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Applied mathematics in engineering, management and technology 5(2) 2017:20-26

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Abstract

The aim of this study is to investigate the effects of export commitment and

marketing tactics adaptability on export performance. This is a descriptive

survey in which a questionnaire was employed to collect data. The statistical

population includes the carpet exporters of Tehran Province in 2015. The

confirmatory factor analysis and structural equation modeling technique were

used for the inferential analysis of data in LISREL and SPSS. According to the

results of testing hypotheses, it was confirmed that export commitment had an

effect on export performance. However, the effect of marketing tactics

adaptability on export commitment was not confirmed. It was also confirmed

that export commitment had an effect on marketing tactics adaptability.

Keywords: marketing tactics adaptability, export commitment, export performance

1. Introduction

The main research problem is to investigate the effects of export commitment and marketing tactics adaptability

on export performance. Nowadays the success of companies and trading institutes depends on how much they

know customers, rivals and other factors influencing the market better. Customer needs and demands are

continuously changing. A company can be successful only if it knows these changes. On the other hand, rivals

seek to attract more customers; therefore, they do not neglect any efforts. Moreover, changes in market

conditions and its governing rules, such as technological changes, can influence the success of institutes in a

market. Knowing and predicting these factors and providing appropriate solutions to deal with them have key

roles in the success of an institute in the target market. Therefore, the modern marketing approach is primarily

characterized by the market trend and customer needs (Noorinia, 2007). Exports are key tools for countries to

achieve their economic growth goals because exports are regarded as a part of demands made by the whole

society. Having direct and multiple effects on domestic productions, exports increase investment and transfer

manufacturing resources from low-yield sectors to high-yield sectors. Finally, exports transfer resources from

non-competitive introverted sectors to high-yield extroverted sectors. On the other hand, higher yields of export

economic activities, especially in technology markets resulting from competitive pressures in global markets,

lead to the compliance with international standards more than ever before. As a result, there will be more

tendencies towards the exploitation latest technological developments to participate in or expand more

penetration in global markets (Taleqani and Yousefi Siahgourabi, 2010). Given the fact that Iranian trading

companies engage in limited international activities and have very small roles in global markets, they should

seek a solution to improve their export performances and produce goods having relative advantages in

international markets. Therefore, they can match the values, customs, habits, cultures, and other variables of the

target export market to finally result in the development of non-oil exports, which is an appropriate market in

this regard.

Considering the fact that no empirical studies have been conducted on the effect of marketing tactics and export

commitment on export performance in the carpet industry, this study is intended to investigate different aspects

of these variables.

2. Research Literature

The Effects of Export Commitment and Marketing Tactics

Adaptability on Export Performance

Hamed Hamdi; Dr. Zahra Alipour Darvish

Dr. Mojtaba Maleki Islamic Azad University, Tehran North Branch



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Nowadays globalization has become a pervasive process, and it appears essential to know its different

economic, political, social and cultural. Globalization emphasizes the increasing mobility of workforce, capital,

technology, and the expansion of global trade meaning the connectivity of markets and development of

communications. On the one hand, globalization increases the amount and type of border exchange of goods

and services. It also increases global capital and accelerates technology transfer (Nawazish, 1998). On the other

hand, it increases competitions among countries, industries and companies and complicates their activities very

much. It also shortens their presence in global markets. Nevertheless, there are countries, industries and

companies which have obtained considerable shares of incomes from global markets for a long time. They have

always enjoyed significant profitability by getting ahead of their rivals in a way that they have become very

well-known in global consumption markets. In this regard, there are some companies which are more famous

than many countries. Their annual incomes are even more than GDPs of many developing or under-developed

countries. The secret to the prosperity of these countries, industries and companies lies in their competitiveness.

In other words, they have set their goals, resources, and measures through knowledge on environmental and

market conditions to bring about sustainable competitiveness with their rivals in global markets (Aghazadeh,

2008).

Now previous studies are reviewed here:

In 1994, Styles and Ambler conducted a study to identify company features as factors influencing export

performance. In this study, controllable variables were taken into account. They were divided into the features,

capabilities, and strategies of a company. This framework expresses the direct relationships of performance

with capabilities and strategies. It was also assumed that there was an indirect relationship between company

features and performance through the intermediating variable of strategy.

In their study, Katsikeas, Leonidou and Morgan (2000) stated that export performance should include the

satisfaction, intention and purposiveness of senior executives because it provides an export performance

measurement tool for organizational expectations. In fact, companies have had better performances by

saturating domestic markets. Furthermore, executives concentrated on the expansion of foreign target markets.

In 2002, Lages Luis and Sandy carried out a study entitled the Effects of Marketing-Based Matching

Strategy and Its Dimensions on Export Performance. They introduced a model to show this relationship. This

study was conducted on the international companies in the southeast of Asia. According to the results,

economic performance can be improved by designing and implementing export marketing strategies better;

therefore, an appropriate strategic success can be achieved.

Rezaei Dolat Abadi and Khaef Elahi (2006) investigated the effect of marketing (marketing culture and

sagacity) on business performance through marketing capabilities. First, they dealt with theories, viewpoints,

different marketing models, and the effect of marketing on business performance with respect to marketing

capabilities. Then they investigated the causal relationships of marketing culture, market sagacity, marketing

capabilities, and business performance. After that, they used the structural equation modeling based on the

industrial environment to propose and test a decision-making model to explain the causal bonds influencing

business performance. The research results indicated that business performance was influenced by marketing

integrity and capabilities in the current competitive environment. Moreover, marketing culture and market

sagacity influenced marketing capabilities which influenced business performance. Statistical analyses

indicated that the indirect effects of marketing culture and market sagacity on business performance were

significantly higher that direct effects. This shows that marketing capabilities played a major role in the

relationship between marketing and business performance.

The following figure shows the research framework:

Figure (1): Research Conceptual Model



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3. Research Methodology

Secondary resources such as books, papers, theses, and the Internet references were used in addition to desk

studies to select the research model. The experts were consulted, too.

In this regard, a questionnaire was extracted. To design the questionnaire, research literature and background

were reviewed. Then the esteemed supervisor and advisor were asked for their opinions. The questionnaire was

designed in the Likert scale in which the dimensions of the research model were evaluated in five points.

Moreover, the results of a pilot study were employed to modify and localize the questionnaire. Then the final

questionnaire was codified according to the conditions of the abovementioned industry.

The statistical population includes the carpet exporters of Tehran Province. According to the collected

information, there were 180 exporters. Based on Krejcie and Morgan Table for sample size determination

(Appendix) the statistical sample was selected. According to this table, there was n=118 for N=180.

In this study, the random sampling method was used. The questionnaires were distributed among the exporters

throughout Tehran at the time of research.

The content validity of the questionnaire was confirmed by defining each research construct, evaluation criteria

for each construct, and the hybrid scales of these criteria. Then a pretest, including 30 participants, was

conducted to evaluate the validity of questionnaire. After statistical analyses, the questionnaire was modified,

and the final questionnaire was distributed among all sample participants.

Cronbach’s alpha was used to evaluate the reliability of questionnaire. It was estimated over 0.76 (acceptable).

Moreover, Cronbach’s alpha was calculated for each of the questionnaire variables separately (following table).

Table (1): Cronbach’s Alpha

Variable Number of Items Cronbach’s Alpha

Export Performance 6 0.908

Marketing Tactics Adaptability 4 0.916

Export Commitment 5 0.928

Questionnaire 26 0.969

To analyze the data collected in this study, descriptive statistics were first used to investigate demographic

variables including gender, age, and educational attainment in SPSS. After that, inferential statistics were

employed. Then the structural equation modeling was used to analyze data and test hypotheses. Furthermore,

the confirmatory factor analysis was used to determine the reliability and goodness of fit. The data were

processed in LISREL 8.54.

4. Findings

According to the outputs of LISREL (standard estimation mode and significance coefficients mode), Table 2

shows path and significance coefficients as well as the results of testing hypotheses.

Table (2): Confirmation or Rejection of Research Hypotheses

Hypotheses Path

Coefficient R

2 t-value Result

1 Marketing tactics adaptability has a significant effect

on the performance of carpet exports. 0.23 0.052 0.68 Rejected

2 Export commitment has a significant effect on the

performance of carpet exports. 0.68 0.462 2.42 Confirmed

3 Export commitment has a significant effect on

marketing tactics adaptability. 0.89 0.792 8.99 Confirmed

The structural equation modeling was used to determine RMSEA indicating the goodness of fit. In other words,

the observed data matched the conceptual model to a great extent.



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Indicator Acceptable Range Value Result

X2/df

1 X

2/df 3 2.33 Confirmed

RMSEA2 RMSEA<0.08 0.008 Confirmed

GFI3 GFI>0.9 0.94 Confirmed

AGFI4 AGFI>0.85 0.89 Confirmed

CFI5 CFI>0.90 0.96 Confirmed

IFI6 IFI>0.90 0.93 Confirmed

5. Conclusion

The first concept inferred from this study is that a theoretical model indicates the effects of marketing tactics

and export commitment on export performance. According to the results of testing hypotheses, it was confirmed

that export commitment had an effect on export performance; however, the effect of marketing tactics

adaptability on export performance was not confirmed. Moreover, it was confirmed that export commitment

had an effect on the adaptability of tactics.

The study conducted by Navara et al. (2010) was used to present the research conceptual model. The following

table compares the results of hypotheses in this study.

Research Hypotheses Navara et al. (2010) The Current Study

(2016)

t-value Result t-value Result

The adaptability of marketing tactics had a significant

effect on the performance of carpet exports. 0.610 Rejected 0.68 Rejected

Export commitment had a significant effect on the

performance of carpet exports. 2.889 Confirmed 2.42 Confirmed

Export commitment had a significant effect on the

adaptability of marketing tactics. 3.079 Confirmed 8.99 Confirmed

6. Suggestions

According to the results of testing hypotheses showing the effects of export commitment on export performance

and the adaptability of marketing tactics, it appears that export commitment had significant effects on both

variables, something which indicates the important role of export commitment on the improvement of export

performance. Therefore, carpet exporters can allocate more financial and human resources to exports and

execute special plans to improve exports. In this way, they can have a positive and significant effect on export

performance. Considering the results of testing hypotheses showing the effect of marketing tactics adaptability

on export performance, it appears that the adaptability of marketing tactics did not have a direct and significant

effect on export performance. Changes and modifications made to marketing tactics by exporters and matching

marketing factors such as price, quality, distribution, and promotion with the market conditions of target

countries can improve export performance.

Research Limitations

1 Chi Square Divided to Degree of Freedom

2 Root Mean Square Error of Approximation

3 Goodness of Fit Index

4 Adjusted Goodness of Fit Index

5 Comparative Fit Index

6 Incremental Fit Index



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The statistical population was collected in Tehran in 2016. Therefore, caution should be taken in the

generalization of results. It is obvious that the results of studies conducted at a particular time and place in a

particular industry cannot be generalized to other temporal, spatial and industrial conditions. This research plan

can be conducted in a broader temporal and spatial range so that the results may have generalizability or a

higher external validity. The research results are limited to the abovementioned temporal and spatial

dimensions. Conducting the same study on other populations can have different results. Comparing the research

results with previous or future studies can lead to the generalization of these results.

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