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Journal of World Business 39 (2004) 12–36

The export marketing information system: an integration


of the extant knowledge
Leonidas C. Leonidou, Marios Theodosiou*
Department of Public and Business Administration, School of Economics and Management,
University of Cyprus, Kallipoleos 75, P.O. Box 20537, CY-1678 Nicosia, Cyprus

Abstract

This article provides an integrative review of extant knowledge on the export marketing information system, based on input
received from 27 studies conducted on the subject. A detailed analysis of research into the constituent parts of the system
revealed that this is too atheoretic, fragmented, repetitive, non-programmatic, and inconsistent. Despite these weaknesses, it was
concluded that: (a) with the exception of company size, the role of antecedent factors in influencing information behavior is not
very clear; (b) the emphasis of export information needs is on customers, competitors, and pricing; (c) information is mainly
acquired on a person-to-person basis; (d) the dissemination of information, although superficially examined, tends to be bottom-
up and casual (e) proper information utilization enhances the quality of export management decisions, while at the same time
satisfying the individual needs of decision makers; and (f) export performance is positively influenced by the synergistic rather
than the individual effect of information behavior components.
# 2003 Elsevier Inc. All rights reserved.

1. Introduction and choosing promotional methods; and (e) improve


marketing control, through better monitoring of
Information has always been regarded as a critical marketing strategy implementation and more accurate
component in making effective and efficient market- assessment of company performance (Churchill, 2001;
ing decisions. This is because information can be Tull & Hawkins, 1993; Zikmund, 2000).
used to: (a) understand better the major actors in Information is even more crucial in the case of firms
the marketplace where the firm intends to operate; transcending national boundaries, due to the higher
(b) monitor changes in a business environment char- risks resulting from the great diversity of foreign
acterized by rapidly changing market conditions, inten- business environments, the multiplicity of the para-
sifying competition, and increasing globalization; meters involved in selling abroad, the existence of new
(c) design reliable marketing plans and strategies by variables not found in the domestic market, and the
shedding light on the desirability of the various market- high intensity of international competition (Czinkota
ing alternatives; (d) offer sound solutions to specific & Ronkainen, 2001). Nevertheless, many current and
marketing problems, such as launching new products, potential exporters suffer from serious information
changing prices, setting up distribution channels, handicaps, constituting one of the most crucial export
barriers both in terms of frequency of appearance and
*
Corresponding author. Tel.: þ357-22892465;
degree of severity (Leonidou, 1995). These handicaps
fax: þ357-22892460. are attributable to: (a) a lack of sensitivity to variations
E-mail address: mariosth@ucy.ac.cy (M. Theodosiou). in consumer tastes and preferences; (b) a limited

1090-9516/$ – see front matter # 2003 Elsevier Inc. All rights reserved.
doi:10.1016/j.jwb.2003.08.005
L.C. Leonidou, M. Theodosiou / Journal of World Business 39 (2004) 12–36 13

appreciation of the different character of the market- hampers theory advancement; (c) the tendency by
ing environment in overseas countries; (c) a lack of researchers to employ diverse research methodologies
familiarity with alternative foreign and international that leads to repetition, fragmentation, and inconsis-
data sources; (d) a reluctance to absorb the costs of tency; and (d) the emphasis on presenting the empirical
conducting research abroad; and (e) doubts about the findings in isolation from a well-defined research pro-
competence of international information providers gram (Axinn, 1994; Kamath, Rosson, Patton, & Brooks,
(Douglas & Craig, 1983). 1987). This is in contrast to developments in the
Sufficient acquisition and effective use of informa- domestic marketing field, where the issue of informa-
tion on foreign markets and operations is vital for a tion has reached relatively more theoretical maturity, as
firm’s export expansion (Leonidou & Katsikeas, 1996). a result of substantial contributions on the subject
Export information needs exist well before the firm’s (Diamantopoulos & Horncastle, 1997).
engagement in exporting, and these usually relate to the In the absence of a mid-level theory on export
identification of foreign market opportunities (Wieder- information, there is a need to systematically consoli-
sheim-Paul, Olson, & Welch, 1978). During the initial date knowledge on the subject, since this could be
export stages, the firm experiences a high level of beneficial to: corporate managers, who would be able
uncertainty due to limited knowledge regarding inter- to identify gaps in their export information systems and
national business and overseas market characteristics, take measures to make them more useful in exploiting
creating a strong need for experiential and general profitable foreign market opportunities; pubic policy-
information (Seringhaus, 1986). As the firm gains more makers, who could design better information-based
experience abroad and obtains more foreign market- export promotion programs that would cater for the
related information of a more objective and specific specific needs of current and would-be exporters; busi-
nature, the level of uncertainty gradually diminishes, ness educators, who could develop and implement
encouraging progression to more advanced stages of special educational programs to train future managers
exporting (Welch & Luostarinen, 1988). on making proper use of the export marketing informa-
Export information has been at the forefront of tion system; and exporting researchers, who could
international and export marketing research since its extract new ideas from extant knowledge in order to
appearance in the early 1960s. This is because export promote theory-building in this field of exporting.
information interferes with many different internatio- In light of the above benefits, the overall aim of this
nalization parameters, such as stimulating forces (Kat- study is to provide an integrative review of the extant
sikeas & Piercy, 1993; Sullivan & Bauerschmidt, knowledge on export marketing information, while the
1990; Tesar & Tarleton, 1982), barrier factors (Alex- specific objectives are: (a) to identify and extract the
andrides, 1983; Leonidou, 2000; Pavord & Bogard, existing empirical knowledge on export information;
1975; Yaprak, 1985), foreign market entry methods (b) to synthesize this knowledge under an overall
(Reid, 1981, 1984), and strategic marketing elements conceptual framework; and (c) to critically assess
(Cooper & Kleinschmidt, 1985; Koh, 1991; Samiee & the various parts of this framework, as well as the
Walters, 1990), which have peripherally tackled this linkages between them.1 In particular, the review
issue. However, the specific role of information in
1
developing exports has been the focus of a relatively Although a meta-analysis could further enhance the contribu-
small, but growing, stream of scholarly contributions tion of our study, this would be difficult to implement at this stage
in recent decades, which is scattered and not theore- for three major reasons: (a) some constructs were empirically
examined by a few studies only, thus limiting the number of
tically anchored. observations for further analysis; (b) the measurement scales and
The theoretical weaknesses of this stream of research dimensions used differed markedly across studies, creating in this
can be ascribed to four major problems endemic in the way a very heterogeneous sample for meta-analysis; and (c) only a
exporting literature: (a) the habit of studying exporting few studies provided empirical results in a form suitable for meta-
phenomena in isolation from other activities taking analytical purposes (e.g., statistical values or p-values). However,
with the proliferation of research on the subject, it is expected that
place in the more developed field of domestic business; these problems will gradually be alleviated, allowing the under-
(b) the fact that the dominant methodology in the taking of a meta-analysis that would yield useful insights into the
field of exporting is that of logical empiricism, which export marketing information system.
14 L.C. Leonidou, M. Theodosiou / Journal of World Business 39 (2004) 12–36

Fig. 1. The export marketing information system.

centers on three major areas comprising the export synthesize the available knowledge on each of the
marketing information system, namely: antecedent components of the export marketing information
factors, that is, background forces influencing export system (antecedent factors—information behavior—
information behavior; information behavior, that is, performance outcome) as this is derived from the
actions taken by the firm in identifying, sourcing, studies reviewed. In the final sections, some conclu-
disseminating, and using information about export sions are extracted from the study findings, as well as
markets; and performance outcome, that is, the impact implications for various interested parties.
of export information behavior on the company’s
export performance (Richey & Myers, 2001; Samiee
& Walters, 1999; Seringhaus, 1993; Souchon & Dia- 2. Theoretical background
mantopoulos, 1996) (see Fig. 1).2
The remainder of the paper is organized in the The importance of information in business activities
following way: First, the theoretical underpinnings has been an issue of major concern for more than a
of the marketing information system are provided, hundred years, when the first attempts to observe and
based on insights from the domestic marketing dis- theorize about management and organizational beha-
cipline. Then, the methodological profile of the vior appeared (Laudon & Laudon, 2000). Since then,
empirical studies on export information incorporated an enormous volume of research has been conducted
in the review is discussed. The next three sections to understand the role of information systems in
organizations and their contribution to business suc-
2
cess. One stream of this research has focused on the
This simplified antecedent—behavior—outcome model pro- marketing information system, which has examined,
vides the most appropriate approach to guide the review, because a
similar version has been successfully used to examine other
inter alia, the value of information in a marketing
dimensions of exporting, such as export marketing strategy context (Glazer, 1991), the antecedents of market
(Leonidou, Katsikeas, & Samiee, 2002). Moreover, a parallel can information processes (Deshpandé & Zaltman,
be drawn with domestic marketing information behavior where: 1982; Kohli & Jaworski, 1990; Moorman, 1995),
first, it interacts with marketing managers to assess their the link between market information processing and
information needs; next, it develops the information needed from
various sources; finally, it distributes information to managers in
organizational learning (Sinkula, 1994; Slater & Nar-
the right form and at the right time to help them in marketing ver, 1995), the factors that influence information/
planning, implementation, and control (Kotler & Armstrong, 2001). knowledge utilization in firms (Menon & Varadarajan,
L.C. Leonidou, M. Theodosiou / Journal of World Business 39 (2004) 12–36 15

1992; Moorman, Zaltman, & Deshpandé, 1992), and (Day, 1994; Moorman, 1995). Information determina-
the association between environmental turbulence and tion is the actual identification of the marketing man-
information-processing styles (Glazer & Weiss, 1993). ager’s information needs. This is a crucial dimension
These attempts to understand the marketing infor- since the way managers define the marketing problem
mation systems are characterized by great diversity, and sense what information is really wanted will
owing to the lack of previous theory on the subject, the largely affect the effectiveness and efficiency of their
difficulty in conceptualizing and operationalizing the company’s future operations. However, managers are
relevant constructs, and the tendency to tackle only a often accused of requesting information without think-
few dimensions of the subject matter (Menon & ing whether it is really needed, omitting to ask for
Varadarajan, 1992; Moorman, 1995; Sinkula, 1994). some types of important information, or cutting down
Despite this, the extant literature points to the exis- information requirements because of a misconception
tence of three basic components in a marketing infor- that information is an unnecessary expense (Kotler &
mation system: (a) the background factors influencing Armstrong, 2001). There are also a number of situa-
the information behavior of marketing managers; (b) tion-specific factors that may affect the nature and
the actual processing behavior taking place in the quantity of information needed, namely: (a) availabil-
organization with respect to determining, acquiring, ity—can the information needed to support a specific
disseminating, and utilizing information; and (c) the decision be made available in due time? (b) cost versus
role of information activities in shaping the firm’s benefit—is the cost of obtaining the specific informa-
competitive advantage, which can be subsequently tion higher than the benefit that the firm will ultimately
used to enhance marketing performance (Deshpandé enjoy? (c) time—how urgent is it to provide a solution
& Zaltman, 1982; Menon & Varadarajan, 1992; Moor- to a marketing problem for which information is
man, 1995; Porter & Millar, 1985). required? (d) uncertainty—how does the diversity
Background factors comprise parameters pertaining or volatility of the business environment of the target
to the environment, the organization, and the manage- market affect the life-span of information? and (e) cost
ment. For instance, companies operating in highly of error—what will be the consequences of a wrong
complex and volatile marketing environments face decision made without sufficient information?
greater uncertainty and, therefore, require more and (Wright & Ashill, 1998; Zikmund, 2000).
diverse information (Menon & Varadarajan, 1992). Information acquisition is the collection of infor-
Moreover, organizations with a less formalized or mation for the purpose of detecting and/or solving a
centralized structure and an innovative culture are specific marketing problem. Obviously, this process is
more likely to seek information and appreciate its closely connected with the previous stage of identify-
usefulness in making sound marketing decisions ing information needs and is expressed in terms of the
(Deshpandé & Zaltman, 1982; Menon & Varadarajan, sources available when gathering this information.
1992; Moorman, 1995). Furthermore, managers with Information can be collected from primary sources
different amounts of experience, degrees of knowl- for the first time to serve the specific purpose in hand
edge, cognitive styles, and decision-making levels (e.g., market research surveys), or can be derived from
tend to create different information-processing struc- secondary sources, where it has already been collected
tures (Menon & Varadarajan, 1992). The above back- for another purpose (e.g., government statistics)
ground forces do not act in isolation from each other, (Zikmund, 2000). Information sources can also be
but their interplay may have a serious effect on classified as formal, where the data-gathering process
information behavior and its outcome. For instance, is characterized by formal actions (e.g., focus group
congruence between the level of marketplace turbu- discussions), or informal, where there is a casual
lence and the manager’s information-processing style approach to data collection (e.g., salespeople’s inter-
is vital in determining performance (Glazer & Weiss, actions with customers) (Wright & Ashill, 1998).
1993; Wright & Ashill, 1998). Information can also be derived from internal com-
Information-processing behavior consists of four pany sources (e.g., financial accounts) or from
dimensions centering on the determination, acquisi- sources external to the organization (e.g., interviews
tion, dissemination, and utilization of information with potential customers) (Sinkula, 1994). Finally,
16 L.C. Leonidou, M. Theodosiou / Journal of World Business 39 (2004) 12–36

information can be distinguished as: tacit, that is, broaden the managerial knowledge base without ser-
implicit know-how or a social relationship needed ving any specific project; or (c) symbolic, that is the
to complete a task accumulated after years of personal distortion of information to support the decision-
experience in either designing marketing strategies or maker’s opinion against others, or justify a decision
specific market activities, and explicit, that is, knowl- already taken (Souchon & Diamantopoulos, 1996).
edge which is acquired through conscious attempts With regard to the extent of use, this can be viewed as
involving, either formal or informal sources of infor- the degree to which each of the above three forms of
mation (Athanassiou & Nigh, 2000; Dienes & Perner, information utilization affects the decision-making
1999). process (Menon & Varadarajan, 1992). Notably, both
Information dissemination is the degree to which the form and extent of information utilization is
information is diffused among relevant users, not only determined to a large extent by the perceived useful-
within the marketing department, but also within the ness, credibility, and usability of the information
organization as a whole. In fact, widespread informa- acquired, as well as the time and effort expended to
tion dissemination is vital in getting people from acquire it (Menon & Varadarajan, 1992).
different posts and functions to have a better under- The final component of the marketing information
standing of marketing problems, stimulating discus- system is marketing performance, which is influenced
sion about the trade-offs in meeting these problems, by the previously mentioned information-processing
and coordinating actions toward providing effective activities. Specifically, information is considered as a
and efficient solutions to these problems (Cravens, strategic resource (like human, technological, or finan-
2000). The dissemination of information among com- cial resources) that enables the organization to
pany personnel may occur formally through the estab- strengthen its market-sensing capabilities and achieve
lished communication channels in the organizations a positional advantage over its competitors in the
(e.g., formal reports), or informally, occurring during marketplace (Day, 1994; Porter & Millar, 1985). In
interpersonal interactions (e.g., casual conversations fact, the challenge facing managers in today’s fast-
among employees) (Moorman, 1995). Information changing business environment is to encourage an
dissemination can also be: (a) top-down, that is from open-minded inquiry, widespread information disse-
people at higher levels to people at lower levels in the mination, and mutually informed visions about the
organizational hierarchy; (b) bottom-up, that is, from market within the organization, as well as to create
subordinates to superiors and continuing up the orga- proactive information behavior that will involve all
nization hierarchy; (c) horizontal, that is, among business functions, not just marketing and sales per-
people at the same or similar organizational levels; sonnel, with the ultimate aim of offering superior
and (d) diagonal, that is, among persons at different customer value (Coyne, 1986; Zikmund, 2000). Cul-
levels who have no direct reporting relationships with tivating such a spirit in the organization will help the
one another (Koontz & Weihrich, 1990; Moorman, firm to design and implement sound marketing stra-
1995). Information can also be disseminated in a tegies which can lead to superior performance (Cra-
written (e.g., handouts), oral (e.g., speech), or non- vens, 2000). The profits gained from this performance
verbal (e.g., body language) way (Koontz & Weihrich, can subsequently be used to sustain its information-
1990). related advantages.
The fourth dimension of the information process is
information utilization, which is the actual use of the
information disseminated in the making of decisions 3. Review profile
(Moorman et al., 1992). This can be expressed in two
complementary ways: underlying forms of use and the The review covered all studies on export informa-
extent of use (Menon & Varadarajan, 1992). The tion published in English since the inception of this
underlying forms of use can be: (a) instrumental, that body of research. Although there is a possibility that
is, the direct application of information to solve a some export information studies have appeared in
specific marketing-related problem; (b) conceptual, non-English publication outlets, such as German,
that is the indirect application of information to French, and Spanish, it was difficult to include these
L.C. Leonidou, M. Theodosiou / Journal of World Business 39 (2004) 12–36 17

in the review for three major reasons: (a) non-avail- developed countries, particularly North America
ability of the printed form of these studies outside the and Europe, attributable mainly to: (a) their greater
countries of publication; (b) non-inclusion of most of involvement in the international trade of manufactured
the journals publishing these studies in electronic data goods; (b) the existence of government and other
banks; and (c) linguistic limitations in reviewing the agencies with an interest in promoting exports; and
content of these papers in non-English languages. (c) the availability of research institutions possessing
Altogether, 27 studies were identified, using a combi- the means to carry out this type of analysis effectively.
nation of manual and computerized literature search Studies were mainly conducted in single countries, or
methods. The latter combined three different sources: even in states within countries, while cross-cultural
(a) ABI/INFO, which provides information about research took place in only one study (Seringhaus,
articles already published; (b) SWETSCAN, which 1993).
reports on recent publications or papers in print; and The overwhelming majority of export information
(c) the INTERNET (e.g., Science Direct, Emerald studies focused on small- and medium-sized firms,
Fulltext, and Expanded Academic ASAP Interna- which are more likely to be engaged in exporting, as
tional) which contains both existing and forthcoming opposed to larger companies that can be found at more
publications. advanced stages of internationalization, such as licen-
The studies were located in 16 North American and sing, joint venturing, or wholly own production. How-
European sources, specializing mainly in international ever, some studies (e.g., Benito, Solberg, & Welch,
business, export marketing, and information manage- 1993; Bodur & Cavusgil, 1985; Cavusgil, 1984;
ment. A full list of the sources and studies reviewed is Samiee & Walters, 1990) have incorporated large
provided in Appendix A. For a study to be included in exporting firms in their samples in order to identify
the review, five major criteria had to be met: (a) to differences in information behavior caused by size
focus on the exporting stage of the firm’s internatio- variations. Seven studies covered a small number of
nalization process; (b) to deal with manufactured industries (up to three), while the remainder focused
exports of consumer and/or industrial goods; (c) to on a cross-section of industrial sectors. With only a
examine exporting from a micro-business perspective; few exceptions (e.g., Bodur & Cavusgil, 1985; Czin-
(d) to study export information either as a core issue or kota & Ursic, 1983; Hart, Webb, & Jones, 1994;
as part of a wider research problem; and (e) to provide Leonidou, 1997), the research emphasis was on both
sufficient data extracted from primary research. Based consumer and industrial goods, covering a wide range
on these criteria, studies such as those by Darling & of product categories.
Postnikoff (1985), Belich & Dubinsky (1995), Pike & Twenty-three studies investigated the information
Ross (1997), and Nijssen, Douglas, & Calis (1999) behavior of exporting firms, while the remaining four
were excluded from the review. Table 1 summarizes studies examined the information practices of non-
the methodological characteristics of the studies exporters vis-à-vis exporters (Brooks & Rosson, 1982;
selected for the review, while more details about each Chaudhry & Crick, 1998; Naor & Cavusgil, 1981;
study are presented in Appendix B. Tesar & Tarleton, 1982). Interestingly, the results of
The first attempt to systematically study export these studies revealed that, although exporters exhib-
information behavior was in the mid-1970s, with ited a more active information search behavior, in
the work of Tesar and Tarleton (1982). Since then, most dimensions the differences between exporters
research on the subject has grown slowly but steadily, and non-exporters were not significant. In all studies
indicating an increasing interest in shedding light on examined, the emphasis was on the firm rather than the
this crucial aspect of export marketing, probably due export venture or product/export market level, thus
to growing globalization of world markets and the making it difficult to identify variations in information
resulting intensifying competition. With the exception behavior at lower levels of analysis.
of one study (Tesar & Tarleton, 1982), all other studies Two studies have approached the total population of
were of a one-shot nature, not attempting to monitor exporting firms (i.e., Czinkota & Ursic, 1983; Walters,
information changes over time by using longitudinal 1983), while the remaining studies were more or less
research. The bulk of this research took place in equally divided between those adopting probability
18 L.C. Leonidou, M. Theodosiou / Journal of World Business 39 (2004) 12–36

Table 1
Methodological summary of studies on export information

Study demographics Total (n ¼ 27)a Field work timeb Geographic focusc

1970s 1980s 1990s North America Europe Other


Methodological aspects (n ¼ 4) (n ¼ 11) (n ¼ 13) (n ¼ 15) (n ¼ 9) (n ¼ 4)

Company size
Small 19 4 8 7 12 6 1
Medium 14 3 5 6 8 5 1
Large 6 – 3 3 3 1 2
NA 8 – 4 4 3 3 2
Industrial coverage
One to three industries 7 1 3 3 3 2 2
Four to seven industries 4 – 1 3 3 1 1
Eight industries or more 5 1 2 2 3 1 1
NA 11 2 4 6 6 5
Units of analysis
Exporters 27 4 11 13 15 9 4
Non-exporters 4 3 2 – 4 – –
Sampling size
Probability 11 3 1 7 7 4 1
Nonprobability 8 – 4 4 3 2 3
Whole population/NA 8 1 5 3 5 3 –
Sample size
Below 150 19 1 8 10 9 7 4
150 or above 8 3 2 4 6 2 –
Effective responsive rate
Below 30% 8 – 2 6 2 6 1
30% or above 16 3 6 7 11 2 3
NA 3 1 2 1 2 1 –
Nonresponse bias
Tested 5 – 1 4 3 2 –
Nontested 22 4 10 9 12 7 4
Data collection
Mail 20 4 7 10 12 6 3
Personal 9 – 5 4 3 3 3
Telephone – – – – – – –
Key informant
CEO/president 12 1 4 7 6 4 2
Export officer 12 – 4 8 5 4 3
Marketing manager 7 – 2 5 2 4 1
Other executive 4 – 2 2 3 1 –
NA 10 3 3 5 6 5 –
Information types
Up to 9 – – – – – – –
10–14 4 – l 3 1 3 –
15–19 6 1 2 4 1 2 3
20 or more 3 – 1 2 2 1 –
L.C. Leonidou, M. Theodosiou / Journal of World Business 39 (2004) 12–36 19

Table 1 (Continued )

Study demographics Total (n ¼ 27)a Field work timeb Geographic focusc

1970s 1980s 1990s North America Europe Other


Methodological aspects (n ¼ 4) (n ¼ 11) (n ¼ 13) (n ¼ 15) (n ¼ 9) (n ¼ 4)

Information sources
Up to 9 7 3 4 – 5 – 2
10–14 6 – 1 5 3 4 –
15–19 4 – 1 3 2 2 –
20 or more 2 – 1 1 1 1 –
Measurement dimension
Usage/acquisition 14 2 7 5 8 4 2
Importance/utility 19 2 8 10 11 6 3
Measurement scale
Dichotomous 10 2 6 2 6 2 2
Three-point scale 1 – – 1 – 1 –
Four-point scale 4 – 2 2 2 1 2
Five-point scale 17 1 5 11 9 7 1
Statistical analysis
Descriptive 24 4 11 10 14 6 4
Uni-/bivariate 20 3 7 11 10 7 4
Multivariate 8 1 1 6 4 5 –
a
Only three out of the 27 studies examined issues pertaining to export information use (i.e., Diamantopoulos & Horncastle, 1997; Hart
et al., 1994; Souchon & Diamantopoulos, 1997).
b
Tesar and Tarleton’s (1982) study reports the results of two surveys, the first conducted in 1974 in Wisconsin and the other in 1981 in
Virginia.
c
A study by Seringhaus (1993) was conduced in two different countries, namely Austria and Canada.

sampling designs and those employing nonprobability CEO/chairman or export officer, while other company
samples. Sample size ranged from a low 18 to a high executives were less frequently used. It is worth noting
1,248, with 19 out of the total 27 studies having a that only one of the studies reported procedures
sample of less than 150 firms. This indicates a ten- checking for key informant bias (Benito et al.,
dency to use relatively small samples which, coupled 1993), although this can be justified by the fact that
with their nonprobabilistic nature, calls into question in smaller firms these were impractical and to some
the representability of the study findings. Effective extent unnecessary due to their centralized manage-
response rates were in the majority of cases high, ment structure.
usually exceeding 30%. However, the fact that 22 (of Six studies focused exclusively on export informa-
the total 27) studies did not check for nonresponse bias tion needs, twelve concentrated on export information
casts some doubt on the robustness of the data acquisition, while another six examined concurrently
obtained. both the needs for and the sources of export informa-
Data were mainly collected using mail survey tion. The issue of information dissemination was
methods, as reported by 18 of the studies reviewed. peripherally tackled by only one study (e.g., Benito
Personal interviews were employed in seven other et al., 1993). Two studies exclusively examined export
studies, mainly with small samples. Two studies used information use (Diamantopoulos & Horncastle,
both mail surveys and personal interviews. None of the 1997; Souchon & Diamantopoulos, 1997). None of
studies used telephone surveys for collecting data, the studies reviewed examined all four dimensions of
probably due to difficulties in administering ques- export information behavior, while three of the dimen-
tionnaires containing multiple items and scales. The sions were simultaneously investigated in one study
major source for obtaining the data required was the (Hart et al., 1994). Moreover, 18 studies examined the
20 L.C. Leonidou, M. Theodosiou / Journal of World Business 39 (2004) 12–36

differentiating role of antecedent factors on export experience, expansion strategy, and psychic distance.
information behavior, while the effect of the latter on However, these attempts suffer from a number of
export performance was the subject of six studies. flaws: (a) the interest was in only a few of the many
The average number of items used to operationalize dimensions, with a possible effect on information; (b)
information needs was 19.2, while of information in most cases, these factors were examined in isolation
sources it was 12.2. In the overwhelming majority from the others, thus not capturing their concurrent
of cases, the emphasis was on measuring the impor- impact; and (c) the emphasis was on certain aspects of
tance/utility of the type or source of export informa- information behavior, usually requirements in or
tion, while half of the studies also measured the sources of information. Despite these problems, an
frequency of using export information types or attempt is made in the following to analyze each of
sources. These dimensions were usually measured these antecedent factors.
on a five-point scale, although scales with a lower Company size, defined as the number of full-time
number of intervals were also employed. The disse- employees and/or total annual sales turnover, was the
mination of information was measured in terms of focus of several studies, which attempted to identify
formal or informal modes of communication within information differences caused by variations in finan-
the organization (Benito et al., 1993). Information use cial, human, technological, and allied resources.
was operationalized in a variety of ways, such as the While some studies found that larger firms are con-
uses to which export information is put (Hart et al., siderably more active in information gathering (of
1994), dimensions reflecting use/non-use situations almost any type) compared to smaller units (Benito
(Souchon & Diamantopoulos, 1997), or dimensions et al., 1993; Culpan, 1989; Samiee & Walters, 1990),
of decision relevance, information surplus, recom- other studies revealed no major differences between
mendations implemented, general quality, uncertainty these two groups of firms (Hart et al., 1994; Leonidou,
reduction, and decision confidence (Diamantopoulos 1997; Walters, 1983; Yeoh, 2000). With regard to the
& Horncastle, 1997). sources of information used, the consensus is that
The principal method of data analysis was mainly of smaller firms tend to use less expensive, easily acces-
a descriptive nature, such as percentage frequencies sible, and more informal sources compared to their
and mean scores. Univariate/bivariate methods, larger counterparts (Benito et al., 1993; Hart et al.,
usually Student-t test and ANOVA, were also fre- 1994; Leonidou & Katsikeas, 1997; Walters, 1983).
quently used in order to check for variations among Yeoh’s (2000) study also revealed that, as opposed to
groups of exporters on a number of discriminating small companies, the main source of information for
antecedent parameters. Only a few studies used multi- large companies was personal. Finally, the use of
variate analytical techniques, such as factor analysis, information to back hunches was found to correlate
which proved useful in reducing the large number of negatively with company size, suggesting that larger
information items (either types or sources) into several companies may use market research data in a more
conceptually meaningful groups. Interestingly, the objective fashion (Hart et al., 1994).
level of statistical sophistication, although poor at The discriminating role of industry type on export
the early stages of this body of research, has improved information has been explored in three studies.
recently. Although Wood and Goolsby (1987) found significant
variations in information about foreign business envir-
onments across all five industries examined, other
4. Antecedent factors studies reported more or less similar information
needs among exporters, irrespective of their specific
Antecedent factors refer to all those environmental, industrial classification (Evirgen, Bodur, & Cavusgil,
organizational, managerial, and other background 1993; Koh, Chow, & Smittivate, 1993; Leonidou,
forces with a possible direct or indirect effect on 1997; Wood & Robertson, 2000). Another study con-
export information behavior. Several studies have cluded that, in general, industry type did not have a
tried to explore the role of these factors empirically, substantial discriminating effect on the sources used to
particularly that of company size, industry type, export obtain information (Leonidou & Katsikeas, 1997).
L.C. Leonidou, M. Theodosiou / Journal of World Business 39 (2004) 12–36 21

The above conflicting or non-significant results can be more background information about overseas markets.
the outcome of an arbitrary selection of the number With regard to information sources, while one study
and type of industries examined, rather than a pure found only few differences between market concen-
industry effect on export information behavior. trators and market spreaders (Leonidou & Katsikeas,
The ethnic background of the exporter was also 1997), another concluded that the more the different
used to identify variations in export information beha- geographic regions covered by the exporter, the more
vior. This was the subject of a study by Chaudhry and informal the market research activities performed
Crick (1998) which examined information differences (Hart et al., 1994). The last study also examined the
between Asian-owned and indigenous British-export- impact of foreign market expansion on market
ing firms. The study revealed significant variations in research information use, revealing inconsistent
half of the information sources examined, with a results: although there was general agreement that,
tendency by Asian exporters to rate them lower in as the number of geographic markets served increases,
terms of usefulness. With regard to information types, export decisions cannot be taken without market
significant differences were observed between the two research, it was also agreed that there is a tendency
groups in all items examined, with Asian-owned firms for the data collected to go largely unused by decision-
systematically attributing greater importance com- makers.
pared to their indigenous counterparts. Despite these Psychic distance, that is the sum of factors prevent-
differences in the emphasis given to information ing or disturbing the flow of information between the
sources and types, their rank order was more or less firm and its overseas markets (Johanson & Vahlne,
the same between the two groups of exporters. 1977), produced contradictory results with regard to
Export experience was also used as a potential export information requirements. For instance, while
discriminator of information behavior. Interestingly, one study reported significant differences in informa-
most studies investigating this issue found no serious tion needs between exporters to North Africa/Middle
differences in information requirements between East and exporters to OECD countries (particularly as
novice and established exporters (Hart et al., 1994; regards population statistics, political situation, reli-
Koh et al., 1993; Leonidou, 1997; McAuley, 1993), gious beliefs, infrastractural facilities, and documen-
although one study reported that newer exporters tend tation procedures) (Bodur & Cavusgil, 1985), another
to be more aggressive in seeking export information found no variations by export destination in six envir-
(Ursic & Czinkota, 1984). Results on the effect of onmental information groups (Wood & Robertson,
export experience on information channels used were 2000). Significant differences in information needs
contradictory: while most studies found no major also emerged in another study which drew compar-
variations between experienced and inexperienced isons between firms exporting to Europe and those
exporters (Hart et al., 1994; Leonidou & Katsikeas, targeting Islamic countries (Bodur & Cavusgil, 1985).
1997; Walters, 1996), one established that the more Finally, two studies examined the effect of psychic
experienced the exporting firm, the fewer the number distance on the type of information channels used,
of information providers used (McAuley, 1993). revealing no significant results (Bodur & Cavusgil,
Finally, export experience was found to have no 1985; Walters, 1996).
discriminating effect whatsoever on the use of export
information (Hart et al., 1994).
The export market expansion strategy followed, 5. Export information behavior
whether concentration or spreading, seems to have
some influence on both the need for and sources of Export information behavior includes all the infor-
export information. Specifically, Koh et al. (1993) mation-related activities undertaken by exporting
found that companies selling to many markets tend firms in an attempt to enhance the effectiveness and
to investigate more frequently issues pertaining to the efficiency of their export management decisions. As
foreign business environment, customer characteris- demonstrated in Section 2, this consists of four major
tics, and the elements of the marketing mix, while Hart dimensions: (i) information determination, that is,
et al. (1994) argued that market spreaders tend to seek types of information required to tackle a specific
22 L.C. Leonidou, M. Theodosiou / Journal of World Business 39 (2004) 12–36

export business problem faced by company manage- were the most widely studied, while the remaining
ment; (ii) information acquisition, that is, the sources three received marginal empirical attention. However,
of information from where export information can be the impact of macroenvironmental parameters on
collected; (iii) information dissemination, that is, the export information behavior was relatively mild, both
diffusion of the information gathered among relevant in terms of frequency of use and perceived usefulness.
users within the exporting firm; and (iv) information The only exception were two studies, which found that
utilization, that is, the degree to which the information information on sociocultural issues was the most
collected affects the user’s management decision- important for decision-making purposes (Evirgen
making. The knowledge derived from the extant lit- et al., 1993; Tesar & Tarleton, 1982). These results
erature on each of these components is presented in the are somewhat surprising, taking into consideration the
following. serious limitations imposed by environmental factors
on export marketing strategy in the form of mandatory
5.1. Export information determination and/or voluntary adaptations.
Task environment-related factors comprise the com-
Before searching can be conducted, export man- pany itself, its suppliers, marketing intermediaries,
agers must first determine their needs in information, competitors, customers, and publics. Of these, the
which should be relevant to the exporting problem in most commonly researched were both customers
hand. Export information needs can be classified into and competition. Information on customers was both
four major groups: (a) macroenvironmental, incorpor- sought after very often (Leonidou, 1997; Samiee &
ating forces that are usually beyond the control of Walters, 1990) and considered useful (Benito et al.,
managers and constitute either opportunities or threats 1993; Leonidou, 1997; McAuley, 1993; Tesar & Tar-
for the firm in overseas markets; (b) task environment- leton, 1982) by exporters. The same was also true of
related, including factors close to the company that information about competitors in foreign markets
affect its ability to satisfactorily serve its foreign (Bodur & Cavusgil, 1985; Koh et al., 1993; Samiee
customers; (c) market-related, comprising character- & Walters, 1990). Marketing intermediaries were the
istics of the export market(s) where the firm operates object in only two studies (Benito et al., 1993; Leo-
or is planning to operate; and (d) marketing mix, nidou, 1997), where exporters rated this type of infor-
consisting of controllable variables that the firm mation very low in terms of importance. The three
blends to produce the response it wants in the target remaining components of the task environment—the
market (Kotler & Armstrong, 2001). Information company itself, its suppliers and its publics—were
needs were the focus of twelve empirical studies, examined in only one study, which concluded that
the findings of which are presented in Table 2, ranked information needs on these issues are relatively mod-
in descending order of frequency used and/or per- est (Leonidou, 1997).
ceived usefulness.3 Market-related characteristics refer to: the size and
Macroenvironmental forces refer to the elements of growth patterns, structure, entry conditions, prefer-
the foreign economic, sociocultural, political-legal, ences, potential, and company position/share in over-
technological, demographic, and physical environ- seas markets. However, information needs on these
ment of the firm. Of these, the first three dimensions characteristics varied markedly across studies. For
example, in some studies exporters rated highly cus-
3 tomer preferences (Chaudhry & Crick, 1998; Hart
For each information need or source item a total mean score
was estimated by adding together the score attached to its rank in et al., 1994; Leonidou, 1997), in others market poten-
each study (ranging from 10 points for first ranking, 9 points for tial (Robertson & Wood, 2001; Tesar & Tarleton,
second ranking, 8 points for third ranking, and so on, up to 1 point 1982; Wood & Goolsby, 1987), and in yet others
for items ranked in the tenth position or less) and dividing by the market entry conditions (Chaudhry & Crick, 1998;
number of studies investigating the specific item (Dichtl, Samiee & Walters, 1990). However, in many cases
Koglmayr, & Muller, 1990). This total mean score was subse-
quently broken down by time period (1970s, 1980s, and 1990s) and
only a modest use and/or usefulness was ascribed to
by geographical region (i.e., North America, Europe, and other this set of information requirements, implying that
regions), revealing only negligible time or spatial variations. exporters do not always consider them important in
Table 2
Rank order of export information types in various empirical studies

L.C. Leonidou, M. Theodosiou / Journal of World Business 39 (2004) 12–36


Notes. Shaded columns refer to information types acquisition/usage, and unshaded columns to their perceived importance/utility.
a
The first two columns show the results of the Wisconsin study and the other two of the Virginian study. Also, the first and third columns refer to aggressive exporters, the
second and fourth to passive exporters.
b
The first two columns show the results of the perceived usefulness and the other two of the frequency of implementation. Also, the first and third columns show the results of
exports to O.E.C.D. countries, the second and fourth to North Africa and the Middle East.
c
The first column shows the results of small exporters and the second of large exporters.
d
The first column shows the results of the perceived importance, and the second of frequency of use.
e
The first column shows the results of Asian-owned firms and the second of indigenous firms.

23
24 L.C. Leonidou, M. Theodosiou / Journal of World Business 39 (2004) 12–36

their foreign business operations. This was particu- in the company efforts category (Bodur & Cavusgil,
larly true for information on market position/share 1985; Kaynak, 1992; Kaynak & Erol, 1989; Leonidou
abroad, which most exporters find unnecessary. & Katsikeas, 1997; Naor & Cavusgil, 1981; Reid, 1984;
Marketing mix consists of the product, pricing, Seringhaus, 1993; Walters, 1983). Such an approach,
distribution, logistics, and promotion. Of these, pri- while costly, permits the collection of experiential
cing was the most widely studied element and one of information, which can be customized to the specific
the most appreciated by exporters, as demonstrated by requirements of the company and enhance the validity
the relatively high ranks of usage and usefulness it of other information collected (Cavusgil, 1985). Market
received (e.g., Bodur & Cavusgil, 1985; Koh et al., research undertaken by the firm itself is a less preferable
1993; Samiee & Walters, 1990). Product character- method, due to the fact that it is more expensive, time
istics have also attracted significant research attention, consuming, and difficult to carry out, although in some
although the empirical results show that exporters studies it was considered the most useful source of
have a relatively moderate appreciation of this type export information (Bodur & Cavusgil, 1985;
of information (e.g., Chaudhry & Crick, 1998; Leo- Chaudhry & Crick, 1998). The two remaining sources
nidou, 1997; Tesar & Tarleton, 1982). Information contained in this category, namely internal company
pertaining to distribution channels, logistics, and pro- records and salespeople/sales offices abroad, were both
motion was of much less interest to exporting firms. rarely used and considered only moderately important.
These findings can be attributed to the fact that most The firm’s collaborators in foreign markets, such as
exporters ate ‘‘sellers of production capacity,’’ inter- distributors, agents, and representatives, were among
ested only in selling their products at competitive the most frequently used and useful sources of export
prices, leaving the task of distributing and promoting information under the other firms and individuals cate-
them to their foreign representatives (Wortzel & gory (e.g., Chaudhry & Crick, 1998; Hart et al., 1994;
Wortzel, 1981). Howard & Herremans, 1988; Kleischmidt & Ross,
1984; McAuley, 1993; Walters, 1983). These provide
5.2. Export information acquisition useful information about economic-political condi-
tions, market characteristics, and competitors’ move-
The degree of usage and/or usefulness of export ments, and are particularly crucial when decisions must
information sources to export managers was also exam- be taken rapidly under conditions of high uncertainty
ined in 19 empirical studies, the results of which are (Welch & Wiedersheim-Paul, 1980). Foreign custo-
presented in descending rank order in Table 3. For mers were also a valuable source of information, parti-
analytical purposes, information sources can be cularly as regards market trends, consumer preferences,
grouped into six different categories: (a) company and buyer behavior, as indicated by the high ranks
efforts, that is, information generated by the firm’s received in all studies that examined this source (Hart
own resources and people; (b) other firms and indivi- et al., 1994; Kleischmidt & Ross, 1984; Leonidou &
duals, that is, organizations or persons collaborating Katsikeas, 1997). Other firms in the industry, even the
directly or indirectly with the exporting firm; (c) com- competitors of the company, were overall less important
mercial associations, that is, associations providing information providers, although two early studies on the
information to their members or to a wider audience; subject arrived at the opposite conclusion (Czinkota &
(d) service organizations, that is, organizations offering Ursic, 1983; Cavusgil, 1984). Information obtained
information services as a main or peripheral task; (e) from the company’s suppliers was neither used fre-
information providers, that is, international business quently nor considered important.
information provided through print, electronic, or other Under the commercial associations group three
media; and (f) government outlets, that is, home or host information sources were included: chambers of com-
governmental organizations or actions supplying or merce, trade/industry associations, and exporters’
exposing exporters to international trade data. unions. Although chambers of commerce, from their
Both personal contacts in and visits to overseas position and experience, can offer first-hand informa-
markets by company personnel were systematically tion about foreign markets, these were neither exten-
ranked highly among information sources contained sively used nor regarded as useful by exporting firms.
Table 3
Rank order of export information sources in various empirical studies

L.C. Leonidou, M. Theodosiou / Journal of World Business 39 (2004) 12–36


Notes. Shaded columns refer to information sources acquisition/usage, and unshaded columns to their perceived importance/utility.
a
The first column gives the results for nonexporting firms and the second for exporters.
b
The first column refers to nonexporting firms which are interested in export information, the second to nonexporting firms which are not interested in export information and the third to exporting firms.
c
The first column indicates the findings among growth companies and the second among non-growth firms.
d
The first column denotes usage of information sources and the second refers to their utility.
e
The first column refers to experimental exporters, the second to active, and the third to committed exporters.
f
The first column shows the usage of information sources and the second refers to their importance.
g
The first column presents the results for manufacturing exporters and the second for trading house exporters.
h
The first column indicates the results for the Atlantic region and the second for the Prairie region.
i
The first column denotes utility of information sources and the second refers to their frequency of use.
j
The first column shows the results of the Canadian study and the second of the Austrian study.
k
The first column shows the results of the perceived importance, and the second of frequency of use.
l
The first column shows the results of Asian-owned firms and the second of indigenous firms.

25
NA, Not available.
26 L.C. Leonidou, M. Theodosiou / Journal of World Business 39 (2004) 12–36

Similar findings also exist for trade/industry associa- The most widely studied source under the govern-
tions, despite the fact that one of their major tasks is to ment outlets category was government offices/minis-
assist their member-firms through the provision of tries, which in many countries act as the principal
international business information. As opposed to government source for foreign market information.
the above two sources of information, which were Interestingly, although early studies have shown that
extensively researched, the third source, exporters’ this was extensively used and found valuable by expor-
union, was examined by two studies only, revealing ters (e.g., Brooks & Rosson, 1982; Cavusgil, 1984;
conflicting results: while one study found that this was Czinkota & Ursic, 1983; Naor & Cavusgil, 1981; Reid,
the most frequently used source (Walters, 1996), the 1984; Walters, 1983), in later studies the impact of this
other considered it very infrequent and insignificant source has diminished (Chaudhry & Crick, 1998; Kay-
(Leonidou & Katsikeas, 1997). nak, 1992; Leonidou & Katsikeas, 1997; Seringhaus,
In the service organizations category, the role of 1993; Walters, 1983). Trade fairs/exhibitions and trade
commercial banks as an information source was exam- missions were also greatly appreciated by exporters for
ined by many researchers. However, with a few excep- gathering foreign market data, probably due to the
tions (e.g., Czinkota & Ursic, 1983; Kaynak & Erol, opportunities offered to come in direct contact with
1989), empirical findings revealed that this source was prospective customers (Howard & Herremans, 1988;
rarely used to provide input for export business deci- Leonidou & Katsikeas, 1997; McAuley, 1993; Serin-
sions. The same picture also emerged with reference to ghaus, 1993). Finally, embassies/diplomatic services
consultancy/research agencies: of the eight studies and export promotion organizations were not consid-
investigating this source, only one concluded that it ered particularly useful sources of export information.
was important for exporters, although stressing at the
same time that it was rarely used, probably due to the 5.3. Export information dissemination
high cost of the services offered (Walters, 1983). The
use of brokers/freight forwarders as providers of Determining the export information needs and gath-
export information was examined by three studies, ering the correct information from the right sources
which ranked it in low positions (Kleischmidt & Ross, are not sufficient in themselves to make better export
1984; Leonidou & Katsikeas, 1997; Walters, 1996). marketing decisions. The information gathered must
Low ratings were also observed in the case of inter- be distributed to the right people, at the right time, and
national agencies, such as the World Bank, the Inter- in the right place. Compared to domestic markets, the
national Monetary Fund, and the World Trade dissemination of information to users in export mar-
Organization, although this information source was kets is a complex task mainly because of: (a) the
examined in only two studies. constraints associated with establishing data compar-
Compared to other categories of export information ability and equivalence in different contexts (b) pro-
sources, information providers received least empiri- blems in coordinating the personnel involved in export
cal attention. Here, information gained via trade operations due to great geographical distances; (c)
journals/publications was highly regarded by expor- cultural diversities among the individuals to whom this
ters in three of the four studies examining this source information needs to be communicated; and (d) the
(Cavusgil, 1984; Hart et al., 1994; Kleischmidt & difficulties involved in clearing the information col-
Ross, 1984), because they are usually characterized lected so as to conform to the strong inter-functional
by high educational quality, targeting special interest nature of export decisions (Douglas & Craig, 1983).
groups. The remaining three items in this category, Although crucial and complex, the dissemination
namely computerized databases/directories, mass process of export information has received scant atten-
media, and public/commercial libraries, were neither tion by exporting scholars. In fact, only the study of
frequently used nor considered useful sources for Benito et al. (1993) gave any consideration to this
extracting information about export markets. This dimension of export information behavior, albeit in a
can be partly explained by the fact that these sources peripheral manner. Specifically, this study examined the
are both too general and not always available to export way export information is handled and communicated
managers. within the exporting organization and concluded that
L.C. Leonidou, M. Theodosiou / Journal of World Business 39 (2004) 12–36 27

oral reporting to both top management and marketing tendency to use such information; on the other,
management is the method preferred. Written reports although research information was used to back
among company personnel were employed less fre- hunches, this was not a prerequisite when taking
quently, while computer-based communication tools or export management decisions. These results were
other forms of reporting were seldom encountered. It partly justified by the idiosyncratic organizational
can be inferred from the findings of this study that the cultures and politics surrounding the use of export
direction of the information disseminated is mainly information.
‘‘bottom-up,’’ namely from company salespeople visit- The second study, conducted by Diamantopoulos
ing overseas markets and foreign representatives to the and Horncastle (1997), investigated the factors affect-
export marketing manager and/or general manager. ing export marketing information use. Two factors
were found to negatively affect information use,
5.4. Export information utilization namely the degree of centralization of export manage-
ment decision-making and the level of exporters’
Mere possession of information does not ensure dependence on the foreign market targeted. In con-
effective and efficient management actions, but it is trast, two other factors positively influenced informa-
important to develop skills associated with their eva- tion use: the extent to which information acquired was
luation and subsequent utilization in decision-making unforeseen, counter-intuitive, or unanticipated and the
(Souchon & Diamantopoulos, 1996). In fact, export profitability of the target export market vis-á-vis
managers are often confronted with an overload of domestic market profitability. Interestingly, the results
international market information, which makes it dif- of this study contradicted most of the findings of
ficult, and in many cases frustrating, to sort out what is similar studies conducted in a domestic context, sug-
relevant, useful, timely, and consistent for the specific gesting that the determinants of information can be
export management problem in hand (Cavusgil, 1985; context-specific and be of a different nature in export,
Wood & Goolsby, 1987). As explained in the Theo- as opposed to domestic, operations.
retical Background section, the use of information can The third study focused on the use versus non-use of
be instrumental, conceptual, or symbolic. However, a export information, as well as its association with
recent empirical study concluded that within the information source awareness, information overload,
exporting context, instrumental and conceptual uses and information-acquisition modes (Souchon & Dia-
of information can be part of a single dimension mantopoulos, 1997). The study revealed that: (a)
(Diamantopoulos & Souchon, 1999). It has been contrary to the authors’ expectations, there was no
postulated that the choice of each of the above forms relationship between awareness of information
will depend on such factors as environmental effects, sources and the use/non-use of export information;
organizational influences, export-specific elements, (b) information overload does not pose difficulties in
information-specific parameters, and information- using information for export decision-making; and (c)
acquisition modes. information acquired through various information
The effective use of information is essential in modes (i.e., export marketing research, export assis-
gaining competitive advantage, in the sense that the tance, and export marketing intelligence) is used in
firm can better understand its foreign markets and in export decisions, although in different types of use/
this way create a heightened customer value (Diaman- non-use information situations (i.e., immediate use,
topoulos & Souchon, 1999). However, compared to future use, considered but rejected, and rejected).
information needs and sources, there is a dearth of These findings, however, should be treated with cau-
research on export information use. In fact, only three tion, due to the exploratory nature of this study.
studies examined this issue, all focusing on the prac-
tises of British exporters. The first study was con-
ducted by Hart et al. (1994) and revealed inconsistent 6. Export performance outcome
results as to export information use: on the one hand,
export decisions were modified in light of the infor- Several researchers have tried to test the assertion
mation acquired, with the decision-makers showing a that a planned information-based approach to overseas
28 L.C. Leonidou, M. Theodosiou / Journal of World Business 39 (2004) 12–36

business can be an important correlate of superior examined, only information on economic environment
export performance, while the absence of adequate and product characteristics varied significantly
foreign market knowledge may cause difficulties and between firms with high and low profitability, while
business failures (Christensen, Rocha, & Gerner, among information sources only personal contacts of
1987; Cunningham & Spiegel, 1971; Hart & Tzokas, managers, trade missions, and quasi-government ser-
1999; Kothari, 1983; Richey & Myers, 2001; Samiee vices were used more extensively by exporters whose
& Walters, 1990; Yeoh, 2000). These studies have profitability was high (Leonidou, 1997; Leonidou &
indeed confirmed that such a strong association exists Katsikeas, 1997; Yeoh, 2000). Finally, with respect to
between information and success, and that firms with- export information use, no significant associations
out information do not fully exploit their potential in between various dimensions of export information
overseas markets, experiencing less than anticipated utilization and export profitability were noted,
results. Although this finding seems to be intuitively although there was a negative relationship between
appealing, paradoxically the effect of specific ele- the use of information acquired through marketing
ments of information behavior on export performance intelligence and export assistance and growth of
was relatively weak. export profits (Souchon & Diamantopoulos, 1997).
For instance, some studies tried to associate the
nature of the information requested with export inten-
sity, the proportion of export sales to total sales, 7. Summary and conclusions
revealing only few significant results. Specifically,
one study found that exporters who rely heavily on One general conclusion that can be drawn from the
exports were making greater use (although not finding preceding review is that extant knowledge on export
it more useful) of information on sociocultural factors, information is still in its early stages of development,
competitive situation, market size estimates, consu- and that there is a long way to go before a concrete
mer preferences, and product/pricing features (Koh theory on the subject can be built. Indeed, our
et al., 1993). Another study showed that export integrated review has amply demonstrated that this
intensifiers were interested more in foreign market stream of scholarly research is: (a) atheoretic, lack-
preferences, company’s position/market share, and ing the theoretical background and linkage to a wider
promotional activity (Leonidou, 1997). With regard conceptual framework of exporting; (b) fragmented,
to information sources, Walters (1983) found that covering only certain, and in many cases isolated,
firms with high export intensity ratio made greater aspects of the export information process; (c) repe-
use of export agents, statistical agencies, departments titive, examining more or less the same information
of commerce, and company executives, while Benito issues in different spatial, time, and industry frames;
et al. (1993) reported greater use of formal procedures (d) non-programmatic, being the outcome of unco-
and service people, but less use of international jour- ordinated efforts among exporting researchers; and
nals/newspapers, management consultants, and sales (e) inconsistent, offering partial, and sometimes con-
representatives by export intensifiers. flicting, results on the subject. Despite these weak-
Export profitability, the degree of making profits nesses, some useful insights can be extracted from
from foreign market operations, was the other com- the analysis of the export marketing information
mon performance indicator linked with export infor- system.
mation behavior. In investigating the export practises First, the effect of antecedent factors on export
of US manufacturing firms, Koh (1991) found that the information behavior is not very clear. In fact, most
greater the use of international marketing information, of these factors (i.e., industry type, ethnic background,
the more likely they were to use competitive pricing, export experience, export expansion, and psychic
sell directly to overseas buyers, and have their own distance) exhibited either some or no discriminating
export department, which in turn led to higher export effect at all on behavior pertaining to the needs,
profitability. However, with regard to the impact of sources, dissemination, or use of export information.
information types and sources on export profitability, One exception is company size where, due to resource
results were weak: of the various information items constraints, smaller firms display more cautious and
L.C. Leonidou, M. Theodosiou / Journal of World Business 39 (2004) 12–36 29

restrictive export information behavior. Although this nation, thus making the drawing of conclusions rather
has to be seen within the framework of the effect of unsafe. From the limited insights available it seems
other antecedent factors, such as the company’s stage that the mode of distributing information in the orga-
of internationalization, there is a need to guide these nization is bottom-up (i.e., from the subordinates to
firms toward better identifying their information the top management) and casual (i.e., relying mainly
requirements, selecting a broader range of information on oral reporting). To some extent, this can be
sources, disseminating information to the right people, explained by the large geographical distance separat-
and making proper use of the information collected. ing exporters form their foreign markets, necessitating
With regard to the first dimension of export infor- the use of speedier methods of transferring informa-
mation behavior, export information determination, tion to key decision-makers. However, this pattern of
irrespective of time and spatial characteristics of the information dissemination may not result in an effec-
studies reviewed, the emphasis was on three key areas: tive absorption of all relevant information by members
customers, competitors, and prices. However, many of the organization, nor the prompt supply of this
other issues useful for export decision-making, such as information to other individuals with a direct or
macroenvironmental forces, other elements of the task indirect interest in it.
environment, market characteristics, and non-price Export information utilization, the most crucial
marketing factors, were not so highly appreciated. dimension of export information behavior, revealed
This exemplifies a rather casual and superficial that there are many contingency factors that determine
approach to identifying export information needs, which export information is taken into consideration
revolving around price competitiveness and accep- and in what way. It also seems that export information
tance of the exporter’s products in overseas markets. is not only used in a ‘‘rational’’ way to strengthen
It also shows that the marketing audit process is not export-related decisions (i.e., instrumental/conceptual
sufficiently conducted in export markets, with all the use), but also in ways that satisfy the individual needs
negative consequences that this may entail in making of the decision-maker (i.e., symbolic use). Moreover,
solid export marketing decisions. The above reflect the the way information is used largely depends on the
tendency of many firms, especially those in the early nature of the information requested, the particular
stages of export development, to view exporting as a sources from where it is acquired, as well as the extent
peripheral business activity. to which it is disseminated to the right people (Sou-
In the case of export information acquisition, there chon & Diamantopoulos, 1997).
is a general trend among exporters to gather informa- The adoption of the right export information beha-
tion mainly on a person-to-person basis from their vior seems to lead to a positive performance outcome,
foreign distributors, agents, representatives, and cus- implying that information is critical in initiating,
tomers, and this was more or less true across all studies developing, and sustaining successful export opera-
reviewed. They also tend to take advantage of parti- tions. The fact, however, that there were neither con-
cipation in trade fairs/exhibitions and trade missions sistent nor strong associations between certain aspects
in gathering first-hand information about overseas of information needs, sources, dissemination, and use
markets. However, these sources provide only experi- and export performance, denotes that what matters in
ential data to exporters, which, although helpful, lack export success is not the individual role of each of
the scientific rigor of objective information. These these components, but the synergistic effect of their
findings indicate that exporters tend to rely on more interplay. To gain maximum performance, all four
informal and opportunistic methods of foreign data components of export information behavior should
collection, thus calling into question the relevance, act as a whole and, therefore, a systematic information
accuracy, and impartiality of the data collected. This in planning approach is required in order to secure high
turn has serious repercussions on gaining an all-round levels of consistency, coherence, and correspondence
picture of the targeted export markets and taking the among them.
correct marketing actions. In conclusion, it seems that the export marketing
Surprisingly, only one of the studies reviewed pro- information system is not properly used by the vast
vided some insights into export information dissemi- majority of export managers, probably due to the great
30 L.C. Leonidou, M. Theodosiou / Journal of World Business 39 (2004) 12–36

diversity, complexity, and difficulty of the interna- tion stage of the firms targeted; (b) making aware the
tional business environment (Czinkota & Ronkainen, array of information services offered to national
2001; Douglas & Craig, 1983). However, to gain exporters, and thoroughly explaining the type and
familiarity, increase understanding, and cope effec- usefulness of each piece of information provided;
tively with this environment, it is essential to have the (c) subsidizing the cost of collecting expensive mar-
right information, from the right sources, directed to keting research information and/or sponsoring the
the right people, and used in the right way. It is also execution of collaborative studies about foreign mar-
important to realize that many export decisions are kets; (d) creating an interactive electronic database
situation-specific, contingent upon managerial, orga- system where exporters can have direct, online access
nizational, and environmental factors. Hence, the and request customized information at any time; and
adoption of particular export information behavior (e) providing counseling assistance to exporting firms
should be seen within the context of these factors in analyzing and exploiting usefully the information
(Leonidou et al., 2002). collected from various sources (Seringhaus & Rosson,
1990).
Business educators should adjust their international
8. Review implications business curricula or even design entirely new courses,
stressing the role of the export marketing information
Several implications for corporate managers, public system in making effective and efficient marketing
policy-makers, business educators, and academic decisions. Although existing programs provide some
researchers can be extracted from the previous ana- highlights on international marketing research, it is
lysis. Corporate managers should realize that building important to provide more ‘‘hands-on’’ training of
a sound export information system is crucial in devel- how to conduct this type of research in foreign mar-
oping the export side of their business, since this will kets, through, for example, the assignment of special
enable them to avoid costly mistakes of inappropriate export marketing research projects, participation in
strategy and the possibility of lost opportunities (Dou- simulation exercises, and student placement in inter-
glas & Craig, 1983). This is particularly true nowa- national marketing research agencies. Special empha-
days, when world markets are characterized by sis should be given to recent advances in information
increasing volatility attributable to intensive competi- technology as a means of retrieving, analyzing, and
tion, technological advancements, and shifts in con- using useful information about export markets (Pra-
sumer preferences. However, this necessitates: (a) a sad, Ramamurthy, & Naidu, 2001). Vocational train-
systematic assessment of the exact types of informa- ing should also be provided for managers interested in
tion required to obtain a sufficient foreign market foreign markets, focusing on the analysis of the com-
audit; (b) identification of the various sources avail- ponents of the export marketing information system,
able to collect this information, as well as an evalua- and how these can interact to improve export perfor-
tion of the reliability of each data source; (c) mance levels. In this respect, the provision of case
dissemination of the information collected to the right studies illustrating successful determination, acquisi-
managers, in the right place, and at the right time; and tion, dissemination, and use of export information
(d) proper utilization of information in making sound would prove particularly helpful.
export marketing decisions. In doing this, export Finally, export researchers should capitalize on the
managers should not regard information as an findings of this review and take several courses of
expense, but as a key investment with promising future action that would improve knowledge on the subject:
returns. (a) Conceptually, there is a need to relate better the
Public policymakers should also realize that the issue of export information to the overall exporting
existing information assistance provided to current discipline, and try to improve its theoretical back-
and would-be exporters is partial, insufficient, and ground, using ideas developed from the more
diffused. Hence, there is room for improvement by: advanced field of domestic marketing/business
(a) tailoring export information programs according to research; (b) Methodologically, it is important to
the specific resource capabilities and internationaliza- improve the fieldwork (e.g., emphasis on longitudinal,
L.C. Leonidou, M. Theodosiou / Journal of World Business 39 (2004) 12–36 31

cross-cultural, and collaborative studies), sampling additional antecedent factors (e.g., management
and data collection (e.g., more representative samples traits, organizational characteristics, internationali-
and more qualitative research), construct operationa- zation stage).
lization (e.g., more comprehensive operationaliza-
tion/measurement of antecedent, information, and
performance constructs), and analysis (e.g., using Acknowledgments
more robust statistical methods) of future research;4
and (c) Empirically, the concurrent interactive effect The authors would like to thank the European
of all four dimensions of information behavior on Editor and the reviewers of the Journal for their
export performance should be tested, while at the valuable insights and constructive comments on pre-
same time taking into account the moderating role of vious versions of the article.

Appendix A. List of journals and studies incorporated in the review

Journal Studies
Developments of Marketing Science Naor and Cavusgil (1981)
European Journal of Marketing Bodur and Cavusgil (1985); McAuley (1993);
Walters (1983); Wood and Goolsby (1987)
International Business Review Diamantopoulos and Horncastle (1997); Robertson
and Wood (2001)
International Journal of Information Management Benito et al. (1993); Walters (1996)
International Marketing Review Czinkota and Ursic (1983); Hart et al. (1994)
Journal of Business Research Cavusgil (1984); Reid (1984); Samiee and Walters (1990)
Journal of International Marketing Yeoh (2000)
Journal of Global Marketing Koh et al. (1993)
Journal of Marketing Management Kaynak and Erol (1989); Souchon and
Diamantopoulos (1997)
Journal of Small Business Kleischmidt and Ross (1984)
Journal of Small Business Management Howard and Herremans (1988)
Journal of Strategic Marketing Leonidou and Katsikeas (1997)
Long Range Planning Leonidou (1997)
Management International Review Kaynak (1992); Seringhaus (1993)
Marketing Intelligence & Planning Chaudhry and Crick (1998); Evirgen et al. (1993)
Note. Studies by Brooks and Rosson (1982) and Tesar and Tarleton (1982) were published in (Czinkota, M. R., &
Tesar, G. (Eds.)), Export management: An international context. New York Publishers.

4
Researchers from Austria, Germany, New Zealand, the United
Kingdom, and the United States have recently formed such a
collaborative team in order to investigate methodological aspects of
export information use along the lines of the work of Souchon and
Diamantopoulos (1999). Interestingly, this group has already made
a substantial contribution in this area by providing valuable input
on the cross-cultural validation of scales measuring the instru-
mental, conceptual, and symbolic dimensions of information usage
(Salzberger et al., 2002).
32
Appendix B. Methodological profile of export information studies

Research Naor and Brooks and Tesar and Tesar and Czinkota Walters Cavusgil Kleischmidt Reid Bodur and Wood and Howard and Kaynak and Samiee and
study Cavusgil Rosson Tarleton Tarleton and Ursic (1983) (1984) and Ross (1984) Cavusgil Goolsby Herremans Erol (1989) Walters
(1981) (1982) (1982) (1982) (1983) (1984) (1985) (1987) (1988) (1990)

Fieldwork 1979 1979 1974 1981 1981 1981 1981 1982 1979 1983 1985 1986 1985 1988
yeara
Focus US—Maine Canada— USA— USA— USA USA— USA— Canada— Canada— Turkey USA— USA Turkey USA

L.C. Leonidou, M. Theodosiou / Journal of World Business 39 (2004) 12–36


country Ontario/Nova Wisconsin Virginia Georgia Wisconsin/ Ontario Ontario Oregon
Scotia/New Illinois
Brunswick
Firm size Small/ Small/ Small/ Small/ Small/ Small/ Small/ Small Small Small/ NA Small NA Small/
medium medium medium medium medium medium medium/ medium/ large
large large
Industrial NA Multiple NA NA Material- Forest NA High-tech Material Food/textile Multiple Multiple Multiple Multiple
group handling products products fabrication/ products
equipment/ furniture/
avionics and machinery
aviation support/
industrial
equipment
Units of Exporters/ Exporters/ Exporters/ Exporters/ Exporters Exporters Exporters Exporters Exporters Exporters Exporters Exporters Exporters Exporters
analysis non-exporters non-exporters non-exporters non-exporters
Sampling Probability/ Probability/ NA NA Whole Whole NA NA Probability Nonprobability/ Nonprobability/ Nonprobability Nonprobability/ Probability/
design systematic random population population judgment judgment judgment stratified
Sample size 310 253 57 þ (417) 167 þ (23) 182 33 70 85 89 88 137 101 50 145
Effective 39 44 NA NA 20 70 NA 75 51 71 53 34 29 30
response
rate (%)
Nonresponse Nontested Nontested Nontested Nontested Tested Nontested Nontested Nontested Nontested Nontested Nontested Nontested Nontested Nontested
bias
Data Mail survey Mail survey Mail survey Mail survey Mail survey Personal Personal Personal Mail Personal Mail survey Mail survey Mail survey/ Mail survey
collection interviews interviews interviews survey interviews personal
interviews
Key NA President/ NA NA NA Export officer International Multiple NA Export and CEO/ Export Owner/ NA
informant general business marketing president/ officer president
manager officer manager upper level
manager
Information – – 15 15 – – – – – 18 23 – – 11
types items
Information 8 8 – – 7 11 5 16 6 8 – 23 6 –
source items
Information – – – – – – – – – – – – – –
use items
Measurement Dichotomous/ Dichotomous/ Dichotomous/ Dichotomous/ Dichotomous/ Dichotomous/ Dichotomous/ 5-point/usage 5-point/ Dichotomous/ 5-point/ 4-point/ Dichotomous/ 5-point/
scale/ usage usefulness usefulness usefulness usage usage and importance and constant- importance usage and importance helpfulness usage acquisition
dimensions 5-point/utility sum/importance 4-point/
importance
Statistical Percentage Percentage Percentage Percentage Percentage Percentage Percentage Mean score Percentage Percentage Factor Mean score Percentage Mean
analysis frequency frequency frequency frequency frequency frequency/ frequency frequency/ frequency/ analysis/ frequency/ score/t-test
mean score correlation/ mean score/ MANOVA t-test Chi-square
regression t-test
Appendix B. (Continued )
Kaynak Koh et al. Evirgen et al. Benito et al. Seringhaus McAuley Hart et al. Walters Diamanto- Souchon and Leonidou Chaudhry Yeoh Robertson
(1992) (1993) (1993) (1993) (1993) (1993) (1994) (1996) poulos and Diamanto- (1997)/ and Crick (2000) and Wood
Horncastle poulos (1997) Leonidou and (1998) (2001)
(1997) Katsikeas (1997)

Fieldwork 1990 1991 1991 1991 1991 1990 1992 1994 1995 1995 1996 1995 1998 1996
yeara
Focus Canada— Thailand— Turkey Norway Canada/Austria UK UK Norway UK UK Cyprus UK USA USA
country Atlantic Bangkok
region/
Prairie

L.C. Leonidou, M. Theodosiou / Journal of World Business 39 (2004) 12–36


region
Firm size NA NA Large Small/ Small/ NA Small/ NA Small/ NA Small Small/ Small/ NA
medium/large medium medium medium medium medium/large
Industrial Multiple Canned Multiple Multiple High- Multiple Facilitating Multiple Industrial NA Textiles & NA Multiple Multiple
group foods/ technology goods/original goods wearing
electronics, products equipment/ apparel/food
electrical capital goods & beverages
appliances,
parts
Unit of Exporters Exporters Exporters Exporters Exporters Exporters Exporters Exporters Exporters Exporters Exporters Exporters/ Exporters Exporters
analysis non-exporters
Sampling Probability/ Probability/ Nonprobability/ Nonprobability/ Probability/ Nonprobability NA NA Probability/ Probability/ Probability/ NA Probability/ Nonprobability/
design systematic random judgment judgment random random random random systematic judgment
Sample size 196 33 18 221 123 77 50 32 71 39 80 1248 180 137
Effective 49 52 82 25 25 75 30 NA 25 26 25 24 32 52
response
rate (%)
Nonresponse Nontested Nontested Nontested Nontested Nontested Nontested Nontested Nontested Tested Nontested Tested Nontested Tested Tested
bias
Data Mail survey Mail survey Personal Personal Mail survey Mail survey Mail survey Personal Mail Mail survey Personal Mail survey Mail survey Mail survey
collection interviews/ interviews interviews survey interviews
mail survey
Key Owner/ Export/ Senior General NA NA NA Multiple CEO/export Export officer CEO/export NA CEO/ Multiple
informant president officer manager/ export, and officer/ officer/ president/
export marketing marketing marketing export manager
marketing manager manager/ director
manager sales
manager
Information – 15 18 12 – 12 16 10 – – 23 17 – 60
type items
Information 15 – – 15 11 17 10 14 – – 26 14 11 –
source
items
Information – – – – – – 4 – Composite 4 – – – –
use items (7)
Measurement 10-point/ 4-point/ 5-point/ 5-point/ 4-point/ Dichotomous/ 5-point/ Dichotomous/ NA 5-point/ 5-point/ 5-point/ 5-point/ 5-point/
scale/ usefulness usefulness importance importance importance frequency of importance usage frequency frequency of importance frequency of importance
dimension use and and 5-point use and 5-point/ and 5-point/ use and
5-point/ usage importance utility 5-point/
usefulness usefulness
Statistical Mean score/ Percentage Mean score/ Mean Mean score/ Percentages/ Mean score/ Percentage Regression Friedman’s Percentage Factor Factor Mean score
analysis t-test frequency/ ANOVA/ score/t-test discriminant mean score factor analysis/ frequency/ two-way frequency/ analysis/ analysis/
mean score/ Scheffe test analysis/ correlation/ regression/t-test ANOVA/ mean score/t-test discrimianant correlation/
t-test correlation Mann- Spearman analysis/ regression/
Whitnney correlation mean score ANOVA/t-test
a

33
In some studies the fieldwork year was not indicated, and therefore, this had to be inferred from the article’s year of publication.
34 L.C. Leonidou, M. Theodosiou / Journal of World Business 39 (2004) 12–36

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