relevant since these concepts were assessed with only one
question.
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The EMAP-Model
5.6.4 Export Performance Variables
The performance of exporters was measured by using the export performance
scale (EXPERF Scale), developed by Zou (1998). The EXPERF Scale measures
export performance on three dimensions which are financial performance, strategic
performance and satisfaction with the export venture. Six statements were included in
the questionnaire, measuring export performance according to this nine item, five
point Likert-type scale. Financial export performance was explored in question 24 and
25. Question 26 and 27 were added to account for insights in strategic export
performance and satisfaction with the export venture was covered by question 28 and
29. Evidently, not all the items were applied in the questionnaire, minimizing the
number of questions to ensure a higher response rate from managers. Reliability
analysis showed that the concepts were separately reliable with an Cronbach Alpha of
.8506, .8080 and .8989 respectively.
5.6.5 Classification Variables
To gain a deeper insight into the nature of the exporters, two questions (30
and 31) of the research were concerned with general data of the respondents. These
classification variables explored the relative amount of exports in the turnover of the
companies and the number of employees. By means of these questions it is possible to
scale the size of the company and to get a clearer insight in the importance of exports
in the business process of the companies, hence, the importance of EMA. The last
answering
possibility
gave
the
respondents
room
to
enter
recommendations or critiques to the questionnaire and the questions.
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comments,
The EMAP-Model
6 DATA ANALYSIS
6.1 Introduction
In the previous chapter, the methodology for the research of the EMAP-Model
was explained. This chapter will proceed with the analysis of the data that were
gathered. As the research revealed a response rate of only 5.1%, a full empirical
analysis of the data to test and support the EMAP-Model has become troublesome. In
this chapter we will however give a representation of our data analysis that will add to
the classification model and thus the second (roman numbered) set of hypotheses.
Analyzing the data will be done in order to find an answer to the Research Problem.
An assessment of possible explanations for the low response rate can be found in
appendix IV in the back of this paper. This chapter proceeds with an analysis of the
outcomes and results of both empirical and qualitative data.
6.2 Summary: EMA and its Implications
EMA and its influence on the Export Marketing and Export Performance was
assessed by an elaboration on the provision and the use of Export Promotion in Brazil.
So far, this paper derived a theoretical framework, as summarized in the EMAPModel. This was done by means of finding answers to research question 1. For
convenience, the first research question, as stated in chapter one, is repeated below:
Research question 1: “How do governmental export promotion programs relate to
information needs of exporters?”
The theoretical framework answers this research question with an extensive
theoretical backup. This basis forms a good point of reference in finding conclusive
answers and solutions to the research problem. In order to do this some further
research questions will be formulated. First however, the research problem as stated in
chapter one will be repeated.
What are Qualifiers, Success Factors and Obsoletes in Governmental Export
Marketing Assistance?
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The EMAP-Model
6.3 EMA in Brazil
In order to find a concluding answer to the research question, this section will
proceed with the analysis of the data. Before we do this however, the background of
the study will be represented. By doing so, this section gives further insights in the
setting of the research. After this is done, the data from our research will be analyzed
and discussed in order to derive at concluding answers to the research problem above.
6.3.1 Information Provision in Brazil
Brazilian Exporters can make use of several sources of export information.
The specific variables of information provision that were used in the EMAP-Model
are trade fairs, publications, market visits, identification of import duties and contact
information provision. All these modes of information provision are available for
Brazilian exporters. Both governmental and semi-governmental institutions provide
exporters with informational services. Specially standardized export information is
widely available in both written and online publications. Also the identification of
import duties and the provision of contact information are commonly available as
standardized export information. Regarding more customized information provision,
governmental and semi-governmental organizations work together with industrial
associations. This is done to improve the coordination for specific information of the
customized export promotion effort. To illustrate: Chambers of commerce and trade
organize trade fairs that are often initiated by the Brazilian government. Chambers of
Commerce bear the responsibility for these projects but they work together with
sector associations for a better coordination and customization.
6.3.2 Financial Support in Brazil
In the light of the variables for financial export support, the EMAP-Model lists
loans, guarantees and financial support for project participation. Several tax and
financial incentives are available to Brazilian exporters, although the extent of these
incentives has recently been reduced (Investment guide Brazil, 2001). Financial
export support in Brazil is given in the form of tax concessions, export guarantee
insurances and export finance. Export tax incentives are given in the form of
exemption of taxation on sales. Also exports are stimulated by exempting imports of
parts and appliances from import taxes. This is done to stimulate national production
and exports.
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The EMAP-Model
The Export guarantee insurance on the other hand, is a good example of export
guarantees as mentioned in the EMAP-Model. The Reinsurance institute of Brazil
provides export guarantee insurance covering up to 90% of losses arising from
political risk and extraordinary factors and up to 85% of losses emerging from
commercial risk (Investment Guide Brazil, 2001).
For export financing, banks provide financing for exporters against forward
sales contracts and by discounting drafts accepted by foreign importers. This
financing has also been made available for indirect exporters of manufacturing
companies, which export through trading companies. Subsidized rate financing is also
available for exporters registered with the National Development Bank (BNDES) and
the Department of International Trade (SECEX). The Brazilian Central Bank allows
banks to relend funds obtained abroad to Brazilian Exporters. Exporters may use these
funds for buying raw materials (Investment Guide Brazil, 2001).
Regarding the EMA by means of project participation, the Brazilian
government stimulates participating in trade fairs and market visits. Exporters can
apply for subsidies at the Department of International Trade (SECEX), to participate
in these activities that are important for export involvement (Investment Guide Brazil,
2001; Seringhaus, 1986).
6.3.3 Management Support in Brazil
Management Support deserves special attention as governmental and semigovernmental institutions become involved with business issues. Hence, the role of
the government becomes more fluid in this respect. Due to the fact that privatization
and a more pragmatic business involvement of the government is a relative new
phenomenon, EMA by means of Management Support is a relative new means of
export promotion.
Specially in Brazil, this type of EMA can be regarded as controversial. The
country used to have a closed economy till the 1980’s. The gap between government
and society was very distinct. Research points out that companies do not appreciate
governmental interference in operational business activities (Crick and Czinkota,
1995). Hence, this condition should especially hold in a country like Brazil.
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The EMAP-Model
Brazilian exporters do have the possibility, however, to gain from
governmental management support in the foreign market. This is done by means of
cooperation between the public sector and semi-governmental bodies, like chambers
of commerce and trade. A recent development in this respect is the opening of foreign
subsidiaries of bilateral chambers of commerce and trade in the foreign market. To
illustrate: The German Brazilian Chamber of Commerce and Trade in São Paulo
opened a subsidiary in Frankfurt to help Brazilian exporters in establishing market
presence in Germany.
6.4 Sample Population
To find further insights into the effectiveness of EMA programs, it is
important to gain a better understanding of the population of Brazilian exporters. By
means of such an evaluation, we can derive further conclusions about the relations
between EMA needs of exporters. For this, the results of our empirical research will
be used. In order to gain a better understanding of the nature of the respondents’
companies, the questionnaire contained two classification variables. First of all, the
number of employees was used to act as an indicator for the size of the exporting
company. Second, the percentage of export sales was asked, giving an indication on
the importance of exports to the company’s revenues, hence, the importance of EMA.
6.4.1 Employees
The distribution of the number of employees in the respondents’ companies is
represented in table 5 below.
Employees
Frequency
0-100
101-250
12
2
251-500
501-1000
2
4
>1000
5
Total
25
Table 5.
Company Size: Employees
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The EMAP-Model
Evidently, the greatest response was received from small companies in terms
of employees as 48% of the respondents employed less than 100 people. After that,
the results reveal that the biggest exporters replied 20% of the cases, coming from
companies that employ more than 1000 workers. Sixteen percent (16%) of all
respondents employed between 500 and 1000 workers and 2% of the responses came
from both the 101-250 and 251-500 employees’ categories. Figure 4 gives a graphical
representation of these data.
60
50
40
30
Percent
20
10
0
0-100
101-250
251-500
Employees
Figure 4.
Company Size: Employees
- 61 -
501-1000
>1000
The EMAP-Model
6.4.2 Export Percentage
As the need for EMA was expected to be strongly related to relative export
sales, the export percentage was assessed in the questionnaire. From table 6 below, we
derive the following observations.
Export
Percentage
0% - 9%
Frequency
9
10% - 24%
7
25% - 49%
2
50% - 74%
3
>75%
4
Total
25
Table 6.
Company Size: Export Percentage
Most responses (36%) came from companies that had a relative low
percentage of export sales, ranging from zero to nine percent. Whereas 28% of the
respondents had an export percentage between 10% and 24%. As both these groups
account for 64% of the respondents, it can be concluded that the respondents were
mainly characterized by companies that did not engage in significant export activity
yet. The three categories of export percentages between 25 and 49%, 50 to 74% and
>75% accounted for the remaining 36% of the responses, as graphically shown in
figure 5 below.
- 62 -
The EMAP-Model
10
8
6
4
Count
2
0
0% - 9%
10% - 24%
25% - 49%
50% - 74%
>75%
Export Percentage
Figure 5.
Company Size: Export Percentage
6.5 Data Analysis
As stressed above, the response rate that our research revealed was too low to
allow for an appropriate testing of the EMAP-Model itself. Focusing on the EMA
classification model and the Research Problem however, we will now proceed with an
analysis of the data that were gathered in our research amongst Brazilian Exporters to
test hypotheses I through XIII. Analyzing the outcomes makes some interesting
findings apparent. To assess the EMA effects on Export Marketing and Export
Performance, this section will analyze the research outcomes using Independent Ttests. This procedure allows us to make a separation in high performing and low
performing exporters in such a way that we can compare the use of the constructs of
the EMAP-Model. This distinction will also be made in the use of strategic and
tactical marketing tools by the Brazilian exporters in order to draw conclusions on the
degree of EMA effectiveness.
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The EMAP-Model
6.5.1 Parameters
The split value that divides the high and low scores is set higher than the mean
value of 3 on the 5 point Likert scales. Hence, the split-value that is used to divide the
high and low values of the constructs was set at 3.50. The reason for this is that this
distinction made the analysis more reliable in the respect of its outcomes. Here we
argue that in order to be labeled a high-performing exporter, a firm should score
higher than average. The same holds for the measure for good use of the Export
Marketing constructs of Management Control, Market Commitment and the
Marketing Mix variables in this study. Here, the Independent Samples T-test assesses
the null hypothesis that there is no difference between the use of a particular construct
for both high and low performing exporters on these constructs.
6.5.2 The Effect of EMA on Export marketing
Information Provision and Marketing
Starting out with hypothesis I., analysis points out that there is a difference in
the use of Information Provision between exporters with high Management Control
and low Management Control. On the base of a p-value of only 3.6%, the data clearly
reveal a higher use of Information services for exporters with high Management
Control. The influence of Information Provision on Market Commitment shows no
significant difference between exporters with high Market Commitment and their
counterparts with a p-value of 19.6%. In the light of the tactical marketing variables,
EMA through Information Provision is important. For all the categories, the
companies with a high degree of Marketing Mix adaptation attached significantly
more value to governmental export information than exporters with low Marketing
Mix adaptation (Appendix III).
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The EMAP-Model
Financial Support and Marketing
The effects that EMA through Financial Support has on Export Marketing do
not show an overwhelming difference between the two groups with the highest and
lowest scores in the sample. According to the analysis of the answers of the
respondents, the only significant difference that can be found is between the two
groups of exporters that apply adaptation of the Marketing Mix through promotion.
Here, the exporters that perceive adaptation of their promotional efforts in the foreign
market as very important have a higher need for Financial EMA (See Appendix III).
Management Support and Marketing
The analysis of the data revealed no significant difference between the use of
the EMA services for Management Support by high and low achieving exporters. On
all the marketing variables, both Strategic and Tactical, Management Support was
equally important to the exporters. An important observation is, however, that for the
Strategic marketing variables Management Control and Market Commitment, the low
performers gave a higher score to the Management Support variables than the high
performers. Also the low performers in respect of promotion and place adaptation
attached a higher value to EMA through Management Support. These differences
were not significant however (See Appendix III).
6.5.3 The Effect of Export Marketing on Export Performance
In order to gain a better insight into the relations between Export Marketing
and Export Performance measures, the study assessed Export Performance on two
levels. First the relations between the Export Marketing variables were assessed on
the basis of the joint concept of Export Performance by taking the mean of the
outcomes of the joint Export Performance categories used in this study. After that the
effects of Export Marketing on the individual Export Performance categories were
explored.
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The EMAP-Model
Strategic Export Marketing and Export Performance
Looking at the joint concept of Export Performance by taking the mean value
for the outcomes of all three categories, the analysis shows that only Strategic Export
Marketing considerations differentiate the high performing exporters from the low
performing ones. The data clearly indicate that high performing exporters have more
Management Control over and Commitment to their foreign markets than their low
performing counterparts on a 10% level of significance (See Appendix III).
When looking at the individual categories of Export Performance, some
further observations of interest become apparent. First of all, the Financial Export
Performance of the respondents was equally influenced by all the Export Marketing
variables. No significant differences between financial high and low performers were
detected in this category. On the front of Strategic Outcomes, the second pillar of
Export Performance, high-performing exporters clearly showed more Market
Commitment on Strategic level.
Tactical Export Marketing and Export Performance
Regarding tactical Export Marketing variables, the Marketing Mix categories
of Promotion and Channel Adaptation scored higher for the high performing exporters
in the light of the Strategic Outcome of Export operations (See Appendix III). The
third aspect of Export Performance showed only a difference in the degree of
Management Control. High performing exporters on this category indicated a stronger
importance for Management Control than the low performers. This indicates that
more management Control leads to a higher satisfaction with the export venture (See
Appendix III).
6.5.4 The Effects of EMA on Export Performance
The analysis of the data revealed that there is a difference in the use of EMA
through Information Provision between high and low performing exporters on
aggregate level. Firms with a high overall Export Performance made significantly
more extensive use of Information EMA services than low performers. The other two
EMA constructs did not show a significant difference for the exporters. An interesting
observation, however insignificant, is that the low performers attached a higher value
to Financial EMA services than the high performers (See Appendix III).
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The EMAP-Model
On the level of the individual Export Performance constructs, no real
differences were detected in the preference for EMA services between high and low
performing exporters in the sense of Financial Export Performance. Again however,
the observation of a higher preference of Financial EMA for financially low
performing exporters is apparent (See Appendix III). Regarding the Strategic
Outcome of export operations, Financial EMA has a clear preference of high
performing exporters. Hence, exporters with a strong strategic outlook make more
effective use of EMA through Financial Support. This also holds for high performing
exporters in the light of Satisfaction with the export venture, the third category of
Export Performance measurement. Furthermore the preference of Financial EMA
services is here significantly higher for low performing exporters on the light of
Satisfaction with the export venture (See Appendix III).
6.6 Discussion of the Results
The previous paragraphs provide a good insight into the research findings.
This section will give a deeper elaboration on these outcomes by integrating the
findings with our theory review. This discussion will be concluded with an attempt to
answer the research question about Qualifiers, Success Factors and Obsoletes in
Governmental EMA services.
6.6.1 EMA and Export marketing
Management Control
From the observations above, some interesting findings become apparent. First
of all, Hypothesis I can only be rejected by means of Information Provision. This
makes intuitive sense as information is of crucial importance for the degree of Control
in management. It was to be expected that exporters with high Management Control
rated the Information variable of EMA highest. For the EMA measures Financial
Support and Management Support, there is no indication that exporters with high
Management Control have other needs and preferences than exporters with low
Management Control. It is not surprising that Management Support has the lowest
rating however, as the service can be perceived negatively by exporters.
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The EMAP-Model
This holds, as exporters can be reluctant for interference in their business
process by the EMA provider, as was already observed by Crick and Czinkota (1995).
The consensus about Financial EMA can be seen as an indication that Management
Control is a factor influenced by many factors other than financial loans and
guarantees. Specially the condition that the sample population consisted of mainly
small exporters makes Management Control a factor that has no top priority yet. This
is in line with the theory of market entry strategies, as described by Root (1987).
Market Commitment
The research showed no significant difference in preference for one of the
EMA variables in the light of high and low Market Commitment. This observation
makes us accept Hypothesis II. Again, a possible reason for this observation is that the
sample population consisted of a limited number of small exporters in terms of both
relative export sales and number of employees. Although insignificant, the
observation of a higher mean for Management Support from low Commitment
exporters might be explained by an uncooperative attitude. Free riding on
governmental management incentives might be perceived as a means to make short
term profit from a particular service, which would not be unthinkable considering
Brazilian (business) culture.
Product Adaptation
Both exporters that applied high and low Product Adaptation had no
significant different perceptions towards EMA through Financial Support and
Management Support. Regarding Information Provision, Hypothesis III can be
rejected though. Brazilian Exporters that apply a high degree of Product Adaptation
rated the use of Information services significantly higher than exporters with low
Product Adaptation. This can be explained by the necessity of information as a
resource for an appropriate adaptation strategy. These strategies require a firm to be
able to respond to local conditions in a foreign market, as described by Cavusgil
(1994).
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The EMAP-Model
Price Adaptation
Just like the Product Adaptation do Exporters with a high degree of Price
Adaptation give Information Provision a significantly higher rating than low price
adapting exporters. Again, the condition that the Exporter has to be able to respond to
foreign market changes makes Export Information of crucial importance. For the
other two factors of EMA financial Support and Management Support, Hypothesis IV
has to be accepted.
Promotion Adaptation
Hypothesis V can be rejected for both Information Provision and Financial
Support. Assessing these outcomes brings us at the same conclusions in the light of
Information provision as in the previous Marketing Mix adaptation variables:
exporters with a high degree of Promotion Adaptation have to be able to respond to
foreign market conditions. Export Information is crucial in this respect. Regarding
Financial EMA services, exporters with high Promotion Adaptation attach a
significant higher value to the Financial EMA services than low Promotion
Adaptation Exporters. This observation can be explained by the fact that the
competitive pressures in the export market determine the need of Promotion
Adaptation (Cavusgil, 1994). As of this condition, Financial EMA services are more
important for high Product Adaptation exporters as they serve as a means of risk
protection (Czinkota, 1998). Management Support is rated equally again by the
Brazilian respondents for both high and low Promotion Adaptation exporters.
Apparently is this form of EMA not properly established as it could be of great help
for the practical execution of an Export Marketing Strategy in a foreign market.
Distribution Adaptation
On the basis of the data analysis, we can only reject Hypothesis VI for
Information Provision for the same reasons that are listed in the previous Marketing
Mix Adaptation variables above. It is surprising however to see that Financial Support
as well as Management Support do not receive higher scores from the side of high
Place Adaptation Exporters. The Adaptation of a distribution channel is often founded
with the objective of initiating and sustaining mutually beneficial relationships with
foreign partners in the supply chain. As these objectives require sales force training,
technical support and marketing know how, a clear preference for both Financial and
Management Support EMA was to be expected (Cavusgil, 1994).
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The EMAP-Model
6.6.2 Export Marketing and Export Performance
Aggregate Export performance
When assessing the concepts of Export Performance jointly, the analysis
pointed out that only Strategic Export Marketing variables were significantly different
between high and low performing exporters. This observation was to be expected as
theory and practice shows that Market Commitment and Management Control have a
positive effect on performance (Skarmeas, 2002). These observations can make us
reject hypotheses VII and VIII, implying that exporters with high Management
Control and Market Commitment perform better than exporters with low Control and
Commitment over and to their export markets. From a Transaction Cost Perspective
this can be explained as Managment Control and Market Commitment enhance the
responsiveness of exporters to opportunistic behavior and uncertainty (Kotabe, 1998).
For Tactical Export Marketing practice this link is not so apparent, although
Marketing Mix considerations are an important aspect for the performance of a firm.
This is in favor of Hypotheses IX through XII.
Financial Export Performance
When assessing the Export Performance variables separately, the Financial
Export Performance dimension shows no significant differences in one of the six
Export Marketing variables. Both high and low performers on the Financial EXPERF
dimension have the same degree of Market Commitment, Management Control and
Marketing Mix adaptation. This outcome was not to be expected, as Financial Export
Performance is the most concrete and measurable dimension of the construct,
compared to Strategic Export Performance and Satisfaction with the export venture.
There is a chance however that the respondents in the research were moderate in their
statements, as they might want to keep their financial record confidential.
Strategic Export Performance
In contrast to the Financial Export Performance data, the Strategic dimension
of Export Performance shows a significant difference between high and low
performing exporters. First of all do exporters with a high Market Commitment score
significantly higher on Strategic Export Performance than low Commitment
exporters.
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The EMAP-Model
As this research applied the Behavioral Commitment dimension in the
questionnaire, the degree to which an exporter provided special help to its overseas
business partner was assessed (Skarmeas et al, 2002). As marketing strategy is clearly
a long term process that requires a mutual effort of the involved parties, it is plausible
to assume that Exporters with high Market Commitment perform better in the light of
their strategic goals. Regarding the Tactical marketing variables, Promotion and Place
adaptation showed significant differences between the high and the low performing
exporters. These two Marketing Mix dimensions add to the strategic performance of a
firm, as they are important aspects in carrying out the Export Marketing Strategy of a
firm. Firms that apply a lot of Promotion Adaptation gain a higher Strategic Export
Performance through their involvement with the foreign market requirements and,
especially, their foreign customers. The same holds for firms that have a high degree
of adaptation of their distribution channels. The only difference is that high Place
adapters achieve higher Strategic Performance through their engagement and
involvement with their foreign suppliers (Cavusgil, 1994).
Satisfaction with the Export Venture
As the analysis pointed out, the only significant difference in the sample of
Brazilian Exporters on the front of Satisfaction with the Export Venture could be
found in the Management Control dimension. Firms with high Management Control
are more satisfied with the Export Venture compared to firms that have low
Management Control. This condition can be explained by means of Transaction Cost
Theory. As exporters operate in a highly competitive international business
environment, transaction specific assets like know-how, proprietary technology and
brand equity become valuable. As of this condition, a higher degree of Management
Control is required for the company to protect itself from opportunistic behaviors and
uncertainty (Kotabe, 1998). This can explain the outcome that high control exporters
are more satisfied with the export venture than their low control counterparts.
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The EMAP-Model
6.6.3 EMA and Export Performance
Aggregate Export Performance
When looking at the direct relationship between EMA and Export
Performance in the research, Information Provision deserves attention when looking
at the performance outcomes on the aggregate level. The analysis shows that exporters
with a high overall Export Performance rate Information Services of EMA higher than
exporters with a low overall Export Performance. This can be explained by the bare
fact that the Information is of crucial importance in the export process. Firms that
engage in trade fairs, market visits and the like are expected to gain more from the
export process than exporters that do not. Experience in trade fair participation can for
example significantly add to the potential success in the achievement of the business
objectives of a firm, even for low performing exporters (Seringhaus, 2001).
Financial Export Performance
When looking at the financial dimension of Export Performance, we see that
the data analysis does not reveal any significant differences between high and low
performing exporters. Again it has to be stressed that this is a doubtful observation
which might be caused by reluctance of the respondents to share financial
information. As was already mentioned, the observation that the low performing
exporters on this dimension attached a higher value to financial EMA was remarkable.
Although the outcome was not significant, it might show that financially low
performing exporters have a higher need for financial support than exporters that
already score high on this dimension.
Strategic Export Performance
The Strategic Export Performance dimension showed a significant difference
in the preference for Financial EMA services between high and low performers.
Apparently do high performing exporters value the Financial EMA services higher
than the low performers. An explanation for this observation can be found in the
nature of the Financial EMA measures that provide risk protection for exporters. The
Financial EMA services stimulate exporters to engage in international commercial
transactions. This gives them the possibility to make competitive offers and to
leverage accounts receivable (Czinkota, 1998).
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The EMAP-Model
By means of these conditions, using Financial EMA services can lead to a
competitive advantage and, thus, a higher Strategic Export Performance can be
achieved.
Satisfaction with the Export Venture
Finally, the Satisfaction with the Export Venture shows an interesting outcome
in the respect of Financial EMA services. Here, low performing exporters ( exporters
that are not so satisfied with their export venture) attached a higher value to Financial
EMA services than their high performing counterparts. This indicates that the
unsatisfied exporters expect that financial support brings them more satisfaction in
their export business. This observation can be explained by the line of reasoning that
argues that Financial EMA services can provide the firm with risk protection. This
will lead to more successful exporting and to a situation wherein the expectations of
the exporters are met, leading to more satisfaction with the export venture.
6.7 Limitations and Future Research
The research was conducted within the span of possibilities available at that
time. Due to limited time and financial resources, the full EMAP-Model and its
hypotheses could not be empirically tested. The difficulty of testing the EMAP-Model
is that it is difficult to collect data from exporters. Very often, exporting companies
are not willing to share information about performance figures and their export
operations. This condition can lead to a low response rate in empirical investigations,
as was the case in this study. Appendix IV gives a deeper elaboration on possible
factors influencing the low response rate of this research. As of these circumstances,
single variables within the constructs of the EMAP-Model are not accounted for.
Future research should attempt to account for these inconsistencies. Only if a
significantly big sample size can be realized, more precise results can be acquired. By
doing so, testing the full EMAP-Model and its classification model can be explored
and tested for all the measures separately. A second point of consideration is that the
Internationalization process of companies should be accounted for. The degree of
EMA effectiveness depends on how far a company is in its internationalization
process and the importance of it for the individual firm. Although the relation between
Market Commitment and Management Control is used, future research should provide
a further insight in the factors of the EMAP-Model in combination with the
internationalization process of the firm.
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The EMAP-Model
Third, the current study does not account for a comparison of research results
between countries. By conducting the same research in more countries, a better
insight can be acquired in the effectiveness of EMA on Export Performance.
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The EMAP-Model
7 CONCLUSION
7.1 Qualifiers, Success Factors and Obsoletes of EMA Programs
From the data analysis and the discussion of the findings above, we will now
try to come to conclusive answers to the research problem. This will be done by
means of the EMA classification model that was developed together with the EMAPModel in the previous chapters.
Financial Support
First of all, EMA through Financial Support can be labeled as a Qualifier.
Both high and low performing exporters indicated that they regarded Financial EMA
services as being important. High performing exporters did this in respect to their
Strategic Export Performance dimension on the EXPERF Scale. Low performing
exporters gave Financial EMA services a higher rating on the Satisfaction with the
Export Venture dimension, compared to their high performing counterparts. As
financial funds do always add to the responsiveness of a firm, this outcome was to be
expected.
As the theory review already pointed out, both high and low performing firms
welcome financial resources to strengthen their competitive position.
Information Provision
Second, Information Provision can be regarded as a Success Factor of EMA
programs in Brazil. This can be derived from the fact that most high performing
exporters indicated that they use EMA Information services to achieve their business
goals. Also do Information Provision services score high on the ratings of exporters
with a high Market Commitment and high Management Control, as well as exporters
that apply a high degree of adaptation in their international Marketing Mix. As the
data analysis revealed that no low performing exporters on all these dimensions rated
Information Provision services as being more important, this EMA variable is a clear
Success Factor. This observation can be supported by the literature study. High
performing exporters make successful use of Information services of EMA programs
and keep on doing this in the future. Low performing exporters often just start to
acknowledge the importance of the EMA Information services on the other hand.
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The EMAP-Model
In the case of Brazil this is an important observation. Many exporters do not
realize that there is a lot of information available for their export operations. This
condition confirms the need for the strong emphasis that the Brazilian government
puts on Export Promotion. As of these outcomes, Information Provision as a Success
Factor deserves a strong focus for EMA programs in Brazil.
Management Support
The Third EMA dimension, Management Support did not show any
differences in perceived effectiveness in both the high and low performing exporters
groups. According to the classification model that we use, this EMA variable should
be classified as being an Obsolete in EMA service provision. This observation is
however not significantly founded by the study as many other factors play a role. To
illustrate: Management Support is a relative new EMA category. Specially the
Brazilian population of exporters is not familiar with the phenomenon yet. Also the
immature status of most Brazilian export industries makes Management Support as an
EMA variable of lower importance. It is not to be underestimated that the factor has
great potential to become a Success Factor in the future however.
In order for this to happen, Brazilian exporters have to develop into global
players with a competitive advantage and professional export management.
Obviously, this is strongly related to the position of the Brazilian Export Industries in
international markets. It can be argued that management Support is most effective for
stimulating Tactical Export Marketing activities as it affects the practical execution of
the strategies that an exporter pursues. If this condition holds, it can be explained why
Brazilian exporters do not rate Management Support as being important in the current
study.
Brazilian
Export
Industries
are
only in
the
beginning
of
their
internationalization process. The main reason for this is that the majority of the
Brazilian exporters lack the international experience that is needed to be successful in
the global market place. Current EMA programs in Brazil should thus point their main
focus on stimulating export strategy issues in order to build a foundation for future
success in Tactical Export Marketing. By doing so, a good foundation for successful
EMA through Management Support can be created in Brazil.
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The EMAP-Model
7.2 Conclusion
This research paper explored the theoretical relationships between
governmental Export Marketing Assistance (EMA), Export Marketing and Export
Performance. This was done in order to find an answer to the research problem with
the goal to identify Qualifiers, Success Factors and Obsoletes in Governmental Export
Promotion.
After an elaborate theory review, an operational and a classification model
were derived, named the EMAP-Model. The model explored the above mentioned
relationships on three levels: Government Level, Firm Level and on the Outcome
Level. On government level, the study revealed that EMA programs can be classified
according to three main categories which are Information Provision, Financial
Support and Management Support. These EMA factors have both a direct and an
indirect influence on Export Performance. The indirect link was made through
Strategic and Tactical Export Marketing variables.
In order to test the EMAP-Model, hypotheses for empirical investigation were
derived. By doing so, this study proposes a framework for empirical analysis. Next, a
quantitative research amongst Brazilian exporters was conducted, leading to an
approximation of the real effects of the EMAP-Model. Through quantitative research
in combination with secondary data available, this research paper derived insights that
can function as a basis for future research.
As the analysis pointed out, the EMAP-Model has applicability in respect of
both the direct and the indirect links between EMA measures and Export
Performance. For the sample under investigation, Financial EMA could be indicated
as being a qualifier for successful Export Promotion since both high performing and
low performing exporters made significant use of Financial EMA services. EMA
through Information Provision could be labeled as being a Success Factor since high
performing exporters made significantly more use of information services. EMA by
means of Management Support turned out to be an obsolete factor according to the
quantitative study. It has to be regarded as a potential future Success Factor however,
as the Brazilian export environment is still under construction.
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The EMAP-Model
LITERATURE LIST AND OTHER REFERENCES
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Czincota, M. (1996) Why national export promotion?, International Trade Forum,3
(2)
Czinkota, M., & Ricks, D. (1981). Export Assistance: Are we supporting the Right
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The EMAP-Model
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The EMAP-Model
Other References
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http://www.apexbrasil.com.br/documentos/RELPRO_SITE.xls

www.apexbrasil.com.br

N.A., Government Sponsored Trade Missions: Low Risk, Low Cost Venue for
Growing International Sales, Ioma´s Report on Managing Exports, October
2003

German Brazilian Chamber of Commerce and Trade, (2003)., Investment
Guide Brazil, AHK São Paulo, Brazil,

Doctor, M., Workshop Report, Towards a new export promotion agenda in
Brazil Centre for Brazilian Studies, 14 March 2003

www.abicalcados.com.br

www.brazil4export.com

www.evd.nl

www.fortschritt-consulting.com
- 81 -
The EMAP-Model
APPENDIX I – QUESTIONNAIRES
English version
Improving Services for Export Promotion
As a Master student in International Business (International Marketing) at Maastricht
University in the Netherlands, I am currently conducting a study on Export Assistance
in cooperation with the German Brazilian Chamber of Commerce (AHK-São Paulo)
and APEX. The aim of this study is to improve governmental services for export
promotion.
Therefore, I highly appreciate your contribution and interest in this
research. Filling in this questionnaire does not take more than 5 minutes. In case you
do not consider yourself as well-enough informed to fill in these questions, we would
like to ask you to forward it to a colleague of yours who is.
The data which result from this survey will be reported in my Master thesis. Never
will I report on scores of individual respondents nor will I link scores to company
names. The anonymity and confidentiality of this survey is guaranteed. For more
information you can contact Dr. Piet Pauwels, the supervisor of this project at
p.pauwels@mw.unimaas.nl.
In case you are interested in the results of this study, you are free to fill in your
coordinates at the end of the questionnaire and I will send you an executive summary
of the main findings per E-mail by the beginning of May 2004.
Again, I highly appreciate your input and precious time. For further information,
please contact me via wo.rattink@student.unimaas.nl.
Kind regards,
Wolter O. Rattink
Click here to go to the questionnaire
- 82 -
The EMAP-Model
Please indicate on a scale from 1 (strongly disagree) to 5
(strongly agree) your level of agreement with each of the
statements presented below:
Please note: 1 = strongly disagree, 2 = disagree,
3 = neutral 4 = agree 5 = strongly agree
1
2
3
4
5
6
7
8
9
10
11.
12.
13.
14.
15.
16.
1
2
3
4
5
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For my company, it is important to adjust our marketing
programs for our foreign partners, if necessary
□
□
□
□
□
For my company, it is important to respond quickly to a
foreign partner’s request for help
□
□
□
□
□
For my company, trade fairs are an important channel to
obtain export information
For my company, market visits are an important channel to
obtain export information
For my company, publications like export handbooks and
market guides are important instruments to obtain export
information
For my company, it is important to obtain export information
by the identification of import duties
For my company, foreign contacts and local representatives
are important to obtain export information
For my company, governmental loans are an important
financial stimulus for exporting
For my company, governmental financial export guarantees
are an important method to reduce financial risks
For my company, participating in trade missions is only
possible with financial support of the government
My company extensively relies on third parties for
international marketing research
My company extensively relies on third parties for the
establishment of foreign sales offices
For my company, it is important to have full control over our
export activities
For my company, it is difficult to manage our export activities
in the way we want it
For my company, it is easy to influence our export
performance
For my company, it is important to commit much time to our
foreign business partners
- 83 -
The EMAP-Model
Please answer the following questions in respect to your
company’s main export product to your main export
market
Please note: 1 = strongly disagree, 2 = disagree,
3 = neutral 4 = agree 5 = strongly agree
17.
24.
For my company, it is important to adapt our products
to the needs of our foreign customers
For my company, it is important to adapt product
components to local requirements
For my company, it is important to adapt the product
design to local market requirements
For my company, it is important to adapt our
advertising strategy to local market requirements
For my company, it is important to adapt techniques for
sales promotion to local market requirements
For my company, it is important to adapt our
distribution strategy to local requirements and market
conditions
For my company, it is important to adapt our prices to
local market conditions
Our export activity is very profitable
25.
Our export activity generates a high volume of sales
26.
Our export activity improves our global competitiveness
27.
Our export activity strengthens our strategic position
28.
Our export activity is very successful
29.
The export activity meets our expectations
30.
What is the number of employees in your company?
18.
19.
20.
21.
22.
23
31.
32.
What is the contribution of exports to your total
sales?
1
2
3
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5
> 1001
0
100
101
250
251
500
501
1000
□
□
□
□
0-10%
10-25%
25-50 %
50-75 %
>75 %
□
□
□
□
□
In case you have further comments, recommendations or critiques
concerning these questions, please specify below:
- 84 -
4
□
The EMAP-Model
Brazilian version
Melhorando serviços para melhor promoção de exportaçoes
Como estudante de mestrado em Negócios Internacionais (Marketing Internacional)
na universidade de Maastricht na Holanda, estou atualmente conduzindo um estudo
sobre Auxílio de Exportaçoes em cooperação com a Câmara de Comércio e Industria
Brasil-Alemanha (AHK-São Paulo) e da APEX. O alvo deste estudo é melhorar
serviços para a promoção de exportação. Conseqüentemente aprecio calorosamente
sua contribuição e interesse nesta pesquisa.
O preenchimento integral deste questionario nao tomara mais do que cinco minutos de
seu tempo. Caso você não se considere suficientemente informado para responder a
estas perguntas, gostaríamos de lhe pedir que o envie entao a um colega que o seja.
Os dados resultantes deste exame serão relatados em minha tese de mestrado. Nunca
sera revelado o resultado individual dos constituidores da pesquisa, como tambem em
tempo algum serao os resultados da pesquisa ligados a alguma companhia em
particular. A anonimidade e confidencialidade nesta pesquisa são garantidas. Para
maiores informaçoes, favor contatar Dr. Piet Pauwels, supervisor do projeto atraves
do endereco p.pauwels@mw.unimaas.nl.
Caso haja interesse nos resultados deste estudo, sinta-se a vontade para enviar suas
coordenadas no final do questionário. Voce recebera um sumário executivo dos
principais resultados por o E-mail no inicio do mes de maio 2004.
Mais uma vez, aprecio sinceramente sua opiniao e seu precioso tempo. Para
informaçoes
adicionais
contate-me
wo.rattink@student.unimaas.nl.
Cordialmente,
Wolter O. Rattink
Clique aqui para ir para o questionário
- 85 -
através
do
endereço
The EMAP-Model
Por favor, indique em uma escala de 1 (discorda
fortemente) a 5 (concorda fortemente) sua opinião a
respeito de cada uma das indicações apresentadas
abaixo:
Nota:
1 = discorda fortemente, 2 = discorda, 3 =neutro
4 = concorda 5 = concorda fortemente
1
Para minha empresa, feiras são um importante meio de
obtenção de informações sobre exportação
2
Para minha empresa, visitas de mercado são um
importante meio de obtenção de informações sobre
exportação
3
Para minha empresa, publicações como manuais de
exportação e guias de mercado são instrumentos
importantes para obter informações de exportação
4
Para minha empresa, é importante obter informações de
exportação sobre impostos e normas da legislação
aduaneira
5
Para minha empresa, os contatos estrangeiros e
representantes locais são importantes para obter
informações de exportação
6
Para minha empresa, empréstimos governamentais são
um estímulo financeiro importante para exportar
7
Para
minha
empresa,
as
garantias
financeiras
governamentais de exportação são um método
importante para reduzir riscos financeiros
8
Para minha empresa, participar em missões comerciais é
somente possível com suporte financeiro do governo
9
10
11
12
13
14
15
16
1
2
3
4
5
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□
Minha empresa confia extensivamente em empresas
terceirizadas para pesquisas de marketing internacional
Minha empresa confia extensivamente em empresas
terceirizadas para o estabelecimento de escritórios de
vendas no exterior
Para minha empresa, é importante ter o controle total
sobre nossas atividades de exportação
Para minha empresa, é difícil controlar nossas atividades
de exportação da maneira que queremos
□
□
□
□
□
□
□
□
□
□
□
□
□
□
□
□
□
□
□
□
Para minha empresa, é fácil influenciar nosso
desempenho em exportação
Para minha empresa, é importante dedicar bastante
tempo a nossos parceiros de negócios estrangeiros
□
□
□
□
□
□
□
□
□
□
□
□
□
□
□
□
□
□
□
□
Para minha empresa, é importante ajustar os programas
de marketing para nossos parceiros de negócios
estrangeiros, se necessário
Para
minha
empresa,
é
importante
responder
rapidamente a um pedido de ajuda dos nossos parceiros
de negócios estrangeiros
- 86 -
The EMAP-Model
Favor responder as seguintes perguntas a respeito de
seu principal produto e principal mercado de exportação
Nota: 1 = discorda fortemente, 2 = discorda,
3 = neutro 4 = concorda 5 = concorda fortemente
1
2
3
4
5
Para minha empresa, é importante adaptar os produtos
às necessidades de nossos clientes estrangeiros
Para minha empresa, é importante adaptar componentes
do produto às exigências locais
Para minha empresa, é importante adaptar o projeto de
produto às exigências de mercado locais
Para minha empresa, é importante adaptar a estratégia
de propaganda às exigências de mercado locais
Para minha empresa, é importante adaptar técnicas de o
promoção de vendas às exigências de mercado locais
Para minha empresa, é importante adaptar nossa
estratégia da distribuição às exigências e às condições de
mercado locais
Para minha empresa, é importante adaptar nossos
preços às condições de mercado locais
Nossa atividade de exportação é muito rentável
□
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28
Nossa atividade de exportação gera um volume elevado
de vendas
Nossa
atividade
de
exportação
melhora
nossa
competitividade global
Nossa atividade de exportação fortalece nossa posição
estratégica
Nossa atividade de exportação é muito bem sucedida
□
□
□
□
□
29
A atividade de exportação atinge nossas expectativas
□
□
□
□
□
30
Quantos empregados há em sua empresa?
17
18
19
20
21
22
23
24
25
26
27
31
32
Qual é a contribuição das exportações em torno de
suas vendas totais?
0
100
101
250
251
500
501
1000
> 1000
□
□
□
□
□
25-50 %
50-75 %
>75 %
□
□
□
0-10%
□
10-25%
□
Caso possuir comentários, recomendações ou críticas adicionais a respeito destas perguntas,
especifique-as abaixo:
- 87 -
The EMAP-Model
APENDIX II - RELIABILITY ANALYSES
Reliability Information Provision
R E L I A B I L I T Y
A N A L Y S I S
-
S C A L E
A L P H A)
Item-total Statistics
INFO1
INFO2
INFO3
INFO4
INFO5
Scale
Mean
if Item
Deleted
Scale
Variance
if Item
Deleted
16.0000
15.4800
15.8000
15.4400
15.3600
10.2500
11.3433
15.0000
13.5900
13.5733
Corrected
ItemTotal
Correlation
Alpha
if Item
Deleted
.7803
.8395
.6061
.7349
.7020
.8499
.8216
.8800
.8526
.8582
Reliability Coefficients
N of Cases =
Alpha =
25.0
N of Items =
5
.8799
Reliability Financial Support
R E L I A B I L I T Y
A N A L Y S I S
-
S C A L E A L P H A)
Item-total Statistics
Scale
Mean
if Item
Deleted
Scale
Variance
if Item
Deleted
7.6000
7.9200
8.0800
2.8333
1.9933
2.7433
FINSUP1
FINSUP2
FINSUP3
Corrected
ItemTotal
Correlation
Alpha
if Item
Deleted
.3796
.6916
.3482
.6565
.2007
.7047
Reliability Coefficients
N of Cases =
Alpha =
25.0
N of Items =
.6507
- 88 -
3
The EMAP-Model
Reliability Management Support
R E L I A B I L I T Y
A N A L Y S I S
-
S C A L E (A L P H A)
Item-total Statistics
Scale
Mean
if Item
Deleted
Scale
Variance
if Item
Deleted
3.0400
3.0800
1.2900
1.2433
MANSUP1
MANSUP2
Corrected
ItemTotal
Correlation
Alpha
if Item
Deleted
.4580
.4580
.
.
Reliability Coefficients
N of Cases =
Alpha =
25.0
N of Items =
2
.6282
Reliability Management Control
R E L I A B I L I T Y
A N A L Y S I S
-
S C A L E
A L P H A)
Item-total Statistics
Scale
Mean
if Item
Deleted
Scale
Variance
if Item
Deleted
6.4400
7.4400
7.4800
2.8400
1.5900
2.8433
CONTROL1
CONTROL2
CONTROL3
Corrected
ItemTotal
Correlation
Alpha
if Item
Deleted
.1893
.3041
.0642
.2230
-.1258
.4431
Reliability Coefficients
N of Cases =
Alpha =
25.0
N of Items =
.3128
- 89 -
3
The EMAP-Model
Reliability Market Commitment
R E L I A B I L I T Y
A N A L Y S I S
-
S C A L E (A L P H A)
Item-total Statistics
Scale
Mean
if Item
Deleted
Scale
Variance
if Item
Deleted
8.5200
8.5600
8.1200
2.5933
2.3400
4.1933
COMMIT1
COMMIT2
COMMIT3
Corrected
ItemTotal
Correlation
Alpha
if Item
Deleted
.8219
.8540
.6716
.7404
.7151
.9110
Reliability Coefficients
N of Cases =
Alpha =
25.0
N of Items =
3
.8665
Reliability Product Adaptation
R E L I A B I L I T Y
A N A L Y S I S
-
S C A L E (A L P H A)
Item-total Statistics
Scale
Mean
if Item
Deleted
Scale
Variance
if Item
Deleted
8.5200
8.6800
8.5600
3.2600
3.5600
4.0067
PRODAD1
PRODAD2
PRODAD3
Corrected
ItemTotal
Correlation
Alpha
if Item
Deleted
.8866
.8745
.8447
.8896
.8951
.9235
Reliability Coefficients
N of Cases =
Alpha =
25.0
N of Items =
.9338
- 90 -
3
The EMAP-Model
Reliability Promotion Adaptation
R E L I A B I L I T Y
A N A L Y S I S
-
S C A L E (A L P H A)
Item-total Statistics
Scale
Mean
if Item
Deleted
Scale
Variance
if Item
Deleted
4.0000
4.1600
1.0000
.5567
PROMOAD1
PROMOAD2
Corrected
ItemTotal
Correlation
Alpha
if Item
Deleted
.7818
.7818
.
.
Reliability Coefficients
N of Cases =
Alpha =
25.0
N of Items =
2
.8568
Reliability Financial Export Performance
R E L I A B I L I T Y
A N A L Y S I S
-
S C A L E (A L P H A)
Item-total Statistics
Scale
Mean
if Item
Deleted
Scale
Variance
if Item
Deleted
3.2400
3.3600
1.0233
1.3233
FINPERF1
FINPERF2
Corrected
ItemTotal
Correlation
Alpha
if Item
Deleted
.7462
.7462
.
.
Reliability Coefficients
N of Cases =
Alpha =
25.0
N of Items =
.8506
- 91 -
2
The EMAP-Model
Reliability Strategic Export Performance
R E L I A B I L I T Y
A N A L Y S I S
-
S C A L E (A L P H A)
Item-total Statistics
Scale
Mean
if Item
Deleted
Scale
Variance
if Item
Deleted
4.0800
3.9200
1.3267
.6600
STRPERF1
STRPERF2
Corrected
ItemTotal
Correlation
Alpha
if Item
Deleted
.7196
.7196
.
.
Reliability Coefficients
N of Cases =
Alpha =
25.0
N of Items =
2
.8080
Reliability Satisfaction Export Performance
R E L I A B I L I T Y
A N A L Y S I S
-
S C A L E (A L P H A)
Item-total Statistics
Scale
Mean
if Item
Deleted
Scale
Variance
if Item
Deleted
3.2000
3.2400
1.5833
1.3567
SATPERF1
SATPERF2
Corrected
ItemTotal
Correlation
Alpha
if Item
Deleted
.8188
.8188
.
.
Reliability Coefficients
N of Cases =
Alpha =
25.0
N of Items =
.8989
- 92 -
2
The EMAP-Model
APPENDIX III – STATISTICAL TESTS
T-Test
Group Statistics
Information mean
Financial support mean
Management support
mean
Control mean
>= 3.50
< 3.50
>= 3.50
< 3.50
>= 3.50
< 3.50
N
13
12
13
12
13
12
Mean
4.2769
3.5000
4.0513
3.8056
3.0385
3.3333
Std.
Deviation
.34194
1.10371
.74344
.73110
.87706
.80716
Std. Error
Mean
.09484
.31861
.20619
.21105
.24325
.23301
Independent Samples Test
Levene's Test for
Equality of Variances
F
Information mean
Equal variances
assumed
Equal variances
not assumed
Financial support mean Equal variances
assumed
Equal variances
not assumed
Management support
Equal variances
mean
assumed
Equal variances
not assumed
55.671
.000
.023
Sig.
.000
1.000
.881
t-test for Equality of Means
t
df
Sig. (2-tailed)
Mean
Difference
Std. Error
Difference
95% Confidence
Interval of the
Difference
Lower
Upper
2.419
23
.024
.7769
.32116
.11256
1.44129
2.337
12.942
.036
.7769
.33243
.05843
1.49542
.832
23
.414
.2457
.29526
-.36507
.85652
.833
22.898
.414
.2457
.29506
-.36480
.85625
-.872
23
.392
-.2949
.33801
-.99410
.40436
-.875
23.000
.390
-.2949
.33684
-.99169
.40195
- 93 -
The EMAP-Model
T-Test
Group Statistics
Information mean
Financial support mean
Management support
mean
Commitment mean
>= 3.50
< 3.50
>= 3.50
< 3.50
>= 3.50
< 3.50
N
Mean
4.0778
3.4571
4.0556
3.6190
3.0833
3.4286
18
7
18
7
18
7
Std.
Deviation
.75814
1.06904
.76909
.55872
.95871
.34503
Std. Error
Mean
.17869
.40406
.18128
.21118
.22597
.13041
Independent Samples Test
Levene's Test for
Equality of Variances
F
Information mean
Equal variances
assumed
Equal variances
not assumed
Financial support mean Equal variances
assumed
Equal variances
not assumed
Management support
Equal variances
mean
assumed
Equal variances
not assumed
4.353
.803
3.751
Sig.
.048
.380
.065
t-test for Equality of Means
t
df
Sig. (2-tailed)
Mean
Difference
Std. Error
Difference
95% Confidence
Interval of the
Difference
Lower
Upper
1.639
23
.115
.6206
.37874
-.16285
1.40412
1.405
8.462
.196
.6206
.44181
-.38858
1.62985
1.361
23
.187
.4365
.32079
-.22709
1.10010
1.568
15.189
.137
.4365
.27831
-.15605
1.02907
-.920
23
.367
-.3452
.37544
-1.12189
.43141
-1.323
22.986
.199
-.3452
.26090
-.88497
.19449
- 94 -
The EMAP-Model
T-Test
Group Statistics
Information mean
Financial s upport mean
Management support
mean
Product Adaptation Mean
>= 3.50
< 3.50
>= 3.50
< 3.50
>= 3.50
< 3.50
N
22
3
22
3
22
3
Mean
4.0636
2.7333
4.0152
3.3333
3.1818
3.1667
Std.
Deviation
.76192
.92376
.72358
.57735
.88028
.57735
Std. Error
Mean
.16244
.53333
.15427
.33333
.18768
.33333
Independent Samples Test
Levene's Test for
Equality of Variances
F
Information mean
Equal variances
assumed
Equal variances
not assumed
Financial support mean Equal variances
assumed
Equal variances
not assumed
Management support
Equal variances
mean
assumed
Equal variances
not assumed
.333
.099
.379
Sig.
.569
.756
.544
t-test for Equality of Means
t
df
Sig. (2-tailed)
Mean
Difference
Std. Error
Difference
95% Confidence
Interval of the
Difference
Lower
Upper
2.781
23
.011
1.3303
.47841
.34063
2.31998
2.386
2.386
.119
1.3303
.55752
-.73224
3.39285
1.556
23
.133
.6818
.43824
-.22475
1.58839
1.856
2.936
.162
.6818
.36730
-.50172
1.86536
.029
23
.977
.0152
.52818
-1.07747
1.10778
.040
3.436
.971
.0152
.38254
-1.11934
1.14964
- 95 -
The EMAP-Model
T-Test
Group Statistics
Information mean
Financial support mean
Management support
mean
Promotion
Adaptation Mean
>= 3.50
< 3.50
>= 3.50
< 3.50
>= 3.50
< 3.50
N
Std.
Deviation
.56939
.95499
.69143
.62361
.78807
1.06066
Mean
4.2000
2.7200
4.0833
3.3333
3.1000
3.5000
20
5
20
5
20
5
Std. Error
Mean
.12732
.42708
.15461
.27889
.17622
.47434
Independent Samples Test
Levene's Test for
Equality of Variances
F
Information mean
Equal variances
assumed
Equal variances
not assumed
Financial support mean Equal variances
assumed
Equal variances
not assumed
Management support
Equal variances
mean
assumed
Equal variances
not assumed
1.683
.002
.010
Sig.
.207
.967
.920
t-test for Equality of Means
t
df
Sig. (2-tailed)
Mean
Difference
Std. Error
Difference
95% Confidence
Interval of the
Difference
Lower
Upper
4.533
23
.000
1.4800
.32651
.80456
2.15544
3.321
4.735
.023
1.4800
.44566
.31482
2.64518
2.205
23
.038
.7500
.34006
.04653
1.45347
2.352
6.703
.053
.7500
.31888
-.01084
1.51084
-.950
23
.352
-.4000
.42092
-1.27074
.47074
-.790
5.160
.464
-.4000
.50602
-1.68875
.88875
- 96 -
The EMAP-Model
T-Test
Group Statistics
Information mean
Financial support mean
Management support
mean
Place Adaptation Mean
>= 3.50
< 3.50
>= 3.50
< 3.50
>= 3.50
< 3.50
N
17
8
17
8
17
8
Mean
4.2471
3.1750
4.0000
3.7917
3.0882
3.3750
Std.
Deviation
.60634
.95879
.82496
.50198
.85212
.83452
Std. Error
Mean
.14706
.33898
.20008
.17748
.20667
.29505
Independent Samples Test
Levene's Test for
Equality of Variances
F
Information mean
Equal variances
assumed
Equal variances
not assumed
Financial support mean Equal variances
assumed
Equal variances
not assumed
Management support
Equal variances
mean
assumed
Equal variances
not assumed
8.200
2.388
.175
Sig.
.009
.136
.679
t-test for Equality of Means
t
df
Sig. (2-tailed)
Mean
Difference
Std. Error
Difference
95% Confidence
Interval of the
Difference
Lower
Upper
3.417
23
.002
1.0721
.31376
.42300
1.72112
2.901
9.732
.016
1.0721
.36951
.24566
1.89846
.655
23
.519
.2083
.31800
-.44950
.86617
.779
21.152
.445
.2083
.26745
-.34762
.76429
-.790
23
.438
-.2868
.36306
-1.03782
.46429
-.796
14.072
.439
-.2868
.36023
-1.05901
.48548
- 97 -
The EMAP-Model
T-Test
Group Statistics
Information mean
Financial support mean
Management support
mean
Price Adaptation Mean
>= 3.50
< 3.50
>= 3.50
< 3.50
>= 3.50
< 3.50
N
18
7
18
7
18
7
Mean
4.2333
3.0571
4.0556
3.6190
3.2500
3.0000
Std.
Deviation
.59111
.97101
.72536
.70523
.92752
.57735
Std. Error
Mean
.13933
.36701
.17097
.26655
.21862
.21822
Independent Samples Test
Levene's Test for
Equality of Variances
F
Information mean
Equal variances
assumed
Equal variances
not assumed
Financial support mean Equal variances
assumed
Equal variances
not assumed
Management support
Equal variances
mean
assumed
Equal variances
not assumed
7.276
.181
1.231
Sig.
.013
.675
.279
t-test for Equality of Means
t
df
Sig. (2-tailed)
Mean
Difference
Std. Error
Difference
95% Confidence
Interval of the
Difference
Lower
Upper
3.719
23
.001
1.1762
.31630
.52188
1.83050
2.996
7.797
.018
1.1762
.39256
.26682
2.08556
1.361
23
.187
.4365
.32079
-.22709
1.10010
1.378
11.279
.195
.4365
.31667
-.25839
1.13140
.660
23
.516
.2500
.37871
-.53341
1.03341
.809
17.770
.429
.2500
.30889
-.39956
.89956
- 98 -
The EMAP-Model
T-Test
Group Statistics
Control mean
Commitment mean
Product Adaptation Mean
Price Adaptation Mean
Promotion Adaptation
Mean
Place Adaptation Mean
PERFMEAN
>= 3.50
< 3.50
>= 3.50
< 3.50
>= 3.50
< 3.50
>= 3.50
< 3.50
>= 3.50
< 3.50
>= 3.50
< 3.50
N
Mean
3.7692
3.3333
4.4872
3.8889
4.5128
4.0556
4.0000
4.0000
4.3077
3.8333
4.3077
3.7500
13
12
13
12
13
12
13
12
13
12
13
12
Std.
Deviation
.64384
.65134
.66130
.93564
.64715
1.15324
.81650
1.12815
.75107
.86164
.85485
1.13818
Std. Error
Mean
.17857
.18803
.18341
.27010
.17949
.33291
.22646
.32567
.20831
.24873
.23709
.32856
Independent Samples Test
Levene's Test for
Equality of Variances
F
Control mean
Commitment mean
Product Adaptation Mean
Price Adaptation Mean
Promotion Adaptation
Mean
Place Adaptation Mean
Equal variances
assumed
Equal variances
not assumed
Equal variances
assumed
Equal variances
not assumed
Equal variances
assumed
Equal variances
not assumed
Equal variances
assumed
Equal variances
not assumed
Equal variances
assumed
Equal variances
not assumed
Equal variances
assumed
Equal variances
not assumed
.279
1.144
2.438
5.755
.029
1.362
Sig.
.602
.296
.132
.025
.867
.255
t-test for Equality of Means
t
df
Sig. (2-tailed)
Mean
Difference
Std. Error
Difference
95% Confidence
Interval of the
Difference
Lower
Upper
1.682
23
.096
.4359
.25918
-.10026
.97206
1.681
22.794
.096
.4359
.25931
-.10079
.97258
1.858
23
.076
.5983
.32196
-.06774
1.26433
1.833
19.653
.082
.5983
.32648
-.08351
1.28010
1.236
23
.229
.4573
.37007
-.30828
1.22281
1.209
17.007
.243
.4573
.37821
-.34067
1.25520
.000
23
1.000
.0000
.39152
-.80992
.80992
.000
19.937
1.000
.0000
.39666
-.82760
.82760
1.470
23
.155
.4744
.32260
-.19298
1.14170
1.462
21.945
.158
.4744
.32444
-.19859
1.14730
1.393
23
.177
.5577
.40049
-.27078
1.38616
1.376
20.374
.184
.5577
.40518
-.28650
1.40188
- 99 -
The EMAP-Model
T-Test
Group Statistics
Control mean
Commitment mean
Product Adaptation Mean
Price Adaptation Mean
Promotion Adaptation
Mean
Place Adaptation Mean
Financial
Performance Mean
>= 3.50
< 3.50
>= 3.50
< 3.50
>= 3.50
< 3.50
>= 3.50
< 3.50
>= 3.50
< 3.50
>= 3.50
< 3.50
N
12
13
12
13
12
13
12
13
12
13
12
13
Mean
3.6667
3.4615
4.3056
4.1026
4.1944
4.3846
4.0000
4.0000
4.0833
4.0769
4.0000
4.0769
Std.
Deviation
.61955
.72697
.71715
.96594
1.01959
.88030
.85280
1.08012
.79296
.88615
1.04447
1.03775
Std. Error
Mean
.17885
.20163
.20702
.26790
.29433
.24415
.24618
.29957
.22891
.24577
.30151
.28782
Independent Samples Test
Levene's Test for
Equality of Variances
F
Control mean
Commitment mean
Product Adaptation Mean
Price Adaptation Mean
Promotion Adaptation
Mean
Place Adaptation Mean
Equal variances
assumed
Equal variances
not assumed
Equal variances
assumed
Equal variances
not assumed
Equal variances
assumed
Equal variances
not assumed
Equal variances
assumed
Equal variances
not assumed
Equal variances
assumed
Equal variances
not assumed
Equal variances
assumed
Equal variances
not assumed
.080
.635
.155
3.242
.030
.007
Sig.
.780
.434
.698
.085
.865
.934
t-test for Equality of Means
t
df
Sig. (2-tailed)
Mean
Difference
Std. Error
Difference
95% Confidence
Interval of the
Difference
Lower
Upper
.756
23
.457
.2051
.27131
-.35611
.76637
.761
22.868
.454
.2051
.26952
-.35259
.76285
.592
23
.559
.2030
.34269
-.50591
.91189
.600
22.038
.555
.2030
.33857
-.49910
.90508
-.500
23
.622
-.1902
.38009
-.97645
.59611
-.497
21.859
.624
-.1902
.38241
-.98354
.60320
.000
23
1.000
.0000
.39152
-.80992
.80992
.000
22.491
1.000
.0000
.38775
-.80313
.80313
.019
23
.985
.0064
.33742
-.69159
.70441
.019
22.983
.985
.0064
.33586
-.68840
.70122
-.185
23
.855
-.0769
.41672
-.93897
.78513
-.185
22.815
.855
-.0769
.41683
-.93959
.78575
- 100 -
The EMAP-Model
T-Test
Group Statistics
Control mean
Commitment mean
Product Adaptation Mean
Price Adaptation Mean
Promotion Adaptation
Mean
Place Adaptation Mean
Strategic
Performance Mean
>= 3.50
< 3.50
>= 3.50
< 3.50
>= 3.50
< 3.50
>= 3.50
< 3.50
>= 3.50
< 3.50
>= 3.50
< 3.50
N
20
5
20
5
20
5
20
5
20
5
20
5
Mean
3.6333
3.2667
4.4000
3.4000
4.3667
4.0000
3.9500
4.2000
4.2500
3.4000
4.2500
3.2000
Std.
Deviation
.73270
.14907
.81363
.36515
.82292
1.37437
.94451
1.09545
.80296
.54772
.91047
1.09545
Std. Error
Mean
.16384
.06667
.18193
.16330
.18401
.61464
.21120
.48990
.17955
.24495
.20359
.48990
Independent Samples Test
Levene's Test for
Equality of Variances
F
Control mean
Commitment mean
Product Adaptation Mean
Price Adaptation Mean
Promotion Adaptation
Mean
Place Adaptation Mean
Equal variances
assumed
Equal variances
not assumed
Equal variances
assumed
Equal variances
not assumed
Equal variances
assumed
Equal variances
not assumed
Equal variances
assumed
Equal variances
not assumed
Equal variances
assumed
Equal variances
not assumed
Equal variances
assumed
Equal variances
not assumed
2.975
3.412
.935
.931
1.783
.720
Sig.
.098
.078
.344
.345
.195
.405
t-test for Equality of Means
t
df
Sig. (2-tailed)
Mean
Difference
Std. Error
Difference
95% Confidence
Interval of the
Difference
Lower
Upper
1.096
23
.284
.3667
.33442
-.32513
1.05846
2.073
22.839
.050
.3667
.17688
.00062
.73271
2.649
23
.014
1.0000
.37751
.21907
1.78093
4.090
15.172
.001
1.0000
.24447
.47944
1.52056
.778
23
.444
.3667
.47115
-.60798
1.34131
.571
4.741
.594
.3667
.64159
-1.31005
2.04338
-.514
23
.612
-.2500
.48622
-1.25583
.75583
-.469
5.584
.657
-.2500
.53348
-1.57930
1.07930
2.223
23
.036
.8500
.38236
.05904
1.64096
2.799
8.911
.021
.8500
.30371
.16193
1.53807
2.222
23
.036
1.0500
.47262
.07231
2.02769
1.979
5.467
.100
1.0500
.53052
-.27946
2.37946
- 101 -
The EMAP-Model
T-Test
Group Statistics
Control mean
Commitment mean
Product Adaptation Mean
Price Adaptation Mean
Promotion Adaptation
Mean
Place Adaptation Mean
Satisfaction
Performance Mean
>= 3.50
< 3.50
>= 3.50
< 3.50
>= 3.50
< 3.50
>= 3.50
< 3.50
>= 3.50
< 3.50
>= 3.50
< 3.50
N
13
12
13
12
13
12
13
12
13
12
13
12
Mean
3.8462
3.2500
4.3333
4.0556
4.4615
4.1111
3.8462
4.1667
4.1538
4.0000
4.2308
3.8333
Std.
Deviation
.50213
.71244
.75768
.94102
.63155
1.18350
.80064
1.11464
.80064
.87905
.83205
1.19342
Std. Error
Mean
.13927
.20566
.21014
.27165
.17516
.34165
.22206
.32177
.22206
.25376
.23077
.34451
Independent Samples Test
Levene's Test for
Equality of Variances
F
Control mean
Commitment mean
Product Adaptation Mean
Price Adaptation Mean
Promotion Adaptation
Mean
Place Adaptation Mean
Equal variances
assumed
Equal variances
not assumed
Equal variances
assumed
Equal variances
not assumed
Equal variances
assumed
Equal variances
not assumed
Equal variances
assumed
Equal variances
not assumed
Equal variances
assumed
Equal variances
not assumed
Equal variances
assumed
Equal variances
not assumed
.242
.136
3.612
4.262
.046
3.054
Sig.
.628
.716
.070
.050
.833
.094
t-test for Equality of Means
t
df
Sig. (2-tailed)
Mean
Difference
Std. Error
Difference
95% Confidence
Interval of the
Difference
Lower
Upper
2.434
23
.023
.5962
.24492
.08950
1.10280
2.400
19.619
.026
.5962
.24838
.07739
1.11491
.816
23
.423
.2778
.34040
-.42639
.98194
.809
21.159
.428
.2778
.34344
-.43612
.99168
.934
23
.360
.3504
.37510
-.42554
1.12639
.913
16.498
.375
.3504
.38393
-.46148
1.16234
-.831
23
.415
-.3205
.38577
-1.11855
.47752
-.820
19.846
.422
-.3205
.39095
-1.13643
.49541
.458
23
.651
.1538
.33589
-.54100
.84869
.456
22.307
.653
.1538
.33720
-.54491
.85260
.972
23
.341
.3974
.40871
-.44805
1.24292
.958
19.489
.350
.3974
.41466
-.46898
1.26385
- 102 -
The EMAP-Model
T-Test
Group Sta tisti cs
Information mean
Financ ial s upport mean
Management s upport
mean
PERFMEAN
>= 3.50
< 3.50
>= 3.50
< 3.50
>= 3.50
< 3.50
N
13
12
13
12
13
12
Mean
4.3231
3.4500
3.8718
4.0000
3.3077
3.0417
St d.
Deviation
.35155
1.05873
.70104
.79137
.96907
.68948
St d. Error
Mean
.09750
.30563
.19443
.22845
.26877
.19903
Independent Samples Test
Levene's Test for
Equality of Variances
F
Information mean
Equal variances
assumed
Equal variances
not assumed
Financial support mean Equal variances
assumed
Equal variances
not assumed
Management support
Equal variances
mean
assumed
Equal variances
not assumed
49.920
.005
1.689
Sig.
.000
.947
.207
t-test for Equality of Means
t
df
Sig. (2-tailed)
Mean
Difference
Std. Error
Difference
95% Confidence
Interval of the
Difference
Lower
Upper
2.814
23
.010
.8731
.31023
.23131
1.51484
2.722
13.227
.017
.8731
.32081
.18123
1.56493
-.430
23
.672
-.1282
.29848
-.74566
.48925
-.427
22.085
.673
-.1282
.29999
-.75020
.49379
.785
23
.441
.2660
.33905
-.43535
.96741
.795
21.663
.435
.2660
.33445
-.42820
.96025
- 103 -
The EMAP-Model
T-Test
Group Statistics
Information mean
Financial s upport mean
Management support
mean
Financial
Performance Mean
>= 3.50
< 3.50
>= 3.50
< 3.50
>= 3.50
< 3.50
N
Mean
4.1167
3.7077
3.8056
4.0513
3.4167
2.9615
12
13
12
13
12
13
Std.
Deviation
.70043
1.00537
.68841
.77991
.92524
.72058
Std. Error
Mean
.20220
.27884
.19873
.21631
.26709
.19985
Independent Samples Test
Levene's Test for
Equality of Variances
F
Information mean
Equal variances
assumed
Equal variances
not assumed
Financial support mean Equal variances
assumed
Equal variances
not assumed
Management support
Equal variances
mean
assumed
Equal variances
not assumed
4.657
.008
.559
Sig.
.042
.929
.462
t-test for Equality of Means
t
df
Sig. (2-tailed)
Mean
Difference
Std. Error
Difference
95% Confidence
Interval of the
Difference
Lower
Upper
1.170
23
.254
.4090
.34945
-.31392
1.13186
1.187
21.464
.248
.4090
.34443
-.30638
1.12432
-.832
23
.414
-.2457
.29526
-.85652
.36507
-.837
22.961
.411
-.2457
.29374
-.85343
.36197
1.378
23
.181
.4551
.33019
-.22792
1.13818
1.364
20.791
.187
.4551
.33359
-.23902
1.14928
- 104 -
The EMAP-Model
T-Test
Group Statistics
Information mean
Financial s upport mean
Management support
mean
Strategic
Performance Mean
>= 3.50
< 3.50
>= 3.50
< 3.50
>= 3.50
< 3.50
N
Mean
4.1100
3.0800
4.0833
3.3333
3.2250
3.0000
20
5
20
5
20
5
Std.
Deviation
.66956
1.20499
.69143
.62361
.89553
.61237
Std. Error
Mean
.14972
.53889
.15461
.27889
.20025
.27386
Independent Samples Test
Levene's Test for
Equality of Variances
F
Information mean
Equal variances
assumed
Equal variances
not assumed
Financial support mean Equal variances
assumed
Equal variances
not assumed
Management support
Equal variances
mean
assumed
Equal variances
not assumed
7.228
.002
1.019
Sig.
.013
.967
.323
t-test for Equality of Means
t
df
Sig. (2-tailed)
Mean
Difference
Std. Error
Difference
95% Confidence
Interval of the
Difference
Lower
Upper
2.610
23
.016
1.0300
.39461
.21369
1.84631
1.842
4.636
.129
1.0300
.55930
-.44240
2.50240
2.205
23
.038
.7500
.34006
.04653
1.45347
2.352
6.703
.053
.7500
.31888
-.01084
1.51084
.528
23
.603
.2250
.42653
-.65735
1.10735
.663
8.886
.524
.2250
.33926
-.54397
.99397
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The EMAP-Model
T-Test
Group Statistics
Information mean
Financial s upport mean
Management support
mean
Satisfaction
Performance Mean
>= 3.50
< 3.50
>= 3.50
< 3.50
>= 3.50
< 3.50
N
Mean
4.1231
3.6667
3.6923
4.1944
3.1923
3.1667
13
12
13
12
13
12
Std.
Deviation
.66100
1.04563
.68667
.71715
.83012
.88763
Std. Error
Mean
.18333
.30185
.19045
.20702
.23023
.25624
Independent Samples Test
Levene's Test for
Equality of Variances
F
Information mean
Equal variances
assumed
Equal variances
not assumed
Financial support mean Equal variances
assumed
Equal variances
not assumed
Management support
Equal variances
mean
assumed
Equal variances
not assumed
6.885
.036
.016
Sig.
.015
.852
.901
t-test for Equality of Means
t
df
Sig. (2-tailed)
Mean
Difference
Std. Error
Difference
95% Confidence
Interval of the
Difference
Lower
Upper
1.316
23
.201
.4564
.34689
-.26118
1.17400
1.292
18.326
.212
.4564
.35316
-.28460
1.19742
-1.788
23
.087
-.5021
.28079
-1.08299
.07872
-1.785
22.636
.088
-.5021
.28130
-1.08457
.08029
.075
23
.941
.0256
.34352
-.68498
.73626
.074
22.492
.941
.0256
.34448
-.68785
.73914
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The EMAP-Model
APPENDIX IV – RESEARCH EVALUATION
This research paper was written with the aim to test the EMAP-Model, the
conceptual framework that emerged from the theory review. Unfortunately, the
response rate of our empirical study did not allow a proper testing of the model, as
was initially intended. In this sub-chapter, possible reasons for this problem will be
discussed.
IIa. Research Approach
As previous studies in the field of Export Promotion already revealed, there is
a problem in acquiring empirical data in the field of export promotion. The reason for
this phenomenon is that export managers in companies might not have the time and
resources available to answer questionnaires. In order to overcome this hurdle, this
research was conducted with only 32 questions, allowing the respondent to spend a
minimum of time answering the questions. In order to reach this limited number of
questions, not all the constructs were completely derived for the research. Reliability
analysis shows however, that the constructs had a good internal validity (see appendix
II).
A second consideration that was made, was the choice of the sample. The
sample was chosen according to the criterion that it should contain industries that
make extensive use of export promotion programs. For this study, the Brazilian
clothing and shoe industry and producers of technical equipment were targeted due to
their
strong
focus
on
higher
export
margins
(www.abicalcados.com.br;
www.brazil4export.com).
Third, the research was conducted using a self administered online
questionnaire, allowing the respondents to just click their way through. By means of
these measures, the response rate was expected to be higher than in case of a regular
mailing, including the full measures to the constructs.
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The EMAP-Model
IIb Shortcomings
However Brazilian exporters seem to be excited about the EMA measures that
are offered, it has to be concluded that the response rate of the survey was very low
(5%). There are a number of reasons that might explain this low response rate. First of
all, it has to be acknowledged that Brazil has no significant export history. Exporting
is a new phenomenon amongst Brazilian companies.
As figure 6 shows, Brazil only has a low internationalization level. The figure
represents the relative export percentage of the GDP of several countries. Clearly,
Brazil does not score high on internationalization. Hence, this condition makes the
familiarity with the services of governmental and semi-governmental EMA initiatives
lower.
Figure 6.
Relative Export Participation to GNP (Billion US$)
Fortschritt Consulting 2003
Compared to e.g. The Netherlands, the internationalization of the Brazilian
economy is minimal. Obviously, several factors distinguishing both countries lead to
this condition. First of all, Brazil is not as developed as many western countries yet.
Still, there are some major hurdles in e.g. customs, bureaucracy, infrastructure and
politics to be overcome.
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The EMAP-Model
These data are confirmed by the Brazilian ministry of foreign trade, stating
that 50% of all export companies in Brazil account for less than 0,5% of all exports
(Brazil4export.com). As of these conditions, a lot of companies do not have an export
department or even an export manager. Whereas most developed countries have
already a significant export balance, Brazil is clearly lacking export experience.
This condition might have lead to a non-reply on the survey as many
respondents thought that they were not in the position to answer the questions. The
strong hierarchy in Brazilian companies might have lead to situations wherein
respondents felt to be not responsible for answering the questions.
IIc. Socio-Economic Conditions
Besides the lack of export experience, another reson for the low response rate
has to be sought in the fact that Brazil is a relative young economy in terms of
international trade. It was only in the second half of the 1990’s that Brazil opened its
borders to the world economy. Before that, the country was a self sufficient economy.
Although the Brazilian economy experienced an amazing growth in this
relatively short period, socio-economic conditions of the past are still embeded in the
minds of many exporters. This makes many exporting companies reluctant to share
information with third parties, specially when there is a link with a governmental
institution. Furthermore might the use of a structured empirical research amongst
Brazilians not be the best alternative to gain information. According to Hofstede
(1987) The Brazilian culture is characterized by a strong hierarchy and a large
powerdistance, making personal interaction and connections of crucial importance.
Taking these considerations into account, a research of a more qualitative nature could
have been more appropriate in the Brazilian business environment. The EMAP-Model
requires empirical testing however, so that future research should account for these
cultural and political factors on a multi country basis.
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The EMAP-Model
IId.Coordination
A third problem that was encountered in conducting the empirical research was the
coordination of the efforts. A big amount of time resources was needed to make
translations. This became a problem as adaptations in the research approach could not
be made due to time and money constraints. Specially the time needed to put the
Brazilian questionnaire on a Dutch website, did exceed the time period that was
accounted for it. Clearly, communication errors emerged form misinterpretation due
to the language barrier. A further drawback in the coordination was the distance
between the partners for the research. A more throughout effort should have been
made during contact with and physical presence in the country.
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