When Exporting Manufacturers Compete on the Basis of Service: Resources and Marketing Capabilities Driving Service Advantage and Performance

Abstract

Because services account for an increasingly large percentage of the gross domestic product globally, achieving competitive advantage in the international markets depends to a great extent on the level of service the firm offers to its customers. Focusing on exporting manufacturers, this study draws from the resource-based view of the firm to develop and test a model of those key resources and capabilities that drive service advantage in the overseas markets. The author finds that exporting experience nurtures customer relationships and informational capabilities, and availability of finance facilitates informational and product development capabilities and enables exporters to achieve service advantage and superior venture performance in the overseas markets.