Export Market Expansion Strategies of Direct-Selling Small and Medium-Sized Firms: Implications for Export Sales Management Activities

Abstract

The authors use punctuated equilibrium theory as a framework to help explain potential differences in the export sales management arrangements between firms that adopt an export market expansion strategy of either market concentration or market spreading. On the basis of a thorough review of the extant literature, the authors identify certain export sales managers’ characteristics and behavior, export sales behavioral control, and satisfaction with export sales territory design as potential discriminators between these two groups of direct exporting firms. Consistent with the hypotheses, in general, the authors find that the tenets of punctuated equilibrium theory hold for the sample of small and medium-sized U.K. exporters. In addition, the results indicate that export market expansion strategy has important implications for a firm's export sales management arrangements. The authors discuss the findings and outline implications for business practitioners and further research.