Impact of sourcing from the informal economy on the export likelihood and performance of emerging economy firms

2021 ◽  
Author(s):  
Octavio Escobar ◽  
Olivier Lamotte ◽  
Ana Colovic ◽  
Pierre-Xavier Meschi
Keyword(s):  
Empirical Study ◽  
Competitive Advantage ◽  
Informal Economy ◽  
Institutional Economics ◽  
Export Performance ◽  
Emerging Economy ◽  
Institutional Voids ◽  
Manufacturing Plants ◽  
And Performance ◽  
Unique Dataset

Abstract Building on the institutional economics perspective, we study how local firms in an emerging economy exploit institutional voids by sourcing inputs from industries with a large informal economy. We argue that this allows them to build a cost-related competitive advantage and leverage it both to export and to enhance export performance. The empirical study uses a unique dataset compiled by the Mexican authorities covering manufacturing plants between 2005 and 2012. Our results indicate that firms operating in industries that procure from industries with an extensive informal economy are more likely to export and to have better export performance.

scholarly journals Trust, Commitment and Competitive Advantage in SMEs Export Performance

2017 ◽  
Vol 19 (1) ◽  
pp. 1 ◽  
Author(s):  
Md Daud Ismail ◽  
Syed Shah Alam ◽  
Roshayati Bt Abdul Hamid
Keyword(s):  
Competitive Advantage ◽  
Small Businesses ◽  
Small And Medium Enterprises ◽  
Export Performance ◽  
International Markets ◽  
Export Markets ◽  
Cross Border ◽  
And Performance ◽  
Medium Enterprises ◽  
International Behavior

The entry of small businesses into international markets has intensified. However, despite the growing presence of small businesses in international markets, studies into their international behavior, particularly regarding the effect of international relationships on international outcomes, remain limited. This study investigates the cross-border relationships of Small and Medium Enterprises (SMEs) by examining the effects of the dimensions of the key relationship on the competitive advantage and performance of SMEs in export markets. These dimensions include trust and commitment. Results indicate that trust is significantly related to commitment and export performance. Commitment is positively related to competitive advantage but not to export performance. Trust affects competitive advantage through commitment. The effect of commitment on export performance is mediated by competitive advantage. The methodology and results are presented. The conclusion, implications, and limitations of this study are also discussed.

Resources for What? Understanding Performance in the Resource-Based View and Strategic Human Capital Resource Literatures

2021 ◽  
pp. 014920632110031
Author(s):  
Robert E. Ployhart
Keyword(s):  
Human Capital ◽  
Competitive Advantage ◽  
Research Needs ◽  
Resource Based View ◽  
Strategic Human Capital ◽  
Specific Performance ◽  
Collective Performance ◽  
And Performance ◽  
Performance Behavior ◽  
Management Scholarship

Barney’s presentation of the resource-based view (RBV) profoundly shaped the trajectory of management scholarship. This article considers the RBV’s impact specifically on the field of strategic human capital resources. Although Barney is still highly relevant, I suggest that research has not sufficiently appreciated the role that individual and collective performance behavior and outcomes play in linking human capital resources to competitive advantage. An alternative, what might be called RBV2.0, posits that research needs to recognize that human capital resources are distinct from performance behavior and outcomes. Such an observation raises the question, “Resources for what?” Answering this question leads to several important insights. First, a given type of human capital resource is only important to the extent it is related to performance behavior and outcomes that contribute to competitive advantage. Second, performance behavior is largely strategy-specific and thus firm-specific. Third, firm specificity is not a characteristic of human capital resources but rather a function of the proximity of the resource to firm-specific performance behavior and outcomes. Consequently, “Performance” is the answer to the question, “Resources for what?” This emphasis on understanding human capital resource-performance relationships adds considerable precision into the RBV, helps resolve puzzles in the strategic human capital literature relating to firm specificity and performance mobility, and promotes a deeper understanding hiding latent within Barney’s original view.

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