Exploitation Strategy and Performance of Contract Manufacturing Exporters: The Mediating Roles of Exploration Strategy and Marketing Capability
journal contributionposted on 2020-11-10, 00:54 authored by Revti RamanRevti Raman, TK Nguyen, D Crick
© 2018 Elsevier Inc. Contract manufacturing exporters (CMEs) receive a meagre share of global value chain returns, primarily because of the mundane and exploitative nature of the activities they perform in their dependency relationships with lead firms. We posit that CMEs can enhance their performance by capitalizing on their exploitation strategy. Exploitation strategy triggers exploration strategy which requires building marketing capabilities for enhanced performance. Based on data from 154 Vietnamese CMEs, we find significant indirect only mediation effects of: 1) exploration strategy between exploitation strategy and export performance; and 2) marketing capability between exploration strategy and export performance. Further, we find significant indirect only serial mediation of exploration strategy and marketing capability between exploitation strategy and export performance. The findings are also supported and contextualized based on illustrative quotes from face to face semi-structured interviews with senior managers of 10 Vietnamese CMEs. The findings suggest that CMEs’ that consciously capitalize on the exploitation strategy by seeking exploration opportunities while building their marketing capability exhibit enhanced performance.
Preferred citationSharma, R. R., Nguyen, T. K. & Crick, D. (2018). Exploitation Strategy and Performance of Contract Manufacturing Exporters: The Mediating Roles of Exploration Strategy and Marketing Capability. Journal of International Management, 24(3), 271-283. https://doi.org/10.1016/j.intman.2018.02.001
Journal titleJournal of International Management
Contract manufacturing exportersGlobal value chainsExploitation strategyExploration strategyMarketing capabilityExport performanceVietnamSocial SciencesManagementBusiness & EconomicsRESOURCE DEPENDENCE THEORYRESEARCH-AND-DEVELOPMENTGLOBAL VALUE CHAINSFIRM PERFORMANCEORGANIZATIONAL AMBIDEXTERITYCORPORATE ENTREPRENEURSHIPECONOMIC-DEVELOPMENTEMPIRICAL-EVIDENCECHINESE EXPORTERSGARMENT INDUSTRYBusiness & ManagementBusiness and ManagementMarketing