Challenges of Exporting Differentiated Products to Developed Countries: The Case of SME-Dominated Sectors in a Semi-Industrialized Country

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract * This paper surveys four Argentinean industries-light ships, television programs, wines, and wooden furniture-that have experienced substantial export growth in recent years, particularly to developed countries. The case studies first describe the structure of the industries, then characterize the emergence of export pioneers and the subsequent process of diffusion. Finally, they analyze the role played by public institutions. Across sectors, the appearance of a pioneer is largely explained by a knowledge advantage relative to other industry participants regarding foreign markets, which the pioneer acquired previously and independently of his decision to export. Diffusion occurs across as well as within sectors, as pioneers' knowledge is relevant to other industries. Since diffusion does not necessarily hurt the pioneer, public policy has a potentially important role in fostering diffusion within and across sectors. Terms of use: Documents inJEL Classifications: L62, L66, L68, L82

Sequential exporting

“…For example, in a review of international marketing studies, Cavusgil and Zou (1994) list product adaptation, distributor support and commitment of managerial resources to exports as key competencies required for a successful export strategy. Similarly, in a study of several Argentine exporters during the 2000's, Artopoulos, Friel and Hallak (2010) find that export success entails substantial changes in product design, production and marketing capabilities. Crucially, they also find that many new exporters were unaware of those changes prior to exporting, presumably because of the tacit nature of that information.…”

“…We sought inspiration for the basic premise of our model in insights from the international business literature, including recent findings on Argentine exporters by Artopoulos, Friel and Hallak (2010). A long tradition in that literature, starting with Johanson and Vahlne (1977), emphasizes the distinct knowledge and competencies-typically related to product adaptation, marketing and distribution-that are required for export success.…”

“…A firm can properly infer and develop its own "internationalization knowledge," however, only once it starts its foreign operations. Artopoulos, Friel and Hallak (2010) document the importance of this export-specific knowledge with detailed case study analyses of firms from four emerging export sectors in Argentina. Importantly, such export capabilities can be used when accessing different foreign destinations.…”

Beyond the average effects: The distributional impacts of export promotion programs in developing countries

“…For instance, firms need to learn and understand the preferences of foreign consumers; the nature of competition in foreign markets; the structure of distribution networks, and the requirements, incentives and constraints of the distributors. These activities are intrinsically more difficult when exporting to more sophisticated markets (see Artopoulos et al, 2007). Thus, heterogeneous effects of export promotion might then also occur across destination countries with different levels of development.…”

Entering new country and product markets: does export promotion help?

“…Properly shaping the marketing strategy is an information-intensive activity. For instance, firms need to learn and understand the preferences of foreign consumers; the nature of competition in foreign markets; the structure of distribution networks, and the requirements, incentives and constraints of the distributors (see, e.g., Artopoulos et al, 2007). On the other hand, entry costs can also be conceivably high in developing country markets.…”