The Internalization of Exports: Firm- and Location-Specific Factors in a Middle-Income Country
Firms make strategic choices about foreign market access on the basis of location factors in the home and export countries, as well as on their ownership advantages. The empirical analysis is based on a sample of 837 manufacturing companies in a typical middle-income country (Spain), in which firms are starting to internationalize through investments or alliances in distribution. Following theoretical expectations, the greater the level of such ownership factors as intangible technological assets, product variability, and resource availability, the higher the likelihood of internalization, and in particular internalization by proprietary distribution instead of by commercial alliance. But most importantly, location factors in the home country and in the export market have an independent effect on the likelihood and mode of internalization. Proprietary distribution channels are preferred when the firm's competitors are based in richer countries than the home country, and when the export market is well known to the firm.
Volume (Year): 45 (1999)
Issue (Month): 11 (November)
|Contact details of provider:|| Postal: 7240 Parkway Drive, Suite 300, Hanover, MD 21076 USA|
Web page: http://www.informs.org/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Anne T. Coughlan, 1985. "Competition and Cooperation in Marketing Channel Choice: Theory and Application," Marketing Science, INFORMS, vol. 4(2), pages 110-129.
- Yamawaki, Hideki, 1991. "Exports and Foreign Distributional Activities: Evidence on Japanese Firms in the United States," The Review of Economics and Statistics, MIT Press, vol. 73(2), pages 294-300, May.
- Preet S Aulakh & Masaaki Kotabe, 1997. "Antecedents and Performance Implications of Channel Integration in Foreign Markets," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 28(1), pages 145-175, March.
- Steinherr, A. & Huveneers, Ch., 1994. "On the performance of differently regulated financial institutions: Some empirical evidence," Journal of Banking & Finance, Elsevier, vol. 18(2), pages 271-306, January.
- Benvignati, Anita M, 1990. "Industry Determinants and "Differences" in U.S. Intrafirm and Arms-Length Exports," The Review of Economics and Statistics, MIT Press, vol. 72(3), pages 481-488, August.
- Erin Anderson, 1985. "The Salesperson as Outside Agent or Employee: A Transaction Cost Analysis," Marketing Science, INFORMS, vol. 4(3), pages 234-254.
- Vernon, Raymond, 1979. "The Product Cycle Hypothesis in a New International Environment," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 41(4), pages 255-267, November.
- Esfahani, Hadi Salehi, 1991. "Reputation and uncertainty Toward an explanation of quality problems in competitive LDC markets," Journal of Development Economics, Elsevier, vol. 35(1), pages 1-32, January.
- Igal Ayal & Seev Hirsch, 1982. "Marketing Factors in Small Country Manufactured Exports: Are market Share and Market Growth Rate Really Important?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 13(2), pages 73-85, June.
- John, George & Weitz, Barton A, 1988. "Forward Integration into Distribution: An Empirical Test of Transaction Cost Analysis," Journal of Law, Economics and Organization, Oxford University Press, vol. 4(2), pages 337-355, Fall.
When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:45:y:1999:i:11:p:1463-1478. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.