How do firms combine different internationalisation modes? A multivariate probit approach

Calia, Pinuccia Pasqualina; Ferrante, Maria Rosaria

doi:10.1007/s10290-013-0162-5

Cited by 14 publications

(8 citation statements)

References 43 publications

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“…Unfortunately, multiple-choice models become cumbersome for a large number of internationalisation forms because the different forms can be combined and each combination defines a choice. For this reason, Calia and Ferrante (2010) use a multivariate probit model to estimate the relevant associations between different internationalisation patterns and variables describing firm characteristics. In particular, they study Italian firms considering a wide range of internationalisation forms, including offshoring of production and outsourcing of services abroad, as well as non-equity forms, such as commercial penetration operations and agreements, in addition to the exports and FDI modes.…”

Section: Previous Literature and Testable Hypothesismentioning

confidence: 99%

Internationalization choices: an ordered probit analysis at industry level

2015

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Trade theory traces back different patterns of internationalization to heterogeneity between firms, measured both through differences in productivity levels and size. In this paper we analyze the link between heterogeneity within sectors and internationalization choices, namely trade and foreign direct investments (FDI) for a large sample of countries and industries between 1994 and 2004. The focus of our paper is on the role played by average productivity level and the distribution of firms by size in explaining differences across sectors and countries in the extensive margin of internationalization (i.e., the number of foreign nations where firms from a given sector and country have expanded abroad). By performing an ordered probit analysis, and controlling for other factors affecting the patterns of internationalization, we confirm that industries with higher productivity levels and with a distribution of firms shifted toward large firms are more prone to internationalize in foreign markets through both trade and FDI. Moreover, the relative impact of average productivity and firm size on FDI is larger than that on trade. These results are robust to different measures of productivity and the distribution of firms.

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Section: Previous Literature and Testable Hypothesismentioning

confidence: 99%

Internationalization choices: an ordered probit analysis at industry level

2015

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“…This increased attention to exporting is partially explained by the growth in the number of countries facing actual or anticipated balance of payment deficits (Dean, Mengüç, & Myers, 2000). It is widely recognized that the expansion of a nation's exports has great influence on the growth of the economy as a whole, as well as on individual firms (López-Rodríguez, Dopico, & Puente, 2018;Calia & Ferrante, 2013;Leonidou, Katsikeas, Palihawadana, & Spyropoulou, 2007;Cavusgil & Nevin, 1981). Exporting is of vital conducted in developed countries.…”

Section: Introductionmentioning

confidence: 99%

Impact of Controllable Factors on Export Performance of SMEs in Jordan

MaanAlkhateeb¹

2019

CBR

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Exporting is of great interest for SMEs in Jordan from both microeconomic and macroeconomic perspective. The objective of this study was to identify to what extent specific internal factors contribute to export success of SMEs in Jordan. This study hypothesized that export performance of SMEs is directly affected by three groups of internal factors. These include firm characteristics, managerial characteristics, and marketing strategy. A multiple case approach is used to conduct this research and a structured interview is developed to collect the data directly from the participants. A pattern matching approach was used to test the hypotheses. The results show that export performance is positively affected by firm characteristics, managerial characteristics, and marketing strategy.Additionally, the demographic characteristics of managers and adaptation of distribution channels are unlikely to have an influence on export performance. This was unexpected, because of the plenty of empirical evidences in the literature that support the impact of these variables on export success.

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“…Compared to the ordinary probit model, the multivariate probit specification has two interesting properties: it does not restrain decisions to a single type of acquisition; on the contrary, it allows us to consider multiple simultaneous deals (cross‐border and intraregional deals) in a given year. Moreover, it also controls for the fact that these three types of M&A decisions could be related because of resource and capability synergies or constraints across investments (Calia & Ferrante, ; Tekin‐Koru, ).…”

Section: Sample Methods and Measuresmentioning

confidence: 99%

“…We also removed investments made in tax haven countries from our sample because it was not possible to trace the ultimate destination of those investments. also controls for the fact that these three types of M&A decisions could be related because of resource and capability synergies or constraints across investments (Calia & Ferrante, 2013;Tekin-Koru, 2012).…”

Section: Dependent Variable and Methodsmentioning

confidence: 99%

Effects of subnational regional corruption on growth strategies in emerging economies: Evidence from Russian domestic and international M&A activity

Bertrand

Betschinger

Laamanen

2018

Global Strategy Journal

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Research Summary This article contributes to an improved understanding of the effects of subnational regional corruption on the external growth strategies of emerging economy firms. We examine the acquisition activity of firms in their home regions, in other parts of the country, and internationally. We consider four mechanisms through which a corrupt regional home context can affect firms’ acquisition behaviors: (a) corrosive deal deterrence, (b) deal facilitation, (c) corruption escape into less corrupt contexts, and (d) enhanced corruption ability to acquire in similarly corrupt environments. Based on an analysis of the acquisition activity of 2,981 Russian firms established in 40 regions in Russia from 2001 to 2008, we find evidence for the existence of both deal facilitating and escaping effects of home region corruption. Managerial Summary Corruption indicators regularly reveal that emerging countries are more corrupt than developed countries. While prior academic research has associated corruption with predominantly negative effects on business activity, an increasing number of globally successful companies have emerged from such corrupt environments. We advocate a more nuanced view of the effects of corruption on the growth strategies of emerging economy firms. We show that home region corruption can have multiple effects on a firm's geographic expansion. Specifically, we find that corruption in the home region helps regional firms expand their business through acquisitions when it is pervasive and nonarbitrary. At the same time, however, when expanding geographically, firms, on average, seem to prefer to diversify their assets in other regions or countries that are less corrupt.

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How do firms combine different internationalisation modes? A multivariate probit approach

Cited by 14 publications

References 43 publications

Internationalization choices: an ordered probit analysis at industry level

Internationalization choices: an ordered probit analysis at industry level

Impact of Controllable Factors on Export Performance of SMEs in Jordan

Effects of subnational regional corruption on growth strategies in emerging economies: Evidence from Russian domestic and international M&A activity

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