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Combined effects of incentives and barriers on firms' export decisions

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  • Ramaseshan, B.
  • Soutar, Geoffrey N.

Abstract

Export researchers have paid considerable attention to export barriers as well as to those variables that encourage firms to become involved in exporting. Almost all export studies have looked at firms' "export or not" decision in isolation, either in relation to incentives to export (firms decide to export if they perceive certain advantages and decide against exports otherwise) or to barriers to export (firms that perceive certain barriers decide not to become involved in exports or decide to export otherwise). However, firms that perceive significant export barriers may still decide to export if the perceived benefits (incentives) outweigh the perceived difficulties (barriers). On the other hand, firms that perceive no export barriers may still decide against exporting because there are few advantages. It seems useful to study the combined effects of both incentives and barriers on firms' export decisions and the present study was designed in an attempt to combine these two aspects within the Australian horticulture industry. The findings of the study suggest that some firms export in spite of barriers and that firms who do not perceive barriers do not necessarily involve in export activity.

Suggested Citation

  • Ramaseshan, B. & Soutar, Geoffrey N., 1996. "Combined effects of incentives and barriers on firms' export decisions," International Business Review, Elsevier, vol. 5(1), pages 53-65, February.
    • Handle: RePEc:eee:iburev:v:5:y:1996:i:1:p:53-65
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    References listed on IDEAS

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    Cited by:

    1. Paul, Justin & Parthasarathy, Sundar & Gupta, Parul, 2017. "Exporting challenges of SMEs: A review and future research agenda," Journal of World Business, Elsevier, vol. 52(3), pages 327-342.
    2. Hosseini, Sahab & Fallon, Grahame & Weerakkody, Vishanth & Sivarajah, Uthayasankar, 2019. "Cloud computing utilization and mitigation of informational and marketing barriers of the SMEs from the emerging markets: Evidence from Iran and Turkey," International Journal of Information Management, Elsevier, vol. 46(C), pages 54-69.
    3. Stephan Gerschewski & Joanna Scott‐Kennel & Elizabeth L. Rose, 2020. "Ready to export? The role of export readiness for superior export performance of small and medium‐sized enterprises," The World Economy, Wiley Blackwell, vol. 43(5), pages 1253-1276, May.
    4. Marianne Matthee & Waldo Krugell, 2011. "Barriers to Internationalisation: Firm-Level Evidence from South Africa," Working Papers 2011/09, Maastricht School of Management.
    5. Eldrede Kahiya, 2013. "Export barriers and path to internationalization: A comparison of conventional enterprises and international new ventures," Journal of International Entrepreneurship, Springer, vol. 11(1), pages 3-29, March.
    6. Mokhtari Mehran, 2011. "Determinants of Human Resource Productivity in Iran," Journal of Education and Vocational Research, AMH International, vol. 2(4), pages 132-137.
    7. Leonidou, Leonidas C., 2000. "Barriers to export management: an organizational and internationalization analysis," Journal of International Management, Elsevier, vol. 6(2), pages 121-148.
    8. Morgan, Robert E. & Katsikeas, Constantine S., 1997. "Export stimuli: Export intention compared with export activity," International Business Review, Elsevier, vol. 6(5), pages 477-499, October.
    9. Eldrede Kahiya & David Dean & Jeff Heyl, 2014. "Export barriers in a changing institutional environment: A quasi-longitudinal study of New Zealand’s manufacturing exporters," Journal of International Entrepreneurship, Springer, vol. 12(4), pages 331-364, December.
    10. Kahiya, Eldrede T., 2018. "Five decades of research on export barriers: Review and future directions," International Business Review, Elsevier, vol. 27(6), pages 1172-1188.

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