By Anna Fiorentino, November 2011
Published Nov 04, 2011
For decades, Haier, a Chinese appliance-manufacturing giant, has tried with little success to break into the American market. According to Tuck marketing professor Peter Golder, the company finally made headway with a lower-cost investment in an appliance manufacturer in New Zealand—a country similar, both culturally and economically, to the United States.
"The things Haier will learn in New Zealand will help the firm succeed in the U.S. market," says Golder, who teaches the core Marketing Concepts and Strategy course and the Global Marketing elective at Tuck. "Similarly, if a U.S. company gained market knowledge in Taiwan or Vietnam, it would be very helpful for what that company could accomplish in China."
Golder recently received the American Marketing Association's (AMA) 2011 Excellence in Global Marketing Research Award for his article addressing this topic: "Whose Culture Matters? Near-Market Knowledge and Its Impact on Foreign Market Entry Timing." Published in 2002 in the Journal of Marketing Research, and co-authored by Debanjan Mitra of the Warrington College of Business Administration at the University of Florida, the piece was the first to examine how experience in one market enables companies to gain the requisite knowledge to subsequently operate in another, similar market—or "near-market."
Golder and his co-author employed a hazard model to evaluate the impact of the extensive data they compiled—dynamic near-market measures and other economic and cultural variables—on 722 foreign-market entries of 19 multinational firms. "It was a big effort to put the dataset together, and it was satisfying to win the award, but the major satisfaction is that more people are likely to look at the article," says Golder, at Tuck since 2009.
"It was a big effort to put the dataset together, and it was satisfying to win the award"