The strategic fit of the Internet and export marketing: Empirical evidence of New Zealand and Australian exporters

Abstract

The Internet is creating a new and unique global electronic marketplace which businesses in virtually every sector are beginning to use. Yet, despite its phenomenal growth and hype, very little is understood about its impact on international business.

The overall goal of this study is to examine the critical issues surrounding a successful Internet marketing strategy aimed at improving export-related benefits and performance of New Zealand and Australian exporters. The study used both mail and online surveys to empirically verify the central propositions.

The survey sample consisted of 136 New Zealand and Australian exporters and used to: (1) analyse the level of development among Australian and New Zealand firms in use of the Internet for exporting activities, (2) explore multi-dimensional components of an Internet export strategy, called Internet Interactivity, and (3) assess the impact of Internet Interactivity upon export-related benefits and performance of firms.

Correlation, multi-regression and hierarchical regression analysis were used to test the research hypotheses. The results confirmed that electronic commerce creates opportunities for the Internet and export marketing to jointly improve a firm's export performance. Exporters are also able to implement more effective electronic export strategies and superior organisational competencies using some specific components of an Internet Interactivity strategy. However, contrary to what was expected, Internet Interactivity does not enhance a firm's ability to overcome export barriers.

Furthermore, the analysis reveals that improved export performance is favourably influenced by a firm's ability to overcome export barriers, and improved organisational competencies. Electronic export strategies were not found to have a direct impact on performance, although, firms with long established Web sites did excel in this respect. Such firms were able to leverage off their electronic export strategies and improve export performance, suggesting that a period of consolidation and learning is required before firms enjoy the real benefits of an Internet capability.

When taking moderating variables into consideration, the regulatory environment was found to be the only significant moderator. Firms that were impacted least by the regulatory environment were most able to increase their export performance through electronic strategies and organisational competencies.

Given empirical support for the view that the Internet has a positive impact on international trade, export benefits and performance, managers should ensure that learning and training on Internet export marketing is fostered within their firms. Failing to progressively incorporate an Internet export strategy can only result in further competitive disadvantage and potential lost opportunities in the future.