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Assessing Measurement Invariance of Export Market Orientation: A Study of Chinese and Non-Chinese Firms in China 

Janet Y. Murray, Gerald Yong Gao, Masaaki Kotabe, and Nan Zhou

Executive Summary
Because exporting remains the most common way to penetrate foreign markets, firms have begun to focus more on export market orientation (EMO) to achieve desirable export performance (EP). However, research on EMO has mainly been conducted in the context of Western firms from developed countries. Without evidence on the cross-national invariance of EMO measures in the emerging economy context, knowledge about the relative impact of EMO in explaining EP for firms from developing countries in relation to those from developed countries is impeded.

Murray and colleagues test the cross-cultural measurement invariance of the EMO and EP scales and examine the EMO–EP relationships with a sample of Chinese and non-Chinese export ventures. Their results provide support for measurement invariance both for EMO and EP between Chinese and non-Chinese firms. Using a three-independent-factor structure of EMO, the results show that there are significant differences in the EMO–EP relationship between Chinese and non-Chinese firms. It also appears that the effect of export intelligence dissemination is not as critical as that of export intelligence generation and export intelligence responsiveness on EP.

The sampling frame for the study is export ventures located in Beijing, Shanghai, Jiangsu, and Guangdong in China. Using on-site interviews, Murray and colleagues obtain responses from 491 export ventures, consisting of 240 Chinese and 251 non-Chinese firms. After establishing measurement invariance of EMO and EP between these two types of firms, they make reliable comparisons on the EMO–EP relationship between the two groups. On the basis of their findings, they identify the components of EMO that drive EP in the Chinese and non-Chinese firm context.

Murray and colleagues provide important managerial implications for both Chinese and non-Chinese firms exporting from China. Their results suggest that to achieve higher EP, non-Chinese firms should focus on export intelligence generation. Because China has been modifying its policies on a continuous basis, it is also imperative for foreign firms exporting from China to monitor continuously their export intelligence generation. As for Chinese firms, it is crucial for them to devote their efforts toward export intelligence responsiveness because it has a positive effect on EP. because of the unique dual system for conducting foreign trade faced by Chinese and non-Chinese firms, the efforts in monitoring competitors’ actions, as reflected in export intelligence responsiveness, appear to be more important in affecting EP for Chinese firms.

Biography
Janet Y. Murray is E. Desmond Lee Professor for Developing Women Leaders and Entrepreneurs in International Business at the University of Missouri–St. Louis. She received her PhD in Marketing from the University of Missouri–Columbia in 1992. Dr. Murray has taught courses in marketing and international business at the undergraduate, master’s, and doctoral levels. She has previously held faculty positions in marketing and international business at Saint Louis University, Cleveland State University, and City University of Hong Kong. Dr. Murray's research interests focus on global sourcing and international marketing strategies, international strategic alliances, learning and knowledge transfer, and competitive strategy in transitional economies. Her research has appeared in journals, such as Journal of Marketing, Strategic Management Journal, Journal of International Business Studies, Journal of Business Research, Journal of International Marketing, Journal of World Business, Industrial Marketing Management, Journal of Business Research, Management International Review, and International Marketing Review, and others. She was a recipient of four best-paper awards. Dr. Murray has provided consulting and executive training services to Fortune 500 and other firms in the areas of marketing and international business strategies. Dr. Murray serves on the editorial review boards for Journal of International Business Studies, Journal of International Marketing, and Journal of International Management.

Gerald Yong Gao is Assistant Professor of Marketing in the College of Business Administration at the University of Missouri-St. Louis. He received his BA in Economics from Peking University and his PhD in Marketing from the University of Hong Kong. His areas of interest include market entry strategy, foreign direct investment, and strategic orientation. He has published in International Journal of Research in Marketing, Journal of International Marketing, and Journal of Business Research, among others.

Masaaki Kotabe holds the Washburn Chair Professorship in International Business and Marketing and is Director of Research at the Institute of Global Management Studies in the Fox School of Business and Management at Temple University. Before joining Temple University in 1998, he was Ambassador Edward Clark Centennial Endowed Fellow and Professor of Marketing and International Business at the University of Texas at Austin. Dr. Kotabe served as the vice president of the Academy of International Business in 1997–1998. He has lectured widely at various business schools around the world, including Austria, Germany, Finland, Spain, Brazil, Colombia, Mexico, China, Japan, Korea, Indonesia, and Turkey. He has worked closely with leading companies such as AT&T, NEC, Nissan, Philips, Sony, and 7-Eleven and has served as advisor to the United Nations’ and World Trade Organization’s Executive Forum on National Export Strategies. He has written many scholarly publications in journals, such as Journal of International Business Studies, Journal of Marketing, Strategic Management Journal, and Academy of Management Journal. His books include Global Sourcing Strategy (1992), Anticompetitive Practices in Japan (with Kent W. Wheiler, 1996), MERCOSUR and Beyond (1997), Marketing Management (3d ed., with Michael R. Czinkota 2005), Market Revolution in Latin America (with Ricardo Leal, 2001), Emerging Issues in International Business Research (with Preet Aulakh, 2002), Global Supply Chain Management (with Michael J. Mol, 2006), and Global Marketing Management ( 4th ed., with Kristiaan Helsen, 2007). He serves as the editor of Journal of International Management and also serves/has served on the editorial boards of Journal of Marketing, Journal of International Business Studies, Journal of International Marketing, Journal of World Business, Journal of the Academy of Marketing Science, Advances in International Management, Journal of Business Research, and Thunderbird International Business Review, among others. In 1998, he was elected a fellow of the Academy of International Business for his significant contribution to international business research and education. He is the recipient of the 2002 Musser Award for Excellence in Research at Temple University.

Nan Zhou is a Professor in the Department of Marketing at the City University of Hong Kong. He received a graduation diploma from Fuzhou University, China, an MBA from Idaho State University, and a PhD in Business Administration from University of Utah. His current area of interest is marketing in China. He has published in Journal of Advertising, Journal of Advertising Research, Journal of Business Research, Journal of Consumer Research, and Journal of International Business Studies, among others.

Journal of International Marketing, Vol. 15, No. 4, December 2007
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