The role of firm location and agglomeration economies on export propensity: the case of Portuguese SMEs

Forte, Rosa; Sá, Ana

doi:10.1108/emjb-02-2020-0011

Cited by 10 publications

(14 citation statements)

References 40 publications

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“…For example, Amato et al (2021) found that in Spain, export spillovers have a positive impact on the export propensity of small family-managed firms, particularly in low-tech industries. Forte and Sá (2021) similarly found that for Portuguese firms, export spillovers tend to positively affect the export propensity of micro firms and firms in low-tech industries. Koenig et al (2010) found that for French companies, this factor seems to influence export propensity but not export volume, and it has a stronger influence when analyzing a specific product or destination.…”

Section: Introductionmentioning

confidence: 77%

Agglomeration economies and firm’s export intensity: evidence from Portuguese manufacturing SMEs

Forte,

Medeiros

2024

Empirica

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Export performance is a highly debated topic in the literature, with no consensus on how to measure it or what factors determine it. Most studies divide these factors into internal and external determinants, with a focus on internal determinants. This study, however, focuses on external determinants, namely agglomeration economies such as localization and urbanization economies and export spillovers, and their impact on a firm’s export intensity. Based on a large sample of Portuguese manufacturing SMEs over the period 2010 to 2018 (191,920 firm/year observations), the estimation results through the two-stage least squares method with fixed effects strongly indicate the existence of a positive relationship between agglomeration economies, particularly localization economies and export spillovers, and export performance. These findings suggest that firms located in areas with a high concentration of other firms in the same industry and other exporting firms tend to have better export performance, which has important implications for policymakers.

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Section: Introductionmentioning

confidence: 77%

Agglomeration economies and firm’s export intensity: evidence from Portuguese manufacturing SMEs

Forte,

Medeiros

2024

Empirica

Self Cite

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“…In such a complex situation, manufacturing SMEs intending to enter international markets find challenges in doing so (Healy et al, 2018;Forte and S a, 2021). Entry mode strategies are associated with issues of mergers, acquisitions, green field investments and so on (Xing et al, 2017;Lin et al, 2019).…”

Section: Internationalization (Int)mentioning

confidence: 99%

“…For the small and medium enterprises (SMEs), things are not easy, as they face several challenges (Ferreira and Franco, 2020;Chandra et al, 2021;Forte and S a, 2021). The present study has attempted to investigate how manufacturing SMEs could successfully internationalize their businesses with the help of product-service innovation (servitization) (Saridakis et al, 2019).…”

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confidence: 99%

Business hybrid offerings by manufacturing SMEs: impact of servitization on internationalization of manufacturing SMEs

Chatterjee

Chaudhuri

Vrontis

2023

IMR

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PurposeThis study examines the significance of the hybrid offerings of servitization by manufacturing small and medium-sized enterprises (SMEs). This study also examines why and how hybrid offerings matter for manufacturing SMEs. The study also investigates the moderating role of risk-taking ability (RA) and technology turbulence (TT) on manufacturing SMEs' performance.Design/methodology/approachThis study has used literature from the areas of servitization, hybrid offerings and internationalization related to SMEs. Also, with the help of theories and literature, a model has been developed conceptually. This model has been validated using a structural equation modeling (SEM) technique on survey data collected from manufacturing SMEs.FindingsThis study finds the significance of manufacturing SMEs' servitization for internationalization effort. Also, this study highlights the moderating impacts of RA and TT on the performance of manufacturing SMEs.Research limitations/implicationsThis study provides valuable inputs to the management of SMEs, especially practitioners that are involved in formulating strategies for hybrid offerings, including servitization activities for the manufacturing SMEs. This study also contributes to the overall body of literature on hybrid offering and servitization.Originality/valueThe study adds values to the overall body of literature for both servitization and internationalization. This study focuses mainly on the significance of hybrid offerings, including servitization by the manufacturing SMEs. Few studies have dealt with such hybrid offerings by manufacturing SMEs as part of the SMEs' internationalization effort. Thus, this study can be considered unique. Moreover, the study investigates the moderating role of RA and TT for SME performance, which adds value toward the body of knowledge in the extant literature.

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“…Organizations must be able to cope with frequently changing conditions of the markets and thrive by exploiting emerging business opportunities (Lu and Ramamurthy, 2011; Qiao et al , 2021; Forte and Sá, 2021). The convergence of information technology (IT) in business operations is perceived to have provided an opportunity to organizations to reshape their organizational dynamic ability to develop their IEA (Bharadwaj, 2000; Prahalad and Krishnan, 2002).…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of organizational dynamic capability on international expansion and the moderating role of environmental dynamism

Chatterjee

Chaudhuri

Vrontis

et al. 2022

IJOA

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Purpose The purpose of this study is to examine the impact of dynamic capability (DC) of organizations on international expansion and further investigate the moderating role of environmental dynamism in the same context. Design/methodology/approach Based on the dynamic capability view (DCV) theory and related literature on international business strategy, a theoretical model is developed. This model is subsequently validated with the structural equation modelling technique through a survey of 324 respondents from Indian organizations. The study also examines the moderating impacts using the multigroup analysis method. Findings The study finds that organizations’ sensing, seizing and transformational capabilities impact positively and significantly on international marketing capability, as well as on technological innovation capability, which positively and significantly impacts organizations’ international expansion ability. The study also finds that there is a significant moderating impact of environmental dynamism on organizations’ international expansion. Research limitations/implications This study has provided a unique theoretical model which can explain the factors impacting organizations’ ability toward international expansion. The study also provides vital insights and directions to practitioners, researchers and academicians on the international business strategy for the expansion of organizations. The theoretical model, however, cannot be generalized, as data was taken only from Indian firms. Originality/value The study adds to the body of knowledge of international business strategy, international marketing strategy and technological innovation, adding to the scant research on the relationship between organizations’ DC and the international expansion strategy through a unique and tested model with an explanative power of 73%.

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The role of firm location and agglomeration economies on export propensity: the case of Portuguese SMEs

Cited by 10 publications

References 40 publications

Agglomeration economies and firm’s export intensity: evidence from Portuguese manufacturing SMEs

Agglomeration economies and firm’s export intensity: evidence from Portuguese manufacturing SMEs

Business hybrid offerings by manufacturing SMEs: impact of servitization on internationalization of manufacturing SMEs

Impact of organizational dynamic capability on international expansion and the moderating role of environmental dynamism

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