The effect of local institutions on the competitive strategies of exporters. The case of emerging economies in Latin America

This paper analyzes the effect of local institutions and market orientation on the export performance of Latin American firms when they implement generic competitive strategies. A specific questionnaire sent to 201 executives of exporting manufacturing and service companies in Brazil, Chile, Mexico, and Peru generates the data for this research. Then, confirmatory factor analysis is used to develop the underlying multi-item constructs, and a structural equation model tests the hypotheses. The results state that local institutions, directly and indirectly, affect export performance through the marketing orientation of firms, and marketing orientation mediates the implementation of the differentiation strategy but not the cost-based leadership strategy. The findings suggest that firms with differentiation strategies benefit more from strong local institutions.

Competitive strategy, Emerging economies, Export performance, Local institutions, Marketing orientation, Strategy implementation

10.1016/j.jbusres.2023.114256

0148-2963

Heredia Pérez, Jorge A.

1dae9124-8272-4364-ae3e-b30050bdc7a9

Geldes, Cristian

80df35fe-b311-4840-9b1d-f01161d84039

Kunc, Martin H.

0b254052-f9f5-49f9-ac0b-148c257ba412

Flores, Alejandro

26d39924-c333-4a23-b5e3-af313ded9723

December 2023

Heredia Pérez, Jorge A.

1dae9124-8272-4364-ae3e-b30050bdc7a9

Geldes, Cristian

80df35fe-b311-4840-9b1d-f01161d84039

Kunc, Martin H.

0b254052-f9f5-49f9-ac0b-148c257ba412

Flores, Alejandro

26d39924-c333-4a23-b5e3-af313ded9723

Heredia Pérez, Jorge A., Geldes, Cristian, Kunc, Martin H. and Flores, Alejandro (2023) The effect of local institutions on the competitive strategies of exporters. The case of emerging economies in Latin America. Journal of Business Research, 169, [114256]. (doi:10.1016/j.jbusres.2023.114256).

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Accepted/In Press date: 2 September 2023

e-pub ahead of print date: 9 September 2023

Published date: December 2023

Additional Information: Funding Information: Jorge Heredia, first author, has passed away unexpectedly on 14 April 2023. He is survived by a wife and a son. It has been a shock to all co-authors to learn about Jorge's death. He was charismatic, hardworking, and passionate about research. He led many articles and projects in Peru and other countries. We will miss him. Publisher Copyright: © 2023 The Author(s)

Keywords: Competitive strategy, Emerging economies, Export performance, Local institutions, Marketing orientation, Strategy implementation