The Impact of Industry Concentration and Firm Location on Export Propensity and Intensity: An Empirical Analysis of Chinese Manufacturing Firms

Zhao, Hongxin; Zou, Shaoming

doi:10.1509/jimk.10.1.52.19527

Cited by 145 publications

(117 citation statements)

References 21 publications

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“…Chinese firms provide an appropriate sample for this study for several reasons. First, exporting is the dominant mode of international market participation for Chinese firms (Zhao & Zou, 2002). Second, like other emerging market firms, Chinese firms typically do not have well-recognized global brands or other resource-based advantages and lack the financial prowess, international market experience, resources and managerial expertise needed to customize products for export markets (Steensma, Tihanyi, Lyles, & Dhanaraj, 2005).…”

Section: Methodsmentioning

confidence: 99%

Market orientation and export performance: the moderation of channel and institutional distance

Brouthers

Filatotchev

2018

IMR

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This article is c Emerald Group Publishing and permission has been granted for this version to appear here (http://dro.dur.ac.uk/19530/). Emerald does not grant permission for this article to be further copied/distributed or hosted elsewhere without the express permission from Emerald Group Publishing Limited.Additional information: Use policyThe full-text may be used and/or reproduced, and given to third parties in any format or medium, without prior permission or charge, for personal research or study, educational, or not-for-prot purposes provided that:• a full bibliographic reference is made to the original source • a link is made to the metadata record in DRO • the full-text is not changed in any way The full-text must not be sold in any format or medium without the formal permission of the copyright holders.Please consult the full DRO policy for further details. Purpose: Market orientation (MO) has been shown to provide a valuable resource-based advantage in domestic markets. How internationalizing firms from emerging markets can benefit from this capability is more complex while facing institutional distance. This research develops and tests theory to suggest that although MO capabilities can enhance export performance, the structure where they are deployed, namely the export channel a firm uses and the market in terms of institutional distance from home, can affect the benefits derived from MO.Design/methodology/approach: With a sample of Chinese exporters and data collected via questionnaire survey, this research uses a multiple regression model to test the hypotheses. Findings:It finds that firms with stronger MO capabilities can improve export performance by using hierarchical channels and by exporting to more institutionally distant markets where MO provide greater value. Originality/value: This research claims to make several important contributions to the literature by providing a better understanding of how firms can successfully deploy MO capabilities when exporting.

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Section: Methodsmentioning

confidence: 99%

Market orientation and export performance: the moderation of channel and institutional distance

Brouthers

Filatotchev

2018

IMR

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“…The hypothesis formulated by Porter (1990) advances that the degree of competition in domestic markets is positively related to performance in international markets. Some empirical results support this hypothesis (Donghwan and Marion, 1997;Sakakibara and Porter, 2001;Zhao and Zou, 2002); however, scant investigation has been devoted to the relationship between industrial concentration and export behavior.…”

Section: Introductionmentioning

confidence: 99%

International Trade and Domestic Competition: Evidence from Belgium

2015

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We investigate the effect of domestic market competition on firmlevel export intensity. We employ a comprehensive dataset of Belgian firms from [2005][2006][2007][2008], when the fall in the number of firms engaged in trade was accompanied by a growing amount of transactions. The resulting increase in the domestic concentration of Belgian firms has sparked numerous debates, since the direction of causality between domestic market structure and export performance is unclear. We apply the fractional logit estimator and control for both self selection and simultaneity bias. We find that a positive linkage exists between the level of competition and export intensity.JEL Classification: C23, F14, L16, L40.

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“…Exports represent the preferred method for entry into foreign markets (Lado et al 2004;Zhao and Zou 2002) since they offer firms a comparatively high level of flexibility with relatively small necessary investments thus permitting a fast entry into new markets (Katsikea et al 2007;Leonidou 1995;Sousa and Novello 2014). Research on export modalities is of high interest to three major stakeholders: public policymakers, managers, and researchers (Katsikea et al 2000;Sousa 2004).…”

Section: Introductionmentioning

confidence: 99%