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Open Access
Article
Publication date: 14 September 2022

Xiaodong Lu, Jingjun Liu and Janus Jian Zhang

This study aims to take advantage of exporters’ product codes and examine the effects of government subsidization on corporate product strategies by focusing on the dimension of…

1176

Abstract

Purpose

This study aims to take advantage of exporters’ product codes and examine the effects of government subsidization on corporate product strategies by focusing on the dimension of product differentiation.

Design/methodology/approach

This study uses harmonized system (HS) product codes to construct a novel measure of product differentiation among a sample of Chinese exporters during 2000–2012. It uses propensity score matching to construct a comparable sample of control firms for exporters receiving government subsidies, and then a difference-in-differences (DID) analysis is conducted.

Findings

This study finds that product differentiation decreases immediately upon receiving a government subsidy. This finding suggests that in an emerging market, firms use their subsidy to imitate competitors rather than increase innovation. Further analyses show that this effect is concentrated among wholly foreign-owned enterprises and firms that focus on general trade rather than processing trade. In addition, the authors find some evidence that government subsidization leads to an increase in the number of product lines and decreases in domestic value added and export product quality.

Originality/value

This study constructs a novel measure of product differentiation for a large sample of Chinese exporters and provides insights that government subsidization can affect corporate product strategies.

Details

China Accounting and Finance Review, vol. 25 no. 3
Type: Research Article
ISSN: 1029-807X

Keywords

Open Access
Article
Publication date: 14 October 2021

Anisur R. Faroque, Olli Kuivalainen, Jashim Uddin Ahmed, Mahabubur Rahman, Hiran Roy, M. Yunus Ali and Md Imtiaz Mostafiz

Although both institutional export assistance and entrepreneurial orientation (EO) contribute separately and positively to export performance, the interplay between them has…

3385

Abstract

Purpose

Although both institutional export assistance and entrepreneurial orientation (EO) contribute separately and positively to export performance, the interplay between them has received little attention. This study examines the role of international EO in deriving performance benefits from governmental and nongovernmental export assistance.

Design/methodology/approach

In this longitudinal study, two surveys were administered at two different times: In 2011, 705 Bangladeshi apparel exporters were surveyed, and in 2019, a subsequent survey of 198 firms in multiple industries was conducted. The aim of the surveys was to assess the relationships between governmental and nongovernmental assistance, EO and export performance.

Findings

The results of the first survey show that, while nongovernmental assistance influences performance directly and via EO, governmental assistance has only direct effects. Furthermore, the negative influence of government assistance on EO reduces the total effects and renders them nonsignificant. The results of the second survey demonstrate that government EPPs have both direct and indirect positive and significant effects on market performance, indicating a partial mediation, whereas quasi-governmental assistance has positive and significant direct effects as well as negative but nonsignificant indirect effects. Nongovernmental EPPs have both direct and indirect significant effects on international performance, indicating a partial mediation.

Research limitations/implications

The study has important implications for researchers studying export assistance and its impact on firm performance. Instead of adopting a parochial view of government assistance, this study categorizes such assistance into three types – government, quasi-government and nongovernment. Furthermore, this study bridges the export assistance and international entrepreneurship literature by including EO.

Practical implications

Entrepreneurs must emphasize the use of government assistance in order to enhance export performance. However, to promote both entrepreneurship and performance, they must emphasize nongovernment assistance. Exporters should also capitalize on the assistance extended by various quasi-governmental agencies to bolster export performance.

Originality/value

Given the performance advantage of export assistance, this study highlights the contribution of the private sector in promoting export entrepreneurship while shedding light on the pernicious role of (quasi-)governmental assistance in export entrepreneurship.

Details

International Marketing Review, vol. 38 no. 6
Type: Research Article
ISSN: 0265-1335

Keywords

Open Access
Article
Publication date: 1 July 2024

Wubishet Mengesha Gebre, Zerihun Ayenew Birbirsa and Mekonnen Bogale Abegaz

This study aims to assess Ethiopia’s export performance and emerging exporters of textile and apparel products.

Abstract

Purpose

This study aims to assess Ethiopia’s export performance and emerging exporters of textile and apparel products.

Design/methodology/approach

Descriptive research designs were used to investigate textiles and apparel export performance. Quantitative secondary data were collected from the International Trade Center database for 19 years (2004–2022). Data analysis was performed using percentage, Revealed Comparative Advantage (RCA) and Independent t-test using Excel and SPSS version 20.

Findings

Findings show that Ethiopia and emerging exporters of textiles and apparel have fluctuating export performance both in absolute value and percentage of growth. The RCA results revealed that Ethiopia, South Africa, Japan, Russia, Australia and Ghana had comparative disadvantages at first, and then Ethiopia’s index showed improvement to weak and medium levels. Meanwhile, countries such as Madagascar and Cambodia have a stronger comparative advantage than Ethiopia and other countries considered in this study. In addition, the findings also show significant differences between Ethiopia and other emerging exporters of textile apparel, except Egypt.

Practical implications

The findings of this study have significant ramifications for scholars, professionals in the textile sector and decision-makers in legislation.

Originality/value

This study established new trends and extended the application of the RCA index across regions.

Details

Research Journal of Textile and Apparel, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1560-6074

Keywords

Open Access
Article
Publication date: 22 June 2021

Fabio Cassia and Francesca Magno

Although cross-border e-commerce has become increasingly popular among small and medium-sized enterprises as a foreign market entry mode, research on the determinants of its…

18597

Abstract

Purpose

Although cross-border e-commerce has become increasingly popular among small and medium-sized enterprises as a foreign market entry mode, research on the determinants of its success is scarce. Drawing on the resource-based view, this study aims to examine the relationship between a firm’s information technology, international marketing and export operations capabilities and its cross-border e-commerce strategic and financial performance.

Design/methodology/approach

Partial least squares structural equation modeling was used to analyze data from a sample of Italian exporters in the food and beverage industry.

Findings

The results highlight the mixed effects of information technology, international marketing and export operations capabilities on both e-commerce strategic and financial performance. Moreover, the use of third-party e-commerce platforms reduces the effect of exporters’ information technology capabilities on their e-commerce financial performance.

Research limitations/implications

The majority of exporters in this study had implemented cross-border e-commerce only recently; hence, longitudinal data on the success factors of e-commerce are not available.

Practical implications

While cross-border e-commerce may work as an accelerator of the overall export performance, export managers are urged to approach it strategically with a clear medium-term view to develop the required capabilities.

Originality/value

This study was one of the first to examine the drivers of small and medium-sized exporters’ cross-border e-commerce performance. Moreover, unlike most previous analyzes, it focused on e-commerce as a foreign market entry mode rather than a supplement to offline exporting activities.

Details

Review of International Business and Strategy, vol. 32 no. 2
Type: Research Article
ISSN: 2059-6014

Keywords

Open Access
Article
Publication date: 28 November 2023

Sérgio Kannebley Júnior, Diogo de Prince and Daniel Quinaud Pedron da Silva

Brazil uses the dollar as a vehicle currency to invoice its exports. This fact produces a tendency toward equalizing the prices of products in dollars in the international market…

Abstract

Purpose

Brazil uses the dollar as a vehicle currency to invoice its exports. This fact produces a tendency toward equalizing the prices of products in dollars in the international market and reducing the ability of firms to practice pricing-to-market (PTM). This study aims to evaluate the hypothesis by estimating error correction models in panel data, obtaining estimates of PTM for 25 manufacturing products exported by Brazil between 2010 and 2020.

Design/methodology/approach

This study uses the correlated common effect estimator proposed by Pesaran (2006) and Chudik and Pesaran (2015b) to estimate the PTM coefficients.

Findings

Results of this study indicate that exporters practice local-currency pricing stability for dollar prices. This study obtains that Brazilian exporters tend to stabilize their dollar price for exports, reducing heterogeneity between destination markets. The results are in agreement with the hypothesis of the prevalence of the coalescing effect of Goldberg and Tille (2008) and lower sensitivity of the markup adjustment to the specific market, as pointed out by Corsetti et al. (2018). The pricing of Brazilian exports in dollars reflects a profit maximization strategy that considers an international price system based on global demand for products.

Originality/value

In addition to analyzing the dollar role in the pricing of Brazilian exports through the triangular decomposition, this study also shows the importance of examining the cross-section dependence of errors, considering the heterogeneous cointegration in export pricing models and producing PTM estimates for short-term and long-term.

Open Access
Article
Publication date: 21 February 2020

Arsalan Safari and Ali Salman Saleh

Various barriers discourage small and medium-sized enterprises (SMEs) from entering or expanding their export activities in the international markets, especially SMEs in emerging…

20878

Abstract

Purpose

Various barriers discourage small and medium-sized enterprises (SMEs) from entering or expanding their export activities in the international markets, especially SMEs in emerging markets. The purpose of this study is to look at capacity building to accelerate SMEs’ export performance.

Design/methodology/approach

This study draws on contingency theory and takes a resource-based and market-based view to provide a holistic understanding of the issue. This study uses primary data collected via extensive surveys from active SMEs in three main industrial regions in Vietnam to undertake confirmatory factor analysis and structural equation modeling for quantitative analysis.

Findings

The results confirm and show the significant effects of various determinants on firms’ export performance. These research findings have scientific contribution and significant implications by understanding the effective internal and external export drivers and mediators in an emerging market and enhancing SMEs’ export performance.

Practical implications

This study helps SMEs to improve their export performance by systemizing their decision-making in export activities, improving main export drivers highlighted in this study and developing required training programs for their teams. The outcomes also helps policymakers and regulators to improve the current SME ecosystem in Vietnam through training programs, improving policies, facilitating trades, providing more government assistance etc. The results of this study can be extended to other emerging markets with a similar economic structure and legal system.

Originality/value

Given the need for more work on export performance, this paper develops and tests a holistic conceptual framework that accounts for all aspects of export drivers, and provides a more comprehensive model for examining SMEs’ export drivers. This theoretical framework also incorporates three potential mediators (i.e. innovation strategy, export marketing strategy and business strategy) to investigate the effect of internal and external factors on export performance, highlighting the importance of the mediating effects on SMEs in achieving growth and competing in the international arena.

Details

Journal of Business & Industrial Marketing, vol. 35 no. 4
Type: Research Article
ISSN: 0885-8624

Keywords

Open Access
Article
Publication date: 20 December 2021

Marcel van den Berg

The purpose of this paper is to add to the debate concerning the merits of export promotion efforts by governments by investigating the effect of export promotion program (EPP…

Abstract

Purpose

The purpose of this paper is to add to the debate concerning the merits of export promotion efforts by governments by investigating the effect of export promotion program (EPP) participation on the export performance of Dutch small and medium-sized enterprises (SMEs).

Design/methodology/approach

The authors confront participation data of an EPP targeting SMEs with rich firm-level data and use propensity score matching techniques combined with regression analysis.

Findings

The authors show that exports generated by participants do generally rise in the years after program entry, however, export growth does not outpace that of comparable, but unsupported firms. Nonetheless, there is some evidence suggesting that export shares in sales rise faster among program entrants, particularly in the first and second years after participation. Furthermore, the authors present evidence suggesting that the probability of becoming a permanent exporter is higher for participants relative to beginning exporters that did not receive support from the program.

Originality/value

The analysis contributes to the still relatively small literature dealing with the impact of government export promotion instruments on export performance using firm-level micro-data. The subject of analysis are Dutch small businesses. SMEs, particularly operating in advanced economies, are a group that is not frequently considered separately in this respect.

Details

Applied Economic Analysis, vol. 30 no. 90
Type: Research Article
ISSN:

Keywords

Open Access
Article
Publication date: 15 December 2022

Michael Funke

The purpose of this paper is to analyze the Swedish Advertisers’ Association's role in the institutional development of Swedish international advertising during 1955–1972.

1216

Abstract

Purpose

The purpose of this paper is to analyze the Swedish Advertisers’ Association's role in the institutional development of Swedish international advertising during 1955–1972.

Design/methodology/approach

A qualitative analysis of business association sources is used to explore the institutional development of international advertising.

Findings

A new postwar paradigm that focused on a consumer-oriented brand ideology enabled marketing executives in the Swedish Advertisers’ Association to develop a new discourse on international advertising in Sweden, which then was institutionalized within a national network on export promotion. The institutionalization process was supported by a corporatist system typical of smaller export dependent postwar European economies.

Research limitations/implications

While based on a national case, this study points to the importance of understanding how advertising concepts are embedded within other economic, political and cultural systems than in those they originated in and how this contributes to a heterogenous implementation of similar ideas and practices. This study also illustrates how members can use their association to institutionalize a new discourse on marketing and network with other actors to enhance the use and reputation of its ideas and practices.

Practical implications

By highlighting the importance of analyzing both internal and external organizational relations, this study contributes to the research on history of marketing by making salient the importance of an institutional perspective to understand key processes in marketing. In practice neither the institutional perspective nor the explanatory power of discourse has received much attention, therefore the study results should be both interesting and valid for practitioners as well.

Originality/value

The study of the historical development of international advertising is limited and often descriptive. This study contributes to the literature by using a theoretical and methodological approach to make salient how the interaction between discourse, marketing associations and other collective actors propelled the institutionalization of international advertising within a specific national context.

Open Access
Article
Publication date: 20 October 2022

Raghuveer Negi, Muthusamy Arumugam, Abuzar Nomani and Shetty Deepa Thangam Geeta

The impact of Goods and Service Tax (GST) on the motor and pump exports in the Coimbatore region is measured in this study using various parameters and scales. The data collected…

2293

Abstract

Purpose

The impact of Goods and Service Tax (GST) on the motor and pump exports in the Coimbatore region is measured in this study using various parameters and scales. The data collected from exporters were used to identify the pros and cons of GST, stating their opinions on variables considered by the researchers through extensive literature on GST and exports.

Design/methodology/approach

The data were collected from 220 motors and pump exporters through a field survey from the month of January to September 2021. The impacts have been measured using principal component analysis (PCA) and confirmatory factor analysis (CFA). The factor analyses and CFA will derive the positive and negative impact of GST determined through critical empirical evidence in this study. Also, the problems faced by the exporters allied to GST, which the authors could not include in the questionnaire due to certain reasons, are concisely apportioned and discussed.

Findings

The study depicts the major advantages of GST, such as harmonized system, long-run performance, reduction in logistics cost, check-post operation, bonds and ease of doing business. Also, it highlights the disadvantages of GST, such as biases in the indirect tax system, the reimbursement of duty drawback being late or pending and document filing was still a tedious job under the GST regime.

Originality/value

The unavailability of considerable literature on the impact of GST on Indian exports signifies the novelty of this research. So far, this is the first empirical attempt to measure the impact of GST on exports which is a unique and original attempt to highlight the problem that lies under the GST regime and the necessary reforms the tax structure needs in the context of Indian exports.

Details

Business Analyst Journal, vol. 43 no. 2
Type: Research Article
ISSN: 0973-211X

Keywords

Open Access
Article
Publication date: 21 June 2024

Ryuta Ishii and Mai Kikumori

Export market orientation can be broadly divided into intelligence (generation and dissemination) and responsiveness activities. Although previous studies assess intelligence and…

Abstract

Purpose

Export market orientation can be broadly divided into intelligence (generation and dissemination) and responsiveness activities. Although previous studies assess intelligence and responsiveness activities, little is known about what type of international channel partner acts as an enabling condition for the impact of these activities on export venture performance. This study aims to examine the extent to which the selection of international channel partners through word-of-mouth referrals versus direct contacts affects the benefits of intelligence and responsiveness activities.

Design/methodology/approach

Data were collected from 246 exporting manufacturers in Japan. To test the hypotheses, we conducted regression analyses using a subjective performance measure at the venture level. We also performed a post hoc analysis using objective performance measure at the function level.

Findings

We find that the extent to which international channel partners are selected through word-of-mouth referrals has a moderating role in the export market-oriented activities–performance linkages. Specifically, it acts as an enabling condition for intelligence activity and a disenabling condition for responsiveness activity.

Originality/value

This study contributes to a better understanding of export market orientation by classifying it into intelligence and responsiveness activities and providing empirical evidence on their different interaction effects with partner selection. It also contributes to the elaboration of agency theory by offering insights into the fit between task characteristics and contract type. Our study is critical for business managers as it suggests guidelines for manufacturing exporters engaging in export market-oriented behaviors and export channel management.

Details

International Marketing Review, vol. 41 no. 7
Type: Research Article
ISSN: 0265-1335

Keywords

1 – 10 of 389