The critical role of product quality in the international performance of industrial firms

With the increasing involvement of industrial firms in foreign markets, there is a need for research on the role of specific orientations and strategies in international success. This need is motivated in part by the special challenges posed in the international environment of business. A key lever in the success of any firm is product quality. While perhaps the most important single factor affecting business performance, quality's role in foreign markets has received little research attention. To investigate quality and other approaches in the international management of industrial firms, we conducted a series of case studies. Based on resultant findings and relevant theory, we then devised a structural model and assessed its validity using data from a survey-based study of internationally active industrial firms. Results confirmed that in addition to quality, international market orientation, technical reputation, and generic strategies all play important roles in the international performance of industrial firms.