IDEAS home Printed from https://ideas.repec.org/p/por/fepwps/524.html
   My bibliography  Save this paper

The Impact Of Industry Characteristics On Firms’ Export Intensity

Author

Listed:
  • Joana Reis

    (Faculdade de Economia do Porto)

  • Rosa Forte

    (Faculdade de Economia do Porto)

Abstract

The process of globalization of economies and markets has led firms to consider entry into foreign markets. Exporting is the simplest foreign market entry mode, but also the most common, not requiring high financial and human resources. Hence it is important to study the factors that can affect the firm’s export intensity, measure commonly used to assess the export performance. Several authors have studied the factors that influence the firm’s export performance, but few have addressed the relationship between industry characteristics and export intensity. Thus, the objective of the present study is to analyze the impact of industry characteristics (capital intensity, R&D intensity, labor productivity, export orientation, and concentration level) on the firm’s export intensity, seeking to add empirical evidence to this relatively neglected research area. Based on a sample of 1,425 Portuguese firms during the period 2008-2010, and using panel data estimation, the empirical results show that some industry characteristics (labor productivity, export orientation, concentration), as well as firm characteristics (labor productivity, size) are important determinants of a firm’s export intensity. In particular, we conclude that firm export intensity is positively affected by labor productivity (at industry and firm level), corroborating the idea that firms and governments need to direct their policies towards increased productivity in order to improve competitiveness in foreign markets.

Suggested Citation

  • Joana Reis & Rosa Forte, 2014. "The Impact Of Industry Characteristics On Firms’ Export Intensity," FEP Working Papers 524, Universidade do Porto, Faculdade de Economia do Porto.
    • Handle: RePEc:por:fepwps:524
    as

    Download full text from publisher

    File URL: http://www.fep.up.pt/investigacao/workingpapers/wp524.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Estrin, Saul & Meyer, Klaus E. & Wright, Mike & Foliano, Francesca, 2008. "Export propensity and intensity of subsidiaries in emerging economies," International Business Review, Elsevier, vol. 17(5), pages 574-586, October.
    3. Leonidou, Leonidas C. & Katsikeas, Constantine S. & Samiee, Saeed, 2002. "Marketing strategy determinants of export performance: a meta-analysis," Journal of Business Research, Elsevier, vol. 55(1), pages 51-67, January.
    4. Jens Matthias Arnold & Katrin Hussinger, 2005. "Export Behavior and Firm Productivity in German Manufacturing: A Firm-Level Analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 141(2), pages 219-243, July.
    5. Panagiotis Ganotakis & James H Love, 2012. "Export propensity, export intensity and firm performance: The role of the entrepreneurial founding team," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 43(8), pages 693-718, October.
    6. 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.
    7. Kiyohiko Ito & Vladimir Pucik, 1993. "Abstract," Strategic Management Journal, Wiley Blackwell, vol. 14(1), pages 61-75, January.
    8. Ursic, Michael L. & Czinkota, Michael R., 1984. "An experience curve explanation of export expansion," Journal of Business Research, Elsevier, vol. 12(2), pages 159-168, June.
    9. Jeffrey M. Wooldridge, 2001. "Applications of Generalized Method of Moments Estimation," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 87-100, Fall.
    10. Kris Iyer, 2010. "The Determinants of Firm-Level Export Intensity in New Zealand Agriculture and Forestry ," Economic Analysis and Policy, Elsevier, vol. 40(1), pages 90-101, March.
    11. 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.
    Full references (including those not matched with items on IDEAS)

    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. Joana Reis & Rosa Forte, 2016. "The impact of industry characteristics on firms’ export intensity," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 19(3), pages 266-281, September.
    2. Krammer, Sorin M.S. & Strange, Roger & Lashitew, Addisu, 2018. "The export performance of emerging economy firms: The influence of firm capabilities and institutional environments," International Business Review, Elsevier, vol. 27(1), pages 218-230.
    3. Wang, Wei & Ma, Hao, 2018. "Export strategy, export intensity and learning: Integrating the resource perspective and institutional perspective," Journal of World Business, Elsevier, vol. 53(4), pages 581-592.
    4. Dong, Meitong & Wang, Liwen & Yang, Defeng & Zhou, Kevin Zheng, 2022. "Performance feedback and export intensity of Chinese private firms: Moderating roles of institution-related factors," International Business Review, Elsevier, vol. 31(3).
    5. Sarabi, Almasa & Froese, Fabian J. & Chng, Daniel H.M. & Meyer, Klaus E., 2020. "Entrepreneurial leadership and MNE subsidiary performance: The moderating role of subsidiary context," International Business Review, Elsevier, vol. 29(3).
    6. 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.
    7. Serigne Bassirou LO, 2021. "Effet de la corruption sur les exportations des entreprises manufacturières africaines," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 54, pages 9-30.
    8. Jing Li & Ilan Vertinsky & Hua Zhang, 2013. "The Quality of Domestic Legal Institutions and Export Performance," Management International Review, Springer, vol. 53(3), pages 361-390, June.
    9. Christian Felzensztein & George Saridakis & Bochra Idris & Gabriel P. Elizondo, 2022. "Do economic freedom, business experience, and firm size affect internationalization speed? Evidence from small firms in Chile, Colombia, and Peru," Journal of International Entrepreneurship, Springer, vol. 20(1), pages 115-156, March.
    10. Ramdani, Boumediene & Belaid, Fateh & Goutte, Stephane, 2023. "SME internationalisation: Do the types of innovation matter?," International Review of Financial Analysis, Elsevier, vol. 88(C).
    11. Weilei (Stone) Shi & Sunny Li Sun & Daying Yan & Zhu Zhu, 2017. "Institutional fragility and outward foreign direct investment from China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(4), pages 452-476, May.
    12. 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.
    13. Zhang, Lin & Cui, Lin & Li, Sali & Lu, Jiangyong, 2018. "Who rides the tide of regionalization: Examining the effect of the China-ASEAN Free Trade Area on the exports of Chinese firms," International Business Review, Elsevier, vol. 27(3), pages 501-513.
    14. Alfredo D’Angelo, 2012. "Innovation and export performance: a study of Italian high-tech SMEs," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 16(3), pages 393-423, August.
    15. Mahdi Tajeddin & Michael Carney, 2019. "African Business Groups: How Does Group Affiliation Improve SMEs’ Export Intensity?," Entrepreneurship Theory and Practice, , vol. 43(6), pages 1194-1222, November.
    16. Jesper N Wulff & Anders R Villadsen, 2020. "Keeping it within bounds: Regression analysis of proportions in international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(2), pages 244-262, March.
    17. Torres de Oliveira, Rui & Nguyen, Tam & Liesch, Peter & Verreynne, Martie-Louise & Indulska, Marta, 2021. "Exporting to escape and learn: Vietnamese manufacturers in global value chains," Journal of World Business, Elsevier, vol. 56(4).
    18. Alfonso Exposito & Juan A. Sanchis-Llopis, 2020. "The effects of innovation on the decisions of exporting and/or importing in SMEs: empirical evidence in the case of Spain," Small Business Economics, Springer, vol. 55(3), pages 813-829, October.
    19. Tajeddin, Mahdi & Farashahi, Mehdi & Moghaddam, Kaveh & Simba, Amon & Edwards, Gwyneth, 2023. "Internationalization of Emerging Economy SMEs: A Tripod Approach," Journal of International Management, Elsevier, vol. 29(1).
    20. Onuklu, Atilla & Hill, Theodore (TL) & Darendeli, Izzet S. & Genc, Omer F., 2021. "Poison or antidote: How subnational informal institutions exacerbate and ameliorate institutional voids," Journal of International Management, Elsevier, vol. 27(1).

    More about this item

    Keywords

    Export performance; export intensity; Portuguese firms; industry characteristics;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L69 - Industrial Organization - - Industry Studies: Manufacturing - - - Other

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:por:fepwps:524. 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: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/fepuppt.html .

    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.