Abstract

Family firms are said to be of great flexibility [1], what may enhance their export activity and therefore make them benefit from one of the main export advantages: the learning-by-exporting effect on various outputs, among which this work focuses on innovation. Data from the period 2001-2010 from over 2,200 Family Firms (out of a sample of 4,629) are analyzed to test if being numerical more flexible (through the hiring of temporary workers) implies that the learning-by-exporting effect on the innovative activity is enhanced through such practice. Results show that being more flexible doesn’t make the firm to export more. Moreover, the firm numerical flexibility exerts no clear effect on innovation. What is non-contradictory is the learning-by-exporting effect on innovation. Exporting is exogenous to innovation, what suggest the absence of a self-selection effect between these variables. Finally, the firm numerical flexibility doesn’t moderate, in any sense such effect.

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