Export market study wins award

Professor Sylvie Chetty

An academic has proved that just as it is never too late to learn, it is never too late to receive an award for good work.

Massey University Professor Sylvie Chetty received the Hans B Thorelli Award at an international conference held in New Orleans on February 20 for an article that she jointly wrote with Otago University Department of Management Professor Colin Campbell almost six years ago.

Their 2004 article, A Strategic Approach to Internationalisation: A Traditional Versus a ‘Born-Global’ Approach won the American Marketing Association award.

The award is given annually to articles that have made the most significant and long-term contribution to international marketing theory or practice and published in the Journal of International Marketing.

In the article, Professor Chetty challenged the existing theories to prove her point that New Zealand companies adopted their own methods to foster international trade.

“New Zealanders do not follow the textbook approach of selling through agents and licensed partners for export, international marketing and establishing manufacturing plants overseas.

“They adopt either a regional model of launching into Australia, a “born global” strategy of going international within two years of starting up, or a global model of developing a strong domestic market and launching out slowly,” she said.

According to her, New Zealand companies should have their own strategies, manufacturing and business plans, in view the size of the country and its remote location.

“We are export-focused and the domestic market is small. This means we have a contribution to make in developing theories that can be used worldwide, in particular in other small, open economies.

“Firms in countries such as Finland, Denmark and Sweden, with similar small domestic markets, are learning from New Zealand,” Professor Chetty said.

Auckland based Senztek New Zealand, a hot water devices manufacturer was among the companies that benefited from this strategy.

Chief Executive Brian Knolles consulted Dr Chetty and adopted the regional strategy, growing into the Australian market.

“Establishing a presence in Australia has enabled our company to put in place a growth strategy to enter the European market,” he said.

It is understood that the Small Business Unit of the Economic Development Ministry and the New Zealand Trade & Enterprise are currently using the models suggested by Professor Chetty.