Early internationalization patterns and export market persistence: a pseudo-panel data analysis

Abstract

This study evaluates the international market persistence of early exporting businesses. The relationship between time in the market and export propensity/intensity levels was analyzed to identify the persistence of the internationalization patterns of entrepreneurial ventures. The empirical application employs a pseudo-panel approach at the business age-and industry-based cohort level drawn from a group of independent cross-sectional surveys that include information for 13961 independently and randomly-selected business owners for the period 2007-2012. The results show that the proportion of firms that export significantly diminishes following the initial post start-up years and that low export intensity levels at startup leads to greatest tenacity and persistence of the exporting efforts for new firms. The results contribute to the recent discussions on whether early internationalization is an effective strategy and should be encouraged.

Experience as a catalyst of export destinations: The ambidextrous connection between international experience and past entrepreneurial experience

“…However, most of the sampled businesses report an export intensity level that falls in the 1%-25% interval (83.33%), while the remaining 16.67% of business export between 25% and 50% of their products/services. This descriptive result is consistent with other similar studies conducted in developed (Eaton, Kortum, & Kramarz, 2004) and developing economies (Brambilla et al, 2012;Martins et al, 2015;Vaillant et al, 2019). Given the distribution of this ordinal variable, an ordered probit model regressing export intensity against past entrepreneurial experience would produce inconsistent results closer to a probit model in which the perfect collinearity between export market experience and the dependent variable would contaminate the analysis and the conclusions that can be drawn from it.…”

“…Because of the compounded entrepreneurial complexity of simultaneous activity in many different international markets, exporting to multiple destinations becomes a high-skilled knowledgeintensive task even when the nature of the goods or services that are traded abroad are relatively lowskill (Brambilla et al, 2012;Vaillant, Lafuente, & Bayon, 2019). Novice entrepreneurs may find it too difficult to simultaneously operate in geographically, institutionally and culturally distinct markets, and may be tempted to adopt a more concentrated international stance where their ventures limit their international activities to one single foreign market (Love, Roper, & Zhou, 2016).…”

“…In this line, Lafuente, Vaillant, Vendrell-Herrero, and Gomes (2018) and Vaillant and Lafuente (2019) have linked the past business experience of serial entrepreneurs to the international activity levels of their subsequent businesses. Serial entrepreneurs were found to benefit from the generative nature of experiential entrepreneurial learning that makes them better comprehend and manage future challenges, which they can do across a broader range of new situations (Cope, 2005;Huber, 1991;Keith, Unger, Rauch, & Frese, 2016;Toft-Kehler, Wennberg, & Kim, 2014).…”

Conformance and performance roles of bank boards: The connection between non-performing loans and non-performing directorships

“…Therefore, we account for the potential effect of capital requirements on performance by introducing the capital adequacy ratio (CAR), which is computed as equity plus risk-weighted reserves divided by total assets. Finally, a set of time dummy variables is included to rule out the potential effect of time trends and changes in the economic conditions among the sample financial firms during the analysed period (Vaillant, Lafuente & Bayon, 2018). Note that, in all regression models, all time varying variables are lagged one period to control for potential endogeneity problems.…”

Persistência Das Pmes Brasileiras Na Exportação: Uma Análise Dos Fatores Internos E Externos De Estímulo

“…A atividade exportadora tem sido estudada há anos, quando relacionada aos fatores de estímulos às exportações (LEONIDOU et al, 2007;WILLIAMS, 2008;FRANCIONI et al, 2016). Entretanto, foi identificada uma lacuna teórica quanto aos fatores de estímulos, internos e externos, que participam da atividade exportadora persistente, ou seja, aqueles fatores que contibuem para que uma PME persista com suas exportações (GUNARATNE, 2014;MESCHI et al, 2017;VAILLANT et al, 2018). Dessa forma, o presente estudo procurou investigar os fatores internos e externos que interferem na persistência das PMEs gaúchas na atividade exportadora.…”