Chinese Business Review (ISSN 1537-1506), Vol. 18, No. 4, 2019

Chinese Business Review Volume 18, Number 4, Oct.-Dec. 2019 (Serial Number 189) David Publishing David Publishing Company www.davidpublisher.com Publication Information: Chinese Business Review is published quarterly in hard copy (ISSN 1537-1506) and online by David Publishing Company located at 3 Germay Dr., Unit 4 #4651, Wilmington DE 19804, USA. Aims and Scope: Chinese Business Review, a professional academic journal, covers all sorts of researches on Economic Research, Management Theory and Practice, Experts Forum, Macro or Micro Analysis, Economical Studies of Theory and Practice, Finance and Finance Management, Strategic Management, and Human Resource Management, and other latest findings and achievements from experts and scholars all over the world. Editorial Board Members: Kathleen G. Rust (USA), Moses N. Kiggundu (Canada), Yutaka Kurihara (Japan), Christian Seiter (Germany), Bogusław Ślusarczyk (Poland), Kazuhiro Takeyasu (Japan), Marvin E. González (USA), Roberta Guglielmetti Mugion (Italy), Annarita Trotta (Italy), A Varadaraj (India), Natalia Petrovna Kusnezova (Russia), Shelly SHEN (China), Moira Polyxeni (Greece), Boon-Anan Phinaitrup (Thailand), Carlos Salcedo-Perez (Columbia), Aysegul Yildirim kaptanoglu (Turkey), Francisco J. Valderrey (Mexico), Ciurea Maria (Romania), José Manoel Antelo Gomez (Brazil) Manuscripts and correspondence are invited for publication. You can submit your papers via Web Submission, or E-mail to [email protected], [email protected]. Submission guidelines and Web Submission system are available at http://www.davidpublisher.com. Editorial Office: 3 Germay Dr., Unit 4 #4651, Wilmington DE 19804, USA E-mail: [email protected] Copyright©2019 by David Publishing Company and individual contributors. All rights reserved. David Publishing Company holds the exclusive copyright of all the contents of this journal. In accordance with the international convention, no part of this journal may be reproduced or transmitted by any media or publishing organs (including various websites) without the written permission of the copyright holder. Otherwise, any conduct would be considered as the violation of the copyright. The contents of this journal are available for any citation, however, all the citations should be clearly indicated with the title of this journal, serial number and the name of the author. Abstracted / Indexed in: Google Scholar H-index list (H5: 12/11) Index Copernicus, Poland Chinese Database of CEPS, OCLC Qualis/Capes Index, Brazil ANVUR, Italy China National Knowledge Infrastructure (CNKI), China Chinese Scientific Journals Database, China Wan Fang Data, China CQVIP, China Journals Impact Factor (JIF) (0.5) Free Libs World Cat, USA American Federal Computer Library Center (OCLC), USA Norwegian Social Science Data Services (NSD), Database for Statistics on Higher Education (DBH), Norway Finnish Publication Forum (JUFO), Finland SCRIBD (Digital Library), USA Open Academic Journals Index (OAJI), Russia WZB Berlin Social Science Center, Germany UniMelb (University of Melbourne), Australia Subscription Information: Print $520 David Publishing Company, 3 Germay Dr., Unit 4 #4651, Wilmington DE 19804, USA Tel: +1-323-984-7526, 323-410-1082 Fax: +1-323-984-7374, 323-908-0457 E-mail: [email protected] Digital Cooperative Company: www.bookan.com.cn D DAVID PUBLISHING David Publishing Company www.davidpublisher.com Chine se Busine ss Revie w Volume 18, Number 4, Oct.-Dec. 2019 (Serial Number 189) Contents Supply Community Network: A Taxonomy of Flow Dimensions 1 Mohamed Omar, Paul A. J. Mason The Consumption Practices and Identity Formation of the Chinese Middle Class in the Media Era 13 Abigail Qian Zhou Impact of Controllable Factors on Export Performance of SMEs in Jordan MaanAlkhateeb 25 Chinese Business Review, Oct.-Dec. 2019, Vol. 18, No. 4, 1-12 doi: 10.17265/1537-1506/2019.04.001 D DAVID PUBLISHING Supply Community Network: A Taxonomy of Flow Dimensions Mohamed Omar, Paul A. J. Mason Shinawatra University, Pathum Thani, Thailand Supply chain management (SCM) and its associated activities continue to evolve as new communication technologies and cooperative efforts emerge to facilitate system-wide process integration; the context within which supply chains (SCs) operate, the technologies, and performance enhancement mechanisms have all changed. Thus, linear-based SCs are increasingly being challenged as firms look towards a more networked approach to maximize performance amid growing market dynamics. This paper, however, recognizing inherent similarities between social structure of Social Internet of Things (SIoT) principles and what we term supply community networks (SCN) from literature, seeks to cross-pollinate the two in a way capable of dealing with these market dynamics. Our contribution is, therefore, a new ‘setting’ of social relationships between supply community agents (SCA) within SCN mirroring interactions played out in the physical world; SCAs autonomously sense each other, exchange information and interact within SCN mimicking the behavior of humans. Also, it identifies the bounds of flow, i.e. all possible dimensions within a SCN which need to be understood to support relationship management. Therefore, communications are improved, sharpening SCAs synchronization in a way responsive to customer needs. Keywords: supply community network (SCN), supply community agents (SCA), flow dimensions Introduction Dating back more than a century, supply chains (SCs) are considered by many to be the backbone of any nation’s economy, supporting production, commerce, and international trade. Desirable characteristics of an optimum SC include collection, analysis, and proactive use of big data; inventory optimization; adaptability; rapid order fulfillment; customization and scalability; sustainability; and compliance, visibility, and traceability. However, a combination of constantly evolving technology, increasingly flexible business processes, and shifting organizational boundaries mean SCs will always be a moving target in the crosshairs of strategists seeking to tame them. Internet of Things (IoT) offers exponentially expanding opportunities for new functionalities and capabilities that transcend traditional product boundaries. For example, Amar Abrol, CEO of AirAsia at a Strategy Forum on Internet of Things 2017 said, in the city of Johor Bahru, (Malaysia), AirAsia don’t have a single human interface in terms of baggage drop, check-in and ticket purchase. But, the IoT paradigm only allows us to connect objects/things in the environment through unique addressing schemes, allowing fixed interaction and cooperation with each other. Ideally, the objects should be capable of dynamically forming their Mohamed Omar, School of Science & Technology, Shinawatra University, Pathum Thani, Thailand. Paul A. J. Mason, Ph.D., assistant professor, School of Science & Technology, Shinawatra University, Pathum Thani, Thailand. Correspondence concerning this article should be addressed to Paul A. J. Mason, School of Science & Technology, Shinawatra University, Main Campus, 99 Moo 10, Bangtoey, Samkok, Pathumthani 12160, Thailand. 2 SUPPLY COMMUNITY NETWORK: A TAXONOMY OF FLOW DIMENSIONS own social relationships without human intervention in a way that they would be able to seek out new “friends” that can offer the things they desire. So that, with the analogy of social networking services, the Social Internet of Things (SIoT) introduced the social relationships concept among objects (Atzori, Antonio, & Giacomo, 2011). Accordingly, SIoT can be defined as socializing intelligent objects in a network, thereby signaling the inevitable fusion of IoT with social structure phenomena, enabling formation of trust-based communities among objects—herein termed supply community agents (SCAs)—similar to that one associates with social networks (SN). This fledgling paradigm centers around the concept of social relationships among objects where said objects autonomously mimic1 human behavior using social networking principles including “friend” selection, interaction, and communication in finding desired services. Therefore, in this paper, we propose the concept of supply community networks (SCNs) with its taxonomy of flow dimensions; a new setting of social relationships between agents within and across SCN mirroring possible interactions played out in the physical world, which we argue is capable of dealing with present day market dynamics that emphasizes creating communities (rather than chains) that assess needs and make cross references instead of the rigid (inflexible) form of SCs. So, SCAs are increasingly inclined to service their own needs and to increase value and convenience for themselves when market brutality calls for survival over congruence. As such, SCNs are better able to support the concept of “coopetition” (Pathak, Wu, & Johnston, 2014), a portmanteau of competition and cooperation describing situations where two or more organizations both compete and cooperate with one another concurrently. For example, rival carmakers Toyota, Citroen, and Peugeot previously collaborated on the research and design of a new automobile; the results of which were later produced, marketed, and sold under different names with minor modifications by each company (Karolina, 2015). Section 2 of this paper will review related literature; Section 3 presents the conceptualization of our SCN framework and its social relationships between agents; Section 4 presents a SCN framework configuration example; and Section 5 offers our conclusions and future research agenda. Literature Review Traditional SCs are changing in a quest for development and low-cost sourcing (Fredriksson & Jonsson, 2009). They have become non-static phenomena, constantly evolving in shape and configuration, size, integration, control, and management (MacCarthy, Constantin, Olhager, Jagjit, & Xiande, 2016). Majeed & Rupasinghe (2017) argued that as the world is changing and evolving constantly, it has influenced many firms and their entirety of supply chain actors which in turn increases pressure to redesign business processes to a form that best accommodates their business. This contrasts markedly to traditional SCs which are typically vertical and linear, orchestrated by one dominant company mobilizing many smaller companies. Today, SCs are totally different as companies outsource more to focus on their core competencies, often with trading partners on the other side of the globe (M. J. Schniederjans, A. M. Schniederjans, & D. G. Schniederjans, 2015). This has previously been attributed to the net effects of a “surplus society” (Ridderstråle & Kjell, 2007), where similar companies, with similar employees of similar education, generate similar ideas yielding similar products of similar quality, sold at a similar price. Furthermore, some components are interchangeable (notwithstanding quality variations), enabling manufacturers to buy from whichever supplier 1 This is a paradigm comparable to human social networks which the objects/devices participate in social relationships with other objects/devices but, outperform their human counterparts by for example more timely decision making. SUPPLY COMMUNITY NETWORK: A TAXONOMY OF FLOW DIMENSIONS 3 offers the lowest prices. Other parts may not be widely available, meaning a manufacturer must seek out alternative (and affordable) suppliers. Firms are therefore challenging traditional linear-based SCs by looking towards configuring relationships with other agents as a network (rather than a rigid linear chain) for performance and flexibility reasons amid increasingly turbulent markets. The SCN conceptualizes the above-mentioned relationships as a network of loosely coupled agents connected (in social network parlance) by strong and weak ties (Zorzi, 2019) for the transference of commodities/services, information, and remittances. A SCN example locally can be found in TCC Logistics (Thailand) who are part of the Sealite group of companies, a supply community comprising 158 different organizations based in 68 countries—including Standard International Trade Classification (SITC), the fastest growing Chinese liner in the past 20 years (Your Reliable Partner in Thailand, 2016). Further afield, another example is New Zealand Farmers’ Market (alternatively known as food networks) that brings together producers and consumers (Pathak, Wu, & Johnston, 2014). In this network, suppliers are the farmers while consumers are the buyers including institutional purchasers, for instance, restaurants and food service businesses. Growers and farmers convene creating a physical hub in which to sell produce, vegetables, flowers and meats. The variety of fresh products on offer attracts buyers while exuding a friendly shopping experience. Moreover, among farmers, this allows for exchange of vital information; for instance, it helps them determine what to grow next by knowing the choice and costs at neighboring stands, while also avoiding excess supplies by staggering planting and harvest times. One further example is the Star Alliance which has 28 member airlines, each with its own distinctive culture and style of service (About Star Alliance, n.d.). Together, they offer easy connections to almost any destination in the world. Each airline maintains its own individual style and cultural identity, bringing a richness of diversity to the alliance (competition) while cooperating over matters of mutual interest (e.g., economy of scale in fuel purchasing). In the introduction, we discussed the notion and meaning of coopetition; over time, new ties may be formed by firms within a supply network, while existing ones can be just as easily dissolved. There is a growing acceptance that rigid chain, like supply structures are not suited to current market dynamics and that when ties are formed, they are transitory and finite. However, when the circumstances are favorable, firms may forge new ties where mutual benefits are foreseen; i.e., interacting, sharing, and transforming resources while continuing to compete aggressively with those partner companies outside agreed bounds of cooperation (Pathak, Wu, & Johnston, 2014). Specifically, operational links in a supply network lead to relational strategies that differ from those of peer firms; a firm’s position in the supply network affects how it relates and responds to other firms. Cooperation can be viewed as syncretic rent-seeking behavior of individual firms combining cooperation and competition to attain an optimal performance outcome (Gnyawali, He, & Madhavan, 2006). Coopetition takes place within lateral business networks where firms are competitors. Competitors employ complementarity technology, own a comparable market share, and possess similar capabilities. Competitors are also able to engage in competition and cooperation sequentially—they cooperate in developing the market and then compete to divide up the market. Accordingly, technological advances have fueled the improvement of new action plans and methods of working (Johnson & Carlos, 2008) as today’s business world becomes more complex and turbulent (Christopher & Matthias, 2011). Porter and Heppelmann (2014) stated that the Internet of Things (IoT)—which 4 SUPPLY COMMUNITY NETWORK: A TAXONOMY OF FLOW DIMENSIONS they call smart connected products—changed the environment offering exponentially expanding opportunities for new functionalities and capabilities that transcend traditional product boundaries. Such changes have disrupted the value chain, forcing companies to rethink everything they do, from how they conceive, design, and source products; to how they manufacture, operate, and service them; and to how they build and secure the necessary IT infrastructure. IoT has also raised a new set of strategic choices about how value is created and captured, how companies work with traditional and new partners, and how they secure their own competitive advantage as new capabilities reshape industry boundaries (Porter & Heppelmann, 2014). In a separate paper, (Porter & Heppelmann, 2015) described how smart, connected products are transforming companies; it focused on the impact of IoT on company operations and structural changes in terms of how business interacts with customers, reshaping functions in the value chain (new processes), and new forms of cross-functional integration and collaboration. IoT also enables improved data monitoring, remote access controls, optimization and autonomous learning. Social Internet of Things (SIoT) is a promising paradigm that we believe can support SCAs with the possibility of discovering, selecting, and using the appropriate services found through their friend network. As we mentioned in the Introduction, SIoT signaled the inevitable fusion of IoT with social structure phenomena, enabling formation of trust-based communities among the objects (SCAs) similar to that of established social networks. Therefore, as Abhinav (2014) described, SCs can be sources of competitive advantage as their efficient management leads to cost savings and synergies between the components of the SCs and leads to greater profitability for firms. Recent comments from Intel’s global Jon Stine point to global business being in the midst of “accelerated Darwinian natural selection” where supply chain innovation will be a key factor in determining whether brands survive or thrive (Feller, 2018). Social networking has, through various enabling platforms we collectively term social media, dramatically changed the way society at large communicates. Given that communication is vital to SCM success, it follows that social media should have an equally significant role in that domain also. Assuming our proposed theory (that of a SIoT enabled SCN framework) as a form of network, the concept of network theory and its strong/weak ties has the potential to reveal interesting truths about SCs behavior (Ketchen & Hult, 2007). Firmly coupled organizations exhibit strong ties, whereas organizations with more tenuous links involve weak ties; strong ties provide more prominent unwavering quality, while weak ties enhance flexibility. Significantly, Zorzi (2019) argued that the general quality of social ties impacted how innovations course through a SN; strong ties stifle innovation by cultivating continuity, while weak ties encourage innovation by stifling continuity. However, the next increment in evolution of the internet is already upon us; inspired by SN, SIoT proposes to share resources of smart, internet-enabled objects by assuming characteristics inherent in SN so as to mimic human engagement. Therefore, in the following section we describe the SCN concept as a combination of interconnected networks, channels, and node businesses that come together in the provision of products and services required by end customers. Supply Community Network (SCN) SCN is a term that refers to the management and management behavior (on a synergistic [strong SUPPLY COMMUNITY NETWORK: A TAXONOMY OF FLOW DIMENSIONS 5 tie]/antagonistic [weak tie] continuum2) over the total bidirectional flow of commodities/services, information, and remittance throughout an omni-channel order fulfilment network community composed of loosely coupled agents, from supplier(s) to the ultimate consumer(s). It is argued that an SIoT enabled SCN successfully integrates SCAs allowing them to deal with present day market dynamics. A SCN autonomously orchestrates SCAs and allows them to interact directly within and across networks. SCN conceptualizes SCs as a network of SCAs connected throughout their transference of commodities/services, information, and remittances. They represent multiple organizations each with relationships or links to other organization(s). This allows SCAs to start new connections, discover new services, utilize the capabilities of each other, and exchange information. With these aforementioned capabilities and functionalities, a SCA (e.g., a manufacturer) will contain several different objects aligned to departments “inside” their business (e.g., sales, warehousing, production, logistics, etc.) that communicate with each other to fulfill the efficiency and effectiveness of that operation. These connections consist of relatively flexible and interchangeable relationships among suppliers, customers, and other SCAs. On the other hand, bidirectional exchange can also be between SCNs of different functional specialty, from suppliers to the ultimate customers. Therefore, agents supply directly to others as they need their supplies, but if commodities are generally interchangeable, so an agent may buy from whichever SCA (supplier) offers the lowest prices. For other commodities which are not interchangeable, agents must seek out affordable SCA (suppliers). For this reason, SCN autonomously orchestrates SCA and allows them to interact directly within and across the network; SCA can be designed to link tenuously, enhancing their flexibility (see Figure 1). If there are strong stipulated relations between agents, there is only bidirectional communication between them which is not providing the flexibility to interact with the dynamic markets. But the weak ties used in this SCN allow endurance in dynamic markets and encourage advancements by allowing them (SCAs) to look to service their own needs and to increase value and convenience for themselves. Figure 1. A generic SCN. 2 In this paper, we assume all programmed object (SCAs) behavior to be synergistic, implying the favoring of strong ties, but with the capacity to become self-serving whenever survival needs dictate. 6 SUPPLY COMMUNITY NETWORK: A TAXONOMY OF FLOW DIMENSIONS Types of Relationships Before we can support a SCN, we must first identify the bounds of flow that need to be supported. Table 1 lists types of relationship management across all possible dimensions of a SCN. This notion is based on taxonomy by Mason (2005) who defined a conceptual framework for traceability in a systems integration context in which it was argued that in order to develop effective support systems and methods for complex engineering projects (which in our present context becomes managing exchanges across SCNs), it is first necessary to ensure the problems they are intended to solve—i.e., the aims, purposes and objectives—are both scoped and clearly defined. Table 1 Relationships of SCAs With SCN No. 1 2 3 4 5 6 7 8 9 10 11 12 Dimensions Intra-Macro-Vertical Intra-Macro-Horizontal Intra-Micro-Vertical Intra-Micro-Horizontal Intra-Nano-Vertical Intra-Nano-Horizontal Inter-Macro-Vertical Inter-Macro-Horizontal Inter-Micro-Vertical Inter-Micro-Horizontal Inter-Nano-Vertical Inter-Nano-Horizontal Within same SCN ; ; ; ; ; ; : : : : : : Within same Tier : : : : ; ; : : : : ; ; Same dept. : : ; ; ; ; : : ; ; ; ; Diff. dept. : ; : ; : ; : ; : ; : ; These terms are defined as follows: y Intra-Macro-Vertical—The management of relationships involved in bidirectional exchange of commodities/services, information, and remittances within SCN, between tiers, between organizations, and between departments of different functional specialty, from suppliers to the ultimate customers. y Intra-Macro-Horizontal—The management of relationships involved in bidirectional exchange of commodities/services, information, and remittances within SCN, between tiers, between organizations, and within departments of different functional specialty, from suppliers to the ultimate customers. y Intra-Micro-Vertical—The management of relationships involved in bidirectional exchange of commodities/services, information, and remittances within a supply community Network, between supply chain tiers, within organizations, and between departments of different functional specialty, from suppliers to the ultimate customers. y Intra-Micro-Horizontal—The management of relationships involved in bidirectional exchange of commodities/services, information, and remittances within SCN, between tiers, within organizations, and within departments of different functional specialty, from suppliers to the ultimate customers. y Intra-Nano-Vertical—The management of relationships involved in bidirectional exchange of commodities/services, information, and remittances within SCN, within tiers, within organizations, and between departments of different functional specialty, from suppliers to the ultimate customers. y Intra-Nano-Horizontal—The management of relationships involved in bidirectional exchange of commodities/services, information, and remittances within SCN, within tiers, within organizations, and within SUPPLY COMMUNITY NETWORK: A TAXONOMY OF FLOW DIMENSIONS 7 departments of different functional specialty, from suppliers to the ultimate customers. All “Intra” relationships are shown in Figure 2. Figure 2. Intra-relationships of SCAs in SCN. y Inter-Macro-Vertical—The management of relationships involved in bidirectional exchange of commodities/services, information, and remittances between supply community network, between tiers, between organizations, and between departments of different functional specialty, from suppliers to the ultimate customers. y Inter-Macro-Horizontal—The management of relationships involved in bidirectional exchange of commodities/services, information, and remittances between supply community network, between tiers, between organizations, and within departments of different functional specialty, from suppliers to the ultimate customers. y Inter-Micro-Vertical—The management of relationships involved in bidirectional exchange of commodities/services, information, and remittances between supply community network, between tiers, within organizations, and between departments of different functional specialty, from suppliers to the ultimate customers. y Inter-Micro-Horizontal—The management of relationships involved in bidirectional exchange of commodities/services, information, and remittances between supply community network, between tiers, within 8 SUPPLY COMMUNITY NETWORK: A TAXONOMY OF FLOW DIMENSIONS organizations, and within departments of different functional specialty, from suppliers to the ultimate customers. y Inter-Nano-Vertical―The management of relationships involved in bidirectional exchange of commodities/services, information, and remittances between supply community network, within tiers, within organizations, and between departments of different functional specialty, from suppliers to the ultimate customers. y Inter-Nano-Horizontal―The management of relationships involved in bidirectional exchange of commodities/services, information, and remittances between supply community network, within tiers, within organizations, and within departments of different functional specialty, from suppliers to the ultimate customers. All “Inter” relationships are shown in Figure 3. Figure 3. Inter-relationships of SCAs between SCN. However, the bounds of flow in all possible dimensions of a SCN identified above can be illustrated below on one hand, as relationships among agents that involve bidirectional exchange of commodities/services, information, and remittances within a SCN; and on the other hand, relationships among agents that involve bidirectional exchange of commodities/services, information, and remittances between SCN. But first, we apply the theoretical concept proposed above to cases involving distinct SCN configuration. SUPPLY COMMUNITY NETWORK: A TAXONOMY OF FLOW DIMENSIONS 9 SCN Configuration Example In this section, we apply the theoretical concept proposed in the Section “Types of Relationships” to cases involving distinct SCN configuration. The applicability of the theory is determined by the aid of these cases and also indicates the key endeavors towards the future use and refinement of SCN configuration. Conventional approaches to dealing with the management of relationships have focused on the vertical design of sequentially ordered relations between agents independently, for example, a tiered supplier structure orchestrated by one dominant agent mobilizing many smaller agents who are dependent on that dominant agent who can supply critical resources to other agents. However, this idea focuses on vertical and linear sequence of inter-dependencies between agents which several authors have challenged in favor of a networked approach to relationships to maximize performance (Eskandarpour, Dejax, Miemczyk, & Péton, 2015; Stevens & Johnson, 2016). In this study, the relationships among suppliers, customers, and other agents, on the one hand, involve bidirectional exchange of commodities/services, information, and remittances within/between SCN within/between SC tiers, within/between organizations, and within/between departments of different functional specialty, from suppliers to the ultimate customers as shown in Figures 2 and 3. Similar to Toyotas supply network which illustrates intra-tier ties comprising number of ties between different types of firms within tier (Toyota, other Japanese assemblers, overseas assemblers, and other clients) and inter-tier ties that connect firms in different tiers which verify the high degree of connectivity in the Japanese automobile industry and the presence of “alpine structure3” (Kito, Brintrup, New, & Reed-Tsochas, 2014). Also, considering a hypothetical SCN from (Mack, n.d.) for baked goods in which we delineate all possible end to end flows. As with any industry, a baked goods SCN is subject to numerous variations; so, that starts with suppliers of raw ingredients (materials) and ends with delivery of the product to the end consumer. Raw ingredients are often supplied directly to baked goods manufacturers from farmers or possibly agricultural cooperatives. At the manufacturing stage of a SCN, a baked goods company converts the raw ingredients into a product, such as bread, cookies, cakes, patisseries and many other items. The distribution stage involves moving products from the manufacturing production facility to wherever the consumers are. Wholesalers are merchants that buy products from manufacturers/distributor and use their expertise in shipping and distribution to re-sell the products to retail stores and/or consumers. Most consumers buy baked goods from a retail store, such as a supermarket. Based on that, if a manufacturer’s warehouse is in need for replenishment, the purchasing department seeks out and then sends a purchase order for the raw materials required to a supplier’s selling department which reflects the Intra-Macro-Vertical relationships; the other flows are exemplified as follows. y Intra-Macro-Horizontal—for example, when the store’s system interacts with smart shelves, equipped with a myriad of sensors to locate the ordered items. y Intra-Micro-Vertical—for example, if a distribution center’s warehouse may need to replenish and send a new production order to a manufacturer acting in two different tiers but same organization. y Intra-Micro-Horizontal—when distribution center’s warehouse sends production orders to its manufacturer, the logistics department is sent to process the order then handle the materials and control the inventories. 3 “An entangled system of interlinked keiretsu pyramids” (Kito et al., 2014). 10 SUPPLY COMMUNITY NETWORK: A TAXONOMY OF FLOW DIMENSIONS y Intra-Nano-Vertical—for example, a wholesaler’s store may try to respond to stock insufficiencies of another Wholesaler’s store in the same SCN. y Intra-Nano-Horizontal—as sending notification to logistics department to move products to Wholesaler’s store department. y Inter-Macro-Vertical—supplier’s logistics department in one SCN trying to ship needed products in response to stock insufficiencies of manufacturer’s warehouse in another SCN and transfer raw materials to manufacturer’s warehouse. y Inter-Macro-Horizontal—the warehouse of a supplier in one SCN needs to respond to stock insufficiencies of a manufacturer’s warehouse in another SCN. y Inter-Micro-Vertical—for example, if a warehouse needs replenishing with new products and its manufacturer cannot provide for whatever reasons, they may outsource with other manufacturers in a different SCN. y Inter-Micro-Horizontal—flow the products are arranged by the logistics for shipment to the warehouse. y Inter-Nano-Vertical—for example, Wholesaler’s logistics in one SCN may try to respond stock insufficiencies of Wholesaler’s store in another SCN and move products to Wholesaler’s store department. y Inter-Nano-Horizontal—as the communications between two Wholesaler agents in different SCN responding to stock insufficiencies of one another. Overall, the SCN member firms are independent from each other with strong and/or tenuous linkages. The primary objectives of the SCN are to effectively help SCAs deal with present day market dynamics by autonomously mimicking human behavior. This improves communications and benefits SCA, sharpening agent synchronization in a responsive way to customer needs dealing with present day market dynamics and enables full integration of agents. Conclusions Literature suggests that firms are challenging the linear-based SCs in favor of a networked approach to convey predominant performance and reorganize their operations as a network of relationships rather than a sequence (chain). SCs have to be much more flexible and capable of changing rapidly as conditions change. Practical applications are not prevalent in the literature, so in this paper, we proposed an SIoT enabled SCN capable of dealing with present day market dynamics. A new setting of social relationships between supply agents within such a network accounted for the possible interactions in the physical world. The notion of agents assuming humanoid social networking behaviors, together with the SIoT components necessary to realize that aspiration provided the essential elements of our framework. The SCN renders SCs as interconnected networks, channels, and node businesses that combine in the provision of products and services required by end customers. This improves communication allowing agents to rigorously manage the flow of commodities/services, information, and remittance (in quasi-real-time) across the SCN; the net benefit is to sharpen agent synchronization in a way that is responsive to customer needs and hence has potential to deal with present day market dynamics enabling full integration of supply agents. This potentially opens the door to absolute tracking of purchase orders, and improved monitoring of stock levels; e.g., an agent may autonomously trigger replenishment or production of commodities if warehouse store reaches a minimum threshold. In addition, the SCN agents’ behavior intentionally balances strong and weak ties and hence reliability and flexibility. SUPPLY COMMUNITY NETWORK: A TAXONOMY OF FLOW DIMENSIONS 11 Our contribution is, therefore, this new setting of social relationships between agents within SCN that reflects possible interactions between supply agents played out in the physical world. It exploits the applicability that supply agent autonomously sense each other, exchange information, and interact within the SCN mimicking the behavior of humans. It connects supply agents to one another over the total bidirectional flow of commodities/services, information, and remittance throughout omni-channel order fulfilment process in the SCN. It should be stressed the approach we are proposing is best-suited to loosely coupled communities that consist of relatively flexible and interchangeable relationships among suppliers, customers, and other agents. Interchangeable because the final product has a modular architecture; think cars or computers for example, or baked goods and other food/beverage produce. Our research focused on proposing a framework that balances strong and weak ties and hence reliability and flexibility. Ongoing work demonstrates the working practices of our SIoT orchestrated SC agents in SCN via simulation assuming a scenario-based narrative of SCN and evaluates how SIoT orchestrated SC agents in SCN work both individually and collectively. References About Star Alliance. (n.d.). Retrieved June 20, 2019, from https://www.staralliance.com/en/about Your Reliable Partner in Thailand. (2016). Retrieved June 15, 2019, from http://www.tccs.co.th/ Abhinav, S. (2014). Supply chain management: Enabler to business advantage. International Journal of Innovation and Scientific Research, 1(1), 20-25. Atzori, L., Antonio, I., & Giacomo, M. (2011). Siot: Giving a social structure to the Internet of Things. IEEE Communications Letters, 15(11), 1193-1195. Christopher, M., & Matthias, H. (2011). Supply Chain 2.0: Managing supply chains in the era of turbulence. International Journal of Physical Distribution & Logistics Management, 41(1), 63-82. Eskandarpour, M., Dejax, P., Miemczyk, J., & Péton, O. (2015). Sustainable supply chain network design: An optimization-oriented review. Omega, 54(1), 11-32. Feller, G. (2018, June 19). IoT is coming to the supply chain: What happens next? Retrieved December 16, 2018, from https://www.supplychaindive.com/news/IoT-supply-chain-dark-assets-optimization Fredriksson, A., & Jonsson., P. (2009). Assessing consequences of low-cost sourcing in China. International Journal of Physical Distribution & Logistics Management, 39(3), 227-249. Ghosh, S. K., & Dey, T. K. (2017). Internet of Things: Challenges and its future perspective. International Journal of Computer Engineering and Applications, 11(9), 1-6. Johnson, M., & Carlos, M. (2008). Supply chain management for servitised products: A multi-industry case study. International Journal of Production Economics, 114(1), 27-39. Karolina, M. (2015, January 19). Supply chain co-opetition: All for one, and one for all? Retrieved Jun 18, 2019, from https://www.allthingssupplychain.com/supply-chain-co-opetition-one-one/ Ketchen Jr, D. J., & Hult., G. T. (2007). Bridging organization theory and supply chain management: The case of best value supply chains. Journal of Operations Management, 25(2), 573-580. Kito, T., Brintrup, A., New, S., & Reed-Tsochas, F. (2014). The structure of the Toyota supply network: An empirical analysis. Saïd Business School Research Papers. Retrieved from https://pdfs.semanticscholar.org/92cf/9c034f051ab757e0e3a1387835703537f96e.pdf MacCarthy, B. L., Constantin, B., Olhager, J., Jagjit, S. S., & Xiande, Z. (2016). Supply chain evolution—Theory, concepts and science. International Journal of Operations & Production Management, 36(12), 1696-1718. Mack, S. (n.d.). The basics of a baked goods supply chain. Retrieved Nov 05, 2018, from https://yourbusiness.azcentral.com/basics-baked-goods-supply-chain-25580.html Majeed, A. A., & Rupasinghe, T. D. (2017). Internet of Things (IoT) embedded future supply chains for industry 4.0: An assessment from an ERP-based fashion apparel and footwear industry. International Journal of Supply Chain Management, 6(1), 25-40. 12 SUPPLY COMMUNITY NETWORK: A TAXONOMY OF FLOW DIMENSIONS Mason, P. (2005). Redefining traceability for complex computer-based systems development and integration. Proceedings 2nd International Conference on Electrical Engineering/Electronics, Computer, Telecommunications & Information Technology. 12-13 May, Pattaya, Thailand. Pathak, S., Wu, Z., & Johnston, D. (2014). Toward a structural view of co-opetition in supply networks. Journal of Operations Management, 32(5), 254-267. Porter, M. E., & Heppelmann, J. E. (2014). How smart, connected products are transforming competition. Harvard business review, 92(11), 64-88. Porter, M. E., & Heppelmann, J. E. (2015). How smart, connected products are transforming companies. Harvard Business Review, 93(10), 96-114. Ridderstråle, J., & Kjell, N. (2007). Funky business forever: How to enjoy capitalism. India: Pearson Education . Schniederjans, M. J., Schniederjans, A. M., & Schniederjans, D. G. (2015). Outsourcing and insourcing in an international context. London: Routledge. Stevens, G. C., & Johnson, M. (2016). Integrating the supply chain… 25 years on. International Journal of Physical Distribution & Logistics Management, 46(1), 19-42. Zorzi, O. (2019). Granovetter (1983): The strength of weak ties: A network theory revisited. In Sociological theory (Vol. 1, pp. 201-233). Hoboken, New Jersey: Wiley. Chinese Business Review, Oct.-Dec. 2019, Vol. 18, No. 4, 13-24 doi: 10.17265/1537-1506/2019.04.002 D DAVID PUBLISHING The Consumption Practices and Identity Formation of the Chinese Middle Class in the Media Era Abigail Qian Zhou Hokkaido University, Hokkaido, Japan During the past 40 years following the reform and opening-up policy of 1978, China’s social structure has seen great changes, which include the birth and rapid development of the Chinese middle class as a derivative and consequence of modernization. They are the main source of consumption in contemporary China and display unique characteristics in their consumption practices. Consumption is not only a daily practice, but also a means of demonstrating and forming identity. In this media era, media play an important role in people’s consumption practices and identity formation. In this study, semi-structured interviews were carried out with members of the Chinese middle class to study the relationship between consumption, identity, and media through their oral accounts. Moreover, problems, including the characteristics of middle-class consumption practices and how they use consumption to form identity, were analyzed. This study not only complements studies on the sociology of consumption of the Chinese middle class, but also is of great practical significance for deepening our understanding of the behavioral and ideological characteristics of the Chinese middle class. Keywords: Chinese middle class, consumption, identity, media Introduction During the 40 years after the reform and opening-up policy of 1978, the social structure of China has seen great changes and social stratums differentiate rapidly. With the continuous expansion of commercialization, urbanization, and industrialization; increase in the national income; popularization of higher education; and entrance of foreign-funded enterprises, a new class has emerged separate from traditional industrial workers and farmers. This new class consists of private business owners and self-employed workers; white collar workers in completely foreign-funded enterprises, Sino-foreign joint venture enterprises, and Sino-foreign cooperative ventures; management personnel in contracted or leased state-owned enterprises; senior management in the financial securities industry; professional intermediaries; senior technical professionals; and celebrities in the entertainment and sports industries. Defined by sociologists as the middle class, this new class, supported by the policies of the Chinese government, emerged gradually and developed rapidly as a consequence of modernization. In Western society, the formation and development of the middle class have experienced a long and continuous history of more than 200 years. Whereas in China, due to socialist transformation, land reform, and a series of class struggles before the reform and opening-up policy, the middle Abigail Qian Zhou, associate professor, Research Faculty of Media and Communication, Hokkaido University, Hokkaido, Japan. Correspondence concerning this article should be addressed to Abigail Qian Zhou, International Media, Communication, and Tourism Studies, Hokkaido University, Kita 17-Jo, Nishi 8 -chome, Kita-ku, Sapporo-shi, Hokkaido 060-0817, Japan. 14 THE CONSUMPTION PRACTICES AND IDENTITY FORMATION class was considered an object of scorn and even disappeared at one point. Therefore, the current Chinese middle class is China’s first generation of a modern middle class. According to studies by the Euromonitor International Company, the population of the Chinese middle class will reach 700 million by 2020, and its scale will continue to increase. As the backbone of social stratification, the middle class is the core strength needed to maintain social stability and the main consumption force in modern society, playing a significant role in expanding domestic demand and promoting economic development. Therefore, the formation and consumption characteristics of the middle class have attracted the attention of both domestic and foreign scholars. According to traditional studies on consumption sociology, representative theories about the consumption characteristics of the middle class, including the Conspicuous Consumption Theory of Veblen (1899), the Fashion Consumption Theory of Simmel (1904), the People-Oriented Consumption Theory of David Riesman (1950), the Symbol Consumption Theory of Baudrillard (1968), and the Taste Distinction Theory of Bourdieu (1984), have provided explanations for the consumption behaviors of the middle class of Western countries in different eras and against different social contexts from perspectives including the motivation, psychology, pattern, social context, evolution, and development of consumption. Since 2000, studies on the middle class have been springing up in China. Many sociologists have also started to describe the characteristics and influences of the middle class, for example Li and Zhang (2000), based on data obtained in a survey in Chongqing in 1999, examined the spending proportions of the Chinese middle class and their consumption preferences in clothing, food, shelter, and transportation; Li (2007), on the basis of National Survey Data in 2001, proved the characteristic of the Chinese middle class in pursuing practicability and symbols of taste in terms of the consumption of food and clothing; Tian (2011) confirmed the consistency of consumption stratification and occupation stratification with data from the Chinese Social Survey in 2008; Wang and Zhang (2018) used the repeated design data from the China General Social Survey 2003 and 2013 to prove the preferences of the Chinese middle class in aspects including material consumption, cultural consumption, and leisure activities. Both the representative theories in the West and quantitative analyses in China deem the middle class an already stable and static stratum, and consumption as a characteristic reflected by this stratum as a whole. In this study, however, we noted that as the first generation, the Chinese middle class consists of different members and is still in the process of evolution and development. Based on this basic understanding of the Chinese middle class, we believe that it must be seen as a stratum that is still taking shape and constantly changing, and its internal differences should be better understood. Before examining the overall consumption characteristics of the Chinese middle class, several basic questions should be clarified: “What does consumption mean to this stratum?”, “How does this stratum use consumption to form identity?”, and “What are the differences among consumption practices within the stratum?”. To answer these questions, using only traditional quantitative analysis is not sufficient. Therefore, we decided to apply qualitative analysis in an effort to find answers from interviews with members of the Chinese middle class as defined by sociologists. Consumption-Identity-Media Being a common phenomenon in modern society, consumption is not only a daily practice, but also a self-presentation and performance. During the process of consumption, people often use tangible commodities and leisure activities as means of communicating their own social attributes and values to others, demonstrating THE CONSUMPTION PRACTICES AND IDENTITY FORMATION 15 their identification with and ideas about individuals or groups. In modern consumer society, mass media play an important role in the process of identity formation as its impetus. Up to the present, economists, anthropologists, and sociologists have put forward their own views and opinions on the relationship between consumption and identity. For example, in the field of economics, Frank (1985) divided commodities into positional goods and non-positional goods, and indicated that people’s pursuit of social status will lead to their consumption of more positional goods. From an anthropological perspective, Sahlins (1976) believed that in modern consumer society, the symbolic value of material commodities has gone beyond their properties as objects to become a symbol for distinguishing social status and defining identity and group membership. Douglas and Isherwood (1979) studied material culture from the perspective of religious ritual, concluding that commodities are the source of information on social status, that consumption is a mark of social classification, and that people can express, define, and create their own identities through their consumption practices. In the field of sociology, according to Mills (1951), the symbolic nature of commodities encourages people to consume commodities that symbolize status, and this motivation to seek social status through consumption is especially obvious in urban areas. Featherstone (1990) also mentioned positional goods in his studies, and he believed that people obtain higher social status after they obtain positional goods. After reviewing related economic, anthropological, and sociological theories, we discovered that all these studies underlined that commodities have not only practical value, but also symbolic value. According to these studies, the relationship between consumption and identity can be summed up as: Consumption reflects identity, and identity is demonstrated and realized through consumption. However, we believe that both consumption and identity are continuously evolving dynamic processes, and that their relationship is one of mutual formation and restriction. This means that consumption is an important means of forming identity, and that identity constrains consumption in return. People can highlight the uniqueness of their identities through consumption, thus forming “self-identity”, or on the other hand, to blend into a group, they may also accept the constraints of identity during consumption to obtain “group identity”. Without a doubt, the understanding of the mutual relationship between consumption and identity presented in this study will be solidified through specific surveys. Therefore, in this study, members of the Chinese middle class were interviewed directly to verify the relationship between consumption and identity. In addition, we also believe that consumption requires media as an intermediary, because a consumer society is also a media society. In this media era, people cannot live without encountering media in their daily life, and we all consume various material and spiritual commodities through media. Consumption and media are mutually dependent and penetrative. People consume media and also learn methods and objects of consumption through media. This is to say, people, as the audience of media, are the consumers of media and potential consumers of the commodities advertised in media. To understand the relationship between media, consumption, and identity, we refer to Silverstone’s (1994) discussion on media consumption. Silverstone (1994) indicated that media consumption provides a basis for the confirmation and expression of identity, and its process consists of the following six segments: (1) commodification, which refers to the process of media creating commodities with symbolic significance through advertisements and introducing them to the market; (2) imagination, indicating that commodities are presented as objects of desire in media advertisements and the market in order to seduce consumers through the images, metaphors, and myths created by media; (3) appropriation, meaning that commodities, once sold, would be possessed by the consumer, separate themselves from the market and exchange, and become the possessions of individuals or a families, 16 THE CONSUMPTION PRACTICES AND IDENTITY FORMATION thus gaining significance; (4) objectification, meaning that if appropriation reflects ownership of commodities, objectification displays commodities themselves and the identities of individuals or families; (5) incorporation, which means the ways that media or commodities are used, as both media and commodities are practical but can be used for other purposes as a result of consumers’ considerations; and (6) conversion, being the indicator for measuring members of society and their cultural abilities, while commodities and their significance can be used to define and claim people’s social status. While studying Silverstone’s discussion on media consumption, we confirmed the relationship between consumption, media, and identity and concluded that consumption is inseparable from media, and that consumers consume under the influence of media and express and form their identities through it. Based on this understanding of the relationship between consumption, media, and identity, special attention is paid to the media’s influence on the middle class during the surveys. Survey Method The main survey method herein is semi-structured interviews. Before the interviews, the researchers defined only the key problems and the frame (see Appendix A) as references to guide the interview process. During interviews, the content and sequence of questions differed due to various uncertainties. In the interviews, researchers listened and responded to the interviewees’ statements while modifying questions to help clarify or expand the content of interview. This study included 25 interviewees (see Appendix B). Most of these interviewees were found by “snowballing” outward from researchers’ personal connections in an effort to increase the diversity of interviewees in aspects including occupation, age, and life experience. Key criteria for the selection of interviewees were occupation and education indicators of the middle class as defined by sociologists (since most interviewees are not comfortable with questions regarding their income, a middle-class income indicator is not included in this study). As all the interviewees requested anonymity, their names were replaced with numbers to protect their privacy, following the ethical principles of sociological studies. However, all the interview records are true. From May 2018 to February 2019, 25, members of the middle class from Beijing and Shanghai were interviewed. The interview locations were mainly the offices and meeting rooms of interviewees’ companies, or somewhere near their homes, shopping malls, or cafés in frequently visited clubs. In Table 1, the basic characteristics of the interviewees are summarized as follows: The interviewees are aged between 25 and 63, there are 11 women and 14 men, most are married, most have received higher education, and nearly one third have experience studying or working abroad. To add diversity to the sample of respondents, two housewives were interviewed, both of whom have a bachelor’s degree or higher. Table 1 Sample Description Characteristic Gender Age Marital status Degree Distribution Male 25-63 Married Bachelor Doctor 56% Average 84% 44% 8% Female 38.1 Unmarried Master 44% 16% 48% THE CONSUMPTION PRACTICES AND IDENTITY FORMATION 17 (Table 1 to be continued) Occupation Industry Nature of the employer Place of residence Senior management Middle-level management General staff Freelancer Other Finance Business Education Other State-owned enterprise Private enterprise Foreign-funded enterprise or joint venture School Public institution Other Beijing Shanghai 26% 12% 49% 6% 7% 8% 56% 8% 28% 4% 44% 12% 8% 16% 16% 52% 48% Results and Discussion According to their statements, interviewees are divided into the following three categories according to their characteristics: The Material Attempts of Followers Followers are middle-class individuals who are economically weaker and completely under the influence of media, trying to realize their identity through material consumption. “Although my current income does not allow me to live the ideal life of the middle class displayed in the media, I hope to become a member of the middle class as described in the media as soon as possible. I usually go through fashion and lifestyle magazines and persist in my studying. Although my income is not high enough for me to buy a lot of luxuries, I follow the media’s recommendation to buy a less expensive luxury every two or three months, such as Gucci, Prada, and Coach, to get close to the ideal status materially.” (M02) This kind of middle-class individuals not only are susceptible to the media, but also value the opinions of others. While consuming, they may sometimes act blindly and extremely. “I like fashion magazines and American soap operas very much…I think in modern society, the contest among women is a contest for appearance and material possessions, and I do not want to be worse off. When I see my former schoolmates dressing fashionably, wearing exquisite makeups, bags, and watches, I think to myself that I will catch up with and exceed them. Of course, since my husband is the only one making money, I cannot just spend money on my wants. However, I do care about others’ opinions, so at least I cannot lose in appearances.” (M11) “I always see people in the media who lead glamorous lives, and only those who have luxury cars and houses are the ideal middle class. I really hope that one day I can live a life like that. I thought that I could be rich as long as I saved a little bit. The result, however, is that others have bags from famous brands worth tens of thousands of yuan, while mine are counterfeits bought on Taobao. Luxury cars that can satisfy my vanity are beyond my means. You might find it ridiculous that I even thought of going for a “nude loan” (which requires 18 THE CONSUMPTION PRACTICES AND IDENTITY FORMATION the borrower to provide pictures of himself holding his identity card naked, instead of a debit note), just for the simple reason that I want to show off although I am not financially competent.” (M18) This type of middle-class individual, influenced by the media, also likes to try exotic commodities, and they take these attempts as symbols of internationalization and even a way for them to show off. “It is often shown in the media that, to become middle class, you must have an international vision, with which I strongly agree. When I go out for food, I usually find some trendy, exotic restaurants on the Internet, including those that serve French food, Spanish food, Italian food, Arabic food, Turkish food, Korean food, Japanese Sushi, and Thai food. The owners and waiters at these restaurants are mostly foreign, and these places are less visited, being a paradise for the middle class. I do like this atmosphere, which is always seen in movies and TV shows. Although my income does not allow me to lead the ideal middleclass life displayed in the media, at least I can have a taste of it in respect of the atmosphere. Moreover, every time I eat foreign food, I can share it on WeChat Moments to show off. In this way, I can enjoy international style without going abroad.” (M16) In addition to demonstrating their international style, this kind of middle-class individuals are also fond of highlighting uniqueness through customization. Customized products are costly, but for them they are means of demonstrating uniqueness and are ways of expressing themselves. “It is said in the media that all the classy members of the middle class should pursue uniqueness, isn’t it? Customizing a suit is expensive. Considering design and production costs, it must be more expensive than those sold in shopping malls…but this method of consumption is trendy, isn’t it? Although I cannot customize every piece of clothing, it is possible to customize one item following the trend. Look, this handmade leather laptop bag is customized. Even more, I have customized handmade shoes, a watch, and a bicycle. I would rather tighten my belt to pay for my pursuit of uniqueness.” (M20) Through consumption, these members of the middle class hope to conform with the group they want to identify with and distinguish themselves from the groups they look down upon. “My friends are particular about brands when buying things. The bags they use are either HERMES or Prada. Being friends with them, I cannot be too plain. You know, birds of a feather flock together. Without a similar consumption level, we will not get close with each other. So, I am sensitive to recommendations in the media. I need to keep up with the people around me by owning brand-name products.” (M17) “In terms of dressing up, I will refer to information in the media, imagining the temperament of the middle class, and learning what clothes to wear and how to wear them for different occasions. Now office workers like reading fashion magazines and wear brand-name clothes. We white collar workers also deserve these clothes, unlike those from rural areas and those with little education, who still look rustic even in famous brands.” (M25) This kind of middle-class individuals value the visibility of their consumption, and be it clothes or a restaurant, they need their consumption practices to be seen. For them, this visible consumerism helps to demonstrate their social status. Invisible spending on daily supplies, on the other hand, is not as important. For example, “It doesn’t matter what you eat and wear casually at home. Nobody sees it anyway. For loungewear, I always buy the cheap ones”. (M24) The Spiritual Pursuit of the Rationals The Rationals indicate those members of the middle class with a stronger economic capacity than the Followers. Although their consumption practices are influenced by the media, they attach more importance to THE CONSUMPTION PRACTICES AND IDENTITY FORMATION 19 spiritual consumption, and hope to be closer to their ideal lives through planned and rational consumption. These kind of middle-class individuals think that “the middle-class life is not only about material satisfaction, but more of spiritual enjoyment (M10)”. They give consumption certain cultural meaning to show their taste, demonstrate their superiority, and distinguish themselves from other social strata. “Recently, the media are all about coffee culture, which I think is a culture belonging to us as the middle class. I like going to stylish cafés. Instead of mass chain stores, I go to cafés that are only known to people in the same circle. I also went to one introduced to me by a friend.” (M03) The café that M03 often goes to is CupOne in Beijing, the boss of which is from the art circle and used to work in the art gallery industry. The café is designed by Spanish designer Manuel Zornoza, and the per capita consumption is RMB 100 yuan. A waiter in CupOne proudly introduced the café in the following words: “Consumers of CupOne are mainly elite white-collar workers and freelancers who have a higher income and require a higher quality of life, namely the middle class. Other cafés sell coffee, but CupOne sells an atmosphere”. M03 also mentioned that “Most of the Chinese middle class in tier-one cities have an atmosphere requirement, either business or leisure, for cafés. When they are in a public space surrounded by strangers of the same type, they will feel comfortable”. Rational middle-class individuals also said that they cannot only learn about the lifestyle the middle class should lead, but also see the life of the upper class in daily life. “The media is all about the image of the middle class, and they are everywhere in reality. Beijing is the top of the ivory tower for all fields, including politics, economy, and culture in China. Here the top elites from various fields gather, representing the highest class in Chinese society. Although I do not belong to the upper class, at least I am middle class. When I go out, basically I go to places filled with the middle class and the elite upper class, after all, the atmosphere there is better.” (M14) “I like going to “S.T.A.Y. 思” Restaurant inside the Beijing Shangri-la Hotel with my friends. Consumers there are mostly middle class and above. You could say it is the best western seafood restaurant in Beijing, with a top-class environment and thoughtful service. That is the best choice to enjoy a nice time with your family on weekends and to talk freely with your friends.” (M07) The “S.T.A.Y. 思” Restaurant mentioned by M07 is a French restaurant located on the first floor of the Beijing Shangri-la Hotel. It is a three-star Michelin restaurant created by French chef Annick Alléno. The per capita consumption there is RMB 1,000 yuan. The Rational middle class also have clear plans for how to live an ideal life, for which they regularly set goals. “I admit that I am deeply influenced by media. I feel excited every time I see a promotion or an advertisement in the media, which is a driving force for my struggle. When I fancy a commodity in an advertisement, I set a goal for myself, for example, I must buy it within two months. This is both efficient and planned.” (M19) “I keep accounts everyday to know my income and expenditure situation, and have a rough expectation for my upcoming consumption. I do not think I can resist the power of media. While deferring to the media, I learn how to become a real member of the middle class. I think members of the middle class must have a brand-name bag and a pair of Christian Louboutin. You know, they are the symbols of identity. Certainly, handmade bags without logos are also noble because they are unique. Others’ opinions are important, but my own feeling is 20 THE CONSUMPTION PRACTICES AND IDENTITY FORMATION also important.” (M12) M12 mentioned brand consumption. For the Rational middle class, a brand is not only about demonstrating identity, but also about quality, insurance, and guarantee, as well as its cultural connotations. Their brand pursuits are within their means, unlike the reckless consumption of the Followers. “I rarely go out to shop. If I do so, I would choose branded commodities because their quality is guaranteed, and their services are good. Also, these famous brands are rich in longstanding cultural concepts. For example, the culture of Apple is to keep innovating forever, while Huawei has a cultural connotation centered around strugglers, choosing them means that I agree with their culture and spirit.” (M05) “The media tells me that the identity of the middle class must be demonstrated through certain brands. I also learn about brands from the media, such as Brioni, Armani, Ermenegildo Zegna, and Canali. Although the prices are a little high, they are quite decent to wear. My work is dealing with customers, so I must care about my image. I think the threshold for a brand is never the high price, but the outstanding quality. What supports your confidence is not a famous brand, but your taste.” (M13) “Most of my monthly spending is on buying clothes and skin care products, mostly from international brands in duty free shops in airports. I think the quality of international brands is guaranteed. However, my consumption of branded products is always within my means. I buy them either in the duty-free shops or on sale in shopping malls.” (M01) This kind of middle-class individual also attaches importance to the decoration, atmosphere, and glamour of their environment while consuming. “When I go out with friends, we usually eat out. In places like western restaurants, the environment and service are good. When we finish eating, the table will be cleaned up. We can continue talking there or sit quietly, and there is not a waiter asking you to leave…I do not go to tea restaurants or cafés for the food, but for the decoration or the orchestra there. Of course, if the decoration and environment are good, the food will not be too bad.” (M09) Members of the Rational middle class also mentioned their non-commodity spending on relationships and entertainment, and indicated that this helps them expand their social network. “Relationship-based consumption can deepen affections and promote networking. On a monthly basis, I go out for dinner with my workmates, old schoolmates, and friends. This is an important way to expand my social network and strengthen social interactions. The places we go to are not only for food, but also for us to talk freely. Having dinner together, playing ball games, and singing Karaoke are helpful for promoting private affection and increasing job opportunities. I spend a lot on these things every month.” (M04) The Freedom of the Confidents The Confidents refer to those members of the middle class who are confident in their economic strength, maintain calm judgment against the promotion and advertisement in the media, and are capable of consuming freely. “I think only a few people in China can lead the middle-class lifestyle described in the media. In reality, even though some people can afford that standard of living, they do not necessarily own all the things promoted in the media. People who are already middle class, like me, only buy one of two things recommended in the media rather than none at all, although we do refer to the media for how to improve our lifestyle. I use my own judgment for consumption.” (M08) “The middle-class lifestyle displayed in the media is very different from reality. However, members of the THE CONSUMPTION PRACTICES AND IDENTITY FORMATION 21 middle class like me already have enough confidence to avoid doing things literally as they are recommended by the media. Of course, I pursue a quality life and care about quality of life. I just do not imitate.” (M21) This kind of middle-class individual seldom cares about the form of consumption, but pays attention to the essential content of consumption. “I like swimming and often do so with my friends, but I do not want to join the fitness clubs recommended in the media. I know that these clubs are stylish, but I do not care about that. The most important thing is the fact that you do sports, not where you do them.” (M06) “If not for work, I rarely eat in restaurants. It is never as nice outside as it is at home. Recently, I fell in love with cooking and would buy ingredients and cook at home by following recipes. I take this as a pastime. I like inviting friends to dinner at my home to try my cuisine, and, at the same time, it is more convenient and comfortable to chat at home.” (M22) “A lot of my friends value comfort and quality when buying clothes, which might be expensive, but not excessively expensive. They no longer pursue big international names. The most important thing is being comfortable.” (M23) Except spending on basic necessities, maintaining their physical and mental health and improving their children’s accomplishments and education through study are also essential consumer items for members of this section of the middle class. “Now, the expenditure is still concentrated in investing in houses, updating electronic products, networking, traveling, self-education, and education of children. Although food and clothes are important, the content of them are different from that in the past in our family. We are demanding in terms of the quality and services of food and clothes. For example, we tend to buy organic food, requiring it to be environmentally friendly and not harmful to our health. For clothes, we prefer comfort but will not ignore brand and style. Every year, our family travels abroad two or three times. Educational investment in sending our children to learn foreign languages, piano, ballet, and swimming, as well as spending on my foreign language studies, make up a large proportion of our spending.” (M15) Conclusion In conclusion, through the interviews herein, we discovered that different types of individuals within the Chinese middle class showed different characteristics in their consumption practices. Firstly, those members of the middle class defined as the followers in this study do not have enough money to lead the middle-class lifestyle promoted in the media, but they try to learn and consult promotions and advertisements in the media in an effort to demonstrate their middle-class identity through material consumption. They not only pursue symbols of internationalization, but are also keen on customized products, think highly of visible consumption, and sometimes even blindly consume commodities beyond their means. Their consumption is meant to be materially in line with the group they want to identity with and to distinguish them from the groups they look down upon. Secondly, when compared to the followers, those members of the middle class defined as the Rationals in this study have stronger economic strength, a superior quality of life, and broader vision. They not only learn about the required lifestyle of the middle class from the media, but also directly observe the lives of the upper class in their daily lives. They think that the middle-class lifestyle promoted in the media is both material and spiritual. They have clear plans for their consumption and value the cultural connotation, service quality, and, 22 THE CONSUMPTION PRACTICES AND IDENTITY FORMATION especially, the environment of the things they consume. Their non-commodity spending on relationships and entertainment is quite high. They tend to express their taste, demonstrate their superiority, and differentiate themselves from other strata through consumption. Finally, the Confidents were defined in this study as the group with the strongest economic background. They pay more attention to the content, rather than the form, of consumption. They purposefully refer to and choose from promotions and advertisements in the media. They have stable consumption preferences and spend a lot on education, study, and recreation. Their consumption practices show that they are confident in their identity. In sum, for the Chinese middle class, a stratum that is taking shape and constantly changing, consumption plays an important role in realizing, expressing, and forming identity. In this media era, the consumption practices and identity formation of the middle class are inseparable from media’s influence. Due to different economic strengths, living environments, and visions, different kinds of individuals within the Chinese middle class hold different attitudes towards the media and show marked differences in their consumption practices. However, although there are numerous market research reports on the consumption characteristics of the Chinese middle class, almost all of them highlight the overall characteristics of the Chinese middle class, including quality, conspicuousness, brand, and fashion, but rarely mention consumption differences within the middle class. Therefore, we hope that future market research and related studies can properly subdivide consumption characteristics, distinguish the differences within the middle class, maintain a developing perspective, closely follow the changes in the middle class over time, and investigate the behaviors and consciousness of the Chinese middle class from multiple aspects. References Baudrillard, J. (1968). Le Système des objets. Paris, France: Gallimard. Bourdieu, P. (1984). Distinction: A social critique of the judgement of taste. London, UK: Routledge. Douglas, M., & Isherwood, B. (1979). The world of goods. New York, NY: Basic Books. Featherstone, M. (1990). Consumer culture & postmodernism. New York, NY: Sage Publications Ltd. Frank, R. H. (1985). The demand for unobservable and other non-positional goods. American Economic Review, 75(1), 101-116. Li, C. L. (2007). Consumption stratification in contemporary China. Journal of Sun Yat-sen University (Social Science Edition), 47(4), 8-13. Li, P., & Zhang, Z. (2000). Consumption stratification: An important perspective for stimulating economic development. Social Sciences in China, (1), 52-61. Mills, C. W. (1951). White collar: The American middle classes. New York, NY: Oxford University Press. Riesman, D. (1950). The lonely crowd: A study of the changing American character. New Haven, CT: Yale University Press. Sahlins, M. (1976). Culture and practical reason. Chicago, IL: University of Chicago Press. Silverstone, R. (1994). Television and everyday life. London, UK: Routledge. Simmel, G. (1904). Fashion. International Quarterly, 10(1), 130-155. Tian, F. (2011). Consumption, lifestyle and social stratification. Heilongjiang Social Sciences, (1), 88-97. Veblen, T. B. (1899). The theory of the leisure class. New York, NY: MacMillan. Wang, F. Q., & Zhang, C. (2018). The social status and consumer preferences of urban residents in China (2003-2013). Journal of Social Sciences, (4), 65-76. 23 THE CONSUMPTION PRACTICES AND IDENTITY FORMATION Appendix A: Interview Guide I. Basic information and middle-class consciousness (1) Could you talk about the basic information about and experience of you and your family (age, degree, occupation, employer, family composition, etc.)? (2) What is your industry and your job? (If you are not working, would you please describe your former job?) (3) Based on your current conditions, including job, income, degree, housing, and family, which class do you think are you in? Which class do you think are most people around you are in? (4) What kind of people do you think can be called middle class in China (income, degree, occupation, consumption, lifestyle, etc.)? Do you think that the middle class has emerged in China? Do you think you are a member of the middle class? Why? What is the rough proportion of the middle class to the total population in China? (5) What is your ideal middle class like? Personally speaking, which aspects should be improved to achieve an ideal middle-class status (income, degree, occupation, lifestyle, etc.)? II. Exposure to and use of media (1) How long are you exposed to the media every day? Which media do you use most frequently (Internet, television, newspaper, movie, etc.)? What do you usually use media for (work, study, networking, entertainment, education, etc.)? (2) Have you noticed reports and descriptions of the middle class in the media? If yes, what is your impression of it, and how do you evaluate reports and descriptions of the media’s image of the middle class? (3) Do you think that you are vulnerable to the influence of media? In which aspects are you influenced? If a product or service is promoted to you or your family in the media, will you or your family consume it due to the media’s influence? III. Family or individual consumption (1) For your daily consumption, where do you usually go shopping? Do you have any preferences in where you shop? Why do you make choices like this? (2) Do you have favorite brands for your daily necessities, clothes, cosmetics, cars, luxuries, and so on? Do you have preferences for certain brands? Do you care about others’ opinions on the brands you use? Do you use international brand-name commodities? Why do you choose these international brands? (3) Do you go shopping aimlessly? What factors do you consider while shopping? Why? (4) If you see a commodity you like but the price is beyond your means, will you buy it? Do you buy commodities on sale? (5) What do you think is the main purpose of consumption? How do you think your concept of consumption has changed in recent years? Do you think that changes in this concept of consumption are influenced by external factors? (6) In the last year, on what category do you spend the most money (clothing, food, shelter, transportation, leisure activities, recreations, etc.)? Appendix B: Overview of Interviewees SN M01 M02 M03 M04 M05 M06 M07 M08 Gender Female Female Male Male Male Male Male Female Age 38 34 35 25 46 46 43 45 Employer-occupation Market research company—researcher Advertisement company—designer IT company—engineer Newspaper office—journalist Municipal government—officer Five-star hotel—general manager TV station—department head Private company—CEO Degree Bachelor Bachelor Master Bachelor Master Master Master Master Place of residence Shanghai Beijing Beijing Shanghai Shanghai Beijing Beijing Beijing Marital status Married Married Married Unmarried Married Married Married Married 24 THE CONSUMPTION PRACTICES AND IDENTITY FORMATION M09 M10 M11 Male Male Female 45 36 36 M12 Female 37 M13 M14 M15 M16 M17 M18 M19 Male Male Male Male Female Female Female 48 39 43 27 36 28 28 M20 Male 41 M21 M22 Female Male 44 30 M23 Male 63 M24 M25 Female Female 29 31 Securities company—consultant University—researcher Housewife Foreign-funded company—department manager Insurance company—department head Private company—general manager State-owned company—project manager Property developer—designer Real estate agency—department manager Middle schoolteacher housewife Foreign-funded company—human resource manager Advertisement company—owner Freelancer—online editor Central administrative authorities—minister Foreign-funded company—staff Bank—staff Master Doctor Bachelor Shanghai Beijing Beijing Married Married Married Master Beijing Married Bachelor Master Bachelor Master Bachelor Bachelor Master Shanghai Beijing Beijing Shanghai Beijing Shanghai Shanghai Married Married Married Unmarried Married Unmarried Married Master Shanghai Married Master Bachelor Beijing Shanghai Married Unmarried Doctor Beijing Married Bachelor Bachelor Shanghai Shanghai Married Married Note. Ages shown in the table are ages at the time of the final interview in February 2019. Chinese Business Review, Oct.-Dec. 2019, Vol. 18, No. 4, 25-50 doi: 10.17265/1537-1506/2019.04.003 D DAVID PUBLISHING Impact of Controllable Factors on Export Performance of SMEs in Jordan MaanAlkhateeb Palestine Technical University, Tulkarm, Palestine Exporting is of great interest for SMEs in Jordan from both microeconomic and macroeconomic perspective. The objective of this study was to identify to what extent specific internal factors contribute to export success of SMEs in Jordan. This study hypothesized that export performance of SMEs is directly affected by three groups of internal factors. These include firm characteristics, managerial characteristics, and marketing strategy. A multiple case approach is used to conduct this research and a structured interview is developed to collect the data directly from the participants. A pattern matching approach was used to test the hypotheses. The results show that export performance is positively affected by firm characteristics, managerial characteristics, and marketing strategy. Additionally, the demographic characteristics of managers and adaptation of distribution channels are unlikely to have an influence on export performance. This was unexpected, because of the plenty of empirical evidences in the literature that support the impact of these variables on export success. Keywords: export performance, small-medium enterprises, SMEs, controllable factors, firm characteristics, managerial characteristics, marketing strategy Introduction For the past five decades and as a consequence of the incoming internationalization and globalization of the world market, exporting became the preferred mode of internationalization of Small and Medium Enterprises (SMEs) and firms have become more important and more difficult due to increased global competition (Leonidou, Katsikeas, & Coudounari, 2010; Quansah & Bunyaminu, 2017; Nakos, K. D. Brouthers, & L. E. Brouthers, 1998). The role of exporting in the national economy was significant during the last five decades. In recent years there has been considerable empirical research investigating the determinants of export performance. This increased attention to exporting is partially explained by the growth in the number of countries facing actual or anticipated balance of payment deficits (Dean, Mengüç, & Myers, 2000). It is widely recognized that the expansion of a nation’s exports has great influence on the growth of the economy as a whole, as well as on individual firms (López-Rodríguez, Dopico, & Puente, 2018; Calia & Ferrante, 2013; Leonidou, Katsikeas, Palihawadana, & Spyropoulou, 2007; Cavusgil & Nevin, 1981). Exporting is of vital Acknowledgments: The author would like to thank PTUK for funding this research. MaanAlkhateeb, Ph.D. in Management, Department of Industrial Management, Faculty of Economic and Business, Palestine Technical University, Tulkarm, Palestine. Correspondence concerning this article should be addressed to MaanAlkhateeb, Department of Industrial Management, Faculty of Economic and Business, Palestine Technical University, Jaffa St., Tulkarm, Palestine. 26 IMPACT OF CONTROLLABLE FACTORS ON EXPORT PERFORMANCE OF SMES interest to both public policy makers and business managers (Katsikeos, Leonidou, & Morgan, 2000). From the public perspective, exporting is considered as a mean to accumulate foreign exchange reserves, increase employment levels, improve productivity, and lead to higher standard of living (Asadollahpoor, 2015; Chugan & Singh, 2015; Czinkota, 1994). For business managers, exporting provides competitive advantage, improves financial position, increases capacity utilization, and enhances firm growth (Samiee & Walters, 1990). The changes in the world market including the elimination of political and economic boundaries, the accelerated developments in communication technology, and the formulation of multiple country trade agreements are transforming the business arena worldwide and increasing the importance of exporting to achieve economic growth (Chugan & Singh , 2015; Baldauf, Cavens, & Wanger, 2000 ; Dean et al., 2000). For small open economies such as Jordan, with its dependence on foreign aids and international exchange, exporting is vital for economic growth and prosperity. Thus, it is very important to understand all the factors that make SMEs and firms successful exporters. This study will help the practitioners to understand how the selected internal factors improve export performance in Jordan. Problem Statement According to the figures provided by the Jordanian Department of Statistics (2018), Jordan’s global exports up to the end of 2018 were JD 4,674 million, and Jordan total imports up to the end of 2018 were JD 4,691 million. According to the central bank of Jordan, 99% of registered enterprises in Jordan are SMEs forming more than 70% of workforce, 50% of private sector output, more than 50% of GDP, and more than 45% of total exports. Nevertheless, The contribution of SMEs in Jordan’s total exports is very low. Only 4% of SMEs are involved in exporting activities. In recent years, there has been an increasing interest among small and medium sized firms to expand their operations through exporting. This increasing interest among these firms can be attributed to intensified competition at home and limited size of domestic market. SMEs possess certain features that are distinguished them from large firms and have impact on their choices of internationalization decisions (Laufs & Schwens, 2014). These features include: limited financial and human resources, individual’s ownership and management of business, and lack of information. However, SMEs have more flexibility that makes them more responsive to the opportunities in the international markets. Although the existence of such conditions has contributed in increasing the number of SMEs involved in export activities, studies in this field show that success of these firms depends not just on external (environmental) factors, but mainly on internal controllable factors (e.g. Aaby & Slater, 1989; Madsen, 1989; Cavusgil & Zou, 1994). Therefore, in order for an export development and promotion program to become effective, public policymakers and firm’s executives need to give particular attention to identifying the drivers of firm export performance. The understanding of such factors helps decision makers to develop appropriate strategies that will maximize the effectiveness of export performance. Jordanian SMEs are not yet doing well at international trade level and their contributions in this area are limited. The general purpose of this study is to determine what factors may have an impact on export performance of Jordan SMEs and the relative importance of each factor, by examining the influence of controllable factors on export performance. Study Significance In the Jordan context, there is a shortage in previous studies investigating the determinants of export performance of SMEs firms. Most of the theoretical and empirical studies in export performance have been IMPACT OF CONTROLLABLE FACTORS ON EXPORT PERFORMANCE OF SMES 27 conducted in developed countries. However, the findings of the few export studies that have been conducted in similar economies show that firms’ internal factors, particularly managerial characteristics, have an influence on export performance. Therefore this study aims to fill the gap in international business literature in Jordan, and in particular in export performance literature. In addition, the findings of this study will provide recommendation to the policy makers and firms executive to adopt the appropriate strategies to utilize their internal resources to improve export performance of SMEs in Jordan. Study Objectives The main objective of this study is to determine what factors may have an impact on export performance of Jordan SMEs and the relative importance of each factor, by examining the influence of controllable factors on export performance. Theoretical Framework The internationalization process by small and medium businesses are subjects of significant and ongoing research (Chen, Sousa, & He, 2016: Wolf & Pett, 2000). Exporting has been considered the preferred entry mode for the internationalization of SMEs, as it fits its capabilities by offering greater degree of flexibility and minimal resource commitment (Chen, 2017). In preceding centuries a number of models have been developed to explain the involvement of nations in international trade. Among these theories are comparative advantage (Ricardo, 1817), factor endowment (Ohlin, 1933), and product life cycle (Vernon, 1966). Although these theories are useful for the analysis of board issues pertaining to international trade, their value is limited in explaining the export behavior of individual business unit (Bilkey, 1978). Several models on the export development process of the firms have been published in the international literature during the last four decades. Following Anderson (1993), the most relevant approaches of the firms specific internationalization process are the Uppsala internationalization model developed by Johanson and Wiedersheim-Paul (1975) and Johanson and Vahlne (1977), innovation-related internationalization model (e.g. Bilkey & Tesar, 1977; Cavusgil, 1982; Czinkota, 1982; Rao & Naidu, 1993), and the born-global model (Cavusgil & Knight, 2015). The Uppsala Model of Internationalization The Uppsala model refers to work following Swedish researchers (Johanson & Wiedersheim-Paul, 1975; Johanson & Vahlne, 1977). This model suggests that internationalization activities occur incrementally and are influenced by increased market knowledge and commitment. The model consists of four stages, including no regular exporting activity, export via independent representatives, overseas sales subsidiary, overseas production. The model emphasizes the organizational forms of international business involvement, and it consists of one pre-export, two export stages, and one post-export stage, each representing a successively greater commitment of resources to overseas markets. Internationalization is described in terms of market selection and the mechanisms used for market entry. Firms improve their foreign market knowledge through initial expansion with low risk, indirect exporting approaches to similar “psychically close” markets. Over time and through experience firms increase their foreign market commitment. This in turn enhances market knowledge, leading to further commitment in more distant markets ending with offshore manufacturing and sales operations. 28 IMPACT OF CONTROLLABLE FACTORS ON EXPORT PERFORMANCE OF SMES Johanson and Vahlne (1990) suggested exceptional conditions for the incremental steps of firm internationalization including a firm that possesses a large amount of resources may take large internationalization steps: When market conditions are stable and homogenous, market knowledge can be gained in ways other than by experience; When a business has considerable experience from markets with similar conditions, it may be able to generalize this experience to other markets. Johanson and Vahlne (1977) expanded the work of Johanson and Wiedersheim-Paul to suggest that the basic mechanism for internationalization is a combination of market knowledge, commitment decision, and current activities. The basic mechanism in this model is that market knowledge and commitment affect both commitment decisions and the way current activities are performed, which, in turn, influences market knowledge and commitment. Market commitment comprises of two factors: the amount of resources committed and the degree of commitment. In 2009 the Uppsala model has been revised. The new model emphasized the importance of networking as a major element in internationalization process. It is through the firm’s interconnection that the knowledge is created. According to Johanson and Vahlne (2009), the learning process occurs at the same time with internationalization process. Innovation-Related Model In addition to viewing the internationalization process as a sequential series of stages, it has been proposed that export development process can be viewed as an innovation process. Several innovation models have been developed during the last few decades. Based on the same assumption of Uppsala Model, Bilkey and Tesar (1977) developed a six-stage model ranging from one of a lack of interest in exporting to one marked by exporting too many countries. The main difference between the Uppsala Model and the Innovation Model is that the former one emphasizes the organizational forms of international business involvement, while the later emphasizes the process of the internationalization based on firm’s increasing dependence on psychologically more distant countries. Cavusgil (1982) proposed a five-stage model of internationalization ranging from one uninterested in exporting to one of a high commitment to exporting, with various level of commitment in between. The progression in each stage is determined by the amount of information received by managers. The model assumes that companies move progressively and slowly through the stages from domestic marketing to various levels of exporting. It also assumes that non-exporters in stage one are not capable exporting. After the empirical testing of this model the last stage was eliminated. Czinkota (1982) developed a six-stage model. Czinkota’s stages range from firms that are completely uninterested in exporting to firms that are experienced large exporters. The empirical testing of this model shows that firms in the various stages differ in terms of organizational, managerial, and other internal company characteristics. Moon and Lee (1990) proposed three-stage model in attempt to explain the internal factors which induce a firm to move a higher stage. The research revealed that firms’ internal factors were significant in explaining the dispersion of firms across the export stages. However, none of the structured variables were related to firm’s export stages. Rao and Naidu (1993) developed a four-stage model. In this study, they assigned each responding company into one of four predetermined stages of internationalization according to their export activity: non exporters, export intenders, sporadic exporters, and regular exporters. Their findings confirm the IMPACT OF CONTROLLABLE FACTORS ON EXPORT PERFORMANCE OF SMES 29 assumptions that there are identifiable stages in a firm’s internationalization. Crick (1995) developed a model consists of six stages. Because of the overlapping of the characteristics of firms within different stages in the internationalization process, the firms are distinguished as non exporters, passive exporters, and active exporters. The results of this study show that there were significant differences between firms in the various stages as to foreign customer demands, internal company requirements, export related problems, and type of government support. Leonidou and Katsikeas (1996) in reviewing the previous empirical models of export development process concluded that the sequence of activities in the export development process can be divided into three stages: pre-engagement, initial, and advanced. The pre-engagement phases includes firms that are active in their domestic market but not exporting, those involved in domestic market but considering export activity, and those used to export in the past but no longer export. Firms included in the initial phase are sporadic or experimental exporters evaluating future export action. Companies in this phase are classified as those companies who have the ability to increase their overseas involvement, and those unable to cope with the demand of exporting, leading to managerial export or stop exporting. Firms in the advanced phase are actively and consistently engaged exporters. Born-Global Models In contradict to the traditional models, the born-global model assumes that firms internationalize their activities within three years of their foundation (Cavusgil, Yeniyurt, & Townsen, 2014). The why global-born firms exist has been investigated by many researcher. The lack of resources is one of the most important factors (Cavusgil et al., 2004). Madsen and Servais (1997) mentioned three reasons for internationalization of born global. The first one is related to the changes in the market conditions. One of the most influencing condition is the emerging of specialization and producing of specific components that are to be marketed in the international market, because the local market is very narrow. The second driver to born-global is the dramatic technological advance in communication, transportation, and production. Consequently, the cost of internationalization process has declined. The final reason came from the fact that human resources technological capabilities have increased because of the international experience. Born-global firms are focusing on high innovative products, and the background of the founders are different from the founders of traditional exporting firms. They depend largely on utilizing networks to exploit opportunities and attain resources in the international market. Thus, this model is applicable to a certain type of firms. The review of these models reveals that there is no single agreed internationalization model. However, there is an agreement among the research that firms pass through a staged process of international involvement, ranging from the pre-export stage to one with a greater international commitment. One of the major causes of inconsistency in previous research is the lack of uniform measures for both export performance and its determinants (Chen, Sousa, & He, 2016). The absence of a unified performance measure leaves room for inconsistency and confusion. Most studies that have investigated export performance have proposed that export performance is directly affected by internal and external factors (Chen, Sousa, & He, 2016; Nakos, K. D. Brouthers, & L. E. Brouthers, 1998). However, other studies (e.g. Hoang, 1998) revealed that some internal and external factors have an indirect impact on export performance. However, since the majority of previous studies established a direct 30 IMPACT OF CONTROLLABLE FACTORS ON EXPORT PERFORMANCE OF SMES relationship between internal and external factors and export performance, in this study we follow the same approach. Based on this discussion the following model (Figure 1) is proposed to guide this research. Figure 1. Research model: Impact of controllable factors on export performance. Literature Review and Hypotheses Firm Characteristics Firm characteristics and their influence on export performance have been studied extensively. They are more controllable by management and provide a good indication about the company’s strength and weakness. According to Baldauf, Cravens, and Wanger (2000), they can be determinants of higher performance. Various aspects of firm’s characteristics have been investigated including firm size, management competencies, and organizational structure. These factors have been widely investigated by previous research. Fernandez-Ortiz, IMPACT OF CONTROLLABLE FACTORS ON EXPORT PERFORMANCE OF SMES 31 Arteaga-Ortiz, and Clavel San Emeterio. (2015) studied a sample of 128 internationally diversified SMEs from Spanish region of Larioja to examine the relationship between resources and capacities of these firms and export performance. The findings of this study revealed a positive relationship between the size of the firm, its international experience, international experience of its managers and export performance. Another study by Stoian, A. Rialp, and J. Rialp (2011) investigated the influence of internal (managerial and organisational) and external (environmental) on export performance of Spanish small and medium-sized enterprises. The main results showed that managerial foreign language skills and international business knowledge, firm’s export commitment as well as the technological intensity of the industry are the most influencing antecedents of export performance. These findings were also supported by other researcher such as (Assadollahpoor, 2015; Aaby & Slater, 1989; Banaccorsi, 1992; Calof, 1993). According to Da Rocha, Christenen, and Eduardo da Cunha (1990), the greater number of years of export experience the more the firm would be an aggressive exporter. Similarly, Ruzo, Losada, Navarro, and Díez (2011), Sui and Baurn (2014), Moini (1995), Nakos et al. (1998), Kaynak and Kuan (1993), Cavusgil and Zou (1994) found positive relationship between international experience and profitability of sales abroad. In contrast, a few other studies were inconsistent with these findings (e.g. Cavusgil, 1984; Diamantopoulas & Inglis, 1988; Moon & Lee, 1990). Competitive advantage is another firm characteristic factor that has been found to influence export performance. Fung, Gao, Lu, and Mano (2008) conducted a longitudinal study to investigate the Impact of Competitive Position on Export Propensity and Intensity for 213,662 manufacturing firms in China from 1998 to 2005. The results show that firms that have competitive advantages in the domestic market are more likely to export and have higher levels of export intensity. Based on the above discussion the following hypotheses are proposed: H1: Firm characteristic factors influence export performance. H1a: : Firm’s size positively influences export performance. H1b: Firms with more export experience will have better export performance. H1c: Firms utilize updated technology in production will have better export performance. H1d: Firms with high R&D expenditure will perform better in exporting. Managerial Characteristics Like firm characteristics, a wide range of managerial characteristic variables have been examined by researchers, including demographic and non-demographic variables. Fernando, Fitrianingrum, and Richardson (2017) examined the link between organisational determinants and export performance, and the data were collected from E&E firms in Batam. The results indicate that export marketing strategy, firm characteristics and capabilities, and management characteristics are positively and significantly linked to export performance. Management characteristics are considered to be an important factor in analyzing export performance (Luguna, 2012; Fernandez-Ortiz & Lombardo, 2009). According to Holzmüller and Kasper (1990, p. 218) “A company’s decision to extend its marketing activities to markets abroad is ultimately taken by individual decision maker”. The personal characteristics of management have been extensively emphasized in export research. Nakos et al. (1998) in their study of “The impact of firm and managerial characteristics on SME Greek firms export performance”, found that personal characteristics of decision makers such as educational level, foreign language knowledge, residence in foreign countries, and commitment to international ventures all can have a strong influence on the export performance of the firm. 32 IMPACT OF CONTROLLABLE FACTORS ON EXPORT PERFORMANCE OF SMES Fernandez-Ortiz and Lombardo (2009) conducted a survey on 219 Spanish SMEs, indicating a positive relationship between the level of international experience and managers’ foreign language proficiency and export performance. Ganotakis and love (2012), Axinn (1988), and Reid (1983) argue that educated managers are more likely to perform better than less educated managers. Kaynak and Kuan (1993) indicated that managers travel abroad tend to be more successful exporters. Similarly, Holzmuller and Kasper (1990) found that managers having extensive overseas experience are more likely to export. Other studies suggest that export performance is influenced by the manger’s knowledge of foreign language (e.g. Serra, Pointon, & Abdou, 2012; Reeves, 1990; Dichtl, Koeglmayr, & Muller, 1990; Enderwick & Akoorie, 1994). With regard to manger’s age, studies reveal a positive relationship between age and export performance (e.g. Aaby & Slater, 1989; Nakos et al., 1998). Management attitude toward exporting is another management characteristic that has been studied by researchers. Management attitudes are usually associated with expectations of managers toward profitability, risk, and cost of exporting. A large number of studies have documented the positive relationship between export performance and management attitudes toward exporting (e.g. Czinkota & Johanson, 1983; Dichtt et al., 1990; White, Griffith, & Rynas, 1997; Cavusgil & Zou, 1994). Management orientation is another managerial characteristic that may influence export performance. In particular, management’s commitment to exporting is most likely to have an impact on export performance. Researchers emphasized the importance of this factor as an antecedent to export success (e.g. Gil-Pechuan, Exposito-Langa, & Tomas-Miquel, 2013; Louter, Ouwerkerk, & Bakker, 1991; Cavusgil & Kirpalan, 1993; Nakos et al., 1998; Ogburehi & Longfellow, 1994; Baldauf et al., 2000). Management commitment is reflected in resource commitment. Such activities as export department organization, export planning and control, export marketing research and regular export market visits are of major importance (Banaccorsi, 1992; Katsikeas, Piercy, & Ioannidis, 1996). Following this review, the researcher suggest these hypotheses: H2: Managerial characteristic factors influence export performance. H2a: Education level of manager is positively related with export performance. H2b: Firms with managers having foreign language skills will achieve better export performance. H2c: Firms with managers having experience in international market will perform better in exporting. H2d: Management commitment to international market is positively related with export performance. H2e: Management attitude towards exporting is positively related with export performance. Export Marketing Strategy An export strategy similar to domestic marketing strategy is normally defined in terms of marketing adaptation. It involves the manipulating marketing mix components (the 4Ps). In this study, marketing strategy is defined as the degree of adaptation in terms of marketing components. Navarro-García, Arenas-Gaitán, and Rondán-Cataluna (2014) argued that adaptation of marketing mix elements has a positive effect on export performance. Several previous studies show a positive relationship between marketing strategy and export performance. Fuchs and Köstner (2016) investigated the relationships among organizational factors, external environment, export marketing strategy, and export success, and the findings revealed that the product adaptation strategy positively influenced profitability and overall success, while price and distribution adaptation to local conditions have a direct influence on sales growth. Earlier studies supported these findings. IMPACT OF CONTROLLABLE FACTORS ON EXPORT PERFORMANCE OF SMES 33 Shoham and Albaum (1995), Cavusgil and Zou (1994), and Shoham (1996) reported a positive relationship between product adaptation and export performance as well as between price adaptation and export performance. Similarly, Shoham (1996) found that the degree of adaptation of promotion positively influences export sales margin, export sales growth, export profit margin, and export profit growth. In the case of distribution adaptation strategy, Beamish, Craig, and McLellan (1993) found that exporters who select a different distribution channel from that used for the domestic market have a better export performance. Upon this discussion the following hypotheses are proposed: H3: Export marketing strategy influences export performance. H3a: Firms following product adaptation policy will achieve higher export performance. H3b: Firms following promotion adaptation policy will achieve higher export performance. H3c: Firms following distribution adaptation policy will achieve higher. H3d: Firms following distribution adaptation policy will achieve higher export performance. Methodology Methodological Framework A multiple case approach is used to conduct this research. Recently there has been a growing recognition that the case study approach yields fruitful results. Yin (2014, p. 116) defined the case study as “an empirical inquiry that investigates a contemporary phenomenon (the ‘case’) in depth and within its real-world context”. In contrast to traditional views that qualitative research methods cannot produce valid result, Yin’s definition of case study suggests that it can be used as a fruitful scientific research method if executed in an appropriate way. Its major strength is that data can be collected from a variety of sources, both quantitative and qualitative. Although case study approach has been criticized for having a low level of generalizability. Yin (1989) argues that case studies are generalizable to theoretical propositions, even not to the population as a whole. Chetty (1996) argues that the case study method is appropriate for small economies where the small sample base means that there might not be enough firms to justify using statistical generalization. The logic behind using the multiple case studies is either to predict similar result (literal replication) or produce contrasting results for predictable reasons (theoretical replication) (Yin, 1994). In this study, using the multiple case approach would be an ideal choice. As it allows both theoretical and literal replications to be used, five cases from Amman province are selected to participate in this study. As the exporting behavior of SMEs could vary according to the type of industry, the selected cases are restricted to consumer product manufacturing sector with less than 100 employees. The rationale for focusing on SMEs is that the statistics reveal that SMEs account for more than 99% of all enterprises, in Jordan context a small enterprise is considered one with up to 20 employees where as a medium one has up to 100 employees (Ministry of Planning, 2016). Firms are chosen for theoretical replication reasons rather than representation reasons. Data Collection Method To answer the research question, a structured interview is developed to collect the data directly from the participants. The questionnaire is developed on the basis of the foregoing literature review. Using a structured interview is an appropriate method because the aim of this study is to compare the research findings with theoretical propositions. Standardization of data collection minimizes researcher bias and enhances the reliability of measurement. 34 IMPACT OF CONTROLLABLE FACTORS ON EXPORT PERFORMANCE OF SMES The directory of exporters (2018) was used to identify the potential cases from small and medium-sized exporters with the help of the Ministry of Planning. Fifty small and medium businesses were approached, 15 businesses where consistent with the criteria specified in (small and medium-sized with less than 100 employee) the methodological framework. Data Analysis Technique This study adopts the pattern matching method (Yin, 1989) to analyze the collected data. The logic of using this method is that it allows comparing an empirically based patterns with a pattern developed from relevant literature. Following the procedures suggested by Yin (1989), an initial theoretical framework and propositions have been developed. The purpose of constructing the theoretical framework is that it helps to shape the structure of the case study and define the relationship to be analyzed (Yin, 1994). The analysis process starts with developing a case description that links a set of variables to the research question. Yin (1994) refers to this as a strategy, the aim of this strategy is to produce compelling analytical conclusion by ruling out literature interpretations. This is achieved through the employment of a specific analytical strategy that places the data in some order prior to actual analysis (Yin, 1994). The next step in the analysis process is to test the theoretical hypotheses proposed. This will be achieved by testing the link between the independent variables and export performance, then comparing the findings with the literature to assess the literal replication. In addition to the pattern-matching approach. Variables and Measurements Since this research utilizes a structured interview, it is appropriate to operationalize the research variables as this helps to generate data that hold independently of the research setting and the researcher which in turn improves the reliability of measurements. Sixteen variables are used in this study, independent variables including three firm characteristics, six managerial characteristics, and four business marketing strategy. In addition to independent variable three variables are used to measure export performance (dependent variables). Firm characteristics Three firm characteristic variables are included under this category: Firm size: There is no universally accepted measure for defining firm size. Various measures have been used in the literature to capture firm size. However, the most commonly used measures are the number of employees and total annual sales. In this study, both of these measures are used. Both items are measured as continuous variables (Cavusgil & Zou,1994). Export experience: Two dimensions of export experience are considered. The first dimension refers to the length of time the firm has been involved in exporting. The second dimension refers to the scope of experience and it is operationalized as the number of export countries, number of products, nature of product, and type of distribution. Competitive advantages: A wide range of indicators have been used in previous research to measure firm’s competitive advantages. In this study only two dimensions of competitive advantages are considered as they represent the fundamental elements for all other advantages. The first dimension is the technological competency and it is operationalized as the degree of intensity of using technology in production, uniqueness of product, and price competition. These three items are measured on a five-point scale. The second dimension is IMPACT OF CONTROLLABLE FACTORS ON EXPORT PERFORMANCE OF SMES 35 the R&D expenditure and it is operationalized as the percentage of R&D expenditure to total sale. R&D expenditure is measured by using seven-point scale with 1 = less than 5% and 7 = 30% or more. Managerial characteristics Six managerial characteristics are included in this study. Age of manager is measured as continuous variable. Education is measured by asking managers to indicate their education level using five-point scale with 1 = less than high school and 5 = postgraduate degree. Experience is measured by asking managers to indicate the number of years lived overseas, and the number of years involved in exporting activities domestically. Both items are measured on a five-point scale with 1 = less than five years and 5 = 20 years or above. Five languages are used to measure managers self-evaluation of their knowledge of foreign languages. These are French, English, Japanese, Spanish, and German. Five-point scale is used with 1 = not at all and 5 = excellent. Management commitment is measured by asking managers to response to five nominally scaled questions relating to the existence of a separate export unit, regular export market visits, the use of marketing research, appointment of export managers, and the number of person-years devoted to export. Managers will be asked to indicate their perception of export profit, risk, and cost compared to selling in domestic market on a five-point scale. Export marketing strategy Multi-item scales are used to measure adaptation policy versus standardization policy. Eight items are used to measure the degree of adaptation of each of the four marketing mix components. The managers are asked to indicate the degree of adaptation on a five-point scale with 1 = none and 5 = substantial . Export performance (dependent variables) Export performance is traditionally measured using a single indicator, mostly objective measures. However, this approach has been criticized by recent researchers (e.g. Shoham, 1998; Styles, 1998; Zou, Taylor, & Osland, 1998). It is now recognized that export performance is a multidimensional concept, that export performance can be conceptualized and operationalized in different ways and it is not possible to rely on a single indicator to capture its various dimensions. There are two principle ways of measuring export performance: Financial measures, such as export sales, export growth, and export intensity, and non-financial measures, such as satisfaction with export performance, and perceived success in attaining goals. Zou, Taylor, and Osland (1998) developed an EXPERF scale which incorporates three dimensions: financial export performance, strategic export performance, and satisfaction with export venture. Based on data collected from the US and Japanese exporters, their study established a cross-national consistency in the EXPERF scale. Shoham (1998) operationalized export perceptions of performance using both financial measures and subjective perceptions of performance under three dimensions: sale, profit, and change. This study adopts the EXPERF scale developed by Zou, Taylor, and Osland (1998). Nine items are included to measure export performance. These items are: export profit, export sales, export sales growth, contribution of export venture to firm’s competitiveness, strategic position, market share, perceived success of the venture, satisfaction with the venture, and the degree to which the venture is meeting expectations. The nine items are measured on five-point scales with 1 = strongly disagree and 5 = strongly agree. Finally, the managers are asked to evaluate the impact of each variable on the export performance of their firms on five-point scale with 1 = none and 5 = very important. 36 IMPACT OF CONTROLLABLE FACTORS ON EXPORT PERFORMANCE OF SMES Reliability and Validity One of the key issues about qualitative research is that the concept of validity and reliability. Yin (1994) suggests various types of validity to judge the quality of the case study approach, including Construct validity, Internal validity (not for descriptive or exploratory case study), and External validity. In this study, only two tests, i.e. construct validity and reliability are relevant. Internal validity is not applicable because causality is not the main purpose of this study. Construct validity is established by using measures which have been tested in previous research. Cases Description This section provides a full description of the reported findings of each selected case. The findings are the result of structured interviews with business managers. The content of each case description is a reflection of the identified factors in the theoretical framework. The information presented are categorized into three groups: firm characteristics, managerial characteristics, and export marketing strategy. The purpose of presenting these findings is to form a base for further analysis. Case I y Firm characteristics This business was established in 1972 based in Jordan capital Amman. The company produces and exports a wide range of natural health and beauty products. The products contain Dead Sea mineral sand marketed under the brand name C-products. The products had been formulated following extensive research and development. Currently, the business employs 22 full-time employees. The total annual sales are JD 4.5 million ($6.5 million). Export sales account for 90% of total sales. The business has been involved in exporting for the last 26 years. The major markets of C-products are in the European Union (Italy, France, and Spain), Switzerland, the United States, Canada, Japan, and South East Asia. The internationalization process of this business has been incremental and gradual as the company started exporting to Arab neighboring countries, Asian markets, then expanded into Europe and United States markets. Initially, the business started with two types of cosmetics products, at present the firm exports seven types of natural health and beauty products. The exported products customized to the preferences of consumers in different markets. The company’s market entry mode was based on distributors and agents in its major foreign markets. According to the manager, this minimizes risk, facilitates compliances with technical standards, and improves cash flow. The manager perceived the degree of technological intensity as moderate and the degree of product uniqueness as high. The firm made sure that the components used in the production of its products were among the best available. The company imposed very strict requirements concerning the quality of the materials used for its products. Annual expenditure on R&D is estimated 15%-19% of total sales. The manager believes that investment of R&D activities is very important for product development to maintain competitive position export markets. Firm’s experience, technological intensity, product uniqueness, are considered important factors for export success as stated by the participant. y Managerial characteristics The manager of this business is 43 years old with 22 years of exporting experience and has lived eight years overseas. The formal qualification of the participant is MBA (Master of Business Administration) degree IMPACT OF CONTROLLABLE FACTORS ON EXPORT PERFORMANCE OF SMES 37 from a US university, who had experience working abroad. The manager possesses excellent knowledge of English language and believes that English is the business language worldwide. The business structure is a simple one with no special export unit. The exporting activities are carried out directly by the manager and the marketing manager. Visiting the international market is a regular activity undertaken by both the manager and the marketing manager. Having completed all his university education abroad, and having worked abroad, the manager possesses a good knowledge of the international business environment. The purpose of visiting international market is to explore new opportunities, conduct market research as well as to promote the firm’s products mainly through participation in international trade fairs. Marketing research is extensively performed by the marketing manager to assess the customer’s satisfaction and developing an appropriate marketing strategy. The number of employees devoted to export activities is believed to be sufficient by the manager. The attitude of the manager towards doing business in the international market is that it is more profitable than selling in the domestic market, despite it involving more cost. However, it is not riskier than selling domestically. This is because of the limited size of cosmetics and beauty market in Jordan. In addition, the manager believes that exporting is a good opportunity for his firm to develop new products that possess high quality. The participant considers management experience, management commitment, foreign language knowledge, and management attitude towards international markets important factors for export success. On the other hand, manager age and education level are considered unimportant factors. y Export marketing strategy The marketing strategy of this firm is product adaptation. The manager has reported a high degree of product adaptation. This is because the firm operates in a variety of markets where there are substantial differences in consumers’ preferences in different markets. With regards to promotional policy, the company uses a marketing push approach, promoting its products mainly through participation in international trade fairs, the manager personally involves in formulation of promotion activities and has full control over the promotional budget. The business uses different types of packaging for each exporting market. Quality of packaging was one of the major problems faced by the company in its early exporting years. Packaging material available in Jordan was not of sufficiently good quality to be used in demanding cosmetic markets of developed countries. Therefore, the company imports quality-packaging materials from developed countries. The manager believes that branded cosmetics required high quality packaging. Recently the company had launched its own Internet website for clients and potential buyers to inquire about the firm’s product range and to gain access to the company’s newsletter. According to the manager, the internet has proved to be effective promotional tool for accessing markets in developed countries. Overall, the degree of promotion adaptation is considered high as stated by the participant. In terms of pricing policy it is adaptable and comparable to competitors’ prices in the market place. The business utilizes direct channel of distribution through independent distributors to market its products in international markets. This is because of the limited resources of the firm. The manager indicated that adaptation policy had a positive impact on export performance. y Export performance All factors listed in the structured interview are used to evaluate export performance. The manager expressed his satisfaction with export performance of his firm. Financial factors were perceived as moderate, while the strategic goals of export are considered to be fulfilled. Among the key factors that have an influence 38 IMPACT OF CONTROLLABLE FACTORS ON EXPORT PERFORMANCE OF SMES on export performance as reported by the manager are export experience, competitive advantages, management experience, management commitment, management attitude, foreign language knowledge. All these variables were perceived by the manager as high. Case II y Firm characteristics This business was established in 1984 with a small number of sewing machines and the labor of the family members. In 1991, the company and its manufacturing operations underwent a major expansion and re-organization. In addition to operating a sewing factory producing high quality cotton knit underwear and T-shirts, the company owns and runs knitting and dying operations specialized in single jersey and fleece fabric with a capacity of 2-3 metric tons/day. Supported by its own textile engineers, modern equipment, strong management and quality control operation, the company is a highly competitive producer of better quality fabrics and garments for both domestic and international markets. At present, the firm has 38 full-time employees. Annual sales are estimated JD 1.5 million ($2.1 million) with 80% of this being attributed to export sales. Of export sales 70% is generated from Arab neighboring countries; and 10% from European Union. The business has been exporting to Arab countries for the last 15 years and for 10 years to European Union. Initially the firm started exporting with two products, at present the company manufactures six types of exported products. Most of the exported products are customized to the preferences of customers in different markets, especially to European countries. Products are differentiated in terms of color and design. The business utilizes independent distributors in foreign markets to market its products. This is because the firm has limited capabilities to invest directly in international markets. Both, the degree of technological intensity and product uniqueness were perceived by the manager as high, while R&D expenditure is estimated 10%-14% of total sales. Investment on R&D activities for exported products to international markets is important to the firm, as it ensures its competitiveness of its products. According to the manager competitive advantages are the key factors for export success. Also export experience is important determinant of export performance. y Managerial characteristics The firm’s manager is 52 years old with 18 years of exporting experience, and has lived seven years overseas. The academic qualification of the manager is a post graduate degree in business. The participant possesses an excellent knowledge of English language. The manager undertakes regular visits to international markets. The purpose of visiting international markets is to explore new markets, participate in international trade exhibitions, and conduct market research to assess product position. Exporting activities are performed by the management team composed of the manager, the marketing manager, and the production manager. The firm’s structure does not contain a special export unit. This is because of the limited resources of the business and the integration of its various activities. However, the manager believes that the number of employees devoted to export activities is sufficient for the time being. Doing business through exporting is perceived to be much more profitable than selling in the domestic market, but not more risky even though it involves more costs. The manager indicated that the domestic market is saturated and highly competitive, therefore it is better to sell in international markets to sustain the business growth. According to the manager, manager experience, management commitment, management attitudes are important factors for export success, while demographic IMPACT OF CONTROLLABLE FACTORS ON EXPORT PERFORMANCE OF SMES 39 characteristics of the manager have no influence on export performance. Also, the manager indicated that some government regulations present obstacles to export. y Export marketing strategy The overall marketing strategy of this business is product adaptation. Exported products are differentiated to the preferences of customers in the international markets. Products are differentiated in terms of design and colors. The aim of this strategy is to maintain competitive position in the market place by manufacturing high quality products that meet customers’ needs. Promotional strategy is centrally formulated by the manager and marketing manager. However, the content of advertising is adaptable to cultural diversity of different markets. This includes packaging, brand names, and instruction language. Prices of exported products are rated comparable to competitors’ prices in market place. The business uses independent agents to distribute its products in international markets. The company provides no support what so ever to distributors as they work independently and charge their own prices. The manger’s responses show that adaptation of marketing components is essential for export performance. y Export performance Export performance is measured on all factors listed in the structured interview. The manager judged the export profit, sales growth, and strategic goals of export as high. Overall the participant expressed his satisfaction with export performance of his business. Factors that are considered as important determinants influencing the firm’s export performance include firm experience, competitive advantages, management experience, management commitment, management attitudes, product adaptation, price adaptation, and to a lesser extent promotion adaptation of export performance as indicated by the manager. Case III y Firm characteristics This business specializes in the CMT production of Jeans, but also makes children’s clothes and training suits, mostly under subcontracts to other firms in neighboring countries. It was established in 1980 and employs 32 workers. Its current capacity is 4,000 pieces daily. The firm now produces and markets its own branded lines of jeans for men, women, and children in the domestic market and since 1984 has started marketing in five international markets. Total sales revenue of the business is JD 2.7 million ($ 3.8 million) with 55% of this being attributed to export sales. All export sales are generated from neighboring Arab countries. The business manufactures nine types of exported products, and has been involved in exporting activities for the last 17 years. Most of the exported products are customized to meet the requirements of the contracted firms in international markets. Products are distributed through contracted firms as well as independent dealers in different markets. Technological intensity and products uniqueness are considered high as reported by the participant. Expenditure on R&D is estimated to be 5%-9% of total sales. The participant believes that firm’s experience and competitive advantages are important determinants of export performance. y Managerial characteristics The business’s manager is 61 years old with 25 years of exporting experience. The formal qualification of the participants is a university degree in engineering and possesses good knowledge of English language. The participant undertakes regular visits to international markets to explore new opportunities. Marketing research is an essential part of management activities and carried out by the manager and sometime by external consultants. The purpose of market research is to enhance the quality of products and innovate new products. 40 IMPACT OF CONTROLLABLE FACTORS ON EXPORT PERFORMANCE OF SMES The firm has no separate export unit. The reason is that the size and the scope of business are limited. However, the manager indicated that due to the expansion of its operations, the firm would introduce changes in its structure that include having export department in the near future. The manager believes that exporting to international market is more profitable than selling in the domestic market. However, it is more risky and more costly. Responses of the participant revealed that manager experience, management commitment, management attitudes, and knowledge of foreign language have a positive influence on export performance, while demographic characteristics of management have no impact export success. y Export marketing strategy In general the marketing strategy of this business is based on adaptation of products, prices, and to some extent promotion programs. Exported products are adaptable to consumers’ preferences. Adaptation policy includes, packaging, colors, and designs. Also prices are comparable to competitors’ prices in international markets. Promotional budget and activities are controlled by the manager, however the content of promotional program is adaptable in accordance to the cultural diversity of each market. With regards to distribution strategy, the firm uses direct channel of distribution through independent agents. y Export performance All variables listed in the structured interview are used to judge export performance. The manager perceives export profitability and sales growth as high, strategic goals as moderately accomplished and export performance as satisfactory. The manager responses show that business experience, competitive advantages, management experience, management attitudes, and adaptation strategy are important factors for export success. Case IV y Firm characteristics This firm was established in 1969 as a small family business. The company enjoys the leading position in Jordan for the production of tahini (sesame emulsion) and halua. At present the company produces a wide range of products. The main products are Broad Beans, Chick peas, Green Peas, White Beans in Tomato Sauce. The production capacity of the business is 1,300 carton per shift. The business has 43 full-time employees. The total sales revenue is JD 22 million ($ 31 million). The whole sales are generated from the Arab countries. The company has 28 years of exporting experience and started the exporting activities four years after establishment. Initially, the company has three lines of production and manufactures 13 interrelated products. All exported products are standardized. This is attributed to the fact that these products possess high quality and are exported to Arab markets that have similar consumers preferences. Both technological intensity and products uniqueness are perceived high as indicated by the manager. Expenditure on R&D is estimated to be 10%-14% of total sales. According to the participant, firm’s experience, and competitive advantages have considerable influence on export performance. y Managerial characteristics The manager of this business is 54 years old, with 27 years of exporting experience. The participant has lived 13 years overseas and possesses good knowledge of English language. The academic qualification of the manager is a university degree in engineering. The firm’s structure has a formal export unit that is run by export manager. Both the manager and the export manager undertake extensive visits to export markets. The purpose of these visits is to explore new opportunities and conduct market research. Marketing research is also an IMPACT OF CONTROLLABLE FACTORS ON EXPORT PERFORMANCE OF SMES 41 important activity that is extensively performed by the manager and the export manager. The manger sees international markets more profitable than selling domestically. This is because the domestic market is considered highly competitive and saturated. However, the manager believes that doing business through exporting is more risky and involves more costs. Management commitment, management attitudes, and export experience were ranked high by the participant as determinants of export success, while manager’s age, education , and foreign language capabilities have no influence on export performance. y Export marketing strategy In general the marketing strategy of this firm is the standardization policy. The reason for the adoption of this policy is that the firm operates in countries that are considered an extension to Jordan market and have similar culture and consumers’ preferences. Therefore, the products are introduced with no modifications. The promotional budget is controlled by the manager and the promotional strategy is structured so that the agents directly target the consumers. Prices are comparable to competitors’ prices in the market place. According to the manager, the standardization policy has a positive impact on export performance as it improves the firm’s sales growth. y Export performance The firm uses only sales growth as an indicator to judge export performance. The manager’s responses show that firm experience, competitive advantages, managers’ experience, management commitment, and management attitudes are the key elements that enhance export performance. Case V y Firm characteristics The firm is a family owned business established in 1979 and specialized in manufacturing and marketing of printed and un-printed polystyrene containers of unlimited shapes and sized, as well as multi-layer and single-layer extruded plastic sheets. The business employs 17 full-time employees. The firm’s total sales revenue is JD 3.5 million ($5 millions) with 85% of this coming from export sales. 100% of export sales is generated from Arab countries (Saudi Arabia, Syria, Bahrain, and UAE). The firm began exporting with three products, currently the firm exports seven types of products using three production lines. Most of the products are customized to the preferences of customers in export markets. The firm utilizes highly advanced technology that is imported from Europe and that is not available elsewhere in Jordan. The degree of technological intensity and product uniqueness is perceived to be high by the manager. Annual expenditure on R&D is estimated to be 10%-14% of total sales. Firm’s experience and competitive advantages are considered important factors for export success. y Managerial characteristics The manager of this business is 45 years old with 10 years of exporting experience, and has lived three years overseas. The formal qualification of the participant is a university degree in commerce, but he possesses no foreign language capability except fair knowledge of English. The business structure has no special export unit, and the exporting activities are performed directly by the manager and production manager. Visiting international markets is a regular activity undertaken by the manager. The purpose of these visits is to participate in international trade exhibitions and search for new customers. Also, marketing research is carried out by the firm itself to assess the position of its products in the market place. According to the manager, the number of employees devoted to export activities is sufficient. Doing business in international markets is 42 IMPACT OF CONTROLLABLE FACTORS ON EXPORT PERFORMANCE OF SMES perceived to be more profitable than selling in the domestic market and it involves more risks and more costs. Manager’s experience, management commitment, and management attitudes towards international markets have positive influence on export performance as reported by the manager. y Export marketing strategy In terms of product adaptation, the firm differentiates its products to customers’ preferences in foreign markets. The manager believes that even though the firm operates in countries that have similar culture to Jordan’s culture, the firm must differentiate its products to match the special requirements of each market. Products are differentiated in terms of the size and the design. Prices are adaptable and comparable to competitors’ prices in foreign markets. Although the promotional budget is controlled by the firm, the content of advertising is adaptable to cultural specifications of different markets. The firm uses independent agents in international markets. The manager indicated that adaptation of marketing components is essential for export performance. y Export performance Two measures are used to evaluate export performance of this business. These are export sales growth and profitability. Based on the manager’s responses firm experience, competitive advantages, manager’s experience, management commitment, management attitudes, and differentiation strategy have high influence on export performance Findings Analysis In this section the researcher will analyze the influence of the proposed controllable variables on export performance of selected firms. This will be performed by applying the principle of literal replication as suggested by Yin (1994). A review of the relevant literature shows that some controllable factors influence export performance in a consistent manner. The findings of cases’ analysis will be compared with the relative literature. The purpose of this comparison is to provide a base for testing the research hypotheses. The findings are presented in four areas: (1) firm characteristics, (2) management characteristics, (3) export marketing strategy, and (4) export performance. Firms Characteristics The description of firms characteristics of the case firms provided by the participants reveals high level of consistency with the findings of the literature in large. Export literature suggests that a firm’s exporting experience has a positive influence on export performance of the firm. In this study, three of the five cases have been involved in exporting for a long period of time. Firms 1, 3, and 4 have more than 22 years of exporting experience, Firm 2 has 18 years of exporting experience. Only Firm 5 does not possess similar experience. In terms of the scope of experience the findings are in agreement with the literature findings, the literature suggests that firms exporting more products to more countries have better export performance. In this study all five case firms export a wide range of products and serve more than three international markets. Contrary to the stage theory of internationalization, all five case firms became committed international firms after a short period of establishment and the speed of the internationalization process is more rapid than the stage-wise progression features of the internationalization theory of the firm suggested in the literature. As a business at a more advanced stage of the internationalization process would be expected to show high level of commitment towards foreign markets. For example, Firms 1, 2, 3, and 4 have involved in exporting activities within the first IMPACT OF CONTROLLABLE FACTORS ON EXPORT PERFORMANCE OF SMES 43 five years of establishment. However, with the exception of one firm, all other firms began exporting to neigbouring Arab countries, which is consistent with the stages theory of internationalization. According to this theory firms should start exporting to countries that are geographically close to the firms’ country. In four of the five case firms, products exported are customized to the preferences of customers in different markets. This is also consistent with the literature. According to export literature, firms customize their products perform better in export performance. Another anticipated finding is that all five firms use direct channels of distribution which is in accordance with the behavior of small exporters in Jordan, but contradicts the literature in large. This may be attributed to the limited resources of small and medium exporters and the lack of knowledge about international markets. On all measures used to evaluate the competitive advantages of the case firms, the findings were consistent with the literature. Export literature support the notion that firms having competitive advantages in terms of technological intensity, product uniqueness, and R&D will have better export performance. The competitive advantages of all five case firms lie on the possession of unique product, moderate or high level of technological intensity. Product uniqueness and R&D are considered important factors to maintain competitive position in the market place, even though the expenditure on R&D is low to medium in comparison to large firms. The findings are identical to the literature findings. The explanation of the low percentage of R&D expenditure is that R&D is associated with the availability of resources. The only firm characteristics variable that contradicts the literature findings is related to firms’ size. In all the case firms the results show no influence of firms’ size on export performance. Management Characteristics The analysis of the demographic characteristics of the managers of the case firms as shown in Table 1 reveals mixed results. All five managers possess a university degree, and four of them have a lengthy export experience, this is similar to the literature expectations. However, contradictory to the literature is that manager’s education has no influence on export performance as reported by all participants. This may reflect the fact that more than 80% of Jordan’s SMEs are family businesses that are run by the owners, and for them experience is more important than academic qualification. Another contradictory to the literature findings is that all interviewees possess no foreign language knowledge except English language. However, in all five case firms, managers believe that foreign language is not a barrier for export success. The simple explanation is that almost all firms export to English-spoken countries or to Arab countries. In these cases English language is the only foreign language that is considered important and increases the ability of managers to export and that foreign languages skill is an essential element when exported markets possess distinctively different languages. In terms of managers age, the responses of all five participants show that the age has no influence on export performance which is inconsistent with the literature. Table 1 Demographic Characteristics of Managers Case 1 2 3 4 5 Age (years) 43 52 61 54 45 Education University degree University degree University degree University degree University degree Export experience (years) 22 18 25 27 10 Foreign language knowledge English English English English English 44 IMPACT OF CONTROLLABLE FACTORS ON EXPORT PERFORMANCE OF SMES In regards to management commitment, the findings partially support the literature, only one of the five case firms (Firm 1) has special export unit within its structure. This can be attributed to the small size of these businesses and the scope of their activities. On all other variables used to measure management commitment, the findings were consistent with the identified patterns in the literature. In all five case firms management undertakes extensive market research, and visiting of international markets is a regular activity performed by management. The primary purpose of these activities is to explore new opportunities, and participate in international trade exhibitions. These findings are similar to the literature. Analysis of participants’ attitude towards international markets is consistent with literature. All the managers of the five case firms consider exporting more profitable than selling domestically. Possessing of such favorable expectations towards exporting is similar to the findings of export literature. Managerial experience, management commitment, and management attitudes are perceived as important factors for export success as reported by all participants. In the literature, all these variables are viewed as essential determinants of export performance. Export Marketing Strategy In general, the marketing strategy adopted by the case firms is to some extent consistent with the identified patterns in the literature. The aim of this differentiated approach is to target different markets with different strategies to achieve high growth. Four of the five case firms (1, 2, 3, and 5) adopt their products to consumers’ preferences in international markets. This is similar to the literature findings. The literature supports the positive effect of adaptation of the 4Ps on export performance. A simple explanation that Firm 4 uses standardization approach is that a standardized product is more favored when exporting to psychological close markets. In this case, it is assumed that consumers in all Arab countries share similar characteristics and tastes. Promotional policy is partially supported by the literature. In all the case firms, managers have direct control over the promotional budget. This is inconsistent with the literature findings and can be attributed to the limited resources possessed by these firms. However, the content of advertising programs is modified to meet the cultural diversity. The literature suggests that the effectiveness of the advertising is dependent on consumers’ background. In term of pricing policy in all four cases, products prices are adaptable and comparable to competitors’ prices, which is in line with the literature. With regards to distribution channels, the findings of all five case firms show complete inconsistency with the identified patterns in the literature. All five firms use direct distribution channels in exporting as opposed to the literature. The explanation of this contradictory may be due to the fact that these firms have limited resources to establish their own subsidiaries or offices in foreign markets. Export Performance Analysis of the measures used by the case firms to evaluate export performance shows high level of consistency with the literature. Firms 1, 2, 3, and 4 use all variables listed in the structured interview, while Firm 5 uses one of these variables, these are sales growth, profitability, and satisfaction with export. In term of perceived importance of controllable factors to export success, some variables show consistency with the identified patterns in the literature. These include business experience, competitive advantages, management experience, management commitment, management attitudes, product adaptation, pricing adaptation, and to some extent promotional adaptation. All the five case firms consider these variables important for export success. On the other hand, manager’s education, foreign language knowledge, and firm size are considered unimportant factors, which are contrary to the literature findings. IMPACT OF CONTROLLABLE FACTORS ON EXPORT PERFORMANCE OF SMES 45 Hypotheses Test H1: Firm characteristic factors influence export performance A cross-case analysis revealed mixed results concerning firm characteristics variables. In terms of firm size, the finding is inconsistent with the literature. This is evident from the case summaries in Table 2 below. For instance, Firm 1 employs 22 full-time employees and its sales revenue is $6.5 million, with 90% of total sales being generated from export sales, while Firm 2 employs 38 full-time employees with total sales of $2.1 million, and only 80% of this being attributed to export. Similarly, Firm 5 employs 17 employees with total sales of $5 million and 85% of this being generated from export sales, while Firm 3 employs 32 full-time employees with total sales of $3.8 million and only 55% of this being attributed to export sales. Furthermore, in all five cases, managers indicated that firm size had no influence on the export performance of these firms. Thus, H1a is rejected. These firms have been able to overcome the limitations of their resources through innovation and manufacturing unique products that maintain competitive position in the market place. In other word, the results support the notion of “born global” firms. Table 2 Cases Summaries Case 1 2 3 4 5 Employees 22 38 32 43 17 Firm size Sales ($m) 6.5 2.1 3.8 31 5 Percentage of sales from exports Firm age Years of exporting 90% 80% 85% 100% 85% 29 17 21 32 21 26 15 17 28 19 With regards to export experience literal replication is achieved. As shown in Table 2, percentage of sales generated from export is correlated with exporting experience of the firm. Table 2 shows that export sales increases as exporting experience of the firm increases. Also managers’ responses supported the hypotheses that the longer the exporting experience of the firm, the better the export performance. Thus H1b is sustained. Literal replication has been also achieved for competitive advantages variables. In all the five case firms, technological intensity and product uniqueness were perceived moderate or high. The low rate of R&D expenditure can be attributed to the fact that this rate is changeable from one year to another, and to the uniqueness of the exported product. However, all managers indicated that product uniqueness, technological intensity, and R&D are important factors for export success. Thus H1c and PH1d are sustained. H2: Managerial characteristic factors influence export performance A cross-case analysis has revealed consistency over some variables and contradiction over others. Despite the fact that the five managers interviewed have university degree, most of them indicated that manager’s education had no impact on export performance. Similarly, managers’ poor knowledge of foreign languages and their responses indicated low influence on export performance. Thus, literal replication has not been achieved on H2a and H2b. On the other hand, a case study analysis led to the conclusion that manager experience, management commitment, and management attitude toward international market have positive influence on export performance. 46 IMPACT OF CONTROLLABLE FACTORS ON EXPORT PERFORMANCE OF SMES This is evident from literal replication in the findings relating to the managers having long experience in exporting, extensive visits to international markets, conducting of market research and possessing of positive attitudes towards exporting profitability. All these variables are highly correlated with export sales. The absence of literal replication of the existence of special export unit is attributed to limited resources and the ownership of businesses, as four of five cases are family businesses. However, in general H2c, H2d, and H2e are supported. H3: Export marketing strategy influences export performance In terms of product adaptation policy, literal replication has been achieved, as four of the five cases have adopted their products to the preferences of consumers. The replication also is supported by the managers’ responses, which considered products adaptation important for the success of export. The inconsistency of the findings in relation to the product standardization of the forth firm is attributed to the fact that the firm exports only to the Arab countries, which have similar culture. Literal replication has been achieved on pricing policy. In all five cases prices were comparable to competitors’ prices. Both product adaptation and pricing adaptation are correlated to export sales. With regards to promotion literal replication has been partially achieved. As in all five cases managers have control on the promotional budget, but the content of advertising is modified to match customers needs in different markets. Finally, inconsistency has been found in the findings in relation to standardization of distribution channels. In all the five cases, firms use direct distribution approach through independent distributors, which is inconsistent with the literature. The explanation to this contradictory can be attributed to the limited resources of these firms as well as the lack of knowledge about the international market. Thus, H3a and H3b are supported, H3c is partially supported and H3d is rejected. To conclude this section it is important to note that the findings of this case study have failed to fully support the stage theory of internationalization, as most of these cases have been involved in exporting a short time after establishment, and their internationalization has not been incremental. However, the findings support the stage model in that the geographic proximity had an influence in market selection. In four of five cases firms began exporting to neighboring Arab countries, consequently, with the exception of Firm 5, all other firms expanded their exporting operations to other countries. Conclusions and Implications Improving the understanding of the internal factors impacting export performance is an important concern for SMEs managers. In this study, several controllable factors have been examined. The findings revealed that some of these variables are linked with export performance. These factors are certainly within the control of management. One of the most important conclusions of the study is that improvement on export performance of SMEs appears to be influenced by the internal determinants: firm characteristics (business experience, technology intensiveness, product uniqueness, R&D investment); management characteristics (manager’s experience, positive expectations, using of market research, exploration of international market); and marketing strategy (adaptation policy). Based on these results, top management of SMEs should be able to improve their export performance by stressing importance of the firm’s internal capabilities. The first implication for the managers is that more emphasis should be given to competitive advantages particularly investment on technology and R&D. IMPACT OF CONTROLLABLE FACTORS ON EXPORT PERFORMANCE OF SMES 47 The second message to the managers is that managers’ commitment is a crucial element in export success. Therefore, firms must encourage their management to explore markets for export possibilities by gaining knowledge in the international market and using of marketing research. This can be accomplished through frequent visits to foreign markets, which is considered crucial in developing the export market. Finally it appears that adaptation of manufactured products is linked with export performance. Thus, managers should review their marketing strategy to select the appropriate approach for the export market. References Aaby, N. E., & Slater, S. F. (1989). Management influences on export performance: A review of the empirical literature. International Marketing Review, 6(4), 1978-1988. Andersen, O. (1993). On the internationalization process of firms: A critical analysis. Journal of International Business Studies, 24(2), 209-231. Asadollahpoor, E. (2015). A review on export performance of small and medium-sized export companies in the east region of Mazandaran. International Journal of Review in Life Science, 5(6), 1110-1119. Axinn, C. N. (1988). Export performance: Do managerial perceptions make a difference? International Marketing Review, 5(2), 61-71. Baldauf, A., Cravens, D. W., & Wagner, U. (2000). Examining determinants of export performance in small open economies. Journal of World Business, 35(1), 61-79. Beamish, P. W., Craig, R., & McLellan, K. (1993). The performance characteristics of Canadian versus UK exporters in small and medium sized firms. MIR: Management International Review, 121-137. Bilkey, W. J. (1978). An attempted integration of the literature on the export behavior of firms. Journal of International Business Studies, 9(1), 33-46. Bilkey, W. J., & Tesar, G. (1977). The export behavior of smaller-sized Wisconsin manufacturing firms. Journal of International Business Studies, 8(1), 93-98. Bonaccorsi, A. (1992). On the relationship between firm size and export intensity. Journal of International Business Studies, 23(4), 605-635. Calia, P., & Ferrante, M. R. (2013). How do firms combine different internationalisation modes? A multivariate probit approach. Review of World Economics, 149(4), 663-696. Calof, J. L. (1993). The impact of size on internationalization. Journal of Small Business Management, 31(4), 60. Cavusgil, S. T. (1984). Differences among exporting firms based on their degree of internationalization. Journal of Business Research, 12(2), 195-208. Cavusgil, S. T., & Knight, G. (2015). The born-global firm: An entrepreneurial and capabilities perspective on early and rapid internationalization. Journal of International Business Studies, 46(1), 3-16. Cavusgil, S. T. (1982). Some observations on the relevance of critical variables for internationalization stages. Export Management: An International Context, 276-285. Cavusgil, S. T., & Kirpalani, V. M. (1993). Introducing products into export markets: Success factors. Journal of Business Research, 27(1), 1-15. Cavusgil, S. T., & Nevin, J. R. (1981). Internal determinants of export marketing behavior: An empirical investigation. Journal of Marketing Research, 114-119. Cavusgil, S. T., & Zou, S. (1994). Marketing strategy-performance relationship: An investigation of the empirical link in export market ventures. The Journal of Marketing, 1-21. Cavusgil, S. T., Yeniyurt, S., & Townsend, D. J. (2004). The framework of a global company: A conceptualization and preliminary validation. Industrial Marketing Management, 33(8), 711-716. Chen, Y. Y. (2017). Impacts of managerial characteristics on the export performance of small and medium-sized firms: Review and implications. DEStech Transactions on Economics, Business and Management (eced). Chen, J., Sousa, C. M., & He, X. (2016). The determinants of export performance: A review of the literature 2006-2014. International Marketing Review, 33(5), 626-670. Chetty, S. (1996). The case study method for research in small- and medium-sized firms. International Small Business Journal, 15(1), 73-86. 48 IMPACT OF CONTROLLABLE FACTORS ON EXPORT PERFORMANCE OF SMES Chugan, P. K., & Singh, S. (2015). Export commitment and its impact on firm-level export performance: Evidence from SMEs cluster of Ahmedabad, India. Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport, 3(3), 90-95. Crick, D. (1995). An investigation into the targeting of UK export assistance. European Journal of Marketing, 29(8), 76-94. Czinkota, M. R. (1982). Export development strategies: US promotion policy: New York: Praeger. Czinkota, M. R. (1994). A national export assistance policy for new and growing businesses. Journal of International Marketing, 91-101. Czinkota, M. R., & Johnston, W. J. (1983). Exporting: does sales volume make a difference? Journal of International Business Studies, 14(1), 147-153. Da Rocha, A., Christensen, C. H., & Eduardo da Cunha, C. (1990). Aggressive and passive exporters: A study in the Brazilian furniture industry. International Marketing Review, 7(5). Dean, D. L., Mengüç, B., & Myers, C. P. (2000). Revisiting firm characteristics, strategy, and export performance relationship: A survey of the literature and an investigation of New Zealand small manufacturing firms. Industrial Marketing Management, 29(5), 461-477. Diamantopoulos, A., & Inglis, K. (1988). Identifying differences between high- and low- involvement exporters. International Marketing Review, 5(2), 52-60. Dichtl, E., Koeglmayr, H. G., & Mueller, S. (1990). International orientation as a precondition for export success. Journal of International Business Studies, 21(1), 23-40. Enderwick, P., & Akoorie, M. (1994). Pilot study research note: The employment of foreign language specialists and export success—The case of New Zealand. International Marketing Review, 11(4), 4-18. Fernando, Y., Fitrianingrum, A., & Richardson, C. (2017). Organisational determinants of export performance: Evidence from exporting firms in Batam, Indonesia. International Journal of Business Excellence, 11(1), 95-119. Fernandez-Ortiz, R., & Lombardo, G. F. (2009). Influence of the capacities of top management on the internationalization of SMEs. Entrepreneurship & Regional Development, 21(2), 131-154. Fernandez-Ortiz, R., Arteaga-Ortiz, J., & Clavel San Emeterio, M. (2015). Factors that foster export commitment: An empirical study in small and medium-sized enterprises. Engineering Economics, 26(3), 272-283. Fuchs, M., & Köstner, M. (2016). Antecedents and consequences of firm’s export marketing strategy: An empirical study of Austrian SMEs (a contingency perspective). Management Research Review, 39(3), 329-355. Fung, H. G., Gao, G. Y., Lu, J., & Mano, H. (2008). Impact of competitive position on export propensity and intensity: An empirical study of manufacturing firms in China. Chinese Economy, 41(5), 51-67. Ganotakis, P., & Love, J. H. (2012). Export propensity, export intensity and firm performance: The role of the entrepreneurial founding team. Journal of International Business Studies, 43(8), 693-718. Gil-Pechuan, I., Exposito-Langa, M., & Tomas-Miquel, J. (2013). International entrepreneurship in SMEs: A study of influencing factors in the textile industry. International Entrepreneurship & Management Journal, 9(1), 45-57. Hoang, B. P. (1998). A causal study of relationships between firm characteristics, international marketing strategies, and export performance. MIR: Management International Review, 73-93. Holzmüller, H. H., & Kasper, H. (1990). The decision-maker and export activity: A cross-national comparison of the foreign orientation of Austrian managers. MIR: Management International Review, 217-230. Johanson, J., & Vahlne, J. E. (1977). The internationalization process of the firm—A model of knowledge development and increasing foreign market commitments. Journal of International Business Studies, 8(1), 23-32. Johanson, J., & Vahlne, J. E. (1990). The mechanism of internationalisation. International Marketing Review, 7(4). Johanson, J., & Vahlne, J. E. (2009). The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership. Journal of International Business Studies, 40(9), 1411-1431. Johanson, J., & Wiedersheim-Paul, F. (1975). The internationalization of the firm—Four Swedish cases. Journal of Management Studies, 12(3), 305-323. Katsikeas, C. S., Leonidou, L. C., & Morgan, N. A. (2000). Firm-level export performance assessment: Review, evaluation, and development. Journal of the Academy of Marketing Science, 28(4), 493-511. Katsikeas, C. S., Piercy, N. F., & Ioannidis, C. (1996). Determinants of export performance in a European context. European Journal of Marketing, 30(6), 6-35. Kaynak, E., & Kuan, W. K. (1993). Environment, strategy, structure, and performance in the context of export activity: An empirical study of Taiwanese manufacturing firms. Journal of Business Research, 27(1), 33-49. IMPACT OF CONTROLLABLE FACTORS ON EXPORT PERFORMANCE OF SMES 49 Laufs, K., & Schwens, C. (2014). Foreign market entry mode choice of small and medium-sized enterprises: A systematic review and future research agenda. International Business Review, 23(6), 1109-1126. Leonidou, L. C., Katsikeas, C. S., & Coudounaris, D. N. (2010). Five decades of business research in exporting: A bibliographic analysis. Journal of International Management, 16(1), 78-91. Leonidou, L., Katsikeas, C., Palihawadana, D., & Spyropoulou, S. (2007). An analytical review of the factors stimulating smaller firms to export: Implications for policy-makers. International Marketing Review, 24(6), 735-770. Leonidou, L. C., & Katsikeas, C. S. (1996). The export development process: An integrative review of empirical models. Journal of International Business Studies, 27(3), 517-551. López-Rodríguez, J., Dopico, D. C., & Puente, A. M. D. C. (2018). Export performance in Spanish wineries: The role of human capital and quality management system. European Journal of International Management, 12(3), 311-333. Louter, P. J., Ouwerkerk, C., & Bakker, B. A. (1991). An inquiry into successful exporting. European Journal of Marketing, 25(6), 7-23. Luguna. M, W. T. (2012, December). The competencies of managers and their business success. Central European Business Review, 1(3), 7-13. Madsen, T. K., & Servais, P. (1997). The internationalization of born globals: An evolutionary process? International Business Review, 6(6), 561-583. Madsen, K. T. (1989). Successful export marketing management: some empirical evidence. International marketing review, 6(4). Miles, M. B. H., Miles, A. M. M. B., & Huberman, A. M. (1994). An expanded sourcebook qualitative data analysis. Ministry of Planning (2016). Available at: https://www.mop.gov.jo/. Last Accessed 5-12-2019. Moini, A. (1995). An inquiry into successful exporting: An empirical investigation using a three-stage model. Journal of Small Business Management, 33(3), 9. Moon, J., & Lee, H. (1990). On the internal correlates of export stage development: An empirical investigation in the Korean electronics industry. International Marketing Review, 7(5). Nakos, G., Brouthers, K. D., & Brouthers, L. E. (1998). The impact of firm and managerial characteristics on small and medium-sized Greek firms’ export performance. Journal of Global Marketing, 11(4), 23-47. Navarro-García, A., Arenas-Gaitán, J., & Rondán-Cataluna, F. J. (2014). External environment and the moderating role of export market orientation. Journal of Business Research, 67(5), 740-745. Ogbuehi, A. O., & Longfellow, T. A. (1994). Perceptions of US manufacturing SMEs concerning exporting: A comparison based on export experience. Journal of Small Business Management, 32(4), 37. Ohlin, B. (1933). International and interregional trade. Harvard Economic Studies, Cambridge, MA. Quansah, F., & Bunyaminu, A. (2017). Firm internal factors and export performance in the Ghanaian wood industry. International Journal of Business and Social Science, 8(2), 174-180. Rao, T. R., & Naidu, G. M. (1993). Are the stages of internationalization empirically supportable? Journal of Global Marketing, 6(1-2), 147-170. Reeves, N. B. (1990). The foreign language needs of UK-based corporations. The Annals of the American Academy of Political and Social Science, 60-73. Reid, S. (1983). Managerial and firm influences on export behavior. Journal of the Academy of Marketing Science, 11(3) (Summer), 323-332. Ricardo, D. (1817). Principles of political economy and taxation. London: J. Murray. Ruzo, E., Losada, F., Navarro, A., & Díez, J. A. (2011). Resources and international marketing strategy in export firms: Implications for export performance. Management Research Review, 34(5), 496-518. Samiee, S., & Walters, P. G. (1990). Influence of firm size on export planning and performance. Journal of Business Research, 20(3), 235-248. Serra, F., Pointon, J., & Abdou, H. (2012). Factors influencing the propensity to export: A study of UK and Portuguese textile firms. International Business Review, 21(2), 210-224. Shoham, A. (1996). Marketing-mix standardization: determinants of export performance. Journal of Global Marketing, 10(2), 53-73. Shoham, A. (1998). Export performance: A conceptualization and empirical assessment. Journal of International Marketing, 85-105. Shoham, A., & Albaum, G. S. (1995). Reducing the impact of barriers to exporting: A managerial perspective. Journal of International Marketing, 3(4), 85-105. 50 IMPACT OF CONTROLLABLE FACTORS ON EXPORT PERFORMANCE OF SMES Stoian, M. C., Rialp, A., & Rialp, J. (2011). Export performance under the microscope: A glance through Spanish lenses. International Business Review, 20(2), 117-135. Styles, C. (1998). Export performance measures in Australia and the United Kingdom. Journal of International Marketing, 6(3), 12-36. Sui, S., & Baum, M. (2014). Internationalisation strategy, firm resources and the survival of SMEs in the export market. Journal of International Business Studies, 1-21. White, D., Griffith, D. A., & Ryans, J. K. (1998). Measuring export performance in service industries. International Marketing Review, 15(3), 188-204. Vernon, R. (1966). International investment and international trade in the product cycle. The Quarterly Journal of Economics, 190-207. Wolff, J. A., & Pett, T. L. (2000). Internationalization of small firms: An examination of export competitive patterns, firm size, and export performance. Journal of Small Business Management, 38(2), 34. Yin, R. K. (1989). Case study research: Design and methods (revised edition). Applied Social Research Methods Series, 5. Yin, R. K. (1994). Case study research: Design and methods. Thousand Oaks, CA: International Educational and Professional Publisher. Yin, R. K. (2014). Case study research design and methods (5th ed.). Thousand Oaks, CA: SAGE. Zou, S., Taylor, C. R., & Osland, G. E. (1998). The EXPERF scale: A cross-national generalized export performance measure. Journal of International Marketing, 37-58.