Theoretical background and hypotheses development

It has been shown that managers involved in exporting form attitudes and expectations about the profitability and risks associated with a firm’s export operation. As Cavusgil (1984) notes the more involved with and committed to export marketing a firm becomes, the more optimistic these expectations will be. More favorable managerial attitudes towards exporting mean a greater allocation of time and resources to export activities (Gencturk et al., 1995), and an increased need for export intelligence generation (Diamantopoulos and Cadogan, 1996). If leaders of universities support and allocate resources to export activities, this will induce positive attitudes towards exporting (e.g., recruiting international students, offering study programs in English, strengthening ties with universities in other countries etc.) and would create the need for collection of market intelligence about export markets. Thus, we propose that:

H1: The higher the management commitment’s to exporting is, the higher the export market orientation of a university.

The degree to which a firm behaves in a market oriented fashion is dependent on how leaders reinforce in employees the importance of being market oriented (Kohli and Jaworski, 1990). Management’s emphasis on an export market orientation is a signal about the importance of being responsive to the export customer needs and the broader export environment (Cadogan et al., 2001). Thus, in an organization with high inclination towards exporting, top managers will reinforce in employees the importance of being export market oriented. It follows that, if managers of universities impel their employees to be responsive to foreign students’ preferences and the activities of competitors, and the broader environment, the organization steps to a higher level of export orientation. Therefore:

H2: The higher the top management’s emphasis on export market orientation is, the higher the export market orientation of a university.

Nonprofit organizations, such as churches, non-governmental organizations, hospitals and universities, work with consumers (i.e., it is their needs and wants they strive to satisfy), just like any other organization operating in a competitive market. Research has shown that the well-proven market oriented business approach can also be employed in the higher

The Role of Managers in Fostering Export Market Orientation in the Organization

education sector (Webster et al., 2006; Hammond et al., 2006; Kara et al., 2004; Küster and Avilés-Valenzuela, 2010; Hemsley-Brown and Oplatka, 2010). Furthermore, Hemsley-Brown and Oplatka (2010) found that the potential benefits of applying marketing theories and concepts which have been effective in the world of business are gradually being recognized by researchers and practitioners in the field of marketing applied to higher education.

Improving the market orientation of a higher education institution also improves learning conditions, the satisfaction of students and other stakeholders, the perceived quality of the services received and the cost management of the institution, which finally lead to an increase in the institution’s share of the student market (Hammond et al., 2006). It follows that:

H3: The higher the export market orientation the higher the export performance of a university.

Rewarding market oriented activities will have a positive impact on a firm’s market oriented behavior (Jaworski and Kohli, 1993). This is in line with the idea that if organizational members are rewarded to attain certain goals they will be motivated to work in this direction (Chambers, 1985). In an export context, if individuals are rewarded on export market-based criteria (e.g. export customer satisfaction, export market share, export customer retention) they will more likely prefer these aims above other goals (Cadogan et al., 2001). It follows that in case of a university, if managers are being rewarded for enhancing foreign students’

satisfaction, retaining foreign students, and increasing export market share, they get committed to exporting and they will put more emphasis on enhancing the export market orientation of a university. Therefore:

H4a: The greater the export market oriented rewards systems is, the stronger the relationship between management’s commitment to exporting and export market orientation of a university.

H4b: The greater the export market oriented rewards systems is, the stronger the relationship between top management’s emphasis on export market orientation and export market orientation of a university.

A proper training system might play a key role in developing an effective export-market oriented behavior, since “training sets the stage, direction, and foundation of a market orientation and facilitates the clarity of focus and vision” (Mohr and Jackson, 1991, p. 462;

cited in Cadogan el al., 2001). Export market oriented behavior is being formed if the organization is able to increase the sensitivity of its employees towards export customers’

changing needs and preferences, and the ability to conduct business abroad, which requires formal education and employee development program (Czinkota and Ronkainen, 1995). If properly educated managers are able to carry out export market oriented tasks (e.g., developing an export market oriented strategy, recognizing the importance of export market

intelligence) more easily and with greater willingness, then they will be increasing an export market orientation of a firm. If university leaders get acquainted with knowledge about export markets (and related management practices) they would be able to formulate strategies for international student recruitment and international expansion (e.g., new market entry, establishing oversees campuses etc.), increasing the significance of intelligence generation (e.g., competitor analysis, following changes in international regulations, demographic changes etc.). It follows that:

H5a: The greater the export market oriented training system is, the stronger the relationship between management’s commitment to exporting and export market orientation of a university.

H5b: The greater the export market oriented training system is, the stronger the relationship between top management’s emphasis on export market orientation and export market orientation of a university.

Figure 1 Conceptual model: management’s emphasis on export market orientation, moderators enhancing this behavior and performance consequences

The Role of Managers in Fostering Export Market Orientation in the Organization