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Exporting quality: is it the right strategy for the Italian manufacturing sector?

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Author Info
Imbriani, Cesare
Morone, Piergiuseppe
Testa, Giuseppina

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Abstract

ABSTRACT: Recently, most European manufacturing firms have been engaged in a number of innovative activities to survive the growing competition coming from newly-industrialising countries. Italian manufacturing industry, which relies largely on SMEs, is struggling to regain competitiveness in global markets. In light of these stylised facts, we first investigate whether innovating activities and quality goods’ production enhance Italian SMEs’ probability to be exporter. Our findings suggest that both products’ quality and innovative activities affect considerably SMEs’ likelihood to export. Subsequently, using the Chow test, we find evidence for a structural break produced by quality, which results in substantial differences between high and low-quality firms. The former are more likely to export if they introduce product innovation, marketing innovation and/or organisational changes, the latter increase their chances of exporting when introducing process innovations and organisational changes.

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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 13327.

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Date of creation: 19 Dec 2008
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Handle: RePEc:pra:mprapa:13327

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Related research
Keywords: SMEs; exports; innovative activities; quality; probit;

Find related papers by JEL classification:
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models
L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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References listed on IDEAS
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    Other versions:
  8. Glejser, Herbert & Jacquemin, Alexis & Petit, Jean, 1980. "Exports in an Imperfect Competition Framework: An Analysis of 1,446 Exporters," The Quarterly Journal of Economics, MIT Press, vol. 94(3), pages 507-24, May. [Downloadable!] (restricted)
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    Other versions:
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