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The Research on the Architecture and Critical Driving Factors of International Marketing Dynamic Capabilities

Author: LiWei
Tutor: XuZuo
School: Nankai University
Course: Business management
Keywords: International Marketing Dynamic Capabilities (IMDCs) Architecture Critical Drivering Factors Resource-based Views Institution Theory
CLC: F274
Type: PhD thesis
Year: 2012
Downloads: 67
Quote: 0
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Abstract


With the increasing environmental changes in custumer demands, competitors,technology and social governmence, the median period enterprises maintaincompetitive edge continuously decline. In globalization era, since there are muchuncertainty in Industry and market environment, multinational enterprises (MNEs) ismomently located in a highly volatile market environment. If firms couldn’t carry outan effective response to the ongoing environmental effects, it would be difficult toobtain or maintain a competitive edge in the market. Therefore, how MNEs to obtainand maintain their competitive advantage in the volatile international marketenvironment has become a hot topic in theory and practice community concerning inthe international marketing.The dynamic capabilities views (DCV), basing on theevolution economics and resourse-based views, is designed to answer how to dealwith turbulent external environment and to gain sustainable competitive advantage.Although the concept of DCs originates from the field of strategic management, buttheir related research has been far beyond the general scope of strategic management,and be applied to other major research areas in business management. However,there are still scholars criticized that the dynamic capabilities views like a "big tent",lack of specificity. In this regard, some scholars have suggested that the study of thedynamic capabilities should enter the selective and retention-oriented stage from thediffusion stage on concepts and the relationship. Therefore, combining the DCV andinternational marketing capabilities, to explore the international marketing dynamiccapabilities (IMDCs) is an important and meaningful direction.Therefore, this study, develops the concept of IMDCs referencing on fullyexisting research conclusions; and probes the structural dimensions and the criticaldriving factors of the IMDCs basing on perspective of the resource-based views(RBV) and institutional theory (IT), and combining the DCV with internationalmarketing research, explores the specific capability issues that MNEs adapt quicklyand respond effectively to market changes. This study aim at taking the construct ofIMDCs as the theoretical concerns, regarding the structural dimensions and keydriving factors of the IMDCs as the research points, trying to provide the theoreticalsupports and practical implications for answering the pivotal topic for discussionhow MNEs to effectively deal with the turmoil in international markets environment, and to acquire and maintain the international market competitive advantage.For these purposes above, this study applying a mixed method research design,namely the research methods of combining quantitative research with qualitativeresearch (quantified based, supplemented by qualitative), employing severaltechnical tools, such as factor analysis, regression analysis, structural equationmodeling, as well as case studies, conducts in-depth research and systematic analysison the dimensions and structures of the IMDCs and related issues. The mainconclusions of the study include:(1) The IMDCs refers to the cross-departmentalbusiness processes or routines integrating, establishing and resetting themarket-related resources (assets, knowledge and skills) in order to create and delivercustomer value in an international contexts; Confirmed by theoretical deducing andempirical analysis, the structure dimensions of the IMDCs include internationalsupply chain management (ISCM), international product development management(IPDM) and cross-cultural customer relationship management (CCRM) threeinter-departmental core business processes; The same time, the findings of case studyshow that in the disparate international stages, the status and role of the threebusiness processes are different.(2) In the three basic perspectives of corporateassets, organizational knowledge and organizational capacity, empirical analysis hasconcluded that six kinds of resource factors, the marketing assets, R&D assets,international market knowledge, top management teams (TMT) internationalexperience, the market-focused strategic flexibility and network capacity, exertdriving effects on the IMDCs; on the conditions of different turbulence ininternational environmental and various international market entry strategy, thesedriving functions above are different to varying degrees. At the same time, the casestudies also find that in the different stages of internationalization of the MNEs, thedriving role of resource factors are significant different.(3) In the three basic systemsof regulative systems, normative systems and cultural-cognitive, empirical studiesconfirm that four categories of institutional factors, adaptive organizational structure,organizational learning, open-mind and market orientation take driving impacts onthe IMDCs; on the conditions of different turbulence in international environmentaland various international market entry strategy, above four driving factors andmarket-based rewards systems and TMT risk-prone preferences have variant drivingeffects on the IMDCs. Meanwhile, the case studies also find that in the differentstages of internationalization of the MNEs, the driving functions of institutional factors are significant different.The value and innovation of this study are presented as follow: first, this study,by taking the concept of dynamic capabilities in the research field of internationalmarkting, puts forward to the notion of international marketing dynamic capabilities,and theoretically defines and empirically test it’s connotation and architecture, andnot only expands and deepens the DCV, but also transforms the research perspectiveof international marketing capabilities from focusing on the static resourceendowments, to investigating and inspecting on the internal organizational processesor routines establishing, integrating and reconstructing MNEs’ resource bases.Secondly, by drawing on the research finds of the DCs, marketing capabilities andmarketing dynamic capabilities, this study, on the perspective of organizationalprocesses explores the architecture of the IMDCs, and empirically decomposes theIMDCs into three core organizational processes, namely ISCM, IPDM and CCRM.This conclusion deepens the understanding on connotation of the IMDCs, inparticular, has provided important clues to the formation and development of theIMDCs. Thirdly. this study under dual perspectives of the resources and institution,comprehensively examines the key driving on the development of the IMDCs, notonly help to deepen the understanding on processes and mechanisms of the formationand development about IMDCs, but also expands the comprehension about theantecedents of the DCs international marketing capabilities. Finally, this studybroadens the analysis perspective of the relationship between IT and corporationsbehavior. In the existing researches of international marketing or internationalbusiness, most researchers analyze the MNEs’ market behavior from the perspectiveof resources, and some studies, focusing on institutional factors, yet pay closeattention to the impacts of the macro-institutional factors, such as governmentregulations, laws norms and socio-cultural factors on the enterprise market (strategic)behaviors. However, this study, starting from the internally institutional contexts,analyzes and explores the effects of internal institutional factors on the MNEs’strategic behaviors, for example, the effects exerting on the development oforganizational capabilities.

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