The role of past performance in export ventures: a short-term reactive approach

Abstract

This paper employs organizational learning theory to examine the short-term effect of past export performance, and internal (management) and external (market) forces on marketing strategy adaptation and current export performance. Results from a survey of over 500 export managers indicate that current-period performance improvement (in terms of performance achievement, export intensity, and performance satisfaction in the current year) is influenced by the firm's commitment to exporting. Further, the authors found that while performance satisfaction feeds performance improvement in the following year, both the previous year's export intensity and export performance achievement produce a negative impact on current-period performance improvement. More importantly, the level of development in the export market facilitates marketing strategy adaptation in the short term, as does export intensity in the previous year. However, satisfaction with previous-year performance negatively influences the degree of distribution adaptation. Implications for international business researchers and practitioners are also discussed.