Entry-Mode Selection and Firm’s Productivity across Market Destinations: An Empirical Investigation

Mapping Intimacies ◽

10.5772/intechopen.95288 ◽

2021 ◽

Author(s):

Rosa Capolupo ◽

Vito Amendolagine

Keyword(s):

Empirical Investigation ◽

Mode Selection ◽

Entry Mode ◽

Manufacturing Firms ◽

International Outsourcing ◽

Foreign Markets ◽

Italian Manufacturing Firms ◽

Productivity Gains ◽

Regression Tests ◽

Simple Regression

This work aims at investigating the productivity premia of three alternative modes of internationalization for a panel of Italian manufacturing firms: FDI, international outsourcing, and exporting. By using simple regression tests we try to investigate whether and to what extent these modes of firm‘s entry into the foreign markets increase the productivity of firms at home. Surprisingly, our findings show that firms that self-select in engaging in exporting have the greatest productivity gains. The findings hold true even when we extend the analysis to geographical country penetrations.

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International strategy for SMEs: criteria for foreign markets and entry modes selection

Journal of Small Business and Enterprise Development ◽

10.1108/jsbed-10-2013-0149 ◽

2014 ◽

Vol 21 (2) ◽

pp. 301-312 ◽

Cited By ~ 19

Author(s):

Fabio Musso ◽

Barbara Francioni

Keyword(s):

Design Methodology ◽

Mode Selection ◽

Entry Mode ◽

Foreign Market ◽

International Strategy ◽

Entry Modes ◽

Market Selection ◽

Foreign Markets ◽

Content Type ◽

Strong Relation

Purpose – The purpose of this paper is to examine the internationalization of small- and medium-sized enterprises (SMEs) in regard to the international market selection (IMS) and entry mode selection (EMS) processes. Design/methodology/approach – To achieve this, an examination of the degree of systematic/active behaviour during IMS and EMS on a sample of 221 SMEs was conducted. Moreover, the paper sought to comprehend whether SMEs select foreign market and entry mode in a separate and sequential way, and whether there is a relationship between the sequentiality of IMS and EMS, on one side, and SME behaviour during these two processes, on the other side. Findings – Results revealed that SMEs have a non-systematic and passive behaviour during IMS and EMS, respectively. Moreover, a high predilection in performing the two processes contemporaneously or without any logic was found. Finally, a strong relation between sequentiality of IMS and EMS and degree of systematic and active behaviour during the processes existed. Originality/value – In this study, using a sample of SMEs located in a region of Italy, SME behaviour in the IMS and entry mode choice processes was tested.

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Do Firms Learn more from Exporting to the Developed Markets? Empirical Evidence of Indian Firms

Global Economy Journal ◽

10.1515/gej-2017-0005 ◽

2017 ◽

Vol 17 (1) ◽

pp. 20170005 ◽

Cited By ~ 2

Author(s):

Chandan Sharma

Keyword(s):

Developing Countries ◽

Learning Effect ◽

Developed Countries ◽

Absorption Capacity ◽

Manufacturing Firms ◽

Negative Effects ◽

Foreign Markets ◽

Developed Markets ◽

Learning By Exporting ◽

Productivity Gains

The hypothesis of learning-by-exporting hinges largely based on the argument that the exporters are exposed to knowledge and technology to foreign markets and they learn and become more productive and innovative. However, firms from developing countries not only export to industrialized economies but also to less developed countries. The natural questions arises that what if a firm from developing countries directs its exports to a country at a similar or lower level of technological developed. Would there still be productivity gains to be made? We attempt to test the effects of destination of exports on firms’ productivity and innovation for a sample of the Indian manufacturing firms. Our findings indicate that a positive learning effect is flowing from developed countries to productivity and innovation of the Indian firms. However, in the case of exporting to developing countries including China, we find weak or negative effects. Furthermore, our results also suggest that in-house R&D and foreign technology enhances the absorption capacity of firms, which in turn help firms in learning and gaining through exporting to technologically advanced countries.

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The Effect of Taxation and Corruption on Firm Growth: An Empirical Investigation for Vietnam

Journal of Economics and Development ◽

10.33301/2016.18.03.01 ◽

2016 ◽

pp. 5-29

Author(s):

Bich Le Thi Ngoc

Keyword(s):

International Development ◽

Firm Growth ◽

Empirical Investigation ◽

Manufacturing Firms ◽

Economic Management ◽

Tax Rate ◽

Percentage Point Increase ◽

Percentage Points ◽

Point Increase ◽

The Impact

The aim of this study is to analyze empirically the impact of taxation and corruption on the growth of manufacturing firms in Vietnam. The study employed pooled OLS estimation and then instrument variables with fixed effect for the panel data of 1377 firms in Vietnam from 2005 to 2011. These data were obtained from the survey of the Central Institute for Economic Management and the Danish International Development Agency. The results show that both taxation and corruption are negatively associated with firm growth measured by firm sales adjusted according to the GDP deflator. A one-percentage point increase in the bribery rate is linked with a reduction of 16,883 percentage points in firm revenue, over four and a half times bigger than the effect of a one-percentage point increase in the tax rate. From the findings of this research, the author recommends the Vietnam government to lessen taxation on firms and that there should be an urgent revolution in anti-corruption policies as well as bureaucratic improvement in Vietnam.

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Relationship lending and the use of trade credit: the role of relational capital and private information

Small Business Economics ◽

10.1007/s11187-021-00537-x ◽

2021 ◽

Author(s):

Pierluigi Murro ◽

Valentina Peruzzi

Keyword(s):

Private Information ◽

Business Models ◽

Trade Credit ◽

Banking Regulation ◽

Manufacturing Firms ◽

Soft Information ◽

Relational Capital ◽

Relationship Lending ◽

The Impact ◽

Italian Manufacturing Firms

AbstractUsing a unique sample of Italian manufacturing firms, we investigate the impact of relationship lending on firms’ use of trade credit. We find that firms maintaining close and long-lasting relationships with their main banks are associated with higher amounts of trade credit extended by suppliers. This result is robust to alternative measures of trade credit and relationship lending, and to different estimation techniques. We also analyze the mechanisms driving the association between relationship lending and the use of trade credit. Regression results suggest that the positive link between accounts payable and relationship lending is especially significant for firms that use to provide soft information to their lenders and for companies with greater relational abilities.Plain English Summary The existence of close and long lasting lending relationships positively affects the amount of trade credit manufacturing firms receive from their suppliers. By relying on the Survey on Italian Manufacturing Firms, we show that the positive link between relationship lending and the use of trade credit is driven by two channels: private information and relational capital. In a policy perspective, our findings reveal a need for banking regulation and supervision to encompass banking business models in evaluating banks. The current approach might not be suitable for local banks investing in soft information acquisition and could weaken SMEs’ chances to receive both bank financing and trade credit from suppliers. Moreover, from a managerial point of view, our results uncover the relevance of firms’ ability to create strong relationships with banks, suppliers, and other companies that may help alleviating financial constraints.

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