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Factors influencing the propensity to export: A study of UK and Portuguese textile firms

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  • Serra, Francisco
  • Pointon, John
  • Abdou, Hussein

Abstract

The purpose of this paper is to determine which particular organisational and managerial factors contribute to the propensity to export in a declining sector. For this purpose the textile and clothing sector in Portugal and the United Kingdom is chosen for investigation. This study analyses firms’ resources and capabilities, as well as decision-makers’ objective and subjective characteristics in a sample of 167 Portuguese and 165 UK firms in the textile and clothing industry. The fundamental research questions are: which characteristics of the firm are associated with stronger export propensity, and is it possible to identify a profile of decision-makers associated with export propensity? For Portugal, the size of firm and the educational level of managers are the key determinants of export propensity. As to the UK, age and perception of costs are the key factors. In addition, we also investigated managers’ commitment to exporting, for which the important determinants of export propensity in the textile and clothing sector were found to be planning, advertising and promotion. When combining the two country data-sets, particular firm characteristics, namely, firm size, competitive advantage, and technology, and a specific objective characteristic, namely, the number of languages spoken, are the key factors associated with the propensity to export in this declining sector.

Suggested Citation

  • Serra, Francisco & Pointon, John & Abdou, Hussein, 2012. "Factors influencing the propensity to export: A study of UK and Portuguese textile firms," International Business Review, Elsevier, vol. 21(2), pages 210-224.
    • Handle: RePEc:eee:iburev:v:21:y:2012:i:2:p:210-224
    DOI: 10.1016/j.ibusrev.2011.02.006
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    Cited by:

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    3. Junqian Xu, 2017. "The Role of China in the UK Relative Imports from Three Selected Trading Regions: The Case of Textile Raw Material Industry," IJERPH, MDPI, vol. 14(12), pages 1-14, November.
    4. Arash Rezazadeh & Ana Carvalho, 2018. "Towards a survival capabilities framework: Lessons from the Portuguese Textile and Clothing industry," NIPE Working Papers 14/2018, NIPE - Universidade do Minho.
    5. Aurora Castro Teixeira & Maria João Barros, 2014. "Local municipalities’ involvement in promoting the internationalisation of SMEs," Local Economy, London South Bank University, vol. 29(1-2), pages 141-162, February.
    6. Lopez, Carmen & Yacine Haddoud, Mohamed & Kasturiratne, Dulekha, 2022. "Revisiting the innovation–export entry link through a configuration approach," Journal of Business Research, Elsevier, vol. 149(C), pages 927-937.
    7. Maria Crescimanno & Claudio Mirabella & Valeria Borsellino & Emanuele Schimmenti & Demetris Vrontis & Salvatore Tinervia & Antonino Galati, 2023. "How Organizational Resources and Managerial Features Affect Business Performance: An Analysis in the Greek Wine Industry," Sustainability, MDPI, vol. 15(4), pages 1-14, February.
    8. Nathan Mugumisi, 2018. "Zimbabwean Manufacturing Firms' Propensity and Intensity to Export in the Post Zimbabwean Dollar Era," Journal of Economics and Behavioral Studies, AMH International, vol. 10(1), pages 42-48.
    9. Simona Comi & Laura Resmini, 2020. "Are export promotion programs effective in promoting the internalization of SMEs?," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(2), pages 547-581, July.
    10. Idris, Bochra & Saridakis, George & Khan, Zaheer, 2022. "The Effect of Outward and Inward Internationalisation on Different Types of Innovation: Evidence from UK SMEs," Journal of International Management, Elsevier, vol. 28(2).
    11. Haddoud, Mohamed Yacine & Onjewu, Adah-Kole Emmanuel & Nowiński, Witold & Jones, Paul, 2021. "The determinants of SMEs’ export entry: A systematic review of the literature," Journal of Business Research, Elsevier, vol. 125(C), pages 262-278.
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    13. Zhu, Fengxia & Zou, Shaoming & Xu, Hui, 2017. "Launching reverse-innovated product from emerging markets to MNC’s home market: A theoretical framework for MNC’s decisions," International Business Review, Elsevier, vol. 26(1), pages 156-163.
    14. Ramdani, Boumediene & Belaid, Fateh & Boukrami, Elias, 2022. "Profiling exporting SMEs: The role of innovation-orientation," Journal of Business Research, Elsevier, vol. 149(C), pages 1-13.
    15. Giorgio Barba Navaretti & Davide Castellani & Fabio Pieri, 2022. "CEO age, shareholder monitoring, and the organic growth of European firms," Small Business Economics, Springer, vol. 59(1), pages 361-382, June.
    16. Saridakis, George & Idris, Bochra & Hansen, Jared M. & Dana, Leo Paul, 2019. "SMEs' internationalisation: When does innovation matter?," Journal of Business Research, Elsevier, vol. 96(C), pages 250-263.
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    18. Eduardsen, Jonas & Marinova, Svetla Trifonova & González-Loureiro, Miguel & Vlačić, Božidar, 2022. "Business group affiliation and SMEs’ international sales intensity and diversification: A multi-country study," International Business Review, Elsevier, vol. 31(5).
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    More about this item

    Keywords

    Export propensity; Small and medium sized firms (SMEs); Textile industry;
    All these keywords.

    JEL classification:

    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration

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