IDEAS home Printed from https://ideas.repec.org/p/por/fepwps/524.html
   My bibliography  Save this paper

The Impact Of Industry Characteristics On Firms’ Export Intensity

Author

Listed:
  • Joana Reis

    (Faculdade de Economia do Porto)

  • Rosa Forte

    (Faculdade de Economia do Porto)

Abstract

The process of globalization of economies and markets has led firms to consider entry into foreign markets. Exporting is the simplest foreign market entry mode, but also the most common, not requiring high financial and human resources. Hence it is important to study the factors that can affect the firm’s export intensity, measure commonly used to assess the export performance. Several authors have studied the factors that influence the firm’s export performance, but few have addressed the relationship between industry characteristics and export intensity. Thus, the objective of the present study is to analyze the impact of industry characteristics (capital intensity, R&D intensity, labor productivity, export orientation, and concentration level) on the firm’s export intensity, seeking to add empirical evidence to this relatively neglected research area. Based on a sample of 1,425 Portuguese firms during the period 2008-2010, and using panel data estimation, the empirical results show that some industry characteristics (labor productivity, export orientation, concentration), as well as firm characteristics (labor productivity, size) are important determinants of a firm’s export intensity. In particular, we conclude that firm export intensity is positively affected by labor productivity (at industry and firm level), corroborating the idea that firms and governments need to direct their policies towards increased productivity in order to improve competitiveness in foreign markets.

Suggested Citation

  • Joana Reis & Rosa Forte, 2014. "The Impact Of Industry Characteristics On Firms’ Export Intensity," FEP Working Papers 524, Universidade do Porto, Faculdade de Economia do Porto.
    • Handle: RePEc:por:fepwps:524
    as

    Download full text from publisher

    File URL: http://www.fep.up.pt/investigacao/workingpapers/wp524.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kiyohiko Ito & Vladimir Pucik, 1993. "Abstract," Strategic Management Journal, Wiley Blackwell, vol. 14(1), pages 61-75, January.
    2. Ursic, Michael L. & Czinkota, Michael R., 1984. "An experience curve explanation of export expansion," Journal of Business Research, Elsevier, vol. 12(2), pages 159-168, June.
    3. Jeffrey M. Wooldridge, 2001. "Applications of Generalized Method of Moments Estimation," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 87-100, Fall.
    4. Kris Iyer, 2010. "The Determinants of Firm-Level Export Intensity in New Zealand Agriculture and Forestry ," Economic Analysis and Policy, Elsevier, vol. 40(1), pages 90-101, March.
    5. Estrin, Saul & Meyer, Klaus E. & Wright, Mike & Foliano, Francesca, 2008. "Export propensity and intensity of subsidiaries in emerging economies," International Business Review, Elsevier, vol. 17(5), pages 574-586, October.
    6. Jens Matthias Arnold & Katrin Hussinger, 2005. "Export Behavior and Firm Productivity in German Manufacturing: A Firm-Level Analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 141(2), pages 219-243, July.
    7. Leonidou, Leonidas C. & Katsikeas, Constantine S. & Samiee, Saeed, 2002. "Marketing strategy determinants of export performance: a meta-analysis," Journal of Business Research, Elsevier, vol. 55(1), pages 51-67, January.
    8. Panagiotis Ganotakis & James H Love, 2012. "Export propensity, export intensity and firm performance: The role of the entrepreneurial founding team," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 43(8), pages 693-718, October.
    9. Pla-Barber, José & Alegre, Joaquín, 2007. "Analysing the link between export intensity, innovation and firm size in a science-based industry," International Business Review, Elsevier, vol. 16(3), pages 275-293, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Joana Reis & Rosa Forte, 2016. "The impact of industry characteristics on firms’ export intensity," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 19(3), pages 266-281, September.
    2. Alfredo D’Angelo, 2012. "Innovation and export performance: a study of Italian high-tech SMEs," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 16(3), pages 393-423, August.
    3. Love, James H. & Mansury, Mica Ariana, 2009. "Exporting and productivity in business services: Evidence from the United States," International Business Review, Elsevier, vol. 18(6), pages 630-642, December.
    4. Leonidou, Leonidas C. & Katsikeas, Constantine S., 2010. "Integrative assessment of exporting research articles in business journals during the period 1960-2007," Journal of Business Research, Elsevier, vol. 63(8), pages 879-887, August.
    5. Qinglan Wu & Guifu Chen & Jing Han & Liyan Wu, 2022. "Does Corporate ESG Performance Improve Export Intensity? Evidence from Chinese Listed Firms," Sustainability, MDPI, vol. 14(20), pages 1-16, October.
    6. Bianchi, Constanza & Wickramasekera, Rumintha, 2016. "Antecedents of SME export intensity in a Latin American Market," Journal of Business Research, Elsevier, vol. 69(10), pages 4368-4376.
    7. Mercè Sala-Ríos & Mariona Farré-Perdiguer, 2021. "Export behaviour and innovation: a challenge to be met by cooperatives," Economics Bulletin, AccessEcon, vol. 41(3), pages 1849-1859.
    8. Ana Rita Marques & Cátia Silva, 2018. "Assessing the Competitiveness of the Portuguese Chemical Sector," GEE Papers 0110, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Sep 2018.
    9. Ra�l Serrano & Isabel Acero-Fraile & Natalia Dejo-Oricain, 2017. "Collaborative networks and export intensity in family firms: a quantile regression approach," Documentos de Trabajo dt2017-04, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    10. Sari, Dyah Wulan & Restikasari, Wenny & Ajija, Shochrul Rohmatul & Tarbiyah Islamia, Haura Azzara & Muchtar, Darmawati, 2021. "The Impacts of Foreign Direct Investment and Export Expansion on the Performance of the High-Tech Manufacturing Industry," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 55(2), pages 91-105.
    11. Carmen Lafuente & Ignacio López & Carlos Poza, 2014. "Education, Innovation, Stage of Activity and the Recent Economic Crisis as Key Factors of Internationalization: An Empirical Analysis of the Spanish Entrepreneurs Using the GEM Database," International Journal of Business and Social Research, LAR Center Press, vol. 4(10), pages 54-67, October.
    12. Krammer, Sorin M.S. & Strange, Roger & Lashitew, Addisu, 2018. "The export performance of emerging economy firms: The influence of firm capabilities and institutional environments," International Business Review, Elsevier, vol. 27(1), pages 218-230.
    13. Wang, Wei & Ma, Hao, 2018. "Export strategy, export intensity and learning: Integrating the resource perspective and institutional perspective," Journal of World Business, Elsevier, vol. 53(4), pages 581-592.
    14. Xuenan Ju & Yuan Cheng & Zuohao Hu & Mengyuan Lv & Xi Chen, 2015. "Determinants and consequences of price-leadership strategy: Evidence from Chinese manufacturer exporters," Transnational Marketing Journal, Oxbridge Publishing House, UK, vol. 3(2), pages 81-111, October.
    15. Pedro J. Hernández, 2020. "Reassessing the link between firm size and exports," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(2), pages 207-223, June.
    16. Agnihotri, Arpita & Bhattacharya, Saurabh, 2015. "Determinants of export intensity in emerging markets: An upper echelon perspective," Journal of World Business, Elsevier, vol. 50(4), pages 687-695.
    17. Dong, Meitong & Wang, Liwen & Yang, Defeng & Zhou, Kevin Zheng, 2022. "Performance feedback and export intensity of Chinese private firms: Moderating roles of institution-related factors," International Business Review, Elsevier, vol. 31(3).
    18. Nuno Calheiros-Lobo & José Vasconcelos Ferreira & Manuel Au-Yong-Oliveira, 2023. "SME Internationalization and Export Performance: A Systematic Review with Bibliometric Analysis," Sustainability, MDPI, vol. 15(11), pages 1-36, May.
    19. Correa, Paulo & Dayoub, Mariam & Francisco, Manuela, 2007. "Identifying supply-side constraints to export performance in Ecuador : an exercise with Investment Climate Survey data," Policy Research Working Paper Series 4179, The World Bank.
    20. Carmen Lafuente & Ignacio López & Carlos Poza, 2014. "Education, Innovation, Stage of Activity and the Recent Economic Crisis as Key Factors of Internationalization: An Empirical Analysis of the Spanish Entrepreneurs Using the GEM Database," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 4(10), pages 54-67, October.

    More about this item

    Keywords

    Export performance; export intensity; Portuguese firms; industry characteristics;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L69 - Industrial Organization - - Industry Studies: Manufacturing - - - Other

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:por:fepwps:524. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/fepuppt.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.