Byoungho Ellie Jin, Daeun Chloe Shin, Heesoon Yang, So Won Jeong and Jae-Eun Chung
Little is known about Indonesian consumers' acceptance of global brands despite their huge retail market potential. Drawing from Festinger’s (1957) cognitive dissonance theory and…
Abstract
Purpose
Little is known about Indonesian consumers' acceptance of global brands despite their huge retail market potential. Drawing from Festinger’s (1957) cognitive dissonance theory and Schwartz’s (1992) value system, this study aims to examine the effect of Indonesian consumers' religiosity, cosmopolitanism and ethnocentrism on their preference for and purchase intention towards global brands.
Design/methodology/approach
Data were collected from 316 female consumers aged 20 years or older living in Indonesia via a professional online survey firm. The firm sent prospective participants an email invitation with a survey URL. Confirmatory factor analysis and structural equation modelling were conducted using AMOS 24.0 to test hypotheses.
Findings
The analyses revealed that Indonesian consumers' religiosity increased their ethnocentrism but not cosmopolitanism. Further, ethnocentrism decreased global brand preference without affecting purchase intention towards Korean cosmetics, whereas cosmopolitanism increased both global brand preference and purchase intention towards Korean cosmetics.
Originality/value
The findings show that cosmopolitanism has a stronger influence on global brand preference than ethnocentrism, suggesting ethnocentrism’s diminishing relevance in predicting purchase intention for foreign products. Additionally, religiosity’s effect on ethnocentrism was confirmed.
Details
Keywords
Hyeon Jeong Cho, Byoungho Ellie Jin and Daeun Chloe Shin
Drawing on the resource-based view and contingency theory, this study aims to investigate the effects of organizational capabilities – technology capability and marketing…
Abstract
Purpose
Drawing on the resource-based view and contingency theory, this study aims to investigate the effects of organizational capabilities – technology capability and marketing capability – on small- and medium-sized enterprises’ (SMEs’) export performance and the moderating roles of contingent factors in this relationship in the context of a highly competitive export-oriented economy.
Design/methodology/approach
The research framework was tested using a three-way stepwise hierarchical multiple regression analysis with data gathered from 531 Korean international SMEs.
Findings
In addition to the direct effects of two types of organizational capabilities on export performance, the results show that both capabilities were critical when the export market was competitive, and marketing capability was more important when exporting with a brand name and targeting a developing country.
Originality/value
This study further extends the literature on SMEs’ internationalization in the context of highly competitive export-driven markets and highlights the importance of strategically allocating SMEs’ capabilities to reap optimal export performance by considering dynamic contingencies.