Developing an internationalization strategy using diffusion modeling: The case of greater amberjack

Edwin J. Nijssen*, Machiel J. Reinders, Athanasios Krystallis, Gemma Tacken

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

For farmers of new fish species, market adoption is needed in order to grow a viable business. Farmers may try to sell the new species in their firms’ domestic markets, but they might also look at other markets. However, as markets are becoming more global and competitors more international, considering internationalization may be a necessity rather than a choice. Using diffusion modelling, and based on results of an online supermarket experiment, the innovation and imitation parameters are estimated and diffusion curves for five countries predicted in an attempt to determine the best lead market for introducing fillets of farmed greater amberjack (Seriola dumerili). The production capacity consequences of implementing different internationalization strategies (i.e. “sprinkler” and “waterfall”) were also explored. A waterfall strategy refers to the sequential introduction of a product in different markets, whereas the sprinkler strategy concerns the simultaneous introduction of a product in multiple international markets. Since a sprinkler approach requires many resources and the ability to quickly ramp up production capacity, a waterfall approach appears more suitable for farmers of greater amberjack. Italy and Spain appear to be the best lead markets for greater amberjack farmers to enter first.

Original languageEnglish
Article number12
JournalFishes
Volume4
Issue number1
DOIs
Publication statusPublished - 16 Feb 2019

Fingerprint

Seriola dumerili
globalization
markets
market
sprinklers
waterfall
modeling
farmers
world markets
supermarkets
imitation
fillets
Italy
Spain
innovation
new species

Keywords

  • Forecasting market demand
  • Greater amberjack
  • Internationalization strategy

Cite this

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title = "Developing an internationalization strategy using diffusion modeling: The case of greater amberjack",
abstract = "For farmers of new fish species, market adoption is needed in order to grow a viable business. Farmers may try to sell the new species in their firms’ domestic markets, but they might also look at other markets. However, as markets are becoming more global and competitors more international, considering internationalization may be a necessity rather than a choice. Using diffusion modelling, and based on results of an online supermarket experiment, the innovation and imitation parameters are estimated and diffusion curves for five countries predicted in an attempt to determine the best lead market for introducing fillets of farmed greater amberjack (Seriola dumerili). The production capacity consequences of implementing different internationalization strategies (i.e. “sprinkler” and “waterfall”) were also explored. A waterfall strategy refers to the sequential introduction of a product in different markets, whereas the sprinkler strategy concerns the simultaneous introduction of a product in multiple international markets. Since a sprinkler approach requires many resources and the ability to quickly ramp up production capacity, a waterfall approach appears more suitable for farmers of greater amberjack. Italy and Spain appear to be the best lead markets for greater amberjack farmers to enter first.",
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Developing an internationalization strategy using diffusion modeling: The case of greater amberjack. / Nijssen, Edwin J.; Reinders, Machiel J.; Krystallis, Athanasios; Tacken, Gemma.

In: Fishes, Vol. 4, No. 1, 12, 16.02.2019.

Research output: Contribution to journalArticleAcademicpeer-review

TY - JOUR

T1 - Developing an internationalization strategy using diffusion modeling: The case of greater amberjack

AU - Nijssen, Edwin J.

AU - Reinders, Machiel J.

AU - Krystallis, Athanasios

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N2 - For farmers of new fish species, market adoption is needed in order to grow a viable business. Farmers may try to sell the new species in their firms’ domestic markets, but they might also look at other markets. However, as markets are becoming more global and competitors more international, considering internationalization may be a necessity rather than a choice. Using diffusion modelling, and based on results of an online supermarket experiment, the innovation and imitation parameters are estimated and diffusion curves for five countries predicted in an attempt to determine the best lead market for introducing fillets of farmed greater amberjack (Seriola dumerili). The production capacity consequences of implementing different internationalization strategies (i.e. “sprinkler” and “waterfall”) were also explored. A waterfall strategy refers to the sequential introduction of a product in different markets, whereas the sprinkler strategy concerns the simultaneous introduction of a product in multiple international markets. Since a sprinkler approach requires many resources and the ability to quickly ramp up production capacity, a waterfall approach appears more suitable for farmers of greater amberjack. Italy and Spain appear to be the best lead markets for greater amberjack farmers to enter first.

AB - For farmers of new fish species, market adoption is needed in order to grow a viable business. Farmers may try to sell the new species in their firms’ domestic markets, but they might also look at other markets. However, as markets are becoming more global and competitors more international, considering internationalization may be a necessity rather than a choice. Using diffusion modelling, and based on results of an online supermarket experiment, the innovation and imitation parameters are estimated and diffusion curves for five countries predicted in an attempt to determine the best lead market for introducing fillets of farmed greater amberjack (Seriola dumerili). The production capacity consequences of implementing different internationalization strategies (i.e. “sprinkler” and “waterfall”) were also explored. A waterfall strategy refers to the sequential introduction of a product in different markets, whereas the sprinkler strategy concerns the simultaneous introduction of a product in multiple international markets. Since a sprinkler approach requires many resources and the ability to quickly ramp up production capacity, a waterfall approach appears more suitable for farmers of greater amberjack. Italy and Spain appear to be the best lead markets for greater amberjack farmers to enter first.

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