A Dynamic Perspective on Internet Capabilities and Export Marketing Performance

Abstract

Academic and management literature alike suggest a positive performance impact of online marketing tools. However, the nature and sustainability of this effect remain largely unexplored. In this article, the authors identify an organization’s Internet capabilities as a bundle of skills to transform material and immaterial resources into particular online applications. Based on cross-national data from 215 middle-sized industrial exporting firms, we find that companies can use Internet capabilities to spur functional export marketing capabilities. On top, Internet capabilites fullfill a second purpose, namely enhancing the export marketing knowledge base of an export venture. This dual-purpose effect illustrates the dynamic nature of Internet capabilities and eventually improves companies export marketing performance. Eventually, we account for a direct effect of Internet capabilities on performance, and find that this effect is fully mediated by export marketing capabilities and strategy.