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

With the increasing involvement of industrial firms in foreign markets, the re is a need for research on the role of specific orientations and strategi es 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 impor tant single factor affecting business performance, quality's role in foreig n markets has received little research attention. To investigate quality an d other approaches in the international management of industrial firms, we conducted a series of case studies. Based on resultant findings and relevan t theory, we then devised a structural model and assessed its validity usin g data from a survey-based study of internationally active industrial firms . Results confirmed that in addition to quality, international market orien tation, technical reputation, and generic strategies all play important rol es in the international performance of industrial firms. (C) 2000 Elsevier Science Inc. All rights reserved.