Do Productive Capabilities Affect Export Performance? Evidence from African Firms

Abstract

There is limited empirical evidence measuring productive capabilities and analysing their effect on firm-level export performance in Africa. This paper constructs novel indicators of productive capabilities and examines their effects on the export performance of African firms. Using recent firm-level data from the World Bank Enterprise Survey across 29 African countries, the paper builds new indicators of productive capabilities, which are conceptualised as a combination of technological and production capabilities. Estimating a censored regression model, we find that both technological and production capabilities are important drivers of firms' direct export performance. This suggests that superior productive capabilities enhance the efficiency and competitiveness of firms, leading to improvements in their export performance. The findings underscore the importance of policies that support the strengthening of productive capabilities in African countries.

Full Issue

“…While there are opportunities for leapfrogging, sustained industrial progress is only possible Tregenna: Can Africa Run? Industrialisation and Development in Africa with ongoing investment, learning, building of capabilities and upgrading (see Figueiredo 2001;Andreoni 2014;Lee 2019;Avenyo et al 2021a). It is important for African countries to take a dynamic view of comparative advantage, and to actively build up strengths in activities in which they are not currently competitive, but to have the potential to become so in the short to medium term.…”

The difference between exporter and non-exporter knowledge-based firms: the case of Iranian firms in the chemical industry

“…Looking into small and medium enterprises (SMEs) in Ghana, Easmon et al (2019) show that social capital, innovation and marketing capabilities are the main determinants of exports among these firms. Avenyo et al (2021) show that technological and production capabilities are important drivers of firms’ direct export performance by surveying African firms. In addition, different studies’ results (Acikdilli et al , 2020; Ajayi, 2016; Boso et al , 2019; İpek, 2018; Pham et al , 2017; Ribau et al , 2017, 2019) are aligned with RBV.…”

“…(2) A study that compares exporters and non-exporter firms by a comprehensive perspective in terms of organizational capabilities was not found. (3) In RBV literature, the effect of some organizational capabilities in explaining export performance has been less considered (studies such as Avenyo et al, 2021;Acikdilli et al, 2020;Easmon et al, 2019;Ribau et al, 2019;_ Ipek, 2018).…”

“…Considering RBV, there are some justifications why these research questions are interesting for the case of Iran: Most experimental research based on RBV focused on the cases in developed countries rather than developing countries (studies such as Cassia and Magno, 2022; Camisón-Haba et al , 2019; Liu et al , 2019; Ribau et al , 2017; Lau et al , 2010). A study that compares exporters and non-exporter firms by a comprehensive perspective in terms of organizational capabilities was not found. In RBV literature, the effect of some organizational capabilities in explaining export performance has been less considered (studies such as Avenyo et al , 2021; Acikdilli et al , 2020; Easmon et al , 2019; Ribau et al , 2019; İpek, 2018). …”

“…In RBV literature, the effect of some organizational capabilities in explaining export performance has been less considered (studies such as Avenyo et al , 2021; Acikdilli et al , 2020; Easmon et al , 2019; Ribau et al , 2019; İpek, 2018).…”