International Marketing Review – Volume 36(6), pp. 911-954

An institution-based view of firms’ early internationalization

Ahmed, F., Brennan, L.

The purpose of this paper is to examine the differential effects of national export promotion policies (EPPs) on firms’ early internationalization using the institution-based view (IBV) as our theoretical foundation. Early or speedy internationalization is an important topic for academics, executives and policy makers. However, the effect of the regulatory dimension of institutions incorporating governmental policies on firms’ early internationalization remains unexplored in the literature. The study was survey-based and the authors engaged in quantitative analysis using data drawn from the apparel industry in a least-developed country (LDC), i.e. Bangladesh. The authors employed 174 valid questionnaires in the analysis. To test the proposed hypotheses, an ordered-logistic regression modeling technique was used. The findings reveal a positive effect of those national policies focusing on market development, guarantee-related and technical support schemes. Two individual elements of direct finance-related assistance, namely, bank loans and cash subsidy are also found to be influential.

Entrepreneurship Theory & Practice – Volume 43(5), 855–879

How Home-Peers Affect the Export Market Exit of Small Firms: Evidence From Canadian Exporters

Sui Sui, Matthias Baum Shavin Malhotra

We investigate how home-peer entry density (the number of same-industry firms that originate from the same country and export to the same foreign market) affects the export market exit of small firms. Drawing on panel data from 41,445 Canadian small business exporters, we find a U-shaped relationship between home-peer entry density and small firms’ hazard of exit from an export market; that is, firms’ hazard of exit decreases as the home-peer density increases to a certain point and increases after that point. We also find that this U-shaped relationship is stronger for small firms that internationalize early.

Small Business Economics – Volume 53(3), pp. 669–686

Early internationalization patterns and export market persistence: a pseudo-panel data analysis

Yancy Vaillant, Esteban Lafuente, Manoj Chandra Bayon

This study evaluates the international market persistence of early exporting businesses. The relationship between time in the market and export propensity/intensity levels was analyzed to identify the persistence of the internationalization patterns of entrepreneurial ventures. The empirical application employs a pseudo-panel approach at the business age- and industry-based cohort level drawn from a group of independent cross-sectional surveys that include information for 13,961 independently and randomly selected business owners for the period 2007–2012. The results show that the proportion of firms that export significantly diminishes following the initial post start-up years and that low export intensity levels at start-up leads to greatest tenacity and persistence of the exporting efforts for new firms. The results contribute to the recent discussions on whether early internationalization is an effective strategy and should be encouraged.

Journal of Small Business Management– Volume 57(4), pp. 1195-1758

Influence of Innovativeness, Environmental Competitiveness and Government, Industry and Professional Networks on SME Export Likelihood

Frances Y. M. Chang, Cynthia M. Webster

The purpose of this study is to examine how small to medium?sized enterprises (SMEs) in different industry segments utilize government, industry, and professional networks and to test the influence of SME innovativeness, environmental competitiveness and network type for SME export likelihood. Previous studies on networks and exports tend to be qualitative and based on small samples. This study adds to previous scholarship by investigating a large database consisting of 2,263 Australian SMEs. Results indicate SME innovativeness contributes positively to export likelihood while contrary to extant studies, no significant relationship is observed between environmental competitiveness and export likelihood. Moreover, a significant, positive relationship exists between government networks and export likelihood, and a positive though weaker relationship between industry networks and export likelihood. On average, the likelihood of SMEs receiving export income increases by 47 percent if all three network types are accessed between one and three times a year, controlling for other factors. Further analyses of industry sub?segments indicate a stronger relationship between industry networks and export likelihood.