Export Success Research Articles

How to use your social capital to thrive in export markets Identifying the dynamic capabilities developed through social capital by top exporters

Competing in international markets poses considerable challenges to companies and calls for special capabilities. The present study aims to identify dynamic organisational capabilities developed by external social capital that are, in turn, necessary for achieving success in export markets. Semi-structured interviews and thematic analysis have been utilised to collect and analyse data, respectively. 16 high-level and export marketing managers of top export companies operating in Isfahan province, Iran, have been purposefully selected based on data saturation in order to participate in the research. The findings indicate that participants rely more on their business networks to develop dynamic capabilities. Moreover, thematic analysis has resulted in the extraction of 28 components in relation to dynamic capabilities which are categorised into five sub-themes. The identified sub-themes include export market exploration and exploitation, dynamic research and development, export entrepreneurial orientation and manufacturing flexibility. The sub-themes have been classified into two broad themes comprising explorative and exploitative dynamic capabilities.

Financial Dependence and Intensive Margin of Trade

We find that financial markets and institutions play distinctive roles in helping exporters survive in foreign markets. The relative importance of banks versus stock markets for export success shifts both across different groups of products and between short-term and long-term export survival. The distinction between large and active stock markets matters as well, especially when it comes to products requiring high levels of working capital. Our results also highlight the importance of deep stock markets for exporters lacking collateralizable assets and the necessity of well-established export links for the successful use of trade credit as a substitute for bank credit.

Економізація зовнішньої політики незалежної України

The article reveals the essential characteristics of the economization of Ukraine’s foreign policy, the stages of its formation. It turns out that the world’s leading countries have a long history of foreign policy economization, which is based on the postulate of ensuring economic growth and promoting prosperity as its main goal. The formation of the principles of economic policy of foreign institutions of Ukraine is a combination of Soviet traditions and patterns of world practice. Emphasis is placed on the negative impact of the multi-vector foreign policy of Ukraine’s main actors on its economization. It is argued that economic diplomacy is in a constant process of reform, which is not always consistent, which negatively affects its effectiveness. Attention is focused on the importance of Ukraine’s cooperation with international organizations in the context of the armed conflict in the East and the sharp reduction of export-import operations with Russia. The problems of functioning of the institute of economic diplomacy are covered: the presence of competition of foreign policy and foreign economic departments of Ukraine, the absence of diplomats – qualified managers of foreign economic activity, lack of funding, staff reduction.It is concluded that in the context of globalization the role of the social function of the Ministry of Foreign Affairs of Ukraine and its diplomatic corps, which is to provide information and legal protection of Ukrainian citizens abroad, is growing. It is necessary to actively create the institution of "non-state diplomacy". Foreign economic institutions need to provide maximum assistance to exporters of high valueadded products. The pro-government circles of Ukraine do not always have the understanding or desire to understand that the powerful economic component of our state’s foreign policy and the effective economic diplomacy that embodies it are a significant contribution to the power of Ukraine’s economy and its national security. The issue of the separation of functions of pro-government institutions remains largely unresolved, primarily with regard to the powers of the administration / office of the President and the Ministry of Foreign Affairs. Ukraine’s successful export expansion should be based on more fundamental systemic tools than the adopted Export Strategy. There is an urgent need not only to preserve but also to improve the overall foreign policy strategy, to strengthen its priorities and basic principles. &nbsp

Impact of Controllable Factors on Export Performance of SMEs in Jordan

Exporting is of great interest for SMEs in Jordan from both microeconomic and macroeconomic perspective. The objective of this study was to identify to what extent specific internal factors contribute to export success of SMEs in Jordan. This study hypothesized that export performance of SMEs is directly affected by three groups of internal factors. These include firm characteristics, managerial characteristics, and marketing strategy. A multiple case approach is used to conduct this research and a structured interview is developed to collect the data directly from the participants. A pattern matching approach was used to test the hypotheses. The results show that export performance is positively affected by firm characteristics, managerial characteristics, and marketing strategy. Additionally, the demographic characteristics of managers and adaptation of distribution channels are unlikely to have an influence on export performance. This was unexpected, because of the plenty of empirical evidences in the literature that support the impact of these variables on export success.

Software Export Success Factors and Strategies in Developing and Transitional Economies

Many developing and transitional economies (DTEs) have become active or interested in software exports. This paper analyses the experiences of the three largest exporters – India, Ireland and Israel. It develops a 'Software Export Success Model' on the basis of that analysis. It uses the model to investigate current strengths and weaknesses of three 'second-tier' exporters: Russia, the Philippines, and China. It then draws some conclusions about recommended actions for these and other would-be software exporting nations.

Ethyl formate fumigation: Its effect on stone and pome fruit quality, and grain chinch bug (Macchiademus diplopterus) mortality

The grain chinch bug, Macchiademus diplopterus (Distant) (Hemiptera: Lygaeidae), is a key phytosanitary pest requiring postharvest mitigation control for successful export of South African deciduous fruit. The main aims of the present investigation was to examine, firstly, the potential of ethyl formate as a fumigant to control the grain chinch bug and secondly, the effect of ethyl formate on the fruit quality of selected stone and pome fruit cultivars. The preliminary trial indicated a minimum concentration of 50 g/m3 (or 50 mg/L) ethyl formate for 1 h was required to obtain 100% mortality of the grain chinch bug. Building on those findings, phytotoxic trials assessed the effect of applying a dose range of 50–150 g/m3 ethyl formate for 1 h in desiccators at ambient temperature on various pome and stone fruit cultivars. No internal or external phytotoxic damage was observed on the various cultivars. An informal tasting panel could not distinguish between treated and untreated fruit. The effect of packaging (cartons with perforated bags or liners as per commercial use for each product) on the ability of ethyl formate to control the grain chinch bug was assessed after the phytotoxic susceptibility trials. The introduction of packaging confirmed that a higher concentration of ethyl formate (85 g/m3) was required for packaged fruit compared to the 50 g/m3 required for open crates or lugs. Higher ethyl formate concentrations enabled the fumigant to diffuse and penetrate the different packaging types without a dilution effect, effectively controlling the grain chinch bug embedded inside the cartons while maintaining fruit quality.

Impact of FDI Inflows on Export and Growth of an Indian Economy

FDI may be reflected as a resource for developing countries to get capital inflows, access to foreign technology, management skills and marketing networks. India is the world’s highest rising economies and remains a top market for Foreign Direct Investments (FDI). In a globalizing world, export success can serve as much for the competitiveness of a country’s industry and lead to faster growth. India is the most primary economies globally for foreign investment. It allows FDI of up to 100 percent of the equity shareholding in most sectors under the automatic route. The inflow of FDI into India is projected as able to increase productivity which will ultimately have an impact on the increase in national income in the form of the Gross Domestic Product (GDP) as well as in the form of increased exports. Exports support a country to increase its foreign exchange reserves, and build a strong financial position. FDI is seen as a potent tool of export promotion in the domestic country. This paper examines the most important benefits connected with the inflow of FDI as Export Performance, and GDP Growth. To study the dynamics of co-integration between FDI Inflow, GDP growth, and Export Performance, evidence is taken from country-specific level like Indian Economy where the period of study is from 2009-10 to2018-19. Hence, the paper studies the economic scenario of India for its FDI inflows, GDP growth rate, and its export performance. This paper attempt to analyze a positive correlation between FDI Inflow, GDP growth, and Export Performance by framing Simple Regression and Multiple Regression Models erected on the hypotheses formulated and validating the results of the models based on ANOVA and Durbin-Watson test.

Disobedient bodies: Gendered violence in South Asian and desi film

ABSTRACTBollywood has become a vector of India’s soft power and most successful export fostering Hinglish hybrids catering for diasporic audiences and local offshoots – Tollywood, Kollywood, or Lollywood, to name but a few. Thus, it feeds the aspirations of an upwardly mobile mass urban audience. It is packaged with a paradigm of escapism, or even anaesthetization, as it tends to eschew politically contentious issues such as gendered violence. Although violence does feature in Bollywood films, it is mainly a staple of the gangster or thriller genre. Gendered violence is still widely under-reported and seldom, if ever, features except in period movies or films either directed or produced by NRI directors. My article will study a counter-narrative to Bollywood’s hegemony, exploring forced marriage, domestic violence and honour killing against women (Yasmin, 2004), Provoked (Mundhra, 2007), Murdered by my Father (Glenaan, 2004) and Land, Gold, Women (Hari, 2011). Particular emphasis will be given to post 9/11 repercussions and the rise of Islamophobia in Western societies, the impact of which can further marginalize women in diasporic communities. Thus, institutional violence and a cultural backlash lead to identitarian closure and mistrust of assimilation/integration/hybridity. A common denominator of all these films is the subjugation of women through marriage, on the basis of ‘Zan, Zar and Zameen’ and the imposition of patriarchal norms. It will be argued that Bollywood’s reluctance to confront gendered violence or its temptation to deflect this dissonant reality and demonize the Muslim or Sikh Other may also fit its Hindutva agenda.

Distinguishing Between Imports for Domestic Use and for Re-Exports: A Novel Method Illustrated for the Netherlands

Global trade in the 21st century is characterised by complex value chains. Successful exporters usually rely on quality imports, and exported goods cross borders many times before reaching their final consumer. This poses challenges to economic measurement as well as policymaking because it becomes difficult to characterise the true interdependencies between countries. Currently, estimates of the share of imports from a trade partner destined for re-exports, and the share used in the domestic economy, are crude at best. We develop a novel approach to estimate these shares. Instead of assigning imports for re-exports proportionally across all source countries, we consider the origin of imports for each trader who re-exports goods. The method is illustrated for the Netherlands, a major re-exporter. We find that non-European member states export 10 billion euros of commodities to the Netherlands that are destined for re-export to the United Kingdom. We also find that the goods trade deficit between the Netherlands and the United States is drastically reduced when taking re-export flows into account.

Green business strategy and export performance

PurposeBuilding upon the insights of the resource-based view and contingency theory, the purpose of this paper is to investigate the boundary conditions of green business strategy on the export financial performance of firms from an emerging economy.Design/methodology/approachA quantitative study was conducted to test the conceptual model. In total, 224 questionnaires were collected from exporting manufacturing companies and were analyzed using full information maximum likelihood.FindingsThe results of the study demonstrate that green business strategy has a strong and positive relationship with export financial performance. Also, environmental orientation and cost leadership play a significant and positive moderating role in this relationship. However, green product differentiation is complementary with green business strategy only when a cost leadership strategy is also maintained.Practical implicationsThe study has practical implications since it identifies green business strategy as an important lever for emerging export managers. More specifically, they have to be aware of the challenges when they operate outside the cost leadership boundaries and should actively seek to develop the environmental orientation of employees and managers.Originality/valueThis study reveals the relationship between green business strategy and export success for emerging country exporters that are understudied and face unique challenges. In particular, the authors explore the contingency factors that strengthen or weaken the relationship and provide additional insight to the question: “when does it pay to be green?” for exporters from emerging economies.

Financial Capacities and export success: Evidence from Small and Medium-Sized Estonian Firms

The main objective of this paper is to investigate the relationships between exporting success and variables that affect the economic and financial structure. For a set of 242 Small and Medium-Sized Estonian firms, we will analyze how financial variables contribute to the achievement of higher export success rates. We select the relevant variables with Principal Component Analysis and use an Artificial Intelligence method (PART algorithm) to study the role of them. The results show that the more relevant financial variables to analyze the success in international market are the ones related to the liquidity of the assets, the level of interest payments, sales growth, the ones related to firms' own funds and the age of the company. In addition, although some financial factors are more significant than others, none of them is clearly a key factor for all companies and situations, that is, no single factor can lead to success or failure.

REVISITING THE INNOVATION-EXPORT NEXUS USING INDUSTRY-LEVEL DATA: EVIDENCE FROM CHINA’S LARGE- AND MEDIUM-SIZED INDUSTRIAL ENTERPRISES

The paper aims to provide new evidence about the relationship between technological innovation and industrial export in China. In particular, using a unique industry-level data on a panel of China's 27 two-digit manufacturing industries over the 1998-2010 period, the study empirically investigates the impact of various aspects of technological innovation on export performance of large- and medium-sized industrial enterprises (LMEs). The results based on a system-GMM estimation report that: First, domestic innovation efforts and foreign investment have a significant positive impact on China's industrial export performance, whereas the former has a relatively stronger influence on export success than the later; Second, the export growth has benefitted greatly from China's integration into world trade and the effect of trade openness on export boom is greater than both the domestic and foreign innovation efforts. Further, a recent increase in the scientific and technological development staff has initiated the learning process in LMEs and has put a favourable impact on industrial export. Last, market reforms in china have played a crucial role in manufactured export development through improvement in separate ownership and creation of competitive market. These results are robust to several tests, sensitivity checks and alternative variables on diverse channels for technological innovation. Findings of the paper suggest some policy points for designing China's new development strategy in an era of sluggish growth. Keywords: Technological innovation, Foreign investment, Indigenous innovation, Market-oriented reforms, Industrial export, ChinaJEL Classifications: F14, F23, O14, O31, O32DOI: https://doi.org/10.32479/ijefi.7942

Innovativeness and Competitive Advantage among Small and Medium Enterprise Exporters: Evidence from Emerging Markets in South East Asia

Research Aims: This study investigates the impact of innovativeness on competitive advantage along with the role of human capital and entrepreneurship orientation as drivers for innovation. Design/Methodology/Approach: The sample consists of small and medium sized manufacturers in Malaysia. A total of 193 firms participated. Data were collected via mail and drop-off survey and analysed using multiple regression analysis. Research Findings: The findings indicate that innovativeness significantly and positively influences competitive advantage. The effect of human capital and entrepreneurship orientation on innovativeness is also positive and significant. Theoretical Contribution/Originality: The findings of this study also have theoretical implications wherein the results lend support to the appropriate role of innovativeness in creating competitive advantage and its role in the human capital and entrepreneurship orientation towards innovativeness. Managerial Implications in the Southeast Asian context: The present study suggests that small and medium enterprises (SMEs) managers should focus on developing organisational value and capacity to encourage the creation of novel business solutions. These resources are entrepreneurship orientation (EO) and human capital. Successful export ventures, with a background of limited resources, can be achieved by employing incremental internationalisation frameworks. Research Limitations and Implications: This study bears several limitations. First, most of the samples are businesses owned by the Malay and may not be generalised to other ethnicities such as Chinese or SMEs in other emerging countries. Second, the competitive advantage is contingent on the external environment, and the results may vary when factoring in the effect of the external environment.

The interplay between market intelligence activities and sales strategy as drivers of performance in foreign markets

Purpose Exporting is a popular foreign market entry mode, especially among small- and medium-sized enterprises (SMEs). The success of SME exporters depends on their ability to establish and maintain profitable long-term relationships with foreign customers. This study aims to propose that the development of an effective export sales strategy can contribute greatly toward this aim. The study also demonstrates that export market intelligence generation and export market intelligence dissemination activities are important drivers of export sales strategy. Export sales strategy comprises three dimensions, which are expected to have a positive influence on export performance. Design/methodology/approach The study uses survey data obtained from 168 exporting firms based in Greece, to test a set of research hypotheses. Structural equation modeling procedures are used. Findings Findings indicate that export market intelligence generation and dissemination activities support and facilitate the development of effective export sales strategies, tailored to serve individual foreign accounts. Furthermore, all strategic dimensions of export sales strategy demonstrate significant positive effects on export performance. Research limitations/implications The research underlines the importance of incorporating export sales strategy in studies that aim to investigate the drivers of export performance. Practical implications The findings also indicate that exporting firms must actively engage in market intelligence activities to reinforce their strategic decision-making process. Originality/value The study emphasizes the crucial importance of export sales strategy in achieving superior export performance. The study provides a theory-driven conceptualization and operationalization of export sales strategy and offers an empirical assessment of a comprehensive model that includes the key antecedents and performance outcomes of export sales strategy.

National Branding: International Experience

The article deals with the experience of foreign countries in the formation and promotion of national branding policy. According to the author, in order to strengthen Ukraine’s position in the world, it is necessary to begin with developing and enhancing the level of bilateral cooperation. Particular attention should be attached to such a mechanism of interaction as the dissemination of information and improvement of a state’s image. The author draws attention to the fact that a crucial component of creating the image of a state is territorial branding aimed at promoting and popularizing specific territories. Territorial branding contributes to the restoration of infrastructure, emergence of a skilled workforce, promotion of local entrepreneurship and public-private structures, identification and attraction of adjacent companies and industrial facilities, creation of local attractions, development of social infrastructure and cultural facilities. Certain opportunities lie in the promotion of branding of Ukrainian agricultural products. According to the author, public diplomacy, a network of embassies, a series of publications in well-known advertising agencies should help address these issues. This helps to attract foreign capital with the ensuing efficient promotion of a branding object. The author argues that Ukraine needs a multi-directional policy aimed at comprehensive development of its national brands in order to facilitate successful exports, tourism, culture promotion, and to attract investment to ensure economic prosperity. The information provided by the author is intended to draw the attention of Ukrainian authorities to the improvement of the foreign policy and investment image of Ukraine. Keywords: politics, national branding, territorial branding, cooperation, branding, experience, Ukraine.

The German Wine Market: A Comprehensive Strategic and Economic Analysis

Even though it is famous for beer, Germany offers one of the most attractive wine markets, exemplified by being the fourth biggest wine consumption market and a world champion in sparkling wine consumption as well as in wine imports. Still, fragmentation, intensive competition, lack of growth, and a changing environment speak to a challenging market for suppliers. In the absence of a comprehensive investigation on the market, this article aspires to deliver an economic and strategic market analysis. The statistical data is therefore complemented by the primary market research, notably online surveys on strategy and innovation, a proprietary database on wineries’ reputation, and an international expert survey on export success factors. The following market study aims to provide a concise overview covering the relevant market data, and to disclose strategic information about the German wine industry beyond pure market statistics. The German wine market, in the stable wine volume sold, shows dynamism underneath “the tip of the iceberg”, with industry specific environmental forces. Indeed, as the wine industry deals with agricultural products of a high emotional utility, players need to address the world of commodities and of differentiation. Structural changes are visible in the drive-out of players. Moreover, diverse and even restricting environmental factors motivate supplier´s innovation. The key is the changing consumer. Adaptive and innovative suppliers seize market opportunities and expand, despite a lack of market growth. Although the overall price level of wine in the German market is comparatively low, a voluminous premium market exists, where consumers search for experience. Sustainability has been gaining ground, and in cases of appealing offerings and strategic profiling, wineries outperform intensive rivalries and are not limited by missing growth perspectives. Expenditures for marketing will further increase, and cost management is indispensable. Success in the German wine business requires an in-depth knowledge of the complex market and its evolution.

Infrastructural development as a strategy for Nigeria’s export promotion

Given the increase in the degree of interdependence among economies, the role of infrastructure in aiding these interactions between national economies is vital. This study discusses how Nigeria could adopt infrastructural development towards fostering export-led economic growth. Using descriptive and deductive approaches the study concludes that investment in infrastructure is key to enhancing the growth resurgence of a developing country such as Nigeria as infrastructure quality would have a pervasive influence on all areas of an economy thereby increasing productivity and consequently influencing exporting activities. In the light of the above the study while commending government’s effort of privatizing public corporations in an attempt to ensuring efficient infrastructure service delivery, the study recommends continuous development of infrastructure in the form of improvements in the provision of complementary transport infrastructure; introducing electronic and other related infrastructure at ports and airports so as to facilitate electronic clearance of export; as well as the stabilization of power supply in the country through constant augmentation of energy distribution channels in order to boost entrepreneurial activities. Sustaining these will go a long way in ensuring that export success is achieved in Nigeria.Keywords: Infrastructural development, Export Promotion, Economic growth

The surprising instability of export specializations

We study the instability of hyper-specialization of exports at the 4-digit level in 1998–2010. (1) Specializations are surprisingly un-stable. Export ranks are not persistent, and new top products and destinations replace old ones. Measurement error is unlikely to be the main or only determinant of this pattern. (2) Source country factors are not the main explanation of this instability. Only 16–20% of variation in export growth is accounted for by source country plus source country-product factors that do not vary across destinations. The high share of idiosyncratic variance (source-product-destination residual) of 41–55%, indicates the difficulty to predict export success using source country characteristics. While we are cautious in interpreting factors that are jointly determined in global general equilibrium, our results suggest that destination and product-specific factors importantly matter at least as much as source country factors.

Exports of firms and diversity: an empirical assessment for Germany

The international trade literature highlights the importance of firm productivity and economies of scale on the firm’s international export success. In the context of agglomeration economies, firms enjoy productivity gains when they are located close to related firms and they gain from knowledge spillovers and other positive externalities. They may also benefit from a potentially large supply of diverse workers that possess distinct knowledge and problem-solving skills. In such environments, firms may be more prone to export. In this paper, we employ a comprehensive German data set that combines survey and administrative data. We ask whether German firms (i.e., establishments) export more as a result of localization and urbanization externalities, and labor market pooling associated with workforce diversity, while controlling for a variety of establishment characteristics. Using a fractional response model, we provide evidence that manufacturers and smaller establishments benefit more from externalities and especially from knowledge spillovers. There is less evidence supporting the benefit of workforce diversity; however, that factor may be associated with between-establishment variation.

Modeling of nuclear power plant export competitiveness and its implications: The case of Korea

Currently only six countries worldwide are considered to have the capability necessary to export nuclear power plants, each with unique advantages: Korea, the United States, Japan, Russia, China, and France. Despite abundant reports documenting successful plant exportation, it is difficult to obtain official accounts that reveal the main factors that lead to successful export due to the secretive nature of nuclear power plant contracts. This study developed a model comparing the competitiveness between nuclear power plant supplier countries. The model 1) categorizes and classifies various criteria for nuclear power plant export and 2) assigns weighted values on each criterion based on an AHP analysis to 3) compare the competitiveness of the export-capable countries based on the developed framework. The analysis showed that China has the highest competitiveness followed by Russia, Korea, the United States, Japan, and France, in decreasing order. In this context, it is imperative for Korea to construct consumer oriented export packages and target countries with strong leadership, countries that disregard the nuclear fuel cycle, countries that require fast nuclear power plant adoption, or countries that are pro-American.