About AMA

Executive Summary
Market expansion strategy is a critical decision area for small and medium-sized firms as they attempt to expand their overseas export operations. Strategic alternatives range from concentrating efforts in a small number of carefully selected export markets (i.e., market concentration) to entering as many foreign markets as possible (i.e., market spreading). To contribute toward the understanding of the impact of such decisions on a firm’s export marketing activities, Katsikea, Theodosiou, Morgan, and Papavassiliou investigate differences between export market concentrators and spreaders regarding their export sales managers’ characteristics and behavior, export sales behavioral control strategy, and satisfaction with export sales territory design.

The findings of the study reveal that export market expansion strategy has important implications for a firm’s export sales management arrangements. The results indicate that market spreaders use a behavior-based sales management control system to a greater extent than do market concentrators. Moreover, export sales managers in firms that implement a market spreading approach (1) appear to be more satisfied with the export territory design that their firms develop; (2) are characterized by higher levels of professional competence and customer orientation; and (3) are more competent in performing behavioral sales-related activities, such as sales planning, sales presentation, adaptive selling, sales support, and technical knowledge. 

The study integrates extant knowledge from the fields of export marketing and sales management. It also uses a punctuated equilibrium perspective as the theoretical lens to investigate export sales management–related differences between export market concentrators and spreaders. The results are based on data that were obtained through a mail survey. A structured questionnaire, which was developed on the basis of established theory and exploratory interviews, was sent to export sales managers in small and medium-sized exporting firms. Katsikea, Theodosiou, Morgan, and Papavassiliou use confirmatory factor analysis and Cronbach’s alpha coefficients to assess the validity and reliability of the measures, and they use multivariate discriminant analysis and multivariate analysis of variance to test research hypotheses. They also estimate a logistic regression model to further validate these findings.

Katsikea, Theodosiou, Morgan, and Papavassiliou conclude that export market spreaders face more challenging tasks than do market concentrators, but they are likely to be rewarded with superior performance, especially in the long run. To realize these potentials, however, export market spreading firms must pay particular attention to the design of correct-sized export territories, provide appropriate training to their export sales managers, and be concerned for the continuous professional development of their export sales managers.

Biography
Evangelia S. Katsikea has a bachelor’s degree from Athens University of Economics and Business and a doctoral degree from Cardiff University. Her research interests focus on export marketing, channels of distribution, sales management, and tourism marketing. She has consulted for a number of export sales organizations and is currently researching the areas of export sales management and export strategy development and implementation. She has recently published in International Marketing Review, Industrial Marketing Management, and International Business Review.

Marios Theodosiou received his bachelor’s degree from the University of Cyprus and his doctoral degree from Cardiff University. His research interests focus on the standardization versus adaptation of marketing strategies in international markets, marketing strategy–performance relationship in the context of international business ventures, export marketing strategy, and international sales force management. His current research work focuses on knowledge management in exporting firms and export sales management. His has recently published in International Marketing Review, Journal of World Business, International Business Review, and Journal of International Marketing.

Robert E. Morgan received his Bachelor of Science in Economics and his doctoral degree from the University of Wales. His research interests focus on export marketing and strategy development, strategic market learning and competitive reasoning, and international entrepreneurship. His previous work experience and consulting work has been in high-technology sectors, especially with global players in information communication technologies. A former advisor and evaluator to the government in the United Kingdom on export assistance and promotion initiatives, he is currently developing his work in the area of international expansion patterns of high-growth small firms. In addition, he is researching export decision making in a real-options framework and examining export failure. His has recently published in Journal of Business Research, Journal of Marketing Management, British Journal of Management, and European Journal of Marketing.

Nikolaos Papavassiliou received his bachelor’s degree from Athens University of Economics and Business and his doctoral degree from Cologne University. His research interests focus on channels of distribution, retailing, advertising, pricing, and export marketing. He has also had previous work experience in the food industry. He is a former member of the executive committee of the European Marketing Academy, a member of the editorial board of Journal of Euro-Marketing, and area editor of International Journal of Research in Marketing. He is currently researching the areas of export strategy development and implementation. He has recently published in Journal of Marketing Channels, Journal of Euro-Marketing, European Journal of Marketing, and The Logistics and Transportation Review.