Does knowledge spill to leaders or laggards? Exploring industry heterogeneity in learning by exporting

Abstract

In recent years the international trade literature has focused on the effects of exporting and its benefits in an open economy. Scholars note that engaging in trade enhances knowledge spillovers, and results in income growth and income convergence among trading partners. Although the macro-literature has long addressed economic convergence, there has been relatively little research examining the effect of exporting on ex post firm performance. Likewise, there has been little research that examines the differential learning-by-exporting effects across industries. In this paper we build upon the convergence literature to argue that engaging in exporting provides firms, especially firms in technologically lagging industries, the opportunity to benefit disproportionately from knowledge spillovers. Using a sample of Spanish manufacturing firms from 1990 to 1997, we investigate empirically how exporting differentially influences the innovative outcomes of firms in technologically leading vs lagging industries. We find evidence that firms in technologically lagging industries (in which Spain lags the global technology frontier) learn more from exporting than those firms in technologically leading industries (in which Spain is at, or near, the global technology frontier). The results enrich the traditional convergence argument by suggesting that industry heterogeneity matters to knowledge transfer, and stands to play a substantial role in reducing knowledge gaps. Journal of International Business Studies (2008) 39, 132–150. doi:10.1057/palgrave.jibs.8400320

Learning by exporting: Lessons from high-technology SMEs

“…Recently, Salomon and Shaver (2005) and Salomon and Jin (2008) have argued that much of the empirical research reviewed above provides a very indirect test of the learning by exporting hypothesis. Since learning by exporting is about learning, a better measure of the possible effect would be one which embodies a learning outcome, such as innovation.…”

“…In addition, firms learn from many external as well as internal sources which may have nothing to do with exposure to export markets, and thus it is not always easy to separate out the learning by exporting effect. As a result, empirical studies of the effects of exporting on (productivity) performance have very mixed results (Wagner 2007); as Salomon and Jin (2008) point out, we still know relatively little about the how exporting affects performance at the firm level. This is especially true for small and medium-sized enterprises (SMEs).…”

Organizational Culture and Firms’ Internationalization, Innovativeness and Networking Behaviour: Hofstede Approach

“…The other stream of research focuses on the opposite, presuming that internationalization can stimulate innovativeness because it offers access to new knowledge, more demanding customers and challenges of the international competitiveness (Gupta & Govindarajan, 2000;Zahra, Ireland & Hitt, 2000). Therefore, the innovativeness of a firm may be the outcome of a firm's preceding involvement in international market by exports and learning by exporting is considered to be leading to an increased innovativeness of a firm (Salomon & Shaver, 2005;Salomon & Jin, 2008).…”

Moderating effects of the relationship between offshore outsourcing and the export capability of firms

“…In general, we see international trade as an important channel of diffusion, not only for technological knowledge and organization, but also for market information (Karlsen, Silseth, Benito & Welch, 2003;Salomon & Jin, 2008). When searching for and negotiating with foreign vendors, firms develop their network of external contacts and learn about foreign markets.…”