Export Performance Research Articles

Firm-specific and institutional factors as export performance catalysts: Insights from a developing economy

Firm-specific and institutional factors as export performance catalysts: Insights from a developing economy

Export Performance of CPO and RPO: A Comparative Study between Indonesia and Malaysia

This study was conducted with the aim of analysing the comparison of export performance of CPO and RPO commodities between Indonesia and Malaysia as the main exporting countries of CPO and RPO commodities. The assessment of export performance was carried out using 4 measurement indicators, namely Market Concentration with HHI, export commodity competitiveness with RCA, export commodity position with TSR and export changes using CMS. The research period is time series data 2010-2022. The research findings show 1) Market Concentration for CPO and RPO commodities is still concentrated in 2 main exporting countries, namely Indonesia and Malaysia with a higher concentration level of RPO commodities than CPO; 2) The competitiveness of Indonesian and Malaysian CPO and RPO export commodities is very strong because it has an RCA value far above 1 where for CPO commodities Malaysia's competitiveness performance is better than Indonesia and vice versa for RPO commodities, Indonesia's competitiveness performance is better: 3) The position of CPO and RPO in world trade for both Indonesia and Malaysia is already in the maturation stage where Indonesia's performance for both CPO and RPO is better than Malaysia because it has a greater TSR value; 5) CMS performance for CPO and RPO commodities for both Indonesia and Malaysia is still inconsistent, namely ups and downs as a result of the effects of world growth and the effects of competitiveness which also includes six supporting elements namely stakeholder engagement, governance and leadership, sustainability outlook, social strategy, social strategy, environmental strategy and economic strategy.

Performance and trade competitiveness of Indian spices: A Markov Chain Approach

A study was conducted to examine the growth performance and pattern of spice crop export destinations in India. The growth rate, balance of trade and transitional probability matrix were applied to analyse the study by utilizing the past ten years’ data (2013-2022) collected from various national and international sources. The top five exported spices were selected based on their export values in 2021. The findings showed that India secured a huge surplus of ?2118426 lakhs in 2022 with the growth performance of exports (11.66 per cent) and imports (17.65 per cent) in the last ten years. Sri Lanka was the most stable country, with the highest retention capacity (86.12 per cent) for importing pepper. In contrast, China imported cumin and oleoresins (spice oil) with 86.32 and 47.04 per cent, respectively, and Germany imported mint (38.71 per cent) and Bangladesh for turmeric (74.87 per cent) from India. The study recommends that India should formulate a policy with the aim to create favourable trade relations with targeted countries, which would be a fruitful effort for earning foreign exchanges for the nation. Keywords: Export, import, Markov chain, spices, transitional probability matrix. JEL Codes: R11, P45, Q13, Q17.

COMPETITIVENESS OF SOUTH AFRICAN ORANGES IN ASIAN STRATEGIC MARKETS: THE CASE OF MAIN COMPETITORS

This study employed various descriptive, conceptual, and empirical models to measure South Africa’s competitiveness in the Asian strategic markets concerning its competitors from 2003 to 2022. The competitiveness measurements included relative comparative advantage, the net export index, relative trade advantage, and constant market share analysis. The data were sourced from official databases such as the World Bank, FAO, ITC, export potential map, and World Integrated Trade Solutions (WITS). The South African competitiveness of oranges in the specified strategic markets realized a positive competitive effect of 2.46%, indicating a gain in the market due to increased competitiveness of the fresh food sector in the world market. The RCA values were above 1, with most of the values closer to 20 indicating that South Africa has a good comparative advantage in the production of oranges. Egypt and Greece were the competitors, with average values of 16.9 and 19.7, respectively. The South African orange industry has positive export performance, with values close to 100, which indicates that the country is a net exporter of oranges and is experiencing a sustained comparative advantage. The RTA index values were mostly positive.

How and when does digitalization influence export performance? A meta-analysis of its consequences and contingencies

PurposeThis study aims to clarify the direct impact of digitalization on export performance (EP) by synthesizing previous research and testing this relationship empirically. Furthermore, the study investigates digitalization types, contextual moderators and method moderators affecting the impact of digitalization on EP.Design/methodology/approachThe study uses meta-analysis to test the digitalization–EP relationship (k = 81) using data from 106 independent samples involving 62,082 respondents across nearly 30 countries.FindingsThe study finds digitalization’s positive and significant effect on EP (r = 0.36). The impact of digitalization on EP is also subject to different moderators, including digitalization type (i.e. digital capabilities), contextual factors (i.e. institutions, export experience, development of the region and industry) and method factors (i.e. back translation and strategy measurement).Originality/valueScholars have initiated studies on the impacts of diverse digitalization types on EP, while empirical findings on these effects remain inconclusive. Based on resource-based theory, the study develops and validates a comprehensive meta-analytic framework, revealing the important influence of digitalization on EP. The moderator findings further highlight the impact of internal and external contingencies on the outcomes of exporting firms’ digitalization.

The Impact of Strategic Orientations on the Born Globals’ Export Performance: An Ambidexterity Approach

According to international entrepreneurship scholars, the success of Born Globals (BGs) depends on their capacity to develop an organizational ambidexterity perspective, i.e. a dual function of simultaneous knowledge exploration and exploitation. In this respect, it has been pointed out that ambidexterity can be associated with the ability to balance the development of different strategic orientations (SOs), namely, entrepreneurial orientation (EO), market orientation (MO), and learning orientation (LO). While several authors have investigated the impact of MO, EO and LO on BGs’ performance, the results of such research are often inconsistent. Based on the resource orchestration view, we assume that the combined – rather than the single – contribution of resources and capabilities provided by EO, MO, and LO, ultimately result in a superior export performance. Such an indicator is typically adopted to evaluate international performance, especially for micro and small companies. More specifically, the study aims to verify the significance of dyadic (namely, MO*EO, EO*LO, and MO*LO) and triadic (MO*EO* LO) interactions of the SO typologies on BGs’ export performance. Moreover, the paper aspires to verify if some of these interactions are more relevant than others. We test our hypotheses on a sample of 100 Italian hi-tech BGs located inside a technological cluster near Rome through a longitudinal analysis. Our findings show that all the investigated interactions positively and significantly impact on the BGs’ export performances, independently of the adopted measurement variable. However, a certain type of hierarchy emerges among the different impacts of the investigated interactions among the three SO typologies.

Vai trò của vốn nhân lực trong hoạt động xuất khẩu của doanh nghiệp: Bằng chứng từ khu vực ASEAN

This study focuses on the impact of human capital, specifically employee education level and employee training, on enterprise export activities in the context of the ASEAN region. The study used World Bank Enterprise Survey data in 2015 and 2016 with 3,335 businesses from Indonesia, Malaysia, Philippines, Vietnam, Laos, Cambodia, and Thailand. The study uses the multilevel mixed-effects logit model to solve the hierarchical data structure (multilevel) of the data set used in the study. Research results show that employee education level and employee training both have a positive impact on the export performance of businesses in the ASEAN region. From the above results, the study provides a perspective for businesses on how to improve efficiency in export activities in international markets through enhancing the human capital of the workforce.

Transition in production and export potential of garlic in India

The present study analyzed the performance of production and export of Indian garlic based on secondary data collected from different governments departmental repositories and websites. Statistical techniques like mean, standard deviation, regression and CAGR was applied for analysis. Garlic held quantity share (29.68 %) of aggregate production of Indian spices. But in export front the share of quantity and value share of garlic estimated only 2.30 % and 1.21 % respectively of total spices export from the country. India ranked 2nd after China possessing 5.85% share of global production and growing with 9.93 % CAGR over last 15 years (2006-2020) which was 3.5 times higher than China. The major destinations for garlic export from India are Malaysia, Thailand, USA, Vietnam (South) and Nepal altogether constituted around 41 % value of average annual export. But out of these countries, negative trend in export was found in three countries makes India searching for new clients. The lower growth rate (CAGR) of productivity (1.91 %) of garlic compared to acreage (5.46 %) over three decades (1990-91 to 2020-21) harnesses for technological breakthrough. Two producing states of India viz., Madhya Pradesh and Rajasthan account around 78.34 % of national production. But in terms of productivity, Punjab (11.39 t/ha), Haryana (10.67 t/ha) and Madhya Pradesh (10.31 t/ha) led the country. Enhancement of productivity through technological development and adequate market infrastructures along with improvement in post harvest management of the crop particularly processing might be given importance to increase production and export potential of garlic.

How does business credit environment affect exports performance of small and medium-sized enterprises: Evidence in China

This paper uses matched data from the CSMAR database and the China City Statistical Yearbook through a fixed effects model to examine the impact of business credit environment on small and medium-sized enterprises (SMEs) exports at the city level in China. Considering the possible endogenous problems, this paper chooses the number of scholars in Ming and Qing dynasties as the instrumental variable of urban commercial credit environment. The empirical results show that: Firstly, the improvement of urban business credit environment has a significant contribution to the export growth of enterprises; Secondly, the mechanism of the role of urban business credit environment on SMEs exports is mainly expressed through promoting R&D investment and enhancing market dynamics; Thirdly, the business credit environment is more obvious to state-owned enterprises, eastern regions and cities with less trade freedom. With the development of urban business credit environment, individuals or companies join the competition in the industry through new start-ups to stimulate corporate exports, and existing SMEs promote corporate exports through local preferential policies, increased investment in R&D, and optimized innovation policies as well as resource allocation.

Can friend-shoring policies improve export resilience? A study based on the Belt and Road initiative

This paper investigates the role of the Belt and Road Initiative (BRI) in enhancing the export resilience of countries along its route. It calculates the export resilience for 145 products in 130 countries from 1990 to 2018, using the Economic Vulnerability Index released by the Committee for Development Policy of the United Nations. Employing a Difference-in-Differences analysis, the BRI’ impact on the export resilience of each product by country is examined. The findings reveal a significant positive effect of the BRI on the export resilience of countries along its route, indicating an improvement in their export performance and risk resistance. It has been proven that regional economic integration promotes the security and stability of industrial chains. This conclusion helps countries effectively respond to the rising risks of external shocks in the rapidly changing global economic landscape and expands current academic exploration on resilience. The results also show that the BRI's impact has a three-year lag, consistent with its gradual implementation characteristics and demonstrating its effectiveness. The heterogeneity analysis reveals a greater impact on low-income countries, highlighting the need for those countries to enhance regional economic cooperation. This paper also points out the necessity for China's less developed border regions to increase openness and strengthen international connections.

Why do Indian exporting firms borrow in foreign currency?

Purpose Since the liberalization policy of 1991, India has focused on export-led growth. However, the performance of international trade remains poor. This study aims to examine the role of credit constraints on the choice of Indian manufacturing firms to borrow in foreign currency. First, it explores the role of export activities in foreign currency borrowing (FCB). Second, it investigates how credit constraints forced these firms for foreign currency loans. Design/methodology/approach The study analysed data from 1,412 firms listed on the Bombay Stock Exchange in the manufacturing sector, covering the period from 1991 to 2022. A random effects probit model was used to examine the role of credit constraints on FCB, incorporating the influence of micro, small and medium enterprises (MSMEs) status and export activities. Additionally, a two-step system-generalized method of moment was used for robustness checks. Findings Export activities significantly influence FCB, with exporting firms showing a higher propensity to borrow foreign currency compared to domestically operating firms because of the increased funding needs of export activities. Larger firms are more likely to secure FCB than MSMEs, benefiting from collateral advantages. MSME exporting firms exhibit a higher tendency to borrow in foreign currency compared to large exporting firms. Research limitations/implications This study focuses on firm-level data and considers only demand-side credit constraints. It does not examine supply-side credit constraints affecting FCB. Social implications This study underscores the credit constraints faced by MSME exporters in the domestic market, leading them to rely on FCB. These insights are valuable for policymakers aiming to reduce MSMEs' dependency on FCB and enhance their export performance. Originality/value The findings highlight that MSME exporting firms are more inclined to borrow in foreign currency than their larger counterparts. This tendency is driven by the credit constraints MSMEs face because of asymmetric information and underdeveloped financial markets, which compel them to seek FCB.

Domestic Demand and Export Performance in CEMAC: An Assessment with Endogeneity-related Model

Based on several alternative approaches there is by now some evidence suggesting that there is a negative relationship between exports and domestic sales. But in the majority of cases this regularity has focused on industrialized countries. While the external trade of African countries faces numerous challenges, with the low level of intra regional trade and the concentration of exports in some raw materials. Thus the aim of this paper to assess this new export channel for African countries. We then estimate a dynamic panel model with an error correction mechanism of the export market share (the difference between exports and foreign demand) for the six economies of the CEMAC zone between 1974 and 2021. Through the use of instrumental variables (2SLS) we address the role of endogeneity. According to the results, such link is prominent for African countries such the CEMAC countries where domestic demand impacts effectively negatively exports in CEMAC with a negative elasticity of around 53 %. When allowing for an asymmetric relationship between domestic sales and exports the results remain unchanged suggesting that a significant relationship between domestic demand and exports performance still holds.

Marketing exploitation and exploration in export companies: The moderating effect of organisational formalisation

Purpose: This study investigated the roles of marketing exploitation and exploration as strategies in export companies and examines how the organisational formalisation influences their impacts on export performance.Design/methodology/approach: To test the hypotheses, the study conducted surveys on 150 large export companies in China. A regression analysis, including interaction terms to both, has been conducted to test the main effect, the impact of marketing exploitation and marketing exploration on export performance and the moderation effect of organisational formalisation.Findings/results: Empirically, results show that marketing exploitation and marketing exploration are positively related to export performance, which indicate the importance of both marketing strategies in the global market. Further, the effects of marketing exploitation and exploration are contingent on organisational formalisation. Specifically, the results reveal that organisational formalisation has an inverted U-shaped moderation effect on the relationship between marketing exploitation and export performance but a U-shaped moderation effect on the relationship between marketing exploration and export performance.Practical implications: This study provides valuable implications for the exporters on how to enhance performance. In terms of strategy planning, both marketing exploitation and exploration strategies are vital to the export performance. Moreover, managers should align their exploitation-exploration strategies with formalisation.Originality/value: This study contributes to the marketing ambidexterity theory and international marketing strategy related theory by illustrating the vital role of organisational formalisation in shaping the efficacy of exploitative and explorative strategies in the export market.

Impact and mechanism analysis of industrial robot imports on export performance of Chinese firms

Digital import trade is of great practical significance for enhancing the export performance of enterprises and preventing external shocks. This paper empirically examines the impact and mechanism of industrial robot imports on Chinese firms’ export performance based on Chinese microenterprise data from 2004 to 2014. The study shows that the application of imported robots can significantly improve firms’ export performance, and this conclusion still holds after a series of robustness tests. Heterogeneity analysis shows that imported robots have a more significant role in boosting the export performance of state-owned enterprises and enterprises in capital- and technology-intensive industries; at the same time, they have a significant effect on the export performance of enterprises in different modes of trade; and they have a significant role in boosting the export performance of enterprises in eastern China compared with those in central and western regions. Mechanism analysis shows that the enhancement of export performance of enterprises by imported robots is mainly realized by promoting enterprise productivity and human capital efficiency. The policy implication of this paper is that in the era of digital trade, Chinese enterprises should fully utilize the import of digital products to enhance their productivity and promote the high-quality development of foreign trade.

How to successfully adapt distribution strategy in exporting? The moderating effects of commitment and responsiveness

PurposeDrawing on the resource-based view, this study examines the effect of distribution adaptation on export performance. The study also examines the moderating role of responsiveness and commitment. Two distinct factors for commitment (i.e. managerial export commitment and financial export commitment) and two distinct factors for responsiveness (i.e. export customer responsiveness and export competitor responsiveness) are considered as moderators in the relationship between distribution adaptation and export performance.Design/methodology/approachUsing a Spanish governmental database of exporting firms, this study collected data from 208 firms to run the analysis.FindingsThe results indicate that distribution adaptation has a positive impact on export performance. Findings also support the moderating roles of the two types of commitment and the two types of responsiveness. Managerial export commitment positively moderates the relationship, whereas financial export commitment plays a negative moderating role. Both export customer responsiveness and export competitor responsiveness have a positive moderating impact.Originality/valueTo consider distribution adaptation as a distinct variable rather than mixing it with other elements of the marketing mix. This distinction facilitates a clearer comprehension of its unique contribution to export performance. Two distinct factors for commitment and two distinct factors for responsiveness are considered. This approach offers a more detailed analysis of how the different aspects of commitment and responsiveness moderate this relationship.

Bibliometric Exploration of the Role of Cultural Adaptation in Global Marketing Success

This study presents a comprehensive bibliometric analysis of cultural adaptation in global marketing, highlighting key thematic clusters, research trends, potential research topics, and patterns in author collaboration. The analysis identifies significant focus areas, including cultural adaptation, marketing strategy, local adaptation, performance outcomes, and intervention and translation. The research trends reveal a shift from foundational studies on consumer behavior and standardization towards more practical investigations into the implementation and impact of cultural adaptation strategies. Potential research topics are proposed, such as consumer-centric adaptation, balancing standardization and adaptation, organizational capabilities for adaptation, the impact of cross-cultural training, export performance, and the integration of digital and social media. The author collaboration network shows distinct clusters with limited cross-collaboration, suggesting opportunities for more interdisciplinary research. This study provides a detailed overview of the current research landscape and highlights areas for future investigation to enhance the understanding and practice of cultural adaptation in global marketing.

Kinerja Ekspor Produk Teh Indonesia di Pasar Internasional: Asesmen Perjanjian Perdagangan Indonesia

The decline in Indonesian tea products export performance does not correspond to the Government initiatives to reduce barriers through trade agreements. This research aims to analyse the export performance and the role of trade agreements towards Indonesian tea products export. This study employs panel data regression with a 15-year time series (2007-2021) and a cross-section of 40 destination countries. The data are analysed using a modified export approach gravity model with Poisson Pseudo-Maximum Likelihood (PPML) estimation. The research results show that the Indonesian tea products export destinations are dominated by Asia (19 countries) and Europe (12 countries). The regression results suggest that the implementation of trade agreements with Asian and European region countries has not effectively increased Indonesian tea products export. On the other hand, the implementation of trade agreements with other region countries, i.e., Australia and New Zealand, has successfully promoted export towards Indonesian tea products. Those can be attributed to trade agreements underutilization and trade barriers imposed by the trade agreement members. Hence, inward and outward-looking strategies are necessary to promote the export creation effect of implemented trade agreements towards Indonesian tea product exports.

Analysis of Determinants: Indonesian Case

Exports directly impact national income, which will also have implications for increasing levels of productivity, innovation, and technology transfer. The urgency of exports from an open economic perspective is to increase the capacity for economic growth. Unfortunately, various factors often hinder export performance, disrupting the potential benefits. The main objective of this study is to analyze the impact of macroeconomic variables, namely the exchange rate, foreign direct investment (FDI), Gross Domestic Product (GDP) per capita, and inflation on Indonesian exports in the period 1970-2022. This research uses time series data with the Autoregressive Distributed Lag-Error Correction Model (ARDL-ECM) method. The findings of the analysis show that the exchange rate, FDI, GDP per capita, and inflation have a positive and significant effect on exports in the long term. Therefore, if the Indonesian government wants to maintain its trade balance, it is recommended to keep a floating and controlled exchange rate policy and coordinate pro-export-oriented investment policies.

Determinan Nilai Ekspor Jasa Transportasi di Negara-Negara ASEAN

Transportation services are the most significant contributor to the deficit in the Association of Southeast Asian Nations (ASEAN) services trade. From 2016 to 2019, eight out of ten countries in the ASEAN still experienced a trade deficit in transportation services. So that this condition does not drag on in a continuous deficit, one of the policies that each country can carry out is to increase the export performance of transportation services. This study aims to determine the factors that affect the export of transportation services in ASEAN. The secondary data used is trade flow data from 2012 to 2019 from the ASEAN Secretariat and World Bank. The method used is panel data regression with the Random Effect Model (REM). The result found that foreign direct investment, exports of goods, and value-added services significantly affect exports of transportation services in ASEAN. Meanwhile, internet users and exchange rates do not substantially affect exports of transportation services in ASEAN. The results of this study recommend continuing to improve the climate for ease of investment. In addition, it is essential to utilize resources that can increase the production of transportation services and maintain the availability of raw materials and capital goods.

Assessing trade supply chain vulnerability and trade participation of SMEs in India: insights from a comprehensive analysis

PurposeThis study presents the impact of Economic Policy Uncertainty (EPU)-induced Trade Supply Chain Vulnerability (TSCV) on the Small and Medium-Sized Enterprises (SMEs) in India by leveraging the World Bank Enterprise Survey data for 2014 and 2022. Applying econometric techniques, it examines firm size’ influence on productivity and trade participation, providing insights for enhancing SME resilience and trade participation amid uncertainty.Design/methodology/approachThe econometric techniques focus on export participation, along with variables such as total exports, firm size, productivity, and capital intensity. It addresses crucial factors such as the direct import of intermediate goods and foreign ownership. Utilizing the Cobb-Douglas production function, the study estimates Total Factor Productivity, mitigating endogeneity and multicollinearity through a two-stage process. Besides, the study uses a case study of North Indian SMEs engaged in manufacturing activities and their adoption of mitigation strategies to combat unprecedented EPU.FindingsResults reveal that EPU-induced TSCV reduces exports, impacting employment and firm size. Increased productivity, driven by technological adoption, correlates with improved export performance. The study highlights the negative impact of TSCV on trade participation, particularly for smaller Indian firms. Moreover, SMEs implement cost-based, supplier-based, and inventory-based strategies more than technology-based and risk-based strategies.Practical implicationsPolicy recommendations include promoting increased imports and inward foreign direct investment to enhance small firms’ trade integration during economic uncertainty. Tailored support for smaller firms, considering their limited capacity, is crucial. Encouraging small firms to engage in international trade and adopting diverse SC mitigation strategies associated with policy uncertainty are vital considerations.Originality/valueThis study explores the impact of EPU-induced TSCV on Indian SMEs’ trade dynamics, offering nuanced insights for policymakers to enhance SME resilience amid uncertainty. The econometric analysis unveils patterns in export behavior, productivity, and factors influencing trade participation during economic uncertainty.