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Impact of Competitive Position on Export Propensity and Intensity: An Empirical Study of Manufacturing Firms in China

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  • Hung-Gay Fung
  • Gerald Yong Gao
  • Jingyong Lu
  • Haim Mano

Abstract

Competitive industry position has an impact on firms' export propensity and intensity. The resource-based view and the structure-conduct-performance paradigm of firm behavior are used to investigate whether firms with a competitive industry position through cost leadership or differentiation strategy have different export behaviors. Longitudinal data for 213,662 manufacturing firms in China from 1998 to 2005 show that firms that have competitive advantages in the domestic market are more likely to export and have higher levels of export intensity. Indigenous and foreign manufacturing firms exhibit different patterns of export behavior. Foreign firms with differentiation advantages focus on local market expansion instead of seeking opportunity in export markets.

Suggested Citation

  • Hung-Gay Fung & Gerald Yong Gao & Jingyong Lu & Haim Mano, 2008. "Impact of Competitive Position on Export Propensity and Intensity: An Empirical Study of Manufacturing Firms in China," Chinese Economy, Taylor & Francis Journals, vol. 41(5), pages 51-67, September.
    • Handle: RePEc:mes:chinec:v:41:y:2008:i:5:p:51-67
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    Cited by:

    1. Xueru Yang & Jun Li & Laura J. Stanley & Franz W. Kellermanns & Xinchun Li, 2020. "How family firm characteristics affect internationalization of Chinese family SMEs," Asia Pacific Journal of Management, Springer, vol. 37(2), pages 417-448, June.
    2. Dahai Fu & Yanrui Wu, 2013. "Export Survival Pattern and Determinants of Chinese Manufacturing Firms," Economics Discussion / Working Papers 13-18, The University of Western Australia, Department of Economics.
    3. Keshari, Pradeep Kumar, 2013. "Comparative performance of foreign affiliates and domestic firms in the Indian machinery industry," MPRA Paper 33076, University Library of Munich, Germany, revised 20 Apr 2013.
    4. Pradeep Kumar Keshari, 2016. "Spillovers from FDI and Decision to Export by the Domestic Firms: The case of select Indian industries," Working Papers id:11382, eSocialSciences.
    5. Dahai Fu & Yanrui Wu, 2014. "Export survival pattern and its determinants: an empirical study of Chinese manufacturing firms," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 28(1), pages 161-177, May.
    6. Güzin Bayar, 2018. "Estimating export equations: a survey of the literature," Empirical Economics, Springer, vol. 54(2), pages 629-672, March.
    7. Joana Reis & Rosa Forte, 2016. "The impact of industry characteristics on firms’ export intensity," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 19(3), pages 266-281, September.
    8. Keshari, Pradeep Kumar, 2012. "FDI and firm level export competitiveness in the Indian machinery industry," MPRA Paper 47069, University Library of Munich, Germany.

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