Export Performance Of Firms Research Articles

Constituents of dynamic marketing capability: Strategic fit and heterogeneity in export performance

Using the Resource Based View and Dynamic Capability theoretical lenses, this paper provides such a strategic treatise in exploring how the underlying dimensions of DMC can be understood within a higher-order DMC strategy and the influence of the latter upon the export performance of firms from an emerging market. The empirical findings drawn from a sample of 315 exporters representing eight industries from Bangladesh show that the DMC is a second-order latent construct consisting of four marketing capabilities: proactive market orientation, brand management capability, new product development capability, and customer relationship management capability. Additionally, this study identified three clusters of firms and showed that, among them, enthusiastic embracers—which are characterized by high levels of activity across marketing capabilities, such as proactive market orientation and brand management capability—achieve better performance.

Does Incentive Improve Export Performance of Firms? An Evidence

Trade is an engine of growth, and favourable international trade is essential to attain internal and external stability. In recent times, many developing countries, including Nigeria, have chosen the path of export incentives as the means of achieving a favourable international trade balance. The paradigm shift is a pointer that globalization has made international trade very competitive and firms in less developed countries are at the receiving end. The present study examined the effect of export incentives on the export performance of Nigerian firms. Data were collected through a survey of 60 firms that benefited from export expansion grants (EEG). The Fixed Effect method was adopted in the study. The result shows that the export performance of the firms improved significantly with the export expansion grant. It then suggests that if the country implements all its incentive programmes, the country's external trade will improve significantly.

Marketing Strategies, Industry Competition and Export Performance of Fresh Produce Firms in Kenya

Despite the increasing number of firms pursuing the export market, little is known about the moderating role of industry competition in the marketing strategy and export performance link. The majority of the studies have focused solely on the direct relationships between two variables at a time and overlooked potential moderating factors that could influence export performance. To address this gap in the literature, this study solicited responses from 100 fresh produce export firms. Primary data was collected using a structured questionnaire. The overall objective of the study was to determine the influence of industry competition on the relationship between marketing strategies and the export performance of fresh produce firms in Kenya. The specific objectives were to establish the influence of product strategies on export performance of fresh produce firms; assess the effect of price strategies on export performance of fresh produce firms; examine the effect of promotion strategies on export performance of fresh produce firms; examine the influence of place strategies on export performance and to determine the moderating role of industry competition on the relationship between marketing strategies and export performance of fresh produce firms. The study outcome revealed that industry competition influenced export performance through marketing strategies. Findings from the study build on the industrial organization economic theory which postulates that the long-term profitability and attractiveness of an industry can be explained by the strength of all five forces together. Likewise, empirical findings recommend that managers should identify opportunities and threats within the industry and subsequently use this information to formulate marketing strategies.

Determinants of the Export Performance of Tunisian SMEs: Analysis Trough the MICMAC Method

Exporting companies survive in an increasingly volatile and unpredictable environment, characterized by technological development and acute competition linked to the globalization of economic activities. Exporting has a positive impact on the trade balance of countries, especially in times of crisis, on the level of employment and on the improvement of the standard of living in general. The challenges faced by exporting companies and the actions they need to take in order to be more successful must be systematically addressed. The authors of this article have highlighted the key factors that can help companies to be more competitive and successful in exporting, based on theoretical approaches carried out in this field. The MICMAC method was used to identify the determining factors that can influence the performance of companies in exporting. The variables used in this research were identified based on the review of existing literature. 21 variables were collected and classified into 7themes. The results of the structural analysis were prioritized by performing a sensitivity analysis to prioritize the key factors. It was found that three factors condition the export performance of firms: strategic factors, management profile, commitment and international experience were found to be related to the export performance of the firm. The results of this research were used to develop recommendations for business leaders, practitioners and policy makers. The authors hope that this advice would help Tunisian firms' export performance in the future.

Towards an analysis of the determinants of exports in Brazil: the perspective of exporting companies

PurposeFew studies have analysed the determinants of exports in emerging economies, which are critical in the exporting reality of firms. Two variables decisively affect the export performance of firms – their size and their export experience. This paper analyses the relationship between size and export experience in the export intensity of Brazilian firms. In addition, it considers two variables (location and sector) that identify firms in Brazil and could affect their export intensity. This research answers the question of which characteristics of Brazilian companies determine their export intensity.Design/methodology/approachA statistically significant sample of 318 firms is collected from Brazilian exporting companies. Regression analysis is performed, and data describing the relationship between the export determinants and the export intensity of Brazilian firms are presented. Three evaluation models are proposed. In the first, the location and sector variables are considered. In the second, the firm size, firm location and sector are presented. In the third, the firm size, export experience, location and sector are proposed.FindingsThe results of the third model confirm that only export experience is statistically significant. Therefore, there is no relationship between firms' size, location and sector and export intensity for companies in Brazil.Originality/valueThis work shows the organisational characteristics that affect export performance in Brazil from the firm’s perspective; these are aspects that have been analysed less in emerging economies.

Eyes open and hands on: market knowledge and marketing capabilities in export markets

PurposeDrawing on the knowledge-based view of the firm (KBV) and Dynamic Marketing Capabilities (DMC), this paper examines the role of key internationalization knowledge absorption processes as learning strategies, namely market exploitation and market exploration in enabling internationalization knowledge absorption in export-oriented firms involved in manufacturing goods or producing electrical/engineering products.Design/methodology/approachThe data were gathered via a cross-sectional survey using a questionnaire (i.e. n = 315) on a sample of Bangladeshi manufacturing firms exporting in US and European markets.FindingsThe findings suggest that an export firm's internationalization absorption strategies are positively associated with export performance. The authors also found that the mediator, DMC, strengthened the relationship between knowledge absorption and export performance. Moreover, the findings of moderated mediation model revealed that the direct and indirect effects of market exploitation on export performance are more prevalent when competitive intensity is low. While competitive intensity is high, the direct and indirect effects of market exploration on export performance are more prevalent.Practical implicationsBy introducing a higher-level dynamic marketing capability approach and linking it to ambidexterity constructs (learning though exploration and exploitation), export business professionals should appreciate the full spectrum of mid-level marketing capabilities they need to develop alongside their exploration and exploitation strategies to improve their export performance. This study directs attention to the competitive intensity conditions the exporting firm is facing. When export business professionals are faced with high-level of competitive intensity in the market, they should establish a clear focus on their exploration learning strategies if they wish to enhance their export performance.Originality/valueThe authors contribute to two broad domains of literature: organizational learning and DMC strategy. The study results show that how the two components of international ambidexterity as organizational learning constructs (i.e. market exploration and exploitation) influence knowledge management processes within firms through a firm's possession of a fine configuration of higher-level marketing capability. This study also theoretically and empirically examines how higher-level DMC strategy can mediate the consequence of international knowledge absorption mechanism on firm export performance. From a practical perspective, this study provides useful lessons for exporting firms wishing to enhance their performance.

Marketing Strategies and Export Performance of Fresh Produce Firms in Kenya

The study objective was to examine the role of marketing strategies on export performance of fresh produce fi rms in Kenya. A major stream of research has considered marketing strategy and performance within the context of a domestic economy. A census survey was carried out among all the 100 fresh produce fi rms that were ordinary members of the Fresh Produce Export Association of Kenya (FPEAK) as at 31st June 2019. The study utilized a positivist approach. Primary data were collected using a structured questionnaire. A descriptive cross-sectional study design was adopted. The results of regression analysis revealed that the relationship between marketing strategies and export performance was positive and statistically signifi cant. To policy makers, the study recommends regional and bilateral trade agreements that seek to increase the market share for fresh produce fi rms. To management practice, the study provides guidelines on how to design and implement sustainable but competitive marketing strategies for the export market. For future research direction, the study recommends additional moderating/mediating variables that may infl uence export performance.

The effect of international intrapreneurship on firm export performance with driving force of organizational factors

PurposeThis study aims to reveal the effect of the two international intrapreneurship activities of employee strategic renewal behaviour and new business venture behaviour on small and medium enterprises (SMEs)’s export performance with the direct and indirect effects of transformational leadership, international entrepreneurial orientation and internal corporate social responsibility (CSR) practices.Design/methodology/approachThe study sample consists of 461 employees at 168 Vietnamese import and export SMEs in the Ho Chi Minh City of Vietnam. The data is analysed by structural equation modelling.FindingsThe paper reveals that the two international intrapreneurship activities of employee strategic renewal behaviour and new business venture behaviour significantly contribute to SMEs’ export performance. Transformational leadership, internal CSR practice and international entrepreneurial orientation positively and significantly direct influence the two international intrapreneurship activities. The effects of transformational leadership on international intrapreneurial behaviours are partially mediated by firm internal CSR practices and international entrepreneurial orientation.Research limitations/implicationsFirms would have to form the architecture and mechanisms to apply internal CSR and international entrepreneurship orientation for supporting the dedication of international intrapreneurship with a transformational leadership base.Originality/valueThe study contributes to the body of knowledge on international business by integrating resource-based view theory and dynamic capabilities theory in a way that benefits entrepreneurship and SMEs’ export performance.

Impact of Export Promotion Programs on Export Performance

This research examines the relationship of Export Promotion Programs (EPPs), sponsored by a Portuguese Regional Association for Development on Trade and Industry, with firms’ export performance. To investigate this, two models were applied using panel data analyses that relate export performance to variables such as participation in EPPs, age and size of firms. Data on 198 firms for the sampling period 2010 and 2018 was drawn from a Portuguese Regional Development Association and SABI (Iberian Balance sheet Analysis System) database. The results show that participation in EPPs does have a positive influence on the export performance of firms, especially for those firms with previous export experience, demonstrating the importance of using these programs. Findings also document that firm size relates positively export performance, whereas firms age show a negative effect on export performance, suggesting that larger firms with more resources positively influence exports and an increase in firms’ age may increase their cultural inertia, inability to change strategies, decreasing their export performance, respectively. Finally, the participation in EPPs seems not to influence export performance for firms without previous export experience. The research contributes to the literature providing evidence on the role of EPP on firms’ export performance behavior promoted by regional development associations.

Export spillover from foreign direct investment in China during pre- and post-WTO accession

This study investigates the effects of export spillover from foreign direct investment (FDI) before and after China’s World Trade Organization (WTO) accession, with particular consideration of the FDI source country and firm ownership structure. It uses a Chinese manufacturing firm-level panel dataset, for the period 1998–2007. In general, there are no spillover effects among state-owned enterprises (SOEs). This study finds negative horizontal and positive vertical spillovers associated with FDI from Hong Kong, Macao, and Taiwan (HMT) among non-SOEs. Furthermore, non-HMT FDI, which is predominantly from the Organisation for Economic Co-operation and Development (OECD) countries, have statistically significant positive horizontal and vertical spillover effects on the export performance of private Chinese firms. Positive forward spillovers occurred only after China joined the WTO, while positive backward spillovers existed during both the pre- and post-WTO periods. China’s entry into the WTO intensified the forward linkage of production, implying that greater availability of high-quality inputs produced by non-HMT foreign multinationals benefited the export performance of private domestic firms.

Ownership structure and firm export performance: evidence from Slovenian microdata

This paper combines two very distinct strands of literature, firm-level trade analysis and studies on the impact of ownership structure. I explore the correlation between firm ownership structure and its engagement in external trade using data for the population of Slovene enterprises between 2005 and 2012. The estimates indicate that concentrated firm ownership is more conducive to firms being exporters. Even after controlling for firm type, age, ownership type and ownership stability in addition to the full set of covariates accounting for exporting status, firms with a smaller number of owners and more concentrated ownership are found more likely to be exporters. Results prove to be robust to changes in definitions and econometric approach. These findings fully support the inclusion of ownership structure variables in firm-level trade analysis as one of the core determinants of exporting success.

Is Facebook an effective tool to access foreign markets? Evidence from international export performance of fashion firms

Social networks are a driving force of digital transformation and offer firms the opportunity to market products and services to both international consumers and providers, establish durable relationships with them, and improve their own competitiveness. The study analyzes the role played by the use of Facebook for online advertising, building interaction and brand communities, implementing social CRM activities, and conducting market research, as well as a sales channel alternative to physical presence, in firms’ international export performance, both in terms of managers’ perceptions and Facebook buy button conversion rate. A survey-based empirical analysis of 105 fashion firms operating worldwide was conducted. The results of multiple regression analyses show that building conversations and brand communities positively affects international export performance, while advertising via Facebook yields mixed results. By comparing firms that have a physical presence with those that do not, the former turned out to benefit from especially in-store advertising and promotions to enhance their Facebook buy button conversion rate; while the latter can improve their performance mainly by adopting outdoor and transit advertising and digital marketing. The research contributes to the existing body of knowledge on social media marketing and international business and, by adopting a firm-level perspective, provides interesting insights for practitioners since it allows to understand how to develop an effective Facebook strategy to succeed in foreign markets.

Factors Affecting the Export Intensity of Chinese Manufacturing Firms

Manufacturing exports are deemed to be a significant driver of China’s economic growth. This article uses the World Bank’s Enterprise Survey in China to investigate the factors that significantly exert their effect on the export intensity of Chinese manufacturing firms. The maximum likelihood estimation, with the Tobit regression model, is adopted to capture the export intensity among Chinese manufacturers. This empirical evidence suggests that foreign direct investment (FDI), chief executive officer (CEO) gender, research and development (R&D), innovation and foreign, imported technologies significantly and positively influence Chinese manufacturing firms’ export intensity. In contrast, firm age and skilled labour are not significant factors in driving export intensity. Evidence-based policy implications and recommendations are also provided to enhance the export performance of Chinese manufacturing firms.

Do Productive Capabilities Affect Export Performance? Evidence from African Firms

There is limited empirical evidence measuring productive capabilities and analysing their effect on firm-level export performance in Africa. This paper constructs novel indicators of productive capabilities and examines their effects on the export performance of African firms. Using recent firm-level data from the World Bank Enterprise Survey across 29 African countries, the paper builds new indicators of productive capabilities, which are conceptualised as a combination of technological and production capabilities. Estimating a censored regression model, we find that both technological and production capabilities are important drivers of firms’ direct export performance. This suggests that superior productive capabilities enhance the efficiency and competitiveness of firms, leading to improvements in their export performance. The findings underscore the importance of policies that support the strengthening of productive capabilities in African countries.

Enabling and disenabling boundary conditions of export marketing assistance: an interdisciplinary framework

Government-sponsored export marketing assistance programmes exert positive effects on the export performance of firms. However, the literature ignores the central concepts of international business (i.e., psychic distance and network), international marketing (i.e., export market orientation) and international entrepreneurship (i.e., international entrepreneurial orientation and prior international experience) when describing the use and effectiveness of export marketing assistance and its enabling and disenabling boundary conditions. This study develops an interdisciplinary framework for export marketing assistance for early internationalising small- and medium-sized enterprises by relating these pretermitted concepts. We suggest entrepreneurs' prior international experience determines their use of export marketing assistance, while psychic distance moderates this relationship favourably and network unfavourably. Export market orientation (EMO) strengthens the export marketing assistance-export performance relationship, while international entrepreneurial orientation (IEO) weakens the relationship. Policymakers and managers can use this model in ascertaining the optimal use of export marketing assistance.

Institutional environment, competencies and firm export performance: A study of the emerging country

The study is an attempt to examine the determinants and impact of export propensity and export intensity for firm-level performance in India. The factors determining export propensity are political stability, corruption, and competition from the informal sector while the determinants of export intensity in the present study are identified as a skill of the labour force, the technological capability of a firm, and foreign ownership of technology in a firm in India. A two-stage Heckman selection model has been advanced to investigate the linkage between the export performance of Indian firms with the home institutional environment and firm competencies. Firm-level data of approximately 8,000 Indian firms are used as available from the World Bank’s Enterprise Surveys (WBES) database. The results indicate that political stability and competition effect export propensity of Indian firms while export intensity is impacted by access to technology and employing skilled labour. The study has important theoretical implications in terms of understanding the exporting behaviour of firms. It indicates that the decision of firms to export and their export performance are interlinked. It is affirmed that export intensity is dependent on firm-specific competencies while institutions indirectly influence the decision of firms to export. The policy measures of Skill India and Make in India strongly favour increased access to the skilled labour force and strengthening the domestic industry which may lead to an increase in the export intensity of Indian firms. The recent institutional measures adopted favour a stable environment of doing business as well as providing firms opportunities to focus and leverage their competencies in the best possible manner. The current nascent steps of policy reforms need to be aggressively implemented for enhanced export capabilities of Indian firms

Customer relationship management's linking to export performance: the mediating role of relational capital, in Iran

Nowadays relational capital and customer play important role in developing gaining competitive advantages, so, the purpose of this study is evaluating CRM on manufacturing firms export performance. The study is an extension of the work linking relational social capital, customer, and firm export performance. In this line we applied relational social capital as a moderating variable between CRM and customer satisfaction, orientation and participation. This research is based on structural equation modelling and the data were collected from 134 manufacturing firms in Qazvin province industrial parks and analysed by partial least square (PLS) method. Empirical results confirm that there is positive impact among CRM and customer satisfaction, orientation, participation. And these three dimensions of customer positively influence export performance. Relational capita has direct positive impact just on customer satisfaction, but the mediator role of relational capital rejected completely. The results help Iranian managers to improve their export performance by developing CRM in their international marketing.

Export performance: Evidence from agricultural product firms in Vietnam

This study defines and measures the key factors driving the export performance of agricultural product firms in Vietnam. It uses both qualitative and quantitative research: (i) the qualitative rese...

Firm capabilities and export performance of small firms: A meta-analytical review

Despite its importance, there is no clear understanding of the impact of small firms’ capabilities (networking, innovation, and marketing) on their export performance. This article attempts to address this issue with a meta-analysis of 74 recent empirical studies comprising 76 independent samples and covering more than 30 countries. We found that innovation, marketing, and networking capabilities positively influence export performance of small firms. However, the context-dependent nature of these relationships demands a more fine-grained examination. The variations in the ES of these relationships are explained by the role of external business environmental factors prevailing in the country of origin of the firm (developing/developed country and individualism/collectivism culture). We examined the divergent results provided by empirical studies using the moderator analysis. The findings of this article shed light on the role of small firms’ capabilities in enhancing export performance in different contextual settings.

Imported intermediates, technological capabilities and exports: Evidence from Brazilian firm-level data

This paper explores how internal technological capabilities influence the relationship between imported inputs and the export performance of firms. We apply threshold regression techniques to a representative dataset of Brazilian firms and find a strong positive influence of innovation skills on the relationship between imported intermediates and export revenues. Complementarities between capabilities and importing are found only for high-quality imports and are stronger for exports of products with a higher scope for quality differentiation. We also observe that technological capabilities are directly correlated with export performance, confirming the view that innovation positively influences firms’ international competitiveness. However, this relationship is not found to be significant for firms that export products with a low scope for quality differentiation. Overall, our results suggest that technological capabilities and the quality of imported inputs not only benefit firms directly but also complement each other in enhancing export competitiveness.