International Export Orientation and Firm’s Performance: Evidence from Enterprise Survey Data of India

Abstract

ABSTRACTThis study aims at analyzing the performance of firms by international export orientation vis-à-vis domestic orientation, based on World Enterprise Survey Data of 9,281 firms of India. Simple statistical techniques such as chi-squared test, ANOVA, and regression model have been used to analyze the data with the help of SPSS version 20.0. Chi-square statistics indicate that there is significant difference in enterprise characteristics by business orientationdomestic versus export-oriented businesses. Result of the ANOVA indicates a significant difference in business performance between export versus domestic orientation of firms in terms of sales and employment growth rates. Export-oriented enterprises perceive comparatively fewer obstacles than domestic enterprises. Regression analysis indicates that enterprise characteristics, performance indicators, and business obstacles have influence on export orientation of the firms. This study provides insights on differences in firms’ performance across business orientations and factors affecting the internationalization of business. This study can be helpful in designing policies for promoting export-oriented enterprises in a focused manner.