The empirical study of marketing innovation model on export performance of exporting firms in Thailand

Abstract

The objectives of this study are threefold (1) to identify the key variables that can best explain the marketing innovation for exporting firms in Thailand, (2) to propose and verify "The Full Model of Export Performance" of exporting firms in Thailand, and (3) to suggest the strategy for the development of marketing innovation for exporting firms in Thailand. The conceptual framework in this study is developed from aby and Slater's concept, and incorporate the Resources-Based Theory in analyzing the performance of exporting firms. The model is analyzed empirically by using two hundred and forty-nine questionnaires that are collected from top executives in four high growth export sectors (food processing, gems and jewelry, garments, and electronic and electrical products). Linear Structural Relationship (LISREL) statistics is employed to test the model. The study shows that marketing innovation of exporting firms in Thailand is composed of 3 constructs. They are new product innovation (unique features, satisfy customers' needs, better quality than competitors), new working process (using computers, applying international standards, re-engineering, using new technology), and new market (access to new markets, new packaging, new promotional approaches, new support provided to foreign distributors). The best fitted model of export performance is founded. The model is composed of four latent constructs : (1) export performance (profit, market share, sales growth rate, company image), (2) marketing innovation (new product, new working process, new market), (3) firm resources (marketing knowledge of executives, assigned responsibility for export development, having export marketing department, good relationship with others related to the business), and (4) firm characteristics (number of full-time employees). The results indicate that the resources-Based theory can explain the export venture of exporting firms in Thailand relatively well. The findings of this study lead to the suggestion that the success of export performance of exporting firms in Thailand depends on several efforts in marketing activities. The most importance are exporting firms should concentrate on creating new products with developing their own national brand names, improving new working process by employing marketing information system and the new technology, penetrating the new market by concentrating on a niche market. Enhancing marketing innovation strategy needs multi-cooperation from many parties such as government agencies, trade associations and educational institutions. In addition, visions, knowledge in international marketing and good relationships with customers and related organizations of top executives and middle managers of exporting firms are considered as valuable resources of firms in creating marketing innovation in Thailand. The research also suggests ideas for further research in this area.