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Empirical approach to the sequential relationships between firm strategy, export activity, and performance in U.S. manufacturing firms

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  • Lee, Jooh
  • Habte-Giorgis, Berhe

Abstract

This paper empirically examines the sequential relationships between the firm's strategic factors, export actvity, and performance in US manufacturing firms. The main question addressed in this paper relates to how the firm's key strategic factors such as diversification in product and market, firm size, R&D intensity, and capital intensity influence export activity, and further how the export activity is finally linked to the firm's economic performance with respect to diverse dimensions of performance. The results in a sequential model show that (1) product diversification, R&D intensity, and firm size significantly affect the firm's export activity, (2) export intensity, stemming from the company's key strategic components of business activity, was positively and uniformly related to all aspects of the firm's economic performance, and (3) export activity moderates the relationships between organization's strategic factors and firm performance. Although market diversification does not directly affect exporting, it does, however, sequentially influence firm performance with respect to market-based performance. This study contributes to a new strategic implication of export activity and performance linkage in business and economic research.

Suggested Citation

  • Lee, Jooh & Habte-Giorgis, Berhe, 2004. "Empirical approach to the sequential relationships between firm strategy, export activity, and performance in U.S. manufacturing firms," International Business Review, Elsevier, vol. 13(1), pages 101-129, February.
  • Handle: RePEc:eee:iburev:v:13:y:2004:i:1:p:101-129
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    References listed on IDEAS

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    Cited by:

    1. Singh, Deeksha A., 2009. "Export performance of emerging market firms," International Business Review, Elsevier, vol. 18(4), pages 321-330, August.
    2. Seyed Hossein Jalali, 2012. "Export Barriers and Export Performance: Empirical Evidence from the Commercial Relationship between Greece and Iran," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 10(1), pages 53-66.
    3. Lee, Jooh & Kwon, He-Boong, 2017. "Progressive performance modeling for the strategic determinants of market value in the high-tech oriented SMEs," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 91-102.
    4. Pablo A. Garcia‐Fuentes & Gustavo F. C. Ferreira & P. Lynn Kennedy, 2013. "Economic Performance of U.S. Multinational Agribusinesses: Foreign Direct Investment and Firm Strategy," Agribusiness, John Wiley & Sons, Ltd., vol. 29(2), pages 242-255, March.
    5. Fernández-Olmos, Marta & Díez-Vial, Isabel, 2013. "Effect of firm’s resources on international diversification: An application in the Iberian Ham industry," European Management Journal, Elsevier, vol. 31(2), pages 196-208.
    6. Pablo A. Garcia-Fuentes & Gustavo F. C. Ferreira & P. Lynn Kennedy & Felipe Perez, 2017. "Economic Performance of U.S. Multinational Manufacturing Firms: The Linkages between Foreign Direct Investment and Firm Strategy," International Business Research, Canadian Center of Science and Education, vol. 10(1), pages 240-252, January.
    7. Veland Ramadani & Hyrije Abazi-Alili & Léo-Paul Dana & Gadaf Rexhepi & Sadudin Ibraimi, 2017. "The impact of knowledge spillovers and innovation on firm-performance: findings from the Balkans countries," International Entrepreneurship and Management Journal, Springer, vol. 13(1), pages 299-325, March.
    8. Rugman, Alan M. & Oh, Chang Hoon, 2010. "Does the regional nature of multinationals affect the multinationality and performance relationship?," International Business Review, Elsevier, vol. 19(5), pages 479-488, October.
    9. Rosenbusch, Nina & Brinckmann, Jan & Bausch, Andreas, 2011. "Is innovation always beneficial? A meta-analysis of the relationship between innovation and performance in SMEs," Journal of Business Venturing, Elsevier, vol. 26(4), pages 441-457, July.
    10. Love, James H. & Mansury, Mica Ariana, 2009. "Exporting and productivity in business services: Evidence from the United States," International Business Review, Elsevier, vol. 18(6), pages 630-642, December.

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