IBIMA Publishing
Journal of Southeast Asian Research
http://www.ibimapublishing.com/journals/JSAR/jsar.html
Vol. 2016(2016), Article ID 309540, 14 pages
DOI: 10.5171/2016.309540
`
Research Article
Export Promotion, Sales and Profits: A
Structural Equation Modelling
Ng Kim-Soon, Abd Rahman Ahmad and Chua Pei Shy
Faculty of Technology Management and Business, Universiti Tun Hussein Onn, Malaysia
Correspondence should be addressed to: Ng Kim-Soon; ksng@uthm.edu.my
Received date: 9 February 2015; Accepted date: 15 June 2015; Published date: 22 January 2016
Academic Editor: Ng Sin Huei
Copyright © 2016. Ng Kim-Soon, Abd Rahman Ahmad and Chua Pei Shy. Distributed under Creative
Commons CC-BY 4.0
Abstract
Export promotion can be a differentiator for sales and profits. More research works are needed
to explicitly delve into developing concrete models and multi-dimensional scales to strengthen
the theoretical foundations for measuring export performance. This study uses SEM to model on
export promotion, firm’s quality reputation, product and service quality for generating sales
with profit. The respondents were the Johor State manufacturing exporters selected from the
Federation of Malaysia Manufacturers Directory based on Krejcie and Morgan sampling plan.
Respondents answered a self-administered survey questionnaire. Results indicated that the
observable variable of export promotion comprises of management of sales promotion
activities, selecting and participating in relevant trade fairs, preparation of product literature,
and evaluating channel performance. The latent variables that have loaded highly into
enhancing firm’s quality are improving products, providing better service quality and gaining
reputation. The latent variables of sales performance that loaded in the observable measure of
export sales are export sales efficiency and export sales growth. Profits measure was found to
comprise of export profitability and profit margin. Structural equation modelling of good fitting
has shown that export promotion enhances firm’s quality and will lead to higher sales with
profits. Future research and practical implications are reported.
Keyword: export, export promotion, products, service quality, export performance
Introduction
Export promotion, a factor of export
marketing mix, can be a differentiator for
profits. Exporters are using it to inform
potential importers of products or services
features in order to attract them to buy. Most
literature reviews looked at export
marketing and export performance in two
broad perspectives. The first body of
literature studies focuses on investigating the
contribution of marketing in firm’s export
performance, while the second body focuses
on the relationship between marketing
competencies with organization or venture
performance (Kim-Soon, 2005). Few studies
(Chugan and Singh, 2014; Zou et al., 1998;
Cavusgil and Zou, 1994; and Lages et al.,
______________
Cite this Article as: Ng Kim-Soon, Abd Rahman Ahmad and Chua Pei Shy (2016)," Export Promotion, Sales and
Profits: A Structural Equation Modelling", Journal of Southeast Asian Research, Vol. 2016 (2016),
Article ID 309540, DOI: 10.5171/2016.309540
Journal of Southeast Asian Research
2
__________________________________________________________________________________________________________________
2004) have dwelled explicitly on developing
concrete models and multi-dimensional
scales leading to strengthening the
theoretical foundations for measuring firm’s
export performance. For this, there is a need
for further exploratory studies to assess
more
encompassing
frameworks
of
measuring firm’s export performance
(Chugan and Singh, 2014). Performance
measure purposes may be incompatible with
each other, where the improvement in one
dimension may be a trade-off for the other,
success may not be objectively determined
but a variable one. Hence, this study has
dwelled to understand the relationship of
export promotion in the enhancement of
firm’s quality reputation, product and service
quality to generate export sales and profits.
The first is a factor from the marketing mix
while the latter three measures, firm’s
quality enhancement, sales and profits are
commonly used in export literatures to
examine
export
performance.
Most
researchers
accepted
the
multidimensionality of export performance
used in their research works with
disagreement about which measures should
be appropriate and common. It is therefore
significant to further investigate the role of
export promotion, a factor of marketing mix
on export performance.
Literature Review
Export Promotion
Promotion is about communicating to the
targeted customer in an effective and
efficient manner through the promoted
message of advertising, features and displays.
It
facilitates
consumer’s
purchasing
behaviors (Darke and Dahl, 2003) by
providing useful cue for the cognitive
evaluations of a product influencing the
purchasing decision (Raghubir, 2004). The
common methods of promotion are through
personal selling done through promotional
presentation made on a person-to-person
basis with a potential customer and the nonpersonal selling through advertising, sales
promotion, and public relations. The
American Marketing Association (AMA)
defines a company's total promotion mix as
the specific blend of advertising, sales
promotion, public relations, personal selling
and direct marketing tools that a company
uses
to
persuasively
communicate
customer’s value and build customer
relationships (Ehrman, 2011). Export
promotion activities may include export sales
presentation, participation of trade fairs,
trade promotion supports to overseas
distributors,
preparation
of
product
literature, and managing promotional
activities (Kim-Soon, 2005). Okoroafo and
Perryy (2010) state that promotion tools can
be in the form of magazines, videos, one-onone promotion and online promotion that are
available for a minuscule fee. Milanzi (2012)
suggested that managers should make use of
internet facilities for communication, market
intelligence and export performance.
Promotional plan can also include product’s
value added programmes such as repair
services and warranty programs.
Export promotion, firm’s quality of
reputation, product improvement, service
quality, sales and profits
Export promotion programmes are aimed at
enhancing company export performance
through exporter’s capabilities, resources,
strategies and their overall competitiveness
(Shamsuddoha and Ali, 2006; Wilkinson and
Brouthers, 2006). The finding by Koksal and
Kettaneh (2011) implies that competent
exportercontributes to export performance.
Researchers have shown that the good
reputation of a firm enhances sales in
existing markets (Shapiro, 1983; Kreps and
Wilson, 1982; Milgrom and Roberts, 1982). It
also reduces business risks, (Orlitzky and
Benjamin, 2001) and assists in new market
development and growth (Bromley, 2002).
The study by Abd-El-Salam et al., (2013)
implies that high service quality will lead to
higher satisfaction, and this in turn will
produce greater willingness to recommend
the organization. Zhang and Rezaee (2009)
reported that reputable and credible firms
have better 3-year net profit margins, return
______________
Ng Kim-Soon, Abd Rahman Ahmad and Chua Pei Shy (2016), Journal of Southeast Asian Research,
DOI: 10.5171/2016.309540
3
Journal of Southeast Asian Research
__________________________________________________________________________________________________________________
on equity, sales growth and are able to
outperform the lower ratings firms by almost
20% in 3-year stock returns.
Quality is a crucial competency for
companies
in
deriving
competitive
advantage. Quality product and service need
to be in conformance to the required
specification to satisfy the user’s needs. It
does not means increasing the total costs as
achieving quality reduces rework, scarp,
after sales services, while business benefits
through repeated sales from customer
satisfaction and economies of scale.
Achieving quality is fundamental to
competition in business in propelling it into
new heights. A firm will benefit most through
focusing on the key processes that provide
their customers with products and services.
Producers may measure the conformance
quality, or degree to which the product or
service was made according to the required
specification. Customers on the other hand,
may focus on the quality specification of a
product or service, or compare it with those
that are available in the marketplace (KimSoon, 2012).
Perceived quality is defined as “a consumer’s
evaluation of a brand’s overall excellence
based on intrinsic (e.g., performance) and
extrinsic cues (e.g., brand name)” (Kirmani &
Baumgartner, 2000). Brand name is a
commonly used extrinsic cue to infer and/or
maintain quality perceptions and can
represent an aggregate of information about
a product (Richardson et al., 1994).
According to Della-Bitta et al., (1981) “a
strong brand name helps to control or
stabilize the quality perceptions of a branded
product even when its price is discounted”.
In addition, in a more recent study, Dodds et
al., (1991) also found empirical support for
the positive effect of brand name on quality
perceptions.
Reputation is about the beliefs or opinions
that are generally held about someone, a
group of people or a company. In case of
business, the reputation of a firm plays a very
important role in the buying decisions of the
target customers (Cretu and Brodie, 2007).
An exporter may be reputable as a reliable
supplier, delivering the goods of agreed
quality and on time. Reputation may also
include firm good reputation for service
quality
and
employee
competency.
Customers switch, and the company sees
declining revenue and poor reputation. Birou
and Fawcett (1993) found product and
service quality characteristics have positive
effect on the decision to import.
Cavusgil and Zou (1994), Shoham, (1998,
1999) and Carneiro et al., (2011) emphasized
that export performance is a multifaceted
construct. This is due to the fact that the
success of a firm, division, or export venture
is usually communicated through the use of
various perspectives and dimensions of
measure of performance. The determinants
of export performance are generally grouped
into controllable and uncontrollable factors
derived from the two theoretical bases. The
internal determinants are justified through
resource based theory while the external
determinants by industrial organization
theory (Kim-Soon, 2005; Zou and Stan,
1998).
Export
promotion
done
through
advertisements and sales promotion is
intended to increase the consumer demand
and increase export performance. The results
of previous works on export promotion and
performance have been inconsistent in the
literature. Shoham (1999) reported that
export promotion is positively related to
export success. Export success is the extent
to which the firm’s economic and strategic
objectives are achieved in respect to
exporting a product through export
marketing. Adapting promotion strategy
assists exporters in consistently positioning
themselves to segment the market of the
country they targeted. On the other hand,
Cavusgil and Zou (1994) found export
promotion strategy is negatively related to
export success. They argued that the negative
relationship is due to the subjectivity of
market interpretation of market situations
resulting in inaccurate market assumption
_______________
Ng Kim-Soon, Abd Rahman Ahmad and Chua Pei Shy (2016), Journal of Southeast Asian Research,
DOI: 10.5171/2016.309540
Journal of Southeast Asian Research
4
__________________________________________________________________________________________________________________
that leads to the inappropriateness and
costly adaptation of marketing strategies.
The tasks of carrying out oversea promotion
are difficult and it is tedious to find a good fit
meeting consumers’ tastes and preferences.
Promotion activities require substantial
investment. This would also increases cost
and subsequently results in the reduction of
profits (Koksal and Kettaneh 2011; Teixeira,
2014).
Methodology
Research framework and hypotheses
A firm’s tangible assets include financial
resources and physical facilities, and the
intangible ones include skill sets, reputation,
brand names, information and goodwill, etc.
controlled by a firm that enable the firm to
conceive and implement strategies (Barney,
1991). The resource-based view of firm
recognized the transferability of a firm’s
resource and capabilities as a critical
determinant of their capacity to confer
sustainable competitive advantage. The
transferability is important between firms
and within the firm and is critical for success
(Grant, 1996). Basing on this underlying
theoretical ground, the research framework
for this study has been proposed as in Figure
1, where export promotion has an impact on
the enhancement of a firm’s quality
reputation, product and service quality with
sales
and
profits.
Figure 1: Research framework - Export promotion has impact on the enhancement of a
firm’s quality reputation, product and service quality generating sales and profits
The hypotheses that have been formulated
based on this research framework are as
follow:
H1a: Export promotion enhances firm’s
quality.
H1b: Export promotion enhances export
sales performance
H1c: Export promotion enhances export
profits.
H2a: Firm’s quality enhancement has a
positive impact on export sales.
H2b: Firm’s quality enhancement has a
positive impact on export profits.
H3: Export sales have a positive impact on
export profits.
______________
Ng Kim-Soon, Abd Rahman Ahmad and Chua Pei Shy (2016), Journal of Southeast Asian Research,
DOI: 10.5171/2016.309540
5
Journal of Southeast Asian Research
__________________________________________________________________________________________________________________
H4a: Export promotion enhances firm’s
quality which will lead to higher sales.
H4b: Export promotion enhances firm’s
quality which will lead to higher profits.
H4c: Export promotion will lead to higher
sales to generate higher profits.
Survey Sample
The population chosen for this study was
from Malaysian manufacturing exporters
from the state of Johor, Malaysia. The
population frame is taken from a source
published by the Federation of Malaysian
Manufacturers (FMM) Directory 2012. Based
on this FMM Directory, there are 362
manufacturing firms in Johor. However, the
sample of this study was the identified Johor
firms exporting their products to the foreign
markets. Thus, a total of 230 which are
manufacturing export firms were chosen.
The sample size from the population was
determined based on Krejcie and Morgan
Table (Kejcie & Morgan, 1970). Based on the
Table, the research sample size was
determined as 144 firms. However, only 48
companies responded to the survey with
dully completed questionnaire and were
used in the analysis. The respondent’s profile
and company background are shown in the
Table 1.
Table 1: Profile of Responding Companies
Demographic
Categories
Frequency
a. Education level
Secondary School
5
Diploma/ Degree
35
Post Graduate Degree
8
Top management
Management
Executive
<5
5-<10
10->10
<100
100-<200
200-<400
>400
3-<10
10-<20
20->20
3-<10
10-<20
20->20
Local
Joint venture
Foreign
<15%
15-<50%
>50%
<10
10-<20
>20
Electrical and electronic
7
19
22
15
13
20
14
12
11
11
4
12
32
7
15
26
19
6
23
2
17
29
34
6
8
b. Job position
c. Year of experience
d. Number of employees
e. Company age
f. Year of exporting
g. Company ownership
h. Percentage of product exported
i. Number of countries exported to.
j. Type of industry
_______________
Ng Kim-Soon, Abd Rahman Ahmad and Chua Pei Shy (2016), Journal of Southeast Asian Research,
DOI: 10.5171/2016.309540
6
Journal of Southeast Asian Research
6
__________________________________________________________________________________________________________________
Machinery and engineering
Building and construction materials
Chemicals and chemical product
Rubber and plastic products
Iron, steel and basic metals
Packaging, labeling and printing
Food products and beverages
Wood based products
Equipment
Automotive
Others
Survey measures
There are 4 variables in the research
framework. The measure for promotion
adaptation (10 items) was adapted from
Chung, Wang, & Huang (2011), firm’s quality
enhancement (8 items) adapted from
Cadogan et al., (2012); Ruzo et al., (2011) and
Sousa (2004), export sales (5 items) and
profits (3 items) from Souza (2004). The
items were measured using a five-point
Likert scale. For promotion adaptation,
1=very low to 5= very high adaptation and
for the measures on firm’s quality
enhancement, sales and profits, respondent
indicate their respective last three years
firm’s performance as compared to the
performance of their main competitor in the
export market on the scale where 1=much
worst to 5=much better. The reliability tests
using Cronbach Alpha for these measures
are: export promotion is 0.922, firm’s quality
enhancement is 0.853, export sales are 0.928
and profits are 0.926. Cronbach’s Alpha value
of greater or equal 0.7 indicated that the
measures are reliable (Nunnally, 1978).
Thus, all the measures are valid and reliable.
The data set was tested for normality using
one-sample Kolmogorov-Smirnoc Test. All
the results of the variables were insignificant
indicating that measures for the data
collected are normally distributed.
Results
6
5
5
4
4
4
3
6
2
1
2
relationship of the research framework
formulated in accordance to the theories
through model fit of establishment,
estimation and tests of the causal
relationships. The normality distribution of
the items of this study was also checked
through the AMOS software. Figure 2 shows
the final estimation of the structural equation
path diagram of the relations between export
promotion, exporter’s reputation, product
improvement, service quality, sales and
profits and its respective latent variables.
The observed variables are in oval shape and
the latent variables are represented by the
respective boxes. The model fit values are: a.
Tests for discrepancy function: chi-square
test value of the model is 43.296, CMIN/DF is
1.139 at p=0.256, RMSEA=0.045 and PCLOSE
value=0.235; b. Tests that compare the target
model with the null model: GFI=0.893,
NFI=0.887, IFI=0.985, TLI=0.997, CFI=0.984.
The chi-square value is not significant which
indicates that the model is acceptable where
the observed covariance matrix is similar to
the predicted covariance matrix. RMSEA is
the square root of the average of the
covariance residuals where a zero means a
perfect fit. Its value should be less than 0.08
(Brown & Cudeck, 1993) and ideally <0.05
(Steiger, 1990). The closer the value of GFI,
NFI, IFI, TLI, CFI approach to the value of 1,
the better is the degree of fit of the model.
Thus, the model achieved fitness and is
acceptable.
Analysis of Moment Structures (AMOS) was
used to test the hypotheses of the causal
______________
Ng Kim-Soon, Abd Rahman Ahmad and Chua Pei Shy (2016), Journal of Southeast Asian Research,
DOI: 10.5171/2016.309540
7
Journal of Southeast Asian Research
__________________________________________________________________________________________________________________
Figure 2: Path diagram of relationships between export promotion, exporter’s reputation,
product improvement, service quality, sales and profits
Note:
Standardized estimates with bootstrapping
Variables:
F1: Export promotion
F2: Firm’s quality enhancement
F3: Export sales
F4: Export profits
Table 2 shows the results of estimates of the
coefficient for indirect, direct and total effects
of the causal relationships among the
observed variables. Based on the analyses,
the research hypotheses were validated and
Table 3 summarizes the results.
_______________
Ng Kim-Soon, Abd Rahman Ahmad and Chua Pei Shy (2016), Journal of Southeast Asian Research,
DOI: 10.5171/2016.309540
Journal of Southeast Asian Research
8
__________________________________________________________________________________________________________________
Table 2: The coefficient for indirect, direct and total effects of the causal relationships
F1: Export
promotion
F2: Firm’s quality
enhancement
F3: Export sales
F4: Export profits
F2: Firm’s quality
enhancement
F3: Export Sales
Indirect
Direct
0.655***
Total
0.655***
Indirect
0.402
Direct
-0.073
0.614**
Total
0.329
0.614**
Indirect
0.163
0.456
Direct
0.116
-0.124
0.743***
Total
0.279
0.332
0.743***
Note: Standardized estimate using bootstrapping; ** p<0.01, ***p<0.001
Table 3: Summary of the results of results of the hypotheses tested
Hypothesis
Path
Result
H1a: Export promotion enhances firm’s quality enhancement
F2<---F1
Supported
H1b: Export promotion enhances export sales performance
F3<---F1
H1c: Export promotion enhances on export profits.
F4<---F1
Not
supported
Not
supported
H2a: Firm’s quality enhancement has a positive on impact
export sales.
H2b: Firm’s quality enhancement has a positive impact on
export profits.
H3: Export sales have a positive impact on export profits.
F3<---F2
Supported
F4<---F2
Not
supported
F4<---F3
Supported
F3<---F2<--F1
F4<---F2<--F1
Supported
F4<---F3<--F1
Not
supported
H4a: Export promotion enhances firm’s quality which will lead
to higher sales.
H4b: Export promotion enhances firm’s quality which will lead
to higher profits.
H4c: Export promotion will lead to higher sales to generate
higher profits.
Discussion
The research model formulated and analyzed
has revealed the path relationships of export
promotion, exporter’s reputation, product
Not
supported
improvement, service quality, export sales
and profits in a clear manner. The latent
variables are connected to these observable
variables in one model and manifested their
relationships among the variables offering
______________
Ng Kim-Soon, Abd Rahman Ahmad and Chua Pei Shy (2016), Journal of Southeast Asian Research,
DOI: 10.5171/2016.309540
9
Journal of Southeast Asian Research
__________________________________________________________________________________________________________________
interpretation of the dependencies. The
causal paths include the standardized
estimates for the indirect as well as the direct
effects with indication of the statistical
significance of the respective relations, thus
allowing the mediator the relationships to be
interpreted of its mediating effects (Imai et
al., 2010). Although the sample size for this
research work is only 48 exporting firms, the
indices of analyses indicated a good fitting
model. CFI is preferred over GFI for small
sample size (Wang et al., 1996). Tucker Lewis
Index (TLI) is relatively independent of
sample size (Marsh et al., 1988). The CFI, GFI
and TLI for the final path model of
relationships between export promotion
with enhancement of firm’s reputation,
improvement and service quality, sales and
profits and its respective latent variables are
all acceptable. These have indicated that it is
a good fitting model.
The latent variables are highly loaded with
values greater than 0.7 into the observable
variable of export promotion. These latent
variables are management of sales
promotion
activities,
selecting
and
participating in relevant trade fairs,
preparation of product literature, and
evaluating of channel performance. The
tested model indicates that export promotion
shows signification direct effect or strength
of 0.655 on firm’s quality enhancement. The
latent variables that have loaded highly into
firm’s quality enhancement are improving
products, providing better service quality
and gaining in reputation. Kim-Soon and
Jantan, (2010) found that there are
significant differences in firm’s quality levels
of exporting firms and non-exporting.
Exporting firms have higher system quality
levels as compared to non-exporting firms.
Ahmed (2010) found that the reputation of
partners and marketing competencies of
partners are significantly related to
contractual and competence trust. In other
words, firm reputation and competencies of
partner are related to trust and commitment.
Ahmed argued that they are also related to
the interpersonal factors like effective
communication, cultural sensitivity and
likability of partners. These has indirectly
provides an explanation to the result
obtained from firm’s quality enhancement.
Service quality characteristics have in fact
the greatest overall total effect upon trust
(Chryssochoidis and Theoharakis, 2004).
Wilson (1985) iterated that delivery, product
and or service performance are central to the
buyer’s evaluation of the score as supplier
performance (Wilson, 1985). A high
reputation may lead to a corresponding level
of trust (Backhaus and Voeth, 2007). Firms
should select reliable international partners
that possess better reputation. Boyd and
Mason (1999) corroborated that the
manufacturer's reputation affects the
attractiveness of the product and purchase
intention. Thus, supporting the finding that
firm’s quality enhancement enhances export
sales.
In this study, the latent variable of sales
performance that loaded in the observable
measure of export sales is export sales
efficiency and export sales growth. Sales
efficiency is about promptness of handling
tasks of the sales process. As for sales
growth, it is how well the exporter improved
the sales over a given time. It is an indication
of whether the current way of doing sales is
being carried out effectively. Thus, export
sales here are a measure of sales efficiency
and effectiveness. This research work shows
that firm’s quality enhancement has a
positive impact export sales. Improving
products, better quality services and gaining
of reputation could increase sales efficiency
and effectiveness. Product improvement
could lead to improved product packaging.
Technically, among the recent innovations in
packaging is the development of active,
passive, intelligent and interactive packaging
(Singh and Heldman, 2014). Packaging is able
to send out specific messages. When
products are displayed in the shelves of
stores, they attract different customers’
attention through their specific messages.
Chou and Wang (2012) reported that
packaging has been used for identifying
products, distinguishing them from the
competitor’s products, displaying the
_______________
Ng Kim-Soon, Abd Rahman Ahmad and Chua Pei Shy (2016), Journal of Southeast Asian Research,
DOI: 10.5171/2016.309540
Journal of Southeast Asian Research
10
__________________________________________________________________________________________________________________
products’ specific features and advantages;
and boosting purchases. Koutsimanis et al.,
(2012) reported that studies show that
product packaging strongly influenced the
purchasing
decisions
of
consumers.
Auttarapong (2012) emphasized that
packaging creates brand image and
translates to manufacturer’s reputation.
Packaging attracts consumers’ perception of
products and facilitates the promotion of
products. It is self-adverting through good
package designs improving sales and market
shares (Chou and Wang, 2012).
Conclusion
The export business performance is defined
as the success or failure of the efforts made
by an enterprise or a country in bringing its
goods and/or services to penetrate the
market of other countries. This may be
measured through such indicators as sales
figures, profits, marketing scales or other
subjective measuring tools, or customer
satisfaction (Nguyen, 2012). The exporters’
goal is to obtain better export business
performance in the export market. In this
research, the profitability measures are
found to comprise of export profits and
export margin. Export sales have been found
to have a positive impact on export profits.
Adapting promotion supports the exporters
to position at the market segment they
target. However, the finding discloses that
export promotion does not lead to sales and
profits and that firm’s quality enhancement
does not lead to profitability. Export sales
and profitability have been widely used to
measure export performance, but export
sales might not have a positive relationship
with export profitability as the firms may
reduce the price to increase the sales’ volume
and in this term will decrease the export
profit (Lengler et al., 2013). Exporters could
also be exporting at variable cost to support
their operation without generating the
profits. Promotion requires investment and it
increases the cost that lowers the profit.
Thus, improvement in one dimension could
be a trade-off for the other.
Implications of study
This research work is in line with evaluation
by Sousa (2004) who expressed that export
performance
assessment
is
often
idiosyncratic firm types and its setting. Sousa
suggested that adoption of a contingency
approach in the selection of individual export
performance measures is to address the
idiosyncrasies instead of taking a dogmatic
view This peculiar nature echoes the called
by Leonidou et al., (2013), and Zeriti et al.,
(2014) who reinforce the suggestion to use
contingency approach for research in export
marketing mix with performance.
Exporters should seek to build a good
reputable foundation through promotion
activities over time. This calls attention to
company features and gives a wider scope for
exporters to build customers’ base, retaining
them besides synthesizing enhancement of
exporter’s products and services quality. The
strengthening of firm’s quality of reputations,
improvement in product and service quality
contribute to export sales efficiency and
growth. As firm’s quality of reputation gets
firmer, product improved and service quality
enhanced, the business expands, export sales’
efficiency and export sales grow. Taking
other aspects of firm’s strategy into account,
firms should generate export profits and the
required profit margin through using a sound
export promotion strategy.
Acknowledgement
This research paper publication is supported
by Universiti Tun Hussein Onn Malaysia
(UTHM) under Grant Number C043 to Ng
Kim-Soon. The authors wish to thank the
respondents who have spent their precious
time and patience for participating in this
academic research project.
______________
Ng Kim-Soon, Abd Rahman Ahmad and Chua Pei Shy (2016), Journal of Southeast Asian Research,
DOI: 10.5171/2016.309540
11
Journal of Southeast Asian Research
__________________________________________________________________________________________________________________
Reference
1. Abd-El-Salam, E.M., Shawky, A.Y. and ElNahas, T. (2013). The impact of corporate
image and reputation on service quality,
customer satisfaction and customer loyalty:
testing the mediating role. Case analysis in an
international service company. The Business
& Management Review, Vol.3 (2), 177-196.
2. Ahmed, F. (2010). The role of interpersonal
and firm factors in international business
relationships, Asian Academy of Management
Journal, Vol. 15(1), 45–62.
3. Auttarapong, D. (2012). Package design
expert system based on relation between
packaging and perception of customer.
Procedia Engineering, Vol. 32, 307-314.
4. Backhaus, K. and Voeth, M. (2007).
Industriegütermarketing. (8th ed.). München:
Vahlen. Boyne, G.A. (2002). Public and
Private Management: What’s the Difference?
Journal of Management Studies, Vol. 39(1),
97-122.
5. Barney, J. (1991). Firm resources and
sustained competitive advantage. Journal of
Management, March, Vol. 17, 100-120.
6. Birou L. and Fawcett S. (1993).
International
purchasing:
benefits,
requirements, and challenges. International
Journal of Purchasing Materials Management,
Vol. 1, 28 – 37
7. Boyd, T.C. and Mason, C.H. (1999). The link
between attractiveness of “extra brand”
attributes and the adoption of innovations,
Academy of Marketing Science. Vol. 27 (3),
306–319.
8. Bromley, D.B. (2002). An Examination of
Issues that Complicate the Concept of
Reputation in Business Studies, International
Studies of Management and Organization, Vol.
32(3), 65–81.
9. Browne, M.W., and Cudeck, R. (1993).
Alternative ways of assessing model fit. In
Bollen, K. A. & Long, J. S. (Eds.), Testing
structural equation models (pp. 136-162).
Newsbury Park, CA: Sage.
10. Cadogan,
J.W.,
Sundqvist,
S.,
Puumalainen, K. and Salminen, R,T. (2012).
Strategic
flexibilities
and
export
performance. The moderating roles of export
market-oriented behavior and the export
environment. European Journal of Marketing,
Vol. 46(10), 1418-1452.
11. Carneiro, J., Rocha, A.D. and Silva, J.F.D.
(2011). Determinants of export performance:
a study of large brazilian manufacturing
firms. BAR - Brazilian Administration
Review, Vol. 8(2), 107-132. Retrieved from
http://www.redalyc.org/articulo.oa?id=8411
8476002
12. Cavusgil, S., and Zou, S. (1994).
Marketing
strategy-performance
relationship: An investigation of the
empirical link in export market ventures.
Journal of Marketing, Vol. 58(1), 1-21.
13. Chou, M.C., and Wang, R.W. (2012).
Displayability:
An
assessment
of
differentiation design for the findability of
bottle packaging. Displays, Vol. 33(3), 146156.
14. Chryssochoidis, G. and Theoharakis, V.
(2004). Attainment of competitive advantage
by the exporter–importer dyad: The role of
export offering and import objectives, Journal
of Business Research, Vol. 57, 329–337.
15. Chugan, P.K., and Singh, S. (2014).
Taxonomy for Measurement of Firm-level
Export Performance, Universal Journal of
Industrial and Business Management Vol.
2(8), 193-199, http://www.hrpub.org DOI:
10.13189/ujibm.2014.020801
16. Chung, H.F., Wang, C.L., and Huang, P.H.
(2012). A Contingency Approach to
International Marketing Strategy and
Decision-Making Structure Among Exporting
Firms. International Marketing Review, Vol.
29, 77.
_______________
Ng Kim-Soon, Abd Rahman Ahmad and Chua Pei Shy (2016), Journal of Southeast Asian Research,
DOI: 10.5171/2016.309540
Journal of Southeast Asian Research
12
__________________________________________________________________________________________________________________
17. Cretu, A.E. and Brodie, R.J. (2007). The
influence of brand image and company
reputation where manufacturers market to
small firms: A customer value perspective.
Industrial Marketing Management, Vol. 36(2),
230-240.
26. Kim-Soon, N. (2005). Value of Export
Information, Export Marketing Competencies,
Environmental Characteristics and Export
Venture Performance, PhD. Theses, Universiti
Sains Malaysia, School of Business Studies,
Malaysia.
18. Darke, P.R., and Dahl, D.W. (2003).
Fairness and Discounts: the Subjective Value
of a Bargain. Journal of Consumer Psychology,
13(3), 328-338.
27. Kirmani, A. and Baumgartner, H. (2000).
Reference Points Used in Quality and Value
Judgments. Marketing Letters, Vol. 11(4),
299-310.
http://dx.doi.org/10.1023/A:100812901120
2
19. Della-Bitta, A., Monroe, K.B. and
McGinnis, J.M. (1981). Consumer Perceptions
of Comparative Price Advertisements. Journal
of Marketing Research, Vol. 18, 416-427.
20. Dodds, W.B., Monroe, K.B., and Grewal,
D. (1991). Effects of Price, Brand and Store
Information on Buyers’ Product Evaluation.
Journal of Marketing Research, Vol. 28(3),
307-319.
28. Koksal, M.H., and Kettaneh, T. (2011).
Export Problems Experienced by High and
Low Performing Manufacturing Companies.
Asia Pacific Journal of Marketing and
Logistics, Vol. 23, 118.
21. Ehrman, C. (2011). Toward Finding an
Optimal Mix between Push and Pull
Strategies: Try Conjoint Analysis. The Journal
of American Academy of Business, Vol. 17(1),
196-201.
29. Koutsimanis, G., Getter, K., Behe, B.,
Harte, J. and Almenar, E. (2012). Influences of
packaging attributes on consumer purchase
decisions for fresh produce, In: Yeomans, M.
(ed.), Appetite, The 36th Annual Meeting of
the British Feeding and Drinking Group, Vol.
59, No. 2, Elsevier, 270-280, doi:
10.1016/j.appet.2012.05.012.
22. Grant, R.M. (1996). Towards a
knowledge-based theory of the firm.
Strategic Management Journal, Winter
Special Issue, 17, 109-122.
30. Krejcie, R.V. and Morgan, D.W. (1970).
Determining Sample Size For Research
Activities. Education and Psychological
measurement.
23. Imai, K., Keele, L. and Tingley, D. (2010).
A general approach to causal mediation
analysis, Pshchological Methods, Vol. 15(4),
309-334.
31. Kreps, D.M. and R. Wilson (1982).
Reputation and Imperfect Information,
Journal of Economic Theory, Vol. 27(2), 253–
279. doi:10.1016/0022-0531(82)90030-8.
24. Kim-Soon,
N.
(2012).
Quality
Management System and Practices. In KimSoon Ng (Ed.), Quality Management and
Practices, InTech, Croatia, IBSN 987-953-510550-3.
32. Lages, C., Lages, C.R. and Lages, L.F.
(2005). The RELQUAL scale: a measure of
relationship quality in export market
ventures. Journal of Business Research, 58,
1040-1048.
25. Kim-Soon, N. and Jantan, M. (2010).
Quality Management Practices in Malaysia:
Perceived
Advancement
in
Quality
Management and Business Performance.
Proceedings of the 2010 IEEE ICMIT,
Singapore, 263-268.
33. Lengler, J.F., Sousa, C.M., and Marques,
C. (2013). Exploring the Linear and Quadratic
Effects of Customer and Competitor
Orientation
on
Export
Performance.
International Marketing Review, Vol. 30, 447.
______________
Ng Kim-Soon, Abd Rahman Ahmad and Chua Pei Shy (2016), Journal of Southeast Asian Research,
DOI: 10.5171/2016.309540
13
Journal of Southeast Asian Research
__________________________________________________________________________________________________________________
34. Marsh, H.W., Balla, J.R. and McDonald,
R.P. (1988). Goodness-of-fit indexes in
confirmatory factor analysis: The effect of
sample size. Psychological Bulletin, Vol. 103,
391-410.
35. Milanzi, M.A. (2012). The Impact of
Barriers on Export Behavior of a Developing
Country Firms: Evidence from Tanzania,
International Journal of Business and
Management,
Vol.
7(3),
10-21.
doi:10.5539/ijbm.v7n3p10
36. Milgrom, P. and Roberts, J. (1982).
Predation, Reputation and Entry Deterrence,
Journal of Economic Theory, Vol. 27(2), 280–
312. doi:10.1016/0022-0531(82)90031-X
37. Nguyen, H. (2012). International
marketing
capacities
and
export
performance: an empirical study of
indochinese
exporting
enterprises.
International journal of marketing studies,
Vol. 4, 52.
38. Nunnally, J.C. (1978). Psychometric
Theory, 2nd ed., McGraw-Hill, New York, NY.
39. Okoroafo, S.C. and Perryy, M. (2010).
Generational Perspectives of the Export
Behavior of Family Business. International
Journal of Economics and Finance, Vol. 2, 18.
40. Orlitzky, M. and Benjamin, J. D. (2001).
Corporate Social Performance and Firm Risk:
A Meta-Analytic Review, Business & Society,
Vol.
40(4),
369–396.
doi:10.11
77/000765030104000402.
41. Raghubir, P. (2004). Free Gift with
Purchase: Promoting or Discounting the
Brand? Journal of Consumer Psychology, Vol.
14(1/2), 181-186.
42. Ruzo, E., Losada, F., Navarro, A., and
Diez, J. A. (2011). Resources and
international marketing strategy in export
firms. Implications for export performance.
Management Research Review, Vol. 34(5),
496-518.
43. Richardson, P.S., Dick, A.S. and Jain, A.K.
(1994). Extrinsic and Intrinsic Cue Effects on
Perceptions of Store Brand Quality. Journal of
Marketing, Vol. 58(October), 28-30.
44. Shamsuddoha, A.K. and Ali, M.Y. (2006).
Mediated effects of export promotion
programs on firm export performance, Asia
Pacific Journal of Marketing and Logistics, Vol.
18(2), 93-110.
45. Shapiro, C. (1983). Premiums for High
Quality Products as Returns to Reputations,
The Quarterly Journal of Economics, Vol.
98(4), 659–679. doi:10.2307/1881782.
46. Shoham,
A.
(1998).
Export
performance: a conceptualization and
empirical
assessment.
Journal
of
International Marketing, Vol. 6(3), 59-81.
47. Shoham, A. (1999). Bounded rationality,
planning, standardization of international
strategy, and export performance: A
structural model examination. Journal of
International Marketing, Vol. 7(2): 24-50.
48. Singh, R.P. and Heldman, D.R. (2014).
Chapter 15 – Packaging concepts, In:
Introduction to food engineering, 5th edition,
Academic
Press,
767-791,
doi:
10.1016/B978-0-12-398530-9.00015-2.
49. Sousa,
C.M.P.
(2004).Export
performance measurement: An evaluation of
empirical research in the literature. Academy
of Marketing Science Review, Vol. 9, 1-23.
50. Steiger, J.H. (1990). Structural model
evaluation and modification: An interval
estimation
approach.
Multivariate
Behavioural Research, 25, 173-180.
51. Teixeira, T.S. (2014). Harvard Business
School. The rising cost of consumer attention:
Why you should care, and what you can do
about it. Retrieved on April 18, 2014, from
http://hbswk.hbs.edu/workingpapers.
_______________
Ng Kim-Soon, Abd Rahman Ahmad and Chua Pei Shy (2016), Journal of Southeast Asian Research,
DOI: 10.5171/2016.309540
Journal of Southeast Asian Research
14
__________________________________________________________________________________________________________________
52. Wang, L., Fan, X. and Willson, V. (1996).
Effects of non-normal data on parameter
estimates and fit indices for a model with
latent and manifest variables: An empirical
study. Structural Equation Modeling, Vol. 3,
228-247.
53. Wilkinson, T.J. and Brouthers, L.E.
(2006). Trade promotion and SME export
performance, International Business Review,
Vol. 15(3), 233-352.
54. Wilson D.T. (1985). An integrated
model of buyer – seller relationships. Journal
of the Academy of Marketing Science, Vol. 23,
335 – 45.
55. Wong, H. and Merrilees, B. (2007).
Closing
the
marketing
strategy
to
performance gap: The role of brand
orientation, Journal of Strategic Marketing,
Vol. 15(5), 387-402.
56. Zeriti, A., Robson, M.J., Spyropoulou, S.,
and Leonidou, C.N. 2014. Sustainable export
marketing strategy fit and performance.
Journal of International Marketing, 22(4): 4466.
57. Zhang, R. and Rezaee, Z. (2009). Do
Credible Firms Perform Better in Emerging
Markets? Evidence from China, Journal of
Business Ethics, Issue 90, 221–237. DOI
10.1007/s10551-009-0038-8
58. Zou, S. and Stan, S. (1998). The
determinants of export performance: a
review of the empirical literature between
1987 and 1997, International Marketing
Review, Vol. 15, 333-356.
______________
Ng Kim-Soon, Abd Rahman Ahmad and Chua Pei Shy (2016), Journal of Southeast Asian Research,
DOI: 10.5171/2016.309540