Tax Incentive to Exports: Some Implications for Policy Makers

The major research question of this study is: Do American manufactures view DISC (the tax incentive to export) as assisting them in becoming more competitive in export markets? The importance of this question was recognized by Secretary of Treasury Michael Blumenthal who included an earlier version of this study in the April 1979 Treasury Report titled “The Operation and Effect of the Domestic International Sales Corporation (DISC).” As such the study has received recognition at the highest level of policy making. This study is unique in two respects: 1) it examines the impact of the tax incentive on the firm's total marketing and promotional efforts. Other studies have examined only the relationship between the tax incentive and change in export prices, and 2) this study expands the investigation of sample firms to include small businesses as well as multinationals. The conclusions of this study (surveying 125 multinationals and 125 small exporting firms) suggest that DISC stimulated some marketing activities for small companies and was used as a tax shelter for large multinationals. The main policy implication is that as a tax incentive DISC is helpful in attracting small firms into export marketing.© 1980 JIBS. Journal of International Business Studies (1980) 11, 74–84

Explaining firms’ performance through the resources and capabilities allocation in strategic groups: The Case of Italy’s Cosmetic Sector

The strategy literature encompasses studies that have investigated the existence of different strategic orientations as related to firm performance as well as studies that analyze the relationship between industry structure, the presence of strategic groups and firm performance. In contrast, very few studies attempted to evaluate the relationship between strategic orientations, resources, strategic groups and a firm performance. The aim of this paper is to analyse the relationship among strategic orientations, resource and capabilities allocation, strategic groups and firm performance. To test our hypotheses, we conducted a focus group and a survey on the Italian cosmetics industry employing a sample of 80 firms. The results show that participants did not adopted exclusively one strategic orientation. Participants applied a hybrid strategy, blending different mixes of the market-based and technology-based orientations. Though different in their orientation,ultimately each grouping might yield a similar level of performance

Region of origin and product knowledge. A cross-national analysis of the purchasing decisions of Chianti classico wine

The paper explores the country of origin (COO) effect in the wine sector with particular emphasis on the region of origin (ROO) as a factor when evaluating alternatives in the purchasing decision-making process. The ROO identifies key information about the product. It is now generally recognized that the terroir is a crucial attribute for the quality of a wine. We have focused on case study of the appellation of Chianti Classico on the German, British, USA and Canadian markets. The choice is motivated by the long history and international reputation of the Chianti Classico. Specifically, the paper aims to answer the following main research questions: what is the importance of the country of origin/region of origin assigned by consumers in an evaluation of Italian wines and the evaluation of Chianti Classico? Is there a relationship between the region of origin and knowledge of wine in the choice processes of the buyers? The image of the Chianti Classico influences the willingness to pay a premium in the analyzed markets included in the current study? Is there a difference in product perception and buying behavior among consumers of “Old” and “New World”? The analysis was conducted on a total sample of 2.380 consumers. The results confirm the importance of the COO and especially the ROO in the process of purchase of wine products. Specifically, it reveals that COO and ROO influence on the purchasing process in different ways, and that knowledge and a familiarity with a brand might have a moderating effect on purchase decisions. It was also found that in cases where consumers were not familiar with the product choices the ROO effect might be positive factor leading to acceptance of higher prices for wines originating in well recognized region

Chinese Immigrants Socio-Economic Enclave in an Italian Industrial District: the case of Prato

This exploratory study seeks to examine the nature of a migrant Chinese network of personal relationships and business interactions, and their level of integration with the traditional Italian firms that are housed in Prato’s industrial district. The specific goal is to understand how do the unique socio-economic entity which defines the quintessential Italian industrial district, and the business culture brought over by migrant Chinese entrepreneurs enmesh with each other. Responses directly collected from 50 Chinese entrepreneurs in Prato – that hosts the largest Chinese community in Italy – through a survey. Data analysis revealed that Chinese firms follow different paths than the Italian firms in Prato. Differences happen because of the strong influence of Chinese cultural heritage on entrepreneurial orientation, strategic decisions and know-how improvemen