Comparing Exporters with Domestic Retailers on eBay: An Eclectic Paradigm Approach
|Author(s)||Victor J. Massad, GuoJu Yi, Joanne M Tucker|
|Issue Date||February 01, 2012|
|Publishing Date||February 01, 2012|
|Keywords||International marketing, internationalization, internalization, eclectic paradigm, eBay, e-commerce, Internet marketing, exporting, entry mode, SME|
The Internet has fueled the growth of hundreds of thousands of small and medium sized enterprises (SME’s), many based in Asia, that export goods via the Internet to global retail markets. Internalization theory and the Eclectic Paradigm of International Production are used to develop a theoretical framework to predict and explain possible differences in the levels of marketing competence between foreign exporters and domestic e-tailers on the American site eBay. Domestic sellers are hypothesized to have greater experience, greater likelihood of being Power Sellers, lesser likelihood of having a “Me” page, and lower feedback ratings. Based on a sample of 4560 eBay completed sales, domestic sellers were found to have more experience, and greater likelihood of being Power Sellers. There was no significant difference between domestic sellers and exporters in terms of having a “Me” page or feedback ratings, although domestic sellers in the sample did have higher feedback ratings on average and the relationship was near-significant.