Firm Size and Export Intensity: Solving an Empirical Puzzle

Verwaal, Ernst; Donkers, Bas

doi:10.1057/palgrave.jibs.8491035

Cited by 149 publications

(101 citation statements)

References 15 publications

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“…Some authors use a transaction cost approach (Verwaal & Donkers, 2002). This approach highlights the importance of the governance structure that firms choose to develop in order to manage export relationships.…”

Section: Conceptual Frameworkmentioning

confidence: 99%

Firm size, business experience and export intensity in SMEs: A longitudinal approach to complex relationships

Majocchi

Bacchiocchi

Mayrhofer³

2005

International Business Review

307

206

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Section: Conceptual Frameworkmentioning

confidence: 99%

Firm size, business experience and export intensity in SMEs: A longitudinal approach to complex relationships

Majocchi

Bacchiocchi

Mayrhofer³

2005

International Business Review

307

206

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“…Similarly, under the transaction cost theory, a larger size is considered to enable the firm to adopt a governance structure that suits the requirements of international trade by reducing the transaction costs (Maurel 2009). Therefore, the majority of theoretical explanations suggest that larger firms can better absorb the risks associated with entering a foreign market, take advantage of the economies of scale and have more financial resources to meet the costs of the initial stages of entering new markets (Bernard and Jensen 1999;Verwaal and Donkers 2002;Majocchi et al 2005;Maurel 2009). …”

Section: Selection Model (Extensive Margin)mentioning

confidence: 99%

Networks and export performance of agri-food firms: New evidence linking micro and macro determinants

Serrano¹,

Fraile²,

Olmos³

2016

AGR ECON-CZECH

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Th e paper complements a new line of research that includes the fi rm heterogeneity in trade models. Th e central idea of this research is that only the largest and most effi cient fi rms are capable of exporting. However, the empirical evidence has confi rmed that a large number of SMEs is also involved in internationalisation. Given this context, the aim of the paper is to analyse the infl uence of collaborative networks between fi rms and institutions as an alternative mechanism to the small size of the majority of the fi rms in the agri-food industry. To this end, there was used a longitudinal panel between 1994 and 2012 comprising a sample of 342 Spanish fi rms involved in the business sectors of the food, meat, drink and tobacco industries, and a dynamic Heckman-Probit model was implemented. Th e fi rst stage studies the positive infl uence of collaborative networks in fi rms' decision to export and the second stage analyses the eff ect of cooperation mechanisms on export intensity. Th e results show a positive eff ect of business cooperation networks in both stages suggesting that SMEs can overcome the barrier of their small size in their internationalisation process through other mechanisms, such as collaborative networks.

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“…These companies become familiar with the local context, and how to reduce specific disadvantages in each place (Barkema, Bell & Pennings, 1996), as well as specific transaction costs for exports (Verwaal & Donkers, 2002). Second, working with foreign vendors provides advantages that facilitate exports to those countries (Anand & Delios, 1997).…”

Section: The Theoretical Framework and Formulating The Hypothesismentioning

confidence: 99%

“…However, large companies can generate economies of scale in the governing structure to improve the capability to evaluate and supervise transactions with foreign vendors (Verwaal & Donkers, 2002). In conclusion, transaction costs may be lower because large companies have the power to negotiate, which limits the opportunist behavior of foreign vendors.…”

Section: Hypothesis 2: Ceteris Paribus the Positive Effects Of Offshmentioning

confidence: 99%

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

Lagunes

Valle

Sastre‐Castillo

2016

SAJBM

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This paper analyzes the effect of offshore outsourcing on the export performance of firms, based on the theories of international business, the resource-based view of the firm and the transaction cost theory.Outsourcing can reduce production costs and increase flexibility. It can also provide new resources and market knowledge. However, the impact of offshore outsourcing depends on the resources and capabilities of firms to manage a network of foreign suppliers, and to absorb knowledge of foreign markets.Using a database of about 1,000 manufacturing companies in Mexico in 2011, we found that offshore outsourcing increases the performance of exports. The effects are stronger in export markets from which the company also imports intermediate goods.The results also show that the size of the company, the organization of intra-firm imports and export experience moderate the effects of outsourcing in a positive way.

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Firm Size and Export Intensity: Solving an Empirical Puzzle

Cited by 149 publications

References 15 publications

Firm size, business experience and export intensity in SMEs: A longitudinal approach to complex relationships

Firm size, business experience and export intensity in SMEs: A longitudinal approach to complex relationships

Networks and export performance of agri-food firms: New evidence linking micro and macro determinants

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

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