Export Intensity, Learning, and Performance: A Multidimensional Model for Export Strategy
JOURNAL ARTICLE
Cite JOURNAL ARTICLE
Style
Format
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
Additional Information
Article Details
Pricing
Author Details
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.
References
-
Beugelsdijk, S./Hennart, J. F./Slangen, A./Smeets, R. (2010): “Why and how FDI stocks are a biased measure of MNE affiliate activity,” Journal of International Business Studies 41(9), 1444–1459.
Google Scholar -
Boehe, D. M./Qian, G./Peng, M. W. (2016): “Export intensity, scope, and destinations: Evidence from Brazil,” Industrial Marketing Management 57, 127–138.
Google Scholar -
Bonaccorsi, A. (1992): “On the relationship between firm size and export intensity,” Journal of International Business Studies 23(4), 605–635.
Google Scholar -
Brouthers, K. D./Hennart, J. F. (2007): “Boundaries of the firm: Insights from international entry mode research,” Journal of Management 33(3), 395–425.
Google Scholar -
Chaudhry, A./Yuan, L./Hu, J./Cooke, R. A. (2016): “What matters more? The impact of industry and organizational factors on organizational culture,” Management Decision 54(3), 570–588.
Google Scholar -
Chen, J./Chen, J./Sousa, C. M./Sousa, C. M./He, X./He, X. (2016): “The determinants of export performance: A review of the literature 2006–2014,” International Marketing Review 33(5), 626–670.
Google Scholar -
Cheng, H. L./Yu, C. M. J. (2008): “Institutional pressures and initiation of internationalization: Evidence from Taiwanese small-and medium-sized enterprises,” International Business Review 17(3), 331–348.
Google Scholar -
Chiao, Y. C./Yang, K. P./Yu, C. M. J. (2006): “Performance, internationalization, and firm-specific advantages of SMEs in a newly industrialized economy,” Small Business Economics 26(5), 475–492.
Google Scholar -
Cohen, W. M./Levinthal, D. A. (1990): “Absorptive capacity: A new perspective on learning and innovation,” Administrative Science Quarterly 35(1), 128–152.
Google Scholar -
David, F. (2005). “Strategic Management: Concepts and Cases,” 10th ed., Prentice Hall.
Google Scholar -
De Boer, M./Van Den Bosch, F./Volberda, H. (1999): “Managing organizational knowledge integration in the emerging multimedia complex,” Journal of Management Studies 36, 379–418.
Google Scholar -
Delery, J. E./Doty, D. H. (1996): “Modes of theorizing in strategic human resource management: Tests of universalistic, contingency, and configurational performance predictions,” Academy of Management Journal 39, 802–835.
Google Scholar -
Djankov, S./Hoekman, B. (2000): “Foreign investment and productivity growth in Czech enterprises,” World Bank Review of Economics 14, 49–64.
Google Scholar -
Eden, L./Miller, S. R. (2004): “Distance matters: Liability of foreignness, institutional distance and ownership strategy,” Advances in International Management 16(04), 187–221.
Google Scholar -
Elango, B./Pattnaik, C. (2007): “Building capabilities for international operations through networks: A study of Indian firms,” Journal of International Business Studies 38(4), 541–555.
Google Scholar -
Ellis, P. D./Davies, H./Wong, A. H. K. (2011): “Export intensity and marketing in transition economies: Evidence from China,” Industrial Marketing Management 40(4), 593–602.
Google Scholar -
Filatotchev, I./Stephan, J./Jindra, B. (2008): “Ownership structure, strategic controls and export intensity of foreign-invested firms in transition economies,” Journal of International Business Studies 39(7), 1133–1148.
Google Scholar -
Ganotakis, P./Love, J. H. (2012): “Export propensity, export intensity and firm performance: The role of the entrepreneurial founding team,” Journal of International Business Studies 43(8), 693–718.
Google Scholar -
Gao, G. Y./Murray, J. Y./Kotabe, M./Lu, J. (2010): “A strategy tripod perspective on export behaviors: Evidence from domestic and foreign firms based in an emerging economy,” Journal of International Business Studies 41(3), 377–396.
Google Scholar -
Ghose, A. K. (2016): “Globalization, Growth and Employment in India,” Indian Journal of Human Development 10(2), 127–156, https://10.1177/0973703016663536.
Google Scholar -
Golovko, E./Valentini, G. (2011): “Exploring the complementarity between innovation and export for SMEs’ growth,” Journal of International Business Studies, 42(3), 362–380.
Google Scholar -
Hatch, N. W./Dyer, J. H. (2004): “Human capital and learning as a source of sustainable competitive advantage,” Strategic Management Journal 25, 1155–1178.
Google Scholar -
Heckman, J. J. (2005): “China’s human capital investment,” China Economic Review 16, 50–70.
Google Scholar -
Hermelo, F. D./Vassolo, R. (2010): “Institutional development and hyper competition in emerging economies,” Strategic Management Journal 31(13), 1457–1473.
Google Scholar -
Hitt, M. A./Tihanyi, L./Miller, T./Connelly, B. (2006): “International diversification: Antecedents, outcomes, and moderators,” Journal of Management 32(6), 831–867.
Google Scholar -
Ito, K. (1997): “Domestic competitive position and export strategy of Japanese manufacturing firms: 1971–1985,” Management Science 43(5), 610–622.
Google Scholar -
Kennedy, D./Lakonishok, J./Shaw, W. H. (1992): “Accommodating outliers and nonlinearity in decision models,” Journal of Accounting, Auditing & Finance 7(2), 161–190.
Google Scholar -
Larimo, J. (2013): “Small and medium-size enterprise export performance: Empirical evidence from Finnish family and non-family firms,” International Studies of Management & Organization 43(2), 79–100.
Google Scholar -
Ling-Yee, L. (2004): “An examination of the foreign market knowledge of exporting firms based in the People’s Republic of China: Its determinants and effect on export intensity,” Industrial Marketing Management 33(7), 561–572.
Google Scholar -
LiPuma, J. A./Newbert, S. L./Doh, J. P. (2013): “The effect of institutional quality on firm export performance in emerging economies: A contingency model of firm age and size,” Small Business Economics 40(4), 817–841.
Google Scholar -
Love, J. H./Ganotakis, P. (2013): “Learning by exporting: Lessons from high-technology SMEs,” International Business Review 22(1), 1–17.
Google Scholar -
Lu, J./Xu, B./Liu, X. (2009): “The effects of corporate governance and institutional environments on export behaviour in emerging economies,” Management International Review 49(4), 455–478.
Google Scholar -
Lu, J. W./Beamish, P. W. (2001): “The internationalization and performance of SMEs,” Strategic Management Journal 22(67), 565–586.
Google Scholar -
Majocchi, A./Bacchiocchi, E./Mayrhofer, U. (2005): “Firm size, business experience and export intensity in SMEs: A longitudinal approach to complex relationships,” International Business Review 14(6), 719–738.
Google Scholar -
Martineau, C./Pastoriza, D. (2015): “International involvement of established SMEs: A systematic review of antecedents, outcomes and moderators,” International Business Review 25(2), 458–470.
Google Scholar -
Martineau, C./Pastoriza, D. (2016): “International involvement of established SMEs: A systematic review of antecedents, outcomes and moderators,” International Business Review 25(2), 458–470.
Google Scholar -
Melitz, M. J. (2003): “The impact of trade on intra-industry reallocations and aggregate industry productivity,” Econometrica 71(6), 1695–1725.
Google Scholar -
Mezias, J. M. (2002): “How to identify liabilities of foreignness and assess their effects on multinational corporations,” Journal of International Management 8(3), 265–282.
Google Scholar -
Peng, M.W. (2003): “Institutional transitions and strategic choices,” Academy of Management Review 28(2), 275–296.
Google Scholar -
Peng, M. W./Tan, J./Tong, T. W. (2004): “Ownership types and strategic groups in an emerging economy,” Journal of Management Studies 41(7), 1105–1129.
Google Scholar -
Peng, M. W./Wang, D. Y./Jiang, Y. (2008): “An institution-based view of international business strategy: A focus on emerging economies,” Journal of International Business Studies 39(5), 920–936.
Google Scholar -
Pla-Barber, J./Alegre, J. (2007): “Analysing the link between export intensity, innovation and firm size in a science-based industry,” International Business Review 16(3), 275–293.
Google Scholar -
Salomon, R./Jin, B. (2008): “Does knowledge spill to leaders or laggards? Exploring industry heterogeneity in learning by exporting,” Journal of International Business Studies 39(1), 132–150.
Google Scholar -
Salomon, R. M. (2006): “Spillovers to foreign market participants: Assessing the impact of export strategies on innovative productivity,” Strategic Organization 4(2), 135–164.
Google Scholar -
Salomon, R. M./Shaver, J. M. (2005): “Learning by exporting: New insights from examining firm innovation,” Journal of Economics & Management Strategy 14(2), 431–460.
Google Scholar -
Sasidharan, S./Kathuria, V. (2011): “Foreign direct investment and R&D: Substitutes or complements – A case of Indian manufacturing after 1991 reforms,” World Development 39(7), 1226–1239.
Google Scholar -
Serti, F./Tomasi, C. 2008. “Self-selection and post-entry effects of exports: Evidence from Italian manufacturing firms,” Review of World Economics 144, 660–694.
Google Scholar -
Shinkle, G. A./Kriauciunas, A. P. (2010): “Institutions, size and age in transition economies: Implications for export growth,” Journal of International Business Studies 41(2), 267–286.
Google Scholar -
Slater, S. F./Narver, J. C. 1995. “Market orientation and the learning organization,” Journal of Marketing 59, 63–74.
Google Scholar -
Sousa, C. M./Martínez-López, F. J./Coelho, F. (2008): “The determinants of export performance: A review of the research in the literature between 1998 and 2005,” International Journal of Management Reviews 10(4).
Google Scholar -
Sousa, C. M./Novello, S. (2014): “The influence of distributor support and price adaptation on the export performance of small and medium-sized enterprises,” International Small Business Journal 32(4), 359–385.
Google Scholar -
Vanneste, B. S./Puranam, P. (2010): “Repeated interactions and contractual detail: Identifying the learning effect,” Organization Science 21(1), 186–201.
Google Scholar -
Verwaal, E./Donkers, B. (2002): “Firm size and export intensity: Solving an empirical puzzle,” Journal of International Business Studies 33(3), 603–613.
Google Scholar -
Wang, W./Ma, H. (2018): “Export strategy, export intensity and learning: Integrating the resource perspective and institutional perspective,” Journal of World Business 53(4), 581–592.
Google Scholar -
Wu, F./Sinkovics, R. R./Cavusgil, S. T./Roath, A. S. (2007): “Overcoming export manufacturers’ dilemma in international expansion,” Journal of International Business Studies 38(2), 283–302.
Google Scholar -
Xu, D./Lu, J. W./Gu, Q. (2014): “Organizational forms and multi-population dynamics economic transition in China,” Administrative Science Quarterly 59(3), 517–547.
Google Scholar -
Zahra, S. A./George, G. (2002): “Absorptive capacity: A review, reconceptualization, and extension,” Academy of Management Review 27(2), 185–203.
Google Scholar
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 |