scholarly journals Market Size, Competition, and the Product Mix of Exporters

2014 ◽  
Vol 104 (2) ◽  
pp. 495-536 ◽  
Author(s):  
Thierry Mayer ◽  
Marc J. Melitz ◽  
Gianmarco I. P. Ottaviano

We build a theoretical model of multi-product firms that highlights how competition across market destinations affects both a firm’s exported product range and product mix. We show how tougher competition in an export market induces a firm to skew its export sales toward its best performing products. We find very strong confirmation of this competitive effect for French exporters across export market destinations. Theoretically, this within-firm change in product mix driven by the trading environment has important repercussions on firm productivity. A calibrated fit to our theoretical model reveals that these productivity effects are potentially quite large. (JEL D21, D24, F13, F14, F41, L11)

2020 ◽  
pp. 1-59
Author(s):  
Thierry Mayer ◽  
Marc J. Melitz ◽  
Gianmarco I.P. Ottaviano

We document how demand shocks in export markets lead French multi-product exporters to re-allocate the mix of products sold in those destinations. In response to positive demand shocks, French firms skew their export sales towards their bestperforming products. We develop a theoretical model of multi-product firms and derive the specific demand conditions (with endogenous price elasticities) needed to generate these product-mix reallocations. Under those demand conditions, the increased competition from demand shocks in export markets also induce productivity changes within the firm. We empirically test for this connection between demand shocks and the productivity of multi-product firms. We find that this connection is economically substantial.


2007 ◽  
Vol 15 (2) ◽  
pp. 30-57 ◽  
Author(s):  
Gary Gregory ◽  
Munib Karavdic ◽  
Shaoming Zou

The emergence of e-commerce technology has had a significant effect on firms’ export marketing. However, limited knowledge exists as to how e-commerce drivers affect a firm's export marketing strategy. This study develops and tests a theoretical model to delineate how e-commerce drivers affect export marketing strategy. The empirical findings suggest that internal e-commerce drivers (product online transferability and e-commerce assets) directly increase a firm's degree of promotion adaptation, enhance communication and distribution efficiencies, facilitate greater distribution support, and improve price competitiveness for export ventures. Furthermore, both internal and external e-commerce drivers (export market e-commerce infrastructure and demand for e-commerce) moderate the relationships between environmental factors and elements of export marketing strategy. Overall, the findings support incorporating e-commerce constructs into existing theory on export marketing strategy. The authors discuss theoretical and managerial contributions and offer directions for further research.


2019 ◽  
Vol 26 (6) ◽  
pp. 958-975 ◽  
Author(s):  
Hao Huang ◽  
Yide Liu ◽  
Dong Lu

As one of the most popular exchange intermediary for travel products, the online travel agencies (OTAs) compete fiercely. Previous studies on the OTA market efficiency focus on the travel product prices and distribution channels competition, but contradictions and paradoxes can be found between the theoretical explanations and empirical results. This article proposed a theoretical model by identifying two determinants of the OTA market efficiency: the matching ability and market size. The study shows that (1) the matching ability improves the market efficiency by enlarging the market size and increasing the effective range of competition; (2) the comparative advantage in matching ability of one OTA will lead to the efficiency occupation of other OTAs; and that (3) new OTAs or long tail travel products may reduce market efficiency, but it provides the opportunity to reconstruct the traditional industrial chain. This study enriches the economic theory of OTA and provides commercial guides for practice.


2016 ◽  
Author(s):  
Thierry Mayer ◽  
Marc J. Melitz ◽  
Gianmarco I.P. Ottaviano

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Utumporn Jitsutthiphakorn

AbstractThis firm-level study investigates the importance of innovation as a determinant of firm productivity and how firm productivity could impact firm export survival. This is the first integration of the innovation approach, productivity approach, and firm survival approach to explore their linkages at the regional level in ASEAN developing countries. Using the panel database from the World Bank Enterprise Survey, which covers six developing countries in ASEAN—the Philippines, Indonesia, Vietnam, Laos, Cambodia, and Myanmar—and also covers six selected industries, we construct four equations: innovation inputs, innovation output, firm productivity, and export survival. The four equations’ findings suggest that the technology level of the sector, firm size, and exports are significant factors for R&D expenditure (innovation input). R&D expenditure is a significant driver of a firm’s product and process innovation (innovation output). Increasing firm productivity in the six ASEAN developing countries we considered is driven by process innovation rather than product innovation, and productive firms are more likely to survive in the export market.


2016 ◽  
Author(s):  
Thierry Mayer ◽  
Marc Melitz ◽  
Gianmarco I.P. Ottaviano

2009 ◽  
Vol 12 (1) ◽  
pp. 60-70
Author(s):  
Loan Thi Kim Tran ◽  
Hung Nguyen Bui

Productivity is playing a significant role in economic development of a nation. In the context of global and regional competition, productivity is critically important to industries in general and to firms/enterprises in a paucity. Especially, to developing countries, labour productivity is one of the most crucial determinants. A number of existing literature have involved productivity and factors influencing productivity in different ways and perspectives. However, most past studies have examined productivity across developed countries which may have conditions differ significantly from those of developing countries such as Vietnam. Alternately, based on results/findings of the previous empirical studies, researchers have just proposed a portfolio of factors having an effect on firm productivity. Moreover, there is a lack of an appropriate theoretical model into and out of these works. Therefore, this paper aims to bridge the gap in existing knowledge. The work introduces three sections. The first involves reviewing related literature on research topic. Seeking published and un published information relating to productivity area helps author to put forward a model which dig for main determinants to exert an impact on firm productivity. The second demonstrates quantitative research about key factors governing productivity of textile and garment firms/enterprises in Ho Chi Minh City. The last proposes a need for further research to test the recommended theoretical model.


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