Managerial Characteristics and Export Performance – Empirical Evidence from Kosovo

Abstract

Abstract Guided by managerial theory and behavioural economics, as well as the literature on exporting, this study combines the upper echelons perspective with the Melitz model to analyse the export behaviour of firms. Hence, it controls for the influence of managerial characteristics, neglected thus far in the literature on firms’ export choice and volume in transition countries. The empirical analysis is based on a random sample of 500 Kosovan SMEs. The results support the key hypothesis that both subjective and objective managerial characteristics are crucial for export decisions. In line with the strategic choice paradigm and behavioural economics, the findings provide support regarding the influence of the habituation and rational expectations effect, as well as the manager’s education and international exposure concerning export performance. Further, the Kosovan firms are self-selective in their export behaviour in terms of productivity supporting the Melitz model. No evidence, however, is found for the significance of institutional factors, even after performing factor analysis.