[续3:]
4.3.1.Export coordination mechanisms
The current research adopted selective items from scales developed by Cadogan et al.(1999)to assess export coordination.Export coordination is measured with afive-point likert scale which capture the extent to which exporting unit's employees interact with other functional departments by using inter-departmental task forces in pursuing a common goal,making use of computing capabilities to closely coordinating post-sales problems and services in export markets,and resolving confiicts through cross-functional communication and group problem-solving.
4.3.2.Export process control mechanisms
This study adapted scales used by Bello and Gilliland(1997)to measure process controls.Process control is measured with afive-point Likert scale which captures the degree to which a principalfirm specifies and monitors the procedures used by its foreign agents in terms of the agent's selling procedures,promotional practices,and product introduction activities(Nevin,1995).
4.3.3.Rigid product adaptation decisions
Rigidity/fiexibility in decision making processes was viewed as a continuous variable under the threat-rigidity thesis(Harrington, Lemak,&Kendall,2002).The thesis holds that“a threat to the vital interest of an entity,be it an individual,group,or organization,will lead to forms of rigidity”(Staw et al.,1981,p.502)and the thesis further proposes that rigidity may be either adaptive or maladaptive.Based on this conceptualization,afive-item scale was developed to capture a principalfirm's perception of the extent of adaptation made in their export product strategies in the case of changed circumstances.Specifically,respondents were asked to rate the degree of adaptation pertaining to its product positioning,promotion approaches,and sales support when marketing to different foreign markets.
4.3.4.Export venture performance
This study adapted some global measures(Zou,Taylor,&Osland,1997)refiecting the overall satisfaction with an export venture.Export venture performance is measured by three indicators:achieving satisfactory results,meeting company expectations,and being perceived as a great success.
In keeping with convention that treats the above established measures:export coordination(Cadogan et al.,1999,2002,2006;Cadogan,Paul,Salminen,Puumalainen,&Sundqvist,2001),process control(Bello&Gilliland,1997;Gencturk and Aulakh,1995;Nevin,1995),and product adaptation decisions(Cavusgil&Zou,1994; Sholam,1996)as reflective scales,this study intended to use them as reflective measures.Nonetheless,the authors are aware that the observed variables can be interpreted as cause or causal indicators of the latent variables,and these measures may be regarded as formative.The ways to deal with the limitations of this approach would be provided in the limitations and future research directions session.
To assess the measurement properties of the export coordination, process control,rigid product adaptation decisions,and export venture performance variables,the items across the four scales were subjected to a confirmatory factor analysis using the EQS statistical program.A four-factor model was run and theflt assessed through multiple criteria.As a badness offit indicator,the chi-square value of 64.09(with 50 degrees of freedom)results in a value of 1.28 chi-square/degree of freedom that is lesser than 3.0 threshold indicating satisfactory modelfit(Gefen,Straub,&Boudreau,2000). The following goodness offit indices were evaluated and they all point to an adequate fit of the four-factor measurement model:Goodness-of- t(GFI)Index=0.97;Normed Fit Index(NFI)=0.97;Comparative Fit Index(CFI)=0.99;Root Mean Square(RMSEA)=0.027.Thefinal measurement results for the scales together with a correlation matrix are shown in Table 1.Overall,the results indicate that the scales perform well.Specifically,all of the construct composite reliabilities in the model are above the recommended threshold of.80(Nunnally,1978),indicating items loading onto respective constructs are measuring the same latent variables.In addition,all the average variance extracted(AVE)scores of constructs in the model are higher than the recommended threshold of.50 (Bagozzi&Yi,1988),providing further evidence of convergent validity.Furthermore,after calculating the AVE of latent variables, they were compared to squared correlations between latent variables and were found to be much higher than the squared correlations, suggesting high discriminant validity of each construct from other constructs(Fornell&Larcker,1981).In conclusion,the measurement models possess good psychometric properties.All of the indices evaluating convergent validity and discriminant validity are above the acceptable levels.Furthermore,the unidimensionality of all constructs are supported by CFA results.
To test for common method bias,this study employed Harman's one-factor test(Malhotra,Patil,&Kim,2007).The rationale for this test is that if common method variance poses a serious threat to the analysis and interpretation of the data,a single latent factor would account for all manifest variables(Podsakoff&Organ,1986).A worse fit for the one-factor model would suggest that common method variance does not pose a serious threat.In this study,the one-factor model yielded a chi-square=1071.42 with degree of freedom=54,compared with the chi-square=64.09 with degree of freedom=50 for the proposed model.Thefit is considerably worse for the unidimensional model,suggesting that common method bias is not a serious threat in the study.
5.Statistical analyses
Model testing was undertaken using LISERL and the maximum likelihood(ML)estimation procedure.Table 2 provides the path estimates and t-values for the structural model.This study also follows Ping(1995)guidelines for the evaluation of structural models with interaction terms.Given the independent variable,dependent variable and moderator variables in this study are continuous measurement scales in nature,the effective method for the analysis of statistical interaction is to use product term(Jaccard&Wan,1995).However,the introduction of nonlinear product term is problematic because it causes the collinearity in the regression.According to Little, Bovaird,and Widaman(2006),the mean centering and residual centering are the main two technological methods to reduce the collinearity in structural equation modeling with product interaction effect.Based upon the comparison of SEM results,these researchers concluded that the residual centering has potential advantages over mean centering to completely decrease the collinearity without complicated constraints on estimation.Thus the residual centering technology is adopted in this study to generate the product term for the test of the interaction effect of environment on the path from rigid product adaptation decisions to export venture performance.After multiplying the environment item with three items of rigid product adaptation decision,three indicators for the product term were created.Then the orthogonalizing procedure is pursued: each indicator is regressed onto its respectivefirst-order constituent terms and the residual of this regression is then saved and subsequently used to represent the interaction effect.The model with the product term is analyzed in LISREL.
As shown in Fig.2,the coefficient(if 0.49)between the product term and export venture performance is significant at 0.05 with t-value=2.03.
This means that when the technological uncertainty increases one unit, rigid product adaptation decision's negative influence on export venture performance will be strengthened by 0.49.Hypothesis H1 is supported since the‘technological uncertainty-rigid product adaptation decisions’interaction term is negative and significant(γ=.49,pb.05).This finding shows that the negative effect of rigid product adaptation decisions on export performance is stronger as technological uncertainty increases.
Hypothesis H2 is supported since export coordination returns a significant negative relationship with rigid product adaptation decisions(γ=?.21,p b.000).This current finding works complementarily with previous research findings(Cadogan et al.,1999,2001, 2002,2006)in that while export coordination fosters responsive export market oriented behavior,it is not surprising to find that an exporting unit's coordination with other business functions serves to reduce rigid product adaptation decisions in this study.
Hypothesis H3 is supported(γ=?.35,p b.000)demonstrating that export process control has a very powerful negative effect on rigid product adaptation decisions.In line with prior expectations,an exporting firm's time and effort over monitoring foreign distributors tends to build up the information processing capacity very much needed for responsive export behavior and hence reduces rigid product adaptation decisions.