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Export Intensity, Learning, and Performance: A Multidimensional Model for Export Strategy

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Siddiqui, A., Arora, K. Export Intensity, Learning, and Performance: A Multidimensional Model for Export Strategy. Applied Economics Quarterly, 68(2), 125-148. https://doi.org/10.3790/aeq.2022.1418303
Siddiqui, Areej Aftab and Arora, Kashika "Export Intensity, Learning, and Performance: A Multidimensional Model for Export Strategy" Applied Economics Quarterly 68.2, 2022, 125-148. https://doi.org/10.3790/aeq.2022.1418303
Siddiqui, Areej Aftab/Arora, Kashika (2022): Export Intensity, Learning, and Performance: A Multidimensional Model for Export Strategy, in: Applied Economics Quarterly, vol. 68, iss. 2, 125-148, [online] https://doi.org/10.3790/aeq.2022.1418303

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Export Intensity, Learning, and Performance: A Multidimensional Model for Export Strategy

Siddiqui, Areej Aftab | Arora, Kashika

Applied Economics Quarterly, Vol. 68 (2022), Iss. 2 : pp. 125–148

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Corresponding author. Dubai Business School, University of Dubai.

Senior Research Fellow, Centre for WTO studies, Department of Commerce, Ministry of Commerce, Government of India, New Delhi, India.

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Abstract

Emerging economies have been focusing on enhancing exports by adopting relaxed trade policies and easing the institutional environment for firms to operate in. To assess the export performance of firms, export intensity (EI) is a measure that has been used widely. Across studies, a mixed and contradictory relationship has been seen between export intensity and firm-specific competencies. This study attempts to develop a model by dichotomizing export strategy between expansion-oriented and escape-oriented strategies, the first being motivated by a resource-based view and the second depending on a domestic institutional perspective. It extends recent research by proposing that exporting firms, depending on the strategy adopted, are influenced by learning from exporting, human capital, and the domestic institutional environment. In contrast to previous studies, this study finds that high export intensity does not always lead to advanced firm competencies. It is seen that high export intensity firms may export to escape the inefficiencies of the domestic environment and may not develop advanced firm competencies or focus on retaining human capital. While firms with low EI gain from learning by exporting, undertake expansionary activities in exporting, in turn develop advanced competencies, they incur high human capital costs. The present study helps to provide clarity and integrates the dichotomous export strategies with export intensity and their influence on firm-level competencies as well as institutional environments in emerging economies. The hypotheses formulated in the study are validated and supported by a sample of exporting firms from India.

Table of Contents

Section Title Page Action Price
Areej Aftab Siddiqui / Kashika Arora: Export Intensity, Learning, and Performance: A Multidimensional Model for Export Strategy 125
Abstract 125
1. Introduction 126
2. Review of the Literature 127
3. Theory Development 128
Export strategy: Perspective in emerging economies 128
EI and the institutional environment 129
Learning and EI 130
EI and human capital 131
Ownership, industry heterogeneity, and EI 132
4. Methodology 133
Variables 133
5. Analyses and Results 135
6. Discussion and Conclusions 144
References 145