Lori Radulovich, Rajshekhar (Raj) G. Javalgi and Robert F. Scherer
The purpose of this paper is to empirically examine the relationships between the drivers of economic growth in emerging markets to include entrepreneurial orientation (EO), human…
Abstract
Purpose
The purpose of this paper is to empirically examine the relationships between the drivers of economic growth in emerging markets to include entrepreneurial orientation (EO), human capital (HC), relational capital (RC), and international performance (IP).
Design/methodology/approach
Data were collected from 199 small- to medium-sized Indian professional service entrepreneurs that employ less than 500 employees and engage in international business. Given the multidimensional nature of IP, structural equation modeling (SEM) was used to test the measurement and substantive models.
Findings
SEM and mediation tests confirmed significant relationships among the constructs in the model and indicated that HC can be leveraged for international growth using RC to deliver new professional services across borders. EO, the strongest predictor, along with HC and RC, directly influenced IP. The effect of HC is mediated by an EO and RC.
Research limitations/implications
By design, only successful professional service firms in India were studied, which limited generalizability.
Practical implications
Entrepreneurs can enhance the likelihood of international expansion success by utilizing highly skilled HC and developing strong network relationships. Entrepreneurial managers should leverage their professional service resources through judicious investments in personnel and relationship-building skills to develop RC.
Originality/value
This study examined entrepreneurial professional HC and RC as related to international entrepreneurship emerging market research. Data collection in India contributes to empirical research on internationalization from emerging markets.
Details
Keywords
Rajshekhar (Raj) G. Javalgi, Lori P. Radulovich, Glenna Pendleton and Robert F. Scherer
At the core of an international marketing strategy is the internet firm's goal of building and sustaining a competitive advantage. The purpose of this paper is to present an…
Abstract
Purpose
At the core of an international marketing strategy is the internet firm's goal of building and sustaining a competitive advantage. The purpose of this paper is to present an integrative framework to explain the role that customer behavior and customer relationship management (CRM) play in developing a profitable, sustainable competitive advantage for internet companies.
Design/methodology/approach
The integrative framework utilizes existing theoretical concepts from the areas of strategy and internet marketing and develops a framework to provide firms with insights into how they can gain the competitive advantage.
Findings
This paper links global customer behavior to the firms' business value chain and provides guidelines for strategic implications. In this conceptual paper, it is discussed that understanding consumer decision‐making behavior on the web and managing these relationships are critically important to achieve a superior performance.
Research limitations/implications
This is not empirical research. A theoretical model is presented for future testing by researchers using statistical techniques such as structural equation modeling.
Practical implications
The framework provides managerial insights into building and sustaining a competitive advantage using a consumer‐centric approach, coupled with CRM technology on a global scale. Managerial value is derived by providing an understanding of the link between a sustainable competitive advantage, customer‐focused strategies, consumers' needs and wants, the firm's performance, and shareholder value.
Originality/value
It is important for global marketers to understand how consumer decision‐making on the web affects strategic and financial performance. This paper extends the current literature by integrating consumer decision behavior on the web, CRM, and the firms' performance. This framework explains the creation of a sustainable competitive advantage using customer‐focused strategies to develop customer loyalty for superior firm performance.