IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v69y2016i8p2911-2922.html
   My bibliography  Save this article

Domestic institutional attributes as drivers of export performance in an emerging and transition economy

Author

Listed:
  • Ngo, Vi Dung
  • Janssen, Frank
  • Leonidou, Leonidas C.
  • Christodoulides, Paul

Abstract

As the importance of firms from emerging and transition economies (ETEs) increases in the global marketplace, there is a growing interest in their exporting practices. In this study, we provide a conceptual model anchored on the institution-based view (IBV) that reveals the impact of various domestic institutional attributes (i.e., specificity, stability, predictability, and enforceability) on the firm's export performance. We empirically test this model using SEM analysis with data collected from a sample of 109 Vietnamese exporters. Our results show that all four institutional attributes positively influence export performance. This link between domestic institutional attributes and export performance becomes stronger in the case of exporters characterized by larger size, more experience, foreign market concentration, and direct exporting methods. The exporter's location had a control effect on each of the four institutional attributes, while the principal foreign market and the type of product exported had an effect on export performance.

Suggested Citation

  • Ngo, Vi Dung & Janssen, Frank & Leonidou, Leonidas C. & Christodoulides, Paul, 2016. "Domestic institutional attributes as drivers of export performance in an emerging and transition economy," Journal of Business Research, Elsevier, vol. 69(8), pages 2911-2922.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:8:p:2911-2922
    DOI: 10.1016/j.jbusres.2015.12.060
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296315007018
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2015.12.060?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Nguyen, Thang V. & Rose, Jerman, 2009. "Building trust--Evidence from Vietnamese entrepreneurs," Journal of Business Venturing, Elsevier, vol. 24(2), pages 165-182, March.
    2. Gerald Yong Gao & Janet Y Murray & Masaaki Kotabe & Jiangyong Lu, 2010. "A “strategy tripod” perspective on export behaviors: Evidence from domestic and foreign firms based in an emerging economy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(6), pages 1090-1091, August.
    3. Svensson, Jakob, 1998. "Investment, property rights and political instability: Theory and evidence," European Economic Review, Elsevier, vol. 42(7), pages 1317-1341, July.
    4. Simeon Djankov & Rafael La Porta & Florencio Lopez-de-Silane & Andrei Shleifer, 2002. "Courts: the Lex Mundi Project," NBER Working Papers 8890, National Bureau of Economic Research, Inc.
    5. Oliver E. Williamson, 2005. "The Economics of Governance," American Economic Review, American Economic Association, vol. 95(2), pages 1-18, May.
    6. Acemoglu, Daron & Johnson, Simon & Robinson, James A., 2005. "Institutions as a Fundamental Cause of Long-Run Growth," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 6, pages 385-472, Elsevier.
    7. Simeon Djankov & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2002. "The Regulation of Entry," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(1), pages 1-37.
    8. Abhirup Chakrabarti & Kulwant Singh & Ishtiaq Mahmood, 2007. "Diversification and performance: evidence from East Asian firms," Strategic Management Journal, Wiley Blackwell, vol. 28(2), pages 101-120, February.
    9. Jolanda Hessels & Siri Terjesen, 2010. "Resource dependency and institutional theory perspectives on direct and indirect export choices," Small Business Economics, Springer, vol. 34(2), pages 203-220, February.
    10. Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 8(1), pages 23-32, March.
    11. Garry D. Bruton & David Ahlstrom & Krzysztof Obloj, 2008. "Entrepreneurship in Emerging Economies: Where Are We Today and Where Should the Research Go in the Future," Entrepreneurship Theory and Practice, , vol. 32(1), pages 1-14, January.
    12. Ellis, Paul D., 2010. "International trade intermediaries and the transfer of marketing knowledge in transition economies," International Business Review, Elsevier, vol. 19(1), pages 16-33, February.
    13. Andrei Shleifer, 2005. "Understanding Regulation," European Financial Management, European Financial Management Association, vol. 11(4), pages 439-451, September.
    14. Elizabeth Olmstead Teisberg, 1993. "Capital Investment Strategies under Uncertain Regulation," RAND Journal of Economics, The RAND Corporation, vol. 24(4), pages 591-604, Winter.
    15. Byeongju Jeong, 2002. "Policy Uncertainty and Long-Run Investment and Output across Countries," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(2), pages 363-392, May.
    16. Mike Wright & Igor Filatotchev & Robert E. Hoskisson & Mike W. Peng, 2005. "Strategy Research in Emerging Economies: Challenging the Conventional Wisdom," Journal of Management Studies, Wiley Blackwell, vol. 42(1), pages 1-33, January.
    17. Leonidou, Leonidas C. & Theodosiou, Marios, 2004. "The export marketing information system: an integration of the extant knowledge," Journal of World Business, Elsevier, vol. 39(1), pages 12-36, February.
    18. Simon Johnson & John McMillan, 2002. "Courts and Relational Contracts," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 18(1), pages 221-277, April.
    19. Klaus E Meyer, 2001. "Institutions, Transaction Costs, and Entry Mode Choice in Eastern Europe," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(2), pages 357-367, June.
    20. North, Douglass C., 1971. "Institutional Change and Economic Growth," The Journal of Economic History, Cambridge University Press, vol. 31(1), pages 118-125, March.
    21. Mike W Peng & Anne Y Ilinitch, 1998. "Export Intermediary Firms: A Note on Export Development Research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(3), pages 609-620, September.
    22. Philippe Aghion, 2005. "Growth and Institutions," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 32(1), pages 3-18, March.
    23. Simon Johnson & John McMillan & Christopher Woodruff, 2002. "Property Rights and Finance," American Economic Review, American Economic Association, vol. 92(5), pages 1335-1356, December.
    24. Gerald Yong Gao & Janet Y Murray & Masaaki Kotabe & Jiangyong Lu, 2010. "A “strategy tripod” perspective on export behaviors: Evidence from domestic and foreign firms based in an emerging economy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(3), pages 377-396, April.
    25. Stephen Knack & Philip Keefer, 1995. "Institutions And Economic Performance: Cross‐Country Tests Using Alternative Institutional Measures," Economics and Politics, Wiley Blackwell, vol. 7(3), pages 207-227, November.
    26. Aya S Chacar & William Newburry & Balagopal Vissa, 2010. "Bringing institutions into performance persistence research: Exploring the impact of product, financial, and labor market institutions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(7), pages 1119-1140, September.
    27. Gershon Feder & Tongroj Onchan, 1987. "Land Ownership Security and Farm Investment in Thailand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(2), pages 311-320.
    28. Knack, Stephen & Keefer, Philip, 1995. "Institutions and Economic Performance: Cross-Country Tests Using Alternative Institutional Indicators," MPRA Paper 23118, University Library of Munich, Germany.
    29. Daron Acemoglu & Simon Johnson, 2005. "Unbundling Institutions," Journal of Political Economy, University of Chicago Press, vol. 113(5), pages 949-995, October.
    30. Joseph Hayes & Michael Roth & Lydia Zepeda, 1997. "Tenure Security, Investment and Productivity in Gambian Agriculture: A Generalized Probit Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 369-382.
    31. Williamson, Oliver E, 1998. "The Institutions of Governance," American Economic Review, American Economic Association, vol. 88(2), pages 75-79, May.
    32. Christine Oliver, 1997. "Sustainable competitive advantage: combining institutional and resource‐based views," Strategic Management Journal, Wiley Blackwell, vol. 18(9), pages 697-713, October.
    33. Aymo Brunetti & Beatrice Weder, 1998. "Investment and institutional uncertainty: A comparative study of different uncertainty measures," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 134(3), pages 513-533, September.
    34. Leonidou, Leonidas C. & Katsikeas, Constantine S., 2010. "Integrative assessment of exporting research articles in business journals during the period 1960-2007," Journal of Business Research, Elsevier, vol. 63(8), pages 879-887, August.
    35. Klaus E. Meyer & Hung Vo Nguyen, 2005. "Foreign Investment Strategies and Sub‐national Institutions in Emerging Markets: Evidence from Vietnam," Journal of Management Studies, Wiley Blackwell, vol. 42(1), pages 63-93, January.
    36. N. Venkatraman & John E. Prescott, 1990. "Environment‐strategy coalignment: An empirical test of its performance implications," Strategic Management Journal, Wiley Blackwell, vol. 11(1), pages 1-23, January.
    37. George A Shinkle & Aldas P Kriauciunas, 2010. "Institutions, size and age in transition economies: Implications for export growth," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(2), pages 267-286, February.
    38. Dheeraj Sharma & Shaheen Borna & James Stearns, 2009. "An Investigation of the Effects of Corporate Ethical Values on Employee Commitment and Performance: Examining the Moderating Role of Perceived Fairness," Journal of Business Ethics, Springer, vol. 89(2), pages 251-260, October.
    39. Besley, Timothy, 1995. "Property Rights and Investment Incentives: Theory and Evidence from Ghana," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 903-937, October.
    40. Yanmei Zhu & Xinhua Wittmann & Mike Peng, 2012. "Institution-based barriers to innovation in SMEs in China," Asia Pacific Journal of Management, Springer, vol. 29(4), pages 1131-1142, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zahoor, Nadia & Al-Tabbaa, Omar, 2021. "Post-entry internationalization speed of SMEs: The role of relational mechanisms and foreign market knowledge," International Business Review, Elsevier, vol. 30(1).
    2. Huiwen Su & Feiying Cai & Yunting Huang, 2022. "Institutional constraints and exporting of emerging‐market firms: The moderating role of innovation capabilities and digital transformation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(7), pages 2641-2656, October.
    3. Hasan Boztoprak & Mehmet Eryilmaz, 2021. "The strategy tripod perspective in explaining firms’ export performance," Upravlenets, Ural State University of Economics, vol. 12(5), pages 50-69, November.
    4. Manolopoulos, Dimitris & Chatzopoulou, Erifili & Kottaridi, Constantina, 2018. "Resources, home institutional context and SMEs’ exporting: Direct relationships and contingency effects," International Business Review, Elsevier, vol. 27(5), pages 993-1006.
    5. Brache, Jose & Felzensztein, Christian, 2019. "Exporting firm’s engagement with trade associations: Insights from Chile," International Business Review, Elsevier, vol. 28(1), pages 25-35.
    6. Oliveira, João S. & Yazdani, Nahid & Cadogan, John W. & Hodgkinson, Ian R. & Tsougkou, Eleni & Jean, Ruey-Jer “Bryan” & Story, Vicky M. & Boso, Nathaniel, 2018. "The empirical link between export entry mode diversity and export performance: A contingency- and institutional-based examination," Journal of Business Research, Elsevier, vol. 88(C), pages 505-512.
    7. Qi, Guoyou & Zou, Hailiang & Xie, Xuemei & Meng, Xiaohua & Fan, Tijun & Cao, Yuanhe, 2020. "Obedience or escape: Examining the contingency influences of corruption on firm exports," Journal of Business Research, Elsevier, vol. 106(C), pages 261-272.
    8. Shadrack Muthami Mwatu, 2022. "Institutions and export performance: firm level evidence from Kenya," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 69(4), pages 487-506, December.
    9. Jonas Eduardsen & Svetla Marinova & Leonidas C. Leonidou & Paul Christodoulides, 2023. "Organizational Influences and Performance Impact of Cross-Border E-Commerce Barriers: The Moderating Role of Home Country Digital Infrastructure and Foreign Market Internet Penetration," Management International Review, Springer, vol. 63(3), pages 433-467, June.
    10. Heredia Pérez, Jorge A. & Geldes, Cristian & Kunc, Martin H. & Flores, Alejandro, 2023. "The effect of local institutions on the competitive strategies of exporters. The case of emerging economies in Latin America," Journal of Business Research, Elsevier, vol. 169(C).
    11. Seema Narayan & Tri Tung Nguyen & Xuan-Hoa Nghiem, 2021. "Does Economic Integration Increase Female Labour Force Participation? Labour Force Participation?," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 24(1), pages 1-34, March.
    12. Berkegui Oubedatou Sinatoko Djibo & Emmanuel Mensah Horsey & Shuliang Zhao, 2024. "Good Innovation Capacity, Good Eco-Innovation Performance? From Firms Innovation, Learning Capacity, and Institutional Environment," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 1179-1209, March.
    13. Trong Tuan Luu, 2019. "CSR and Customer Value Co-creation Behavior: The Moderation Mechanisms of Servant Leadership and Relationship Marketing Orientation," Journal of Business Ethics, Springer, vol. 155(2), pages 379-398, March.
    14. Shi, Xiutian & Tang, Jianxi & Dong, Ciwei, 2022. "Should a domestic firm carve out a niche in overseas markets? Value of purchasing agents," European Journal of Operational Research, Elsevier, vol. 300(1), pages 85-94.
    15. Horak, Sven & Klein, Andreas & Ahlstrom, David & Li, Xiaomei, 2024. "Resilience or decline of informal networks? Examining the role of trust context in network societies," International Business Review, Elsevier, vol. 33(4).
    16. Danckwerts, Sebastian & Meißner, Lasse & Krampe, Caspar, 2019. "Examining User Experience of Conversational Agents in Hedonic Digital Services – Antecedents and the Role of Psychological Ownership," SMR - Journal of Service Management Research, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 3(3), pages 111-125.
    17. Donbesuur, Francis & Ampong, George Oppong Appiagyei & Owusu-Yirenkyi, Diana & Chu, Irene, 2020. "Technological innovation, organizational innovation and international performance of SMEs: The moderating role of domestic institutional environment," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    18. Dau, Luis Alfonso & Purkayastha, Saptarshi & Eddleston, Kimberly A., 2020. "Who does it best? Family and nonfamily owners and leaders navigating institutional development in emerging markets," Journal of Business Research, Elsevier, vol. 107(C), pages 197-210.
    19. Silva, Graça Miranda & Styles, Chris & Lages, Luis Filipe, 2017. "Breakthrough innovation in international business: The impact of tech-innovation and market-innovation on performance," International Business Review, Elsevier, vol. 26(2), pages 391-404.
    20. Dung Ngo, Vi & Leonidou, Leonidas C. & Janssen, Frank & Christodoulides, Paul, 2024. "Export-specific investments, competitive advantage, and performance in Vietnamese SMEs: The moderating role of domestic market conditions," Journal of Business Research, Elsevier, vol. 170(C).
    21. Aralica Zoran & Svilokos Tonci & Bacic Katarina, 2018. "Institutions and Firms’ Performance in Transition Countries: The Case of Selected Cesee Countries," South East European Journal of Economics and Business, Sciendo, vol. 13(1), pages 68-80, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vi Dung Ngo & Frank Janssen & Marine Falize, 2016. "An incentive-based model of international entrepreneurship in emerging and transition economies," Journal of International Entrepreneurship, Springer, vol. 14(1), pages 52-74, March.
    2. Dung Ngo, Vi & Leonidou, Leonidas C. & Janssen, Frank & Christodoulides, Paul, 2024. "Export-specific investments, competitive advantage, and performance in Vietnamese SMEs: The moderating role of domestic market conditions," Journal of Business Research, Elsevier, vol. 170(C).
    3. Andrea Asoni, 2008. "Protection Of Property Rights And Growth As Political Equilibria," Journal of Economic Surveys, Wiley Blackwell, vol. 22(5), pages 953-987, December.
    4. Buitrago R., Ricardo E. & Barbosa Camargo, María Inés, 2021. "Institutions, institutional quality, and international competitiveness: Review and examination of future research directions," Journal of Business Research, Elsevier, vol. 128(C), pages 423-435.
    5. Williamson, Claudia R., 2012. "Dignity and development," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(6), pages 763-771.
    6. Thi Mai Phuong, Chu, 2018. "Impacts of Institutions on the Performances of Enterprises in Vietnam," Papers 1149, World Trade Institute.
    7. Mendoza, Ronald U. & Canare, Tristan A. & Ang, Alvin, 2015. "Doing Business: A Review of Literature and Its Role in APEC 2015," Research Paper Series DP 2015-37, Philippine Institute for Development Studies.
    8. Manolopoulos, Dimitris & Chatzopoulou, Erifili & Kottaridi, Constantina, 2018. "Resources, home institutional context and SMEs’ exporting: Direct relationships and contingency effects," International Business Review, Elsevier, vol. 27(5), pages 993-1006.
    9. Ang, Alvin & Mendoza, Ronald U. & Canare, Tristan A., 2015. "Doing Business: A Review of Literature and Its Role in APEC 2015," Discussion Papers DP 2015-37, Philippine Institute for Development Studies.
    10. Hartwell, Christopher A., 2014. "The impact of institutional volatility on financial volatility in transition economies : a GARCH family approach," BOFIT Discussion Papers 6/2014, Bank of Finland, Institute for Economies in Transition.
    11. repec:zbw:bofitp:2014_006 is not listed on IDEAS
    12. Andrea Ascani & Riccardo Crescenzi & Simona Iammarino, 2015. "Economic Institutions and the Location Strategies of European Multinationals in their Geographical Neighbourhood," LEQS – LSE 'Europe in Question' Discussion Paper Series 97, European Institute, LSE.
    13. Lin, Chen & Lin, Ping & Song, Frank, 2010. "Property rights protection and corporate R&D: Evidence from China," Journal of Development Economics, Elsevier, vol. 93(1), pages 49-62, September.
    14. Ceyhun Haydaroglu, 2015. "The Relationship between Property Rights and Economic Growth: an Analysis of OECD and EU Countries," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 4, pages 217-239, December.
    15. ROUGIER Eric, 2015. ""The parts and the whole”: Unbundling and re-bundling institutional systems and their effect on economic development," Cahiers du GREThA (2007-2019) 2015-12, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    16. Asoni, Andrea, 2008. "Protection of Property Rights and Growth as Political Equilibria," Working Paper Series 737, Research Institute of Industrial Economics.
    17. Fang, Tian Jin & Han, Jianlei & He, Jing & Shi, Jing, 2021. "Property rights protection and mergers and acquisitions," Pacific-Basin Finance Journal, Elsevier, vol. 68(C).
    18. Hartwell, Christopher A., 2018. "The impact of institutional volatility on financial volatility in transition economies," Journal of Comparative Economics, Elsevier, vol. 46(2), pages 598-615.
    19. Sun, Sunny Li & Peng, Mike W. & Lee, Ruby P. & Tan, Weiqiang, 2015. "Institutional open access at home and outward internationalization," Journal of World Business, Elsevier, vol. 50(1), pages 234-246.
    20. Hartwell, Christopher A., 2014. "The impact of institutional volatility on financial volatility in transition economies: a GARCH family approach," BOFIT Discussion Papers 6/2014, Bank of Finland Institute for Emerging Economies (BOFIT).
    21. Abdoul’ Mijiyawa, 2013. "Determinants of property rights institutions: survey of literature and new evidence," Economics of Governance, Springer, vol. 14(2), pages 127-183, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:69:y:2016:i:8:p:2911-2922. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.