Moderated-mediation investigation on internet marketing and export market growth in the Jordanian export sector

This quantitative research study set out to replicate and extend Bianchi & Mathew’s (2015) findings on the relationship between Internet marketing capabilities and export market growth. In particular, it examined the mediating effect of the availability of export information as well as international business network relationships on the primary relationship within the context of the Jordanian export sector. In addition, the study examined the moderating effect of economic and spending growth of target foreign markets. Structural equation modeling was used to investigate the model as it is most suited for predicting changes in the outcome variables in complex conceptual models with multiple independent and dependent variables measured on multiple dimensions (Emeagwali, 2015). The population of the study consisted of Jordanian export firms. A total of 313 online surveys were collected establishing the data to be analyzed for the study. SPPS statistical software version 21 was used to verify the model and the hypotheses of the research study. Findings revealed that while Internet marketing has no direct influence on export market growth, it does have a direct influence on the availability of export information, which in turn has an influence on export market growth. Findings also showed that Internet marketing capabilities had no significant effect on business network relationships. However, the availability of export information had a strong and significant effect on the ability of the companies under study to develop and nurture business network relationships even though business network relationships was found to have a weak but significant effect on export market growth. A key contribution of this study is the finding that economic and spending growth were both observed to strengthen the mediating effects of availability of export information on export market growth as well as the mediating effect of business network relationships on export market growth. Corresponding author: Mohammad Fahmi Al-Zyoud Email address for corresponding author: Dr.m. alzyoud@gmail.com First submission received: 28th November 2017 Revised submission received: 30th January 2018 Accepted: 5th March 2018 Introduction The influence of the deployment of the Internet on international marketing activities of international firms has been an area of research interest many scholars within the international marketing and international business domain ranging from investigations into the impact of Internet deployment on international activities and international expansion to international market growth of firms (Bianchi & Mathews, 2015; Moen, Madsen & Aspelund, 2008; Loane, 2005; Lu & Julian, 2008; Mathews & Healy, 2008). Findings from literature (especially on developed countries) reveal Internet deployment to have a positive impact on the availability of export information, nurture of business network relationships in foreign markets and increasing the holistic performance of export companies (Bianchi & Mathews, 2015; Bianchi, 2014; Teo & Choo, 2001). However, as Bianchi & Mathews, (2015) notes, most of the existing body of literature on Internet marketing and export market growth are conceptual in nature and thus there is a lack of empirical findings to hypothesize and test these conceptual propositions empirically validating or refuting them. Furthermore, due to the collectivist nature of most developing countries, especially in the Middle East, and the accompanying economic disparities, it may not be appropriate to generalize findings from the bulk of literature from individualistic developed countries to these developing countries. Journal of Business and Retail Management Research (JBRMR), Vol. 13 Issue 1 October 2018 www.jbrmr. com A Journal of the Academy of Business and Retail Management (ABRM) 201 Consequently, research is needed to provide findings that accurately depict the support or lack of the conceptual framework in developing regions of the world especially the Middle East. Upon a review of existing literature, it is the position of this study that the deployment of the Internet to international marketing activities such as digital marketing, market research and after sales support, leads to the development of Internet marketing capabilities which impact export market growth as measured by monetary amount of export in existing and new foreign markets (Bianchi & Mathews, 2015). Prasad, Ramamurthy & Naidu (2001) are also of the opinion that the deployment of Internet marketing capabilities strengthens marketing activities as it provides a means of seamlessly connecting with customers and suppliers. The study conceptual framework is an extended version of a conceptual framework adopted from Bianchi & Mathews (2015). The primary component of this conceptual model is its position that there is a relationship between Internet marketing capabilities and export market growth as mediated by two other firm-based capabilities: availability of export information and the development of business network relationships. The Problem Statement This research study investigates answering several questions related to the relationship and impact among the deployment of Internet marketing activities, the availability of export information, business network relationships, and country characteristics in terms of rate of economic growth and spending growth in Middle Eastern export firms. Specifically, the research investigates answering the question of whether the deployment and utilization of Internet marketing activities and processes increases the availability of export information. Consequently, determining if the availability of export information lead to an increase in export market growth. In addition, the research study answers the question of whether Internet marketing activities and processes have a positive impact on international business network relationships and accordingly a positive one on the growth of export markets. Finally, the research investigates the mediating effect on the availability of export information on the observed relationship between business network relationship and export market growth through the rate of economic growth and the rate of spending growth of the target foreign market. Motivation for the Research This research study contributes to the literature through introducing foreign market characteristics as a moderating variable on the relationships between the mediators and export market growth. These foreign market characteristics include (a) economic growth rate and (b) spending growth rate. These two moderators included into the conceptual model are derived from previous research (Aspelund, 2008; Loane, 2005) that showed that the economic conditions of a foreign market can impact export market growth. In addition, this study represents an addition to the empirical research on Internet marketing capabilities and export market growth in general and in the Middle Eastern region in specific. Literature Review Internet Marketing Capabilities The Internet has been identified as one of the key marketing resources through which marketing departments in most organizations derive a key capability (Calantone & Griffith, 2007; Bianchi & Mathews, 2015). This capability is most often derived and measured by examining the effective deployment of Internet based application and technologies such as online sales, advertising, customer relationship management, purchasing or procurement and market research among others (Trainor et al., 2010; Aspelund & Moen, 2004). The position of literature is that capabilities obtained from the effective deployment of Internet marketing techniques across traditional marketing functional areas has an indirect positive influence on the growth of export markets due to the availability of export information obtained through market research and active development of business network relationship (Bianchi & Mathews 2015; Aspelund & Moen, 2004). In addition, numerous literatures suggest that the deployment of Internet marketing activities not only ensures the creation and nurturing of marketing capabilities, but also enhances the Journal of Business and Retail Management Research (JBRMR), Vol. 13 Issue 1 October 2018 www.jbrmr. com A Journal of the Academy of Business and Retail Management (ABRM) 202 quality of decisions made across the organization and overall organizational performance (Moon & Jain, 2007; Gibbs & Kraemer, 2004; White & Daniel, 2004; Prasad et al., 2001; Teo & Choo, 2001). Availability of Export Information The Internet is indispensable to the survival of most businesses. A review of literature reveals that in addition to providing businesses an easy way to reach and feel the pulse of their customer base, it also serves as a channel through which organizations access quality information about the markets they serve locally or internationally (Hamill, 1997). Furthermore, research reveals that the Internet increases the amount of market information available to business people (Hamill, 1997). In fact, numerous scholars (Hamill, 1997; Quelch & Klein, 1996; Brock & YU, 2005; Hamill & Gregory, 1997; Cronin & McKim, 1996) pointed to the positive impact of the Internet on the availability and ubiquity of information about international markets through the facilitation of primary and secondary data collection such as online questionnaire and access to online databases and repositories. This ubiquity of market information coupled with the low cost of Internet access contributed to equal opportunities among firms of unequal sizes, and firms operating in advantaged versus disadvantaged geographic and economic regions (Wright et al., 2005; Aspelund & Moen, 2004; Arnott & Bridgewater, 2002; Teo & Choo, 2001; Bennett, 1997). A review of literature (Morgan, 2012; Piercy et al., 1998; Samiee, 1998; Li & Calantone, 1998; Cronin & McKim, 1996; Day, 1994; Hart, Webb & Marian, 1994) shows that efficienc