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Open Access
Article
Publication date: 23 March 2023

Denis Samwel Ringo, Amani Gration Tegambwage and Isaac Kazungu

This paper aims to examine the relationship between innovation capabilities (INVC) and export performance (EXPERF) of manufacturing small and medium enterprises (SMEs). Moreover…

2026

Abstract

Purpose

This paper aims to examine the relationship between innovation capabilities (INVC) and export performance (EXPERF) of manufacturing small and medium enterprises (SMEs). Moreover, the paper aims to investigate the moderating effect of risk-taking propensity (RSTP) in the relationship between INVC and the SMEs’ EXPERF.

Design/methodology/approach

A cross-sectional survey design was used and data were collected through structured questionnaires from 250 manufacturing exporting SMEs in Tanzania. Confirmatory factor analysis was used to test the measurement model. The hypotheses were empirically tested using PROCESS macro test.

Findings

The findings affirm that INVC is a significant predictor of EXPERF. Additionally, RSTP was found to be a significant moderator of the relationship between INVC and EXPERF.

Research limitations/implications

Although the study was able to accomplish its overall objective, it is limited in terms of the context under which the study was conducted. This study covered only manufacturing SMEs in a single country, Tanzania. Hence, the findings should be interpreted with caution since each country has specific institutional environments that support innovation.

Originality/value

The findings of this study expand the application of the resource-based view (RBV) theory in exporting context. The study revealed how INVC as an intangible resource can lead to successful performance. Hence, the findings of this study broaden the applicability of RBV theory. Also, this study contributes to the debate about the innovation-export performance relationship by revealing a moderating role of RSTP in the relationship between INVC and EXPERF.

Details

Journal of Money and Business, vol. 3 no. 1
Type: Research Article
ISSN: 2634-2596

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.

Details

EconomiA, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1517-7580

Keywords

Open Access
Article
Publication date: 28 August 2023

Enrique Feás

The purpose of this paper is to settle the methodological debate on the decomposition of value added in gross exports, proposing a standard, exposing the drawbacks of the…

Abstract

Purpose

The purpose of this paper is to settle the methodological debate on the decomposition of value added in gross exports, proposing a standard, exposing the drawbacks of the alternatives and quantifying the differences.

Design/methodology/approach

This paper systematizes the analytical framework and assesses and quantifies the various methodologies and its main differences.

Findings

The decomposition method of Borin and Mancini (2023), using a source-based approach and an exporting country perspective, should be considered as the standard for decomposing the value added in gross exports. This study finds that alternative approaches and perspectives are methodologically inferior, and that tailored perspectives do not provide an increase in accuracy that compensates their drawbacks.

Originality/value

This paper’s contribution is fourfold: it rejects the alleged equivalence between approaches and perspectives, defending the superiority of a particular method, approach and perspective; it gives quantitative examples of the differences between them; it proves that the drawbacks of tailored perspectives do not compensate their alleged accuracy (as they do not result in big quantitative differences with the standard perspective); and it argues that no valid standard decomposition can forego the calculation of value added exported, which requires the expression of exports in terms of final demand.

Details

Applied Economic Analysis, vol. 31 no. 93
Type: Research Article
ISSN: 2632-7627

Keywords

Open Access
Article
Publication date: 20 November 2023

Zaina Nakabuye, Jamiah Mayanja, Sarah Bimbona and Micheal Wassermann

The purpose of this paper is to investigate the relationships between technology orientations and export performance of small and medium-sized enterprises (SMEs).

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Abstract

Purpose

The purpose of this paper is to investigate the relationships between technology orientations and export performance of small and medium-sized enterprises (SMEs).

Design/methodology/approach

A quantitative research design was adopted for this study. The paper formulates hypotheses from the literature review. These hypotheses are tested using structural equation modeling with data collected from 231 SMEs in Uganda. Data were analyzed using SPSS version 23 and AMOS.

Findings

The findings of this study showed technology orientation has a positive and significant relationship with the performance of Ugandan SMEs and that supply chain agility moderates technology orientation and export performance.

Research limitations/implications

The study discusses the findings, advances limitations and managerial implications. It also suggests future research avenues. It proposes some recommendations to help Ugandan SMEs to form flexible supply chains, use the latest technology and create strong relationship ties with their partners in the supply chain.

Practical implications

The study suggests that managers of Ugandan SMEs should use the latest technology in production, marketing, logistics and supply chain management which will enable them to respond quickly to customer tastes and preferences leading to higher levels of export performance.

Originality/value

This study contributes to the literature on strategic management showing the reliability of scales used and the confirmatory of the factor structure. This study shows that in strategic management technology, orientation is critical in increasing export performance. This study has extended the resource-based view (RBV) and dynamic capabilities theories.

Details

Modern Supply Chain Research and Applications, vol. 5 no. 4
Type: Research Article
ISSN: 2631-3871

Keywords

Open Access
Article
Publication date: 23 October 2023

Dafnis N. Coudounaris and Peter Björk

This paper aims to investigate the internal factors of resources and capabilities of five born globals (BGs) from Estonia. It explores quantitatively the internal factors between…

Abstract

Purpose

This paper aims to investigate the internal factors of resources and capabilities of five born globals (BGs) from Estonia. It explores quantitatively the internal factors between a medium BG and four small BGs.

Design/methodology/approach

The study used a survey questionnaire in collecting information from the CEOs of BGs. The questionnaire consisted of 105 questions relevant to export sales related to differences in internal factors.

Findings

The firms’ size and industrial sector play a role in export sales due to differences in internal factors. Small BGs expect financially based rewards, non-financial rewards, the job satisfaction of sales representatives with the export manager, and with work in general, and the representatives’ job satisfaction is higher in the small BGs than in the medium BG. The sales representatives’ job performance, their work performance, sales presentations, technical knowledge, adaptiveness, teamwork, planning, support, the organisational capabilities for business identification, relationship-building and innovation are all higher in medium BGs than in small BGs. Eleven sub-constructs of the model were shown to be important for small BGs.

Originality/value

The current study is focused on BGs from Estonia, i.e. small BGs and medium BGs. The study contributes to the internal factors of resources and capabilities of BGs as well as to the literature review on BGs. It also provides a logical conceptual model, indicating that the export manager’s job satisfaction is the central construct influenced by antecedent factors and is related directly to the export sales performance of the BG.

Open Access
Article
Publication date: 5 December 2023

Jacopo Ballerini, Daniele Giordino, Luboš Smrčka and Francesca Culasso

Food and beverage (F&B) small and medium-sized enterprises (SMEs) must diversify their markets and obtain predictable sources of revenues to withstand difficult and volatile…

Abstract

Purpose

Food and beverage (F&B) small and medium-sized enterprises (SMEs) must diversify their markets and obtain predictable sources of revenues to withstand difficult and volatile periods such as the post-pandemic geopolitical scenario, recently burdened by the Russian-Ukrainian conflict. On the other hand, another strand of the literature suggests that public procurement could be considered a great source of income, enabling solid contracts, revenues and cash-flow stability. Therefore, this paper aims to explore the role of public procurement, the adoption of e-commerce platforms and their interactions in affecting the exporting performances of SMEs operating in the F&B sector.

Design/methodology/approach

The study retrieves data from 2,186 Italian F&B manufacturing SMEs relying on Margò by Cribis database. Therefore, it conducts a structured equational model (SEM) to test the developed hypotheses empirically.

Findings

The findings reveal that digital selling platforms positively affect exports, whereas public procurement negatively affects F&B SMEs exports. Nonetheless, findings underline that the interaction between public procurement and the adoption of digital selling platforms dampens public procurement's negative effects on exports.

Originality/value

This study brings an original contribution to the F&B literature by conducting empirical research on an extensive sample of firms from one of the most influential countries in the F&B vertical, Italy, with officially registered data. More importantly, to the best of the authors' knowledge, this study pioneers the investigation of the relationship between public procurement and e-commerce platforms in affecting F&B SMEs' export performances.

Details

European Journal of Innovation Management, vol. 26 no. 7
Type: Research Article
ISSN: 1460-1060

Keywords

Open Access
Article
Publication date: 13 March 2024

Keanu Telles

The paper provides a detailed historical account of Douglass C. North's early intellectual contributions and analytical developments in pursuing a Grand Theory for why some…

Abstract

Purpose

The paper provides a detailed historical account of Douglass C. North's early intellectual contributions and analytical developments in pursuing a Grand Theory for why some countries are rich and others poor.

Design/methodology/approach

The author approaches the discussion using a theoretical and historical reconstruction based on published and unpublished materials.

Findings

The systematic, continuous and profound attempt to answer the Smithian social coordination problem shaped North's journey from being a young serious Marxist to becoming one of the founders of New Institutional Economics. In the process, he was converted in the early 1950s into a rigid neoclassical economist, being one of the leaders in promoting New Economic History. The success of the cliometric revolution exposed the frailties of the movement itself, namely, the limitations of neoclassical economic theory to explain economic growth and social change. Incorporating transaction costs, the institutional framework in which property rights and contracts are measured, defined and enforced assumes a prominent role in explaining economic performance.

Originality/value

In the early 1970s, North adopted a naive theory of institutions and property rights still grounded in neoclassical assumptions. Institutional and organizational analysis is modeled as a social maximizing efficient equilibrium outcome. However, the increasing tension between the neoclassical theoretical apparatus and its failure to account for contrasting political and institutional structures, diverging economic paths and social change propelled the modification of its assumptions and progressive conceptual innovation. In the later 1970s and early 1980s, North abandoned the efficiency view and gradually became more critical of the objective rationality postulate. In this intellectual movement, North's avant-garde research program contributed significantly to the creation of New Institutional Economics.

Details

EconomiA, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1517-7580

Keywords

Open Access
Article
Publication date: 20 March 2024

Raúl Vázquez-López

The main goal of this paper is to examine the evolution of Latin American productive integration in terms of the regional value added incorporated in intra-regional exports of…

Abstract

Purpose

The main goal of this paper is to examine the evolution of Latin American productive integration in terms of the regional value added incorporated in intra-regional exports of Argentina, Brazil, Chile, Colombia, Mexico and Peru. In addition, the study traces the trade and productive integration trajectories for each of these countries from 1995 to 2015.

Design/methodology/approach

Based on the use of OECD’s global ICIO input-output tables, this paper applies the methodological framework by Wang et al. (2018) for the analysis of trade flows at the bilateral level, which allows breaking down the value of gross exports of each sector-country, depending on the origin of the value added contained in exports, as well as their use.

Findings

The estimates show very low shares of value added from regional partners in the intra-regional exports of the countries studied. Conversely, the weight of the value added incorporated in these exports by countries outside the region has increased in tandem with China’s expanding involvement in Latin America. This development, along with the downward trend in domestic value added incorporated in exports, indicates a lack of a regional integration process of any depth.

Originality/value

This article addresses an economic problem of conventional importance from a global value chain perspective using a novel methodology based on the use of global input–output tables.

Details

Journal of Economics, Finance and Administrative Science, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2077-1886

Keywords

Open Access
Article
Publication date: 16 March 2023

Amrita Saha, Filippo Bontadini and Alistair Cowan

The purpose of this paper is to provide an early assessment of India’s South-South cooperation for trade and technology (SSTT) with East Africa, focusing on Ethiopia, Rwanda…

1311

Abstract

Purpose

The purpose of this paper is to provide an early assessment of India’s South-South cooperation for trade and technology (SSTT) with East Africa, focusing on Ethiopia, Rwanda, Kenya, Uganda and Tanzania. It aims to analyse the role of SSTT in providing support to targeted sectors.

Design/methodology/approach

The paper examines SSTT, focusing on India and East Africa over a specific period (2000–2016) of its emergence, and extends the public sponsorship literature in international business (IB) to better understand the relationship between SSTT and value addition – applying to a particular case study of SSTT interventions in spices.

Findings

The paper highlights SSTT as a pathway to support value addition in global value chains (GVCs). Trade between India and East African countries has grown, with three developments over the period of analysis in particular: shifting trade patterns, growing share of intermediate goods trade and differences in GVC insertion. However, East African exports are largely of lower value. Capacity building to support processing capability and thriving markets can encourage greater value addition. Preliminary findings suggest early gains at the margins, as SSTT interventions have been focusing on capacity boosting with buffering and bridging mechanisms for increased volume of trade. Moving up the value chain however requires that specific value-enhancing activities continue to be targeted, building on regional capacities. Our high-level case study for spices suggests that activities are starting to have a positive effect; however, more focus is needed to specifically target value creation before export and in particular higher levels of processing.

Practical implications

While findings are preliminary, policy implications emerge to guide SSTT interventions. There is capacity for building higher value-added supply chains as is evident among East African countries that trade with each other – future SSTT programmes could tap into this and help build capacity in these higher-value value chains. Future SSTT programmes can take a comprehensive approach by aiming at interventions at key points of the value chain, and especially at points that facilitate higher value addition than initial processing. An example is that Ethiopia and Rwanda are likely to benefit from an expanded spice industry, but the next phase should be towards building processing for value-addition components of the value chain, such as through trade policies, incentivising exporters to add value to items before export. From a development perspective, more analysis needs to be done on the value chain itself – for instance, trade facilitation measures to help processers engage in value chains and to access investments for increasing value add activities. (iv), Future research should examine more closely the development impacts of SSTT, namely, the connection between increased trade, local job creation and sustained innovation, as it is these tangible benefits that will help countries in the Global South realise the benefits of increased trade.

Originality/value

The paper underlines how the SSTT approach can contribute to the critical IB and GVCs literature using a theoretical grounded approach from public sponsorship theory, and with a unique lens of development cooperation between countries in the global south and its emerging impact on development outcomes in these countries.

Details

Critical Perspectives on International Business, vol. 19 no. 5
Type: Research Article
ISSN: 1742-2043

Keywords

Open Access
Article
Publication date: 9 December 2020

Mamdouh Abdelmoula Mohamed Abdelsalam

This paper aims to explore the extreme effect of crude oil price fluctuations and its volatility on the economic growth of Middle East and North Africa (MENA) countries. It also…

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Abstract

Purpose

This paper aims to explore the extreme effect of crude oil price fluctuations and its volatility on the economic growth of Middle East and North Africa (MENA) countries. It also investigates the asymmetric and dynamic relationship between oil price and economic growth. Further, a separate analysis for each MENA oil-export and oil-import countries is conducted. Furthermore, it studies to what extent the quality of institutions will change the effect of oil price fluctuations on economic growth.

Design/methodology/approach

As the effect of oil price fluctuations is not the same over different business cycles or oil price levels, the paper uses a panel quantile regression approach with other linear models such as fixed effects, random effects and panel generalized method of moments. The panel quantile methodology is an extension of traditional linear models and it has the advantage of exploring the relationship over the different quantiles of the whole distribution.

Findings

The paper can summarize results as following: changes in oil price and its volatility have an opposite effect for each oil-export and oil-import countries; for the former, changes in oil prices have a positive impact but the volatility a negative effect. While for the latter, changes in oil prices have a negative effect but volatility a positive effect. Further, the impact of oil price changes and their uncertainty are different across different quantiles. Furthermore, there is evidence about the asymmetric effect of the oil price changes on economic growth. Finally, accounting for institutional quality led to a reduction in the impact of oil price changes on economic growth.

Originality/value

The study concludes more detailed results on the impact of oil prices on gross domestic product growth. Thus, it can be used as a decision-support tool for policymakers.

Details

Review of Economics and Political Science, vol. 8 no. 5
Type: Research Article
ISSN: 2356-9980

Keywords

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