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Sources of export success in small- and medium-sized enterprises: the impact of public programs

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  • Alvarez, Roberto

Abstract

This paper analyzes differences in firm exporter performance for small- and medium-sized enterprises (SMEs). Traditionally, it is argued that these firms face several disadvantages for competing in international markets. Few studies, however, exploit the fact that successful exporters exist within this group. Using data for Chilean firms, we study various explanations for differences between sporadic and permanent exporters. Our results suggest that greater effort in international business, process innovation, and the utilization of export promotion programs contribute positively to export performance in SMEs. In addition, we find that some forms of intervention are better than others: trade shows and trade missions do not affect the probability of exporting permanently, but exporter committees show a positive and significant impact.

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Bibliographic Info

Article provided by Elsevier in its journal International Business Review.

Volume (Year): 13 (2004)
Issue (Month): 3 (June)
Pages: 383-400

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Handle: RePEc:eee:iburev:v:13:y:2004:i:3:p:383-400

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Related research

Keywords: Export performance Export promotion Small- and medium-sized enterprises;

References

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  1. Seev Hirsch & Ilan Bijaoui, 1985. "R&D intensity and export performance: A micro view," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 121(2), pages 238-251, June.
  2. Andrew B. Bernard & J. Bradford Jensen, 1997. "Exceptional Exporter Performance: Cause, Effect, or Both?," NBER Working Papers 6272, National Bureau of Economic Research, Inc.
  3. Basile, Roberto, 2001. "Export behaviour of Italian manufacturing firms over the nineties: the role of innovation," Research Policy, Elsevier, vol. 30(8), pages 1185-1201, October.
  4. Roberto Álvarez E. & Gustavo Crespi T., 2000. "Exporter performance and promotion instruments: Chilean empirical evidence," Estudios de Economia, University of Chile, Department of Economics, vol. 27(2 Year 20), pages 225-241, December.
  5. Sofronis K. Clerides & Saul Lach & James R. Tybout, 1998. "Is Learning By Exporting Important? Micro-Dynamic Evidence From Colombia, Mexico, And Morocco," The Quarterly Journal of Economics, MIT Press, vol. 113(3), pages 903-947, August.
  6. Roberts, Mark J & Tybout, James R, 1997. "The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs," American Economic Review, American Economic Association, vol. 87(4), pages 545-64, September.
  7. Joshua Angrist & Alan Krueger, 1998. "Empirical Strategies in Labor Economics," Working papers 98-7, Massachusetts Institute of Technology (MIT), Department of Economics.
  8. Cavusgil, S. Tamer & Naor, Jacob, 1987. "Firm and management characteristics as discriminators of export marketing activity," Journal of Business Research, Elsevier, vol. 15(3), pages 221-235, June.
  9. Kumcu, Erdogan & Harcar, Talha & Kumcu, M. Ercan, 1995. "Managerial perceptions of the adequacy of export incentive programs : Implications for export-led economic development policy," Journal of Business Research, Elsevier, vol. 32(2), pages 163-174, February.
  10. Wakelin, Katharine, 1998. "Innovation and export behaviour at the firm level," Research Policy, Elsevier, vol. 26(7-8), pages 829-841, April.
  11. Arslan, Ismail & van Wijnbergen, Sweder, 1993. "Export Incentives, Exchange Rate Policy and Export Growth in Turkey," The Review of Economics and Statistics, MIT Press, vol. 75(1), pages 128-33, February.
  12. Roper, Stephen & Love, James H., 2002. "Innovation and export performance: evidence from the UK and German manufacturing plants," Research Policy, Elsevier, vol. 31(7), pages 1087-1102, September.
  13. Wilkinson, Timothy J. & Brouthers, Lance Eliot, 2000. "An Evaluation of State Sponsored Promotion Programs," Journal of Business Research, Elsevier, vol. 47(3), pages 229-236, March.
  14. Low, Patrick, 1982. "Export subsidies and trade policy: The experience of Kenya," World Development, Elsevier, vol. 10(4), pages 293-304, April.
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Citations

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Cited by:
  1. Lederman, Daniel & Olarreaga, Marcelo & Payton, Lucy, 2006. "Export Promotion Agencies: What Works and What Doesn't," CEPR Discussion Papers 5810, C.E.P.R. Discussion Papers.
  2. Walkenhorst, Peter, 2008. "Policies to strengthen trade competitiveness in Tunisia," MPRA Paper 24130, University Library of Munich, Germany.
  3. Lejour, Arjan & Rojas Romasgosa, Hugo & Rodriguez, Victor & Montalvo, Carvos & Van der Zee, Frans, 2009. "Trade costs, Openness and Productivity: Market Access at Home and Abroad," MPRA Paper 21214, University Library of Munich, Germany.
  4. Kiss, Andreea N. & Danis, Wade M. & Cavusgil, S. Tamer, 2012. "International entrepreneurship research in emerging economies: A critical review and research agenda," Journal of Business Venturing, Elsevier, vol. 27(2), pages 266-290.
  5. Singh, Deeksha A., 2009. "Export performance of emerging market firms," International Business Review, Elsevier, vol. 18(4), pages 321-330, August.
  6. World Bank, 2009. "Strengthening Bolivian Competitiveness : Export Diversification and Inclusive Growth," World Bank Publications, The World Bank, number 2656, October.
  7. Parhizkar, Omid & Miller, Chad R. & Smith, Robert L., 2010. "Private sector development implications of the export performance determinants of U.S. small-medium forest enterprises to Mexico, Europe, and Asia," Forest Policy and Economics, Elsevier, vol. 12(5), pages 387-396, June.
  8. Moons, S.J.V. & van Bergeijk, P.A.G., 2013. "A meta-analysis of economic diplomacy and its effect on international economic flows," ISS Working Papers - General Series 50074, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
  9. Wilkinson, Timothy & Brouthers, Lance Eliot, 2006. "Trade promotion and SME export performance," International Business Review, Elsevier, vol. 15(3), pages 233-252, June.
  10. Gianmarco I.P. Ottaviano & Christian Volpe Martincus, 2009. "SMEs in Argentina: Who are the Exporters?," KITeS Working Papers 024, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Jun 2009.
  11. Rodrigo Wagner & Andrés Zahler, 2011. "New Exports from Emerging Markets:Do Followers Beneit from Pioneers ?," Working Papers 18, Facultad de Economía y Empresa, Universidad Diego Portales.
  12. Kichun Kang, 2012. "What Matters For The Extensive And Intensive Margins Of International Trade? Evidence From Korean Exports," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 57(03), pages 1250018-1-1.
  13. Mickey Folkeringa & Andre van Stel & Joris Meijaard, 2005. "Innovation, strategic renewal and its effect on small firm performance," Papers on Entrepreneurship, Growth and Public Policy 2005-36, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  14. Jolanda Hessels, 2008. "Overcoming Resource-Constraints through Internationalization? An Empirical Analysis of European SMEs," Scales Research Reports H200806, EIM Business and Policy Research.
  15. Prashantham, Shameen & McNaughton, Rod B., 2006. "Facilitation of links between multinational subsidiaries and SMEs: The Scottish Technology and Collaboration (STAC) initiative," International Business Review, Elsevier, vol. 15(5), pages 447-462, October.

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