Driving a firmÕs export propensity and export intensity: the role of experience, innovation, and international marketing strategy
Moving from the hypothesis of firm heterogeneity, we analyze whether the firmÕs experience, product and process innovation as well as a clear international marketing strategy affect firmsÕ probabilities of entering export markets and their export intensities (sales achieved abroad). The paper provides further knowledge on the determinants of both the decision to address foreign markets (firm export propensity) and the degree of penetration in those foreign markets (export intensity), by integrating the three above-mentioned streams of research usually approached as distinctive ones. Even though there is a large set of studies dealing with an analysis of export determinants, there is still a lack of theoretical and empirical investigation on how firmÕs innovation (product to be developed, process improvement) and marketing strategy (commitment, marketing investments) interplay in the international business processes, taking into account any prior experience of the firm in general terms as well as in the international scenario. Specifically, the paper empirically investigates how experience, innovation and international marketing strategy influence export behavior at the firm level in order to explore how these determinants act as export drivers for a firm and the consequences measured in terms of export intensity. We carried out a quantitative analysis based on a dataset on 582 Italian manufacturing firms observed over the three-year periods 2001Ð2003 and 2004Ð2006. As far as export propensity is concerned, it emerges that the main drivers affecting the firmÕs decision to enter foreign markets are related to its internal productivity level, innovation capabilities in terms of product innovation as well as an explicit marketing strategy oriented to foreign markets (establishing collaborations with foreign firms or direct commercial investment abroad). Thus, experience can be interpreted as the capability of a firm to manage internal processes (managerial experience) efficiently rather than in terms of knowledge cumulated through years of economic activities (captured through the age variable) or transferred from other partners or foreign ownership. When considering export intensity, two main elements arise from the analysis. The first one is that the shift from product to process innovations affects exports. This result can be explained by the firmÕs capability to efficiently change its internal processes to face the demand arising from foreign clients. The second important element refers to the remarkable role of direct commercial investment in influencing export intensity. This result confirms that the firm gains in terms of value captured by controlling directly its distribution channel.
|Date of creation:||Jan 2014|
|Contact details of provider:|| Postal: via del Santo, 33 - 35122 Padova|
Phone: +39 +49 8274210
Fax: +39 +49 827.4211
Web page: http://www.decon.unipd.it/
More information through EDIRC
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.:
- Roberto Antonietti & Giulio Cainelli, 2010. "Innovation, productivity and export Evidence from Italy," Openloc Working Papers 1017, Public policies and local development.
- Ganeshan Wignaraja, 2002.
"Firm Size, Technological Capabilities and Market-oriented Policies in Mauritius,"
Oxford Development Studies,
Taylor & Francis Journals, vol. 30(1), pages 87-104.
- Wignaraja, Ganeshan, 2001. "Firm Size, Technological Capabilities and Market-Oriented Policies in Mauritius," UNU-INTECH Discussion Paper Series 1, United Nations University - INTECH.
- Bernard, Andrew B. & Bradford Jensen, J., 1999. "Exceptional exporter performance: cause, effect, or both?," Journal of International Economics, Elsevier, vol. 47(1), pages 1-25, February.
- Bernard, A., 1997. "Exceptional Exporter Performance: Cause, Effect, or Both?," Working papers 97-21, Massachusetts Institute of Technology (MIT), Department of Economics.
- Andrew B. Bernard & J. Bradford Jensen, 1997. "Exceptional Exporter Performance: Cause, Effect, or Both?," NBER Working Papers 6272, National Bureau of Economic Research, Inc.
- Alessandro Sterlacchini, 2001. "The determinants of export performance: A firm-level study of Italian manufacturing," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 137(3), pages 450-472, September.
- Elhanan Helpman, 2006. "Trade, FDI, and the Organization of Firms," Journal of Economic Literature, American Economic Association, vol. 44(3), pages 589-630, September.
- Elhanan Helpman, 2006. "Trade, FDI, and the Organization of Firms," Harvard Institute of Economic Research Working Papers 2118, Harvard - Institute of Economic Research.
- Helpman, Elhanan, 2006. "Trade, FDI and the Organization of Firms," CEPR Discussion Papers 5589, C.E.P.R. Discussion Papers.
- Elhanan Helpman, 2006. "Trade, FDI, and the Organization of Firms," NBER Working Papers 12091, National Bureau of Economic Research, Inc.
- Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
- Mark J. Melitz, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," NBER Working Papers 8881, National Bureau of Economic Research, Inc.
- Melitz, Marc J, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," CEPR Discussion Papers 3381, C.E.P.R. Discussion Papers.
- Leonidou, Leonidas C. & Katsikeas, Constantine S. & Coudounaris, Dafnis N., 2010. "Five decades of business research into exporting: A bibliographic analysis," Journal of International Management, Elsevier, vol. 16(1), pages 78-91, March.
- Sourafel Girma & Richard Kneller & Mauro Pisu, 2005. "Exports versus FDI: An Empirical Test," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 141(2), pages 193-218, July.
- Lewis K S Lim & Frank Acito & Alexander Rusetski, 2006. "Development of archetypes of international marketing strategy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(4), pages 499-524, July.
- Papke, Leslie E. & Wooldridge, Jeffrey M., 2008. "Panel data methods for fractional response variables with an application to test pass rates," Journal of Econometrics, Elsevier, vol. 145(1-2), pages 121-133, July.
- Elhanan Helpman & Marc J. Melitz & Stephen R. Yeaple, 2004. "Export Versus FDI with Heterogeneous Firms," American Economic Review, American Economic Association, vol. 94(1), pages 300-316, March.
- Yeaple, Stephen & Helpman, Elhanan & Melitz, Marc, 2004. "Export versus FDI with Heterogeneous Firms," Scholarly Articles 3229098, Harvard University Department of Economics.
- Andrea Bonaccorsi, 1992. "On the Relationship Between Firm Size and Export Intensity," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 23(4), pages 605-635, December.
- Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
- Cassiman, Bruno & Golovko, Elena & Martínez-Ros, Ester, 2010. "Innovation, exports and productivity," International Journal of Industrial Organization, Elsevier, vol. 28(4), pages 372-376, July.
- Roper, Stephen & Love, James H., 2002. "Innovation and export performance: evidence from the UK and German manufacturing plants," Research Policy, Elsevier, vol. 31(7), pages 1087-1102, September.
- Basile, Roberto, 2001. "Export behaviour of Italian manufacturing firms over the nineties: the role of innovation," Research Policy, Elsevier, vol. 30(8), pages 1185-1201, October.
- Majocchi, Antonio & Bacchiocchi, Emanuele & Mayrhofer, Ulrike, 2005. "Firm size, business experience and export intensity in SMEs: A longitudinal approach to complex relationships," International Business Review, Elsevier, vol. 14(6), pages 719-738, December.
- James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," Review of Economic Studies, Oxford University Press, vol. 70(2), pages 317-341.
- Ram Mudambi & Shaker A Zahra, 2007. "The survival of international new ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(2), pages 333-352, March.
- Thomas Hutzschenreuter & Torben Pedersen & Henk W Volberda, 2007. "The role of path dependency and managerial intentionality: a perspective on international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(7), pages 1055-1068, December.
- Francesco Brioschi & Maria Sole Brioschi & Giulio Cainelli, 2002. "From the industrial district to the district group: An insight into the evolution of capitalism in italy1," Regional Studies, Taylor & Francis Journals, vol. 36(9), pages 1037-1052.
- Ricardo A. López, 2009. "Do Firms Increase Productivity in Order to Become Exporters?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 71(5), pages 621-642, October.
- Jože P. Damijan & Črt Kostevc & Sašo Polanec, 2010. "From Innovation to Exporting or Vice Versa?," The World Economy, Wiley Blackwell, vol. 33(3), pages 374-398, 03.
- Pla-Barber, José & Alegre, Joaquín, 2007. "Analysing the link between export intensity, innovation and firm size in a science-based industry," International Business Review, Elsevier, vol. 16(3), pages 275-293, June.
- Hooley, Graham J. & Greenley, Gordon E. & Cadogan, John W. & Fahy, John, 2005. "The performance impact of marketing resources," Journal of Business Research, Elsevier, vol. 58(1), pages 18-27, January. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:pad:wpaper:0175. 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: (Raffaele Dei Campielisi)
If references are entirely missing, you can add them using this form.