The role of firm‐specific advantages in UK export initiation

Abstract

Purpose

The aim of this study is to identify potentially significant differences in perception of export motives based on the variations in the firm‐specific advantages (FSAs) and the firm's export strategy. It proposes that Rugman's (1981) (FSA/country‐specific advantage (CSA)) framework provides a sound theoretical base for integrating findings from different studies.

Design/methodology/approach

A set of export motives are identified as key initiation stimuli and their significance is tested on an original data set of 356 British exporters. The factor analysis produced four conceptually meaningful groups of motives. Propositions were developed to test the discriminating effect of the firm‐specific resources and capabilities on export stimulation and the potential variations in critical export motivators when executing different export strategies.

Findings

Findings endorse the study's main propositions: internal proactive motives are the most significant export initiation factors; distinct firm‐specific resources and capabilities play a significant differentiating role in the firm's perception of specific export stimuli; and the spread and scope of the firm's export strategy was found to have significant impact on the firm's sensitivity to specific export stimuli.

Research limitations/implications

The study's findings contribute to the body of knowledge of export initiation motives by: endorsing the FSA/CSA matrix as an integrative approach in studying export stimuli; producing novel empirical evidence of the differentiating effect of particular FSAs on export stimulation; and investigating the potential variations in critical export motives according to the number and distance of export markets entered and the number of export market entry modes adopted. The nature and characteristics of the sample present limitations.

Originality/value

The study provides a guideline that may help sporadic and non‐exporters to develop a strategy to migrate their activities from a passive response to unsolicited orders and customer followership to an active pursuit of international opportunities.

Citation

Beleska‐Spasova, E. and Glaister, K.W. (2011), "The role of firm‐specific advantages in UK export initiation", Multinational Business Review, Vol. 19 No. 2, pp. 168-194. https://doi.org/10.1108/15253831111149799