Drivers of Export Segmentation Effectiveness and Their Impact on Export Performance

Abstract

In recent years, export segmentation effectiveness has attracted increasing attention in academic literature. The current study acknowledges this construct's ability to capture the proximal outcomes of export segmentation efforts and contributes to the literature by investigating its key drivers and link to export performance. The results identify export segmentation commitment, export segmentation strategy, and number of segmentation bases used as the key drivers of export segmentation effectiveness. A segments-within-countries strategy proves the most promising choice because it affects all export segmentation dimensions, which, with the exception of cost reduction, are significantly linked to customer satisfaction, strategic export performance, and, ultimately, financial export performance. The findings also provide support for the sequential segmentation → targeting → positioning process and highlight the importance of managerial commitment to export segmentation when facing heterogeneous markets.