The impact of international involvement on firms' export performance
by Sergio Mariotti, Lucia Piscitello
European J. of International Management (EJIM), Vol. 3, No. 3, 2009

Abstract: The literature on firms' export performance has traditionally related it either to ownership and location advantages or to factorial endowment of firms and countries. This paper aims at extending the determinants of firms' export capacity, including factors related to the international involvement of both the firms and their environment. The empirical test relies upon an augmented gravitation model explaining export performance for about 300 firms located in an Italian province and observed throughout the period 1997–2003. Results confirm that, ceteris paribus, firms' export performance depends on their international experience and network structure. However, firms benefit from export spillovers stemming from foreign multinational companies located in the same area, but only when they are vertically related. When considering instead intra-industry relations, spillovers become negative owing to the increased competition.

Online publication date: Sun, 12-Jul-2009

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