Highlights
Abstract
Keywords
1. Introduction
2. Networks, trade associations and firm’s export performance
3. Methodology
4. Results
5. Discussion
6. Conclusion, limitations and implications
Appendix A.
References
Abstract
This study addresses the effects of the firm’s level of engagement with trade associations located at the company’s export market on export performance. It analyzes firm-level data from a South American emerging economy, Chile. Results show that a stronger engagement with trade associations located at the company’s export market has a positive effect on export performance. Environmental uncertainty on customer needs is confirmed as an export performance barrier, but unexpectedly, this obstacle only diminishes in a negligible factor as the level of engagement with trade associations located at the firm’s export market increases. This study contributes to the international management literature by investigating the direct and moderating effects of overseas trade associations on the firm’s export performance, and by scrutinizing on the distinctions among the cooperation determinants of local networks and networks situated at the firm’s export market. Practical implications are discussed.
1. Introduction
Export performance of small and medium sized firms (SMEs’) remain a relevant research area in a global environment with increasing technological change, lower trade barriers and a growing interest in country and firm-level export developing strategies (Ngo, Janssen, Leonidou, & Christodoulides, 2016; Cieślik, Kaciak, & Thongpapanl, 2015), despite the fact of emerging new global trends on de-globalization (Ghemawat, 2017). The understanding and modeling of export performance is typically grounded on the Resource Based View (RBV). The resource-based theory posits that firm´s internal tangible and intangible resources result in competitive advantage and export performance (Barney, 1991; Zou & Stan, 1998). On the contrary, the contingency approach suggests that the interdependence of firm external and internal factors determines firm´s export performance (Cavusgil & Zou, 1994; Yeoh & Jeong, 1995; Sousa, Martínez-López, & Coelho, 2008). This study approaches export performance from the contingency perspective.