Do board directors affect the export propensity and export performance of Korean firms? A resource dependence perspective

Using the Heckman two-stage method, this study empirically investigates whether board directors’ work experience in government and multinational corporations (MNCs), as well as the proportion of outside directors affects export propensity and export performance based on a sample of Korean firms. We find that the Korean firms with former government officials on the board are more likely to engage in exporting, although there is no empirical evidence supporting export performance. The findings also show that firms with former MNC employees on the board demonstrate higher levels of export propensity and export performance. Similarly, firms with a higher proportion of outside directors exhibit a higher level of export propensity and export performance. These findings highlight the importance of the board of directors in Korean firms’ first stage of internationalization and provide new insights into which type of board members can benefit their firms in terms of export propensity and export performance.     

What drives the export performance of small and medium-sized subcontracting firms? A study of Korean manufacturers

Building on the resource-based view and network theory, we propose and test a framework of export antecedents of subcontracting small and medium-sized enterprises (SMEs). Whereas the internationalization of firms has been extensively studied in general, little is known about what drives the exports of subcontracting SMEs which play a very important role in the manufacturing sectors of East Asian economies. These subcontracting firms operate under very different conditions from other companies, resulting in specific ways they leverage their resources, capabilities and customer networks. An analysis of survey data from 1733 subcontracting SMEs in three South Korean manufacturing industries reveals that the firms’ export orientation and export intensity are related not only to their technological resources and their executives’ managerial capabilities, but also to features of their subcontracting network ties. Our study suggests that due to the specific nature of their business, subcontracting firms’ internationalization antecedents need to be analyzed in the context of their business environment which is strongly shaped by their customer relationships.     

Do export status and export intensity increase firm performance?

This study examines the effects of export status and export intensity on the performance of firms in Ghana. Our measures of performance include productivity and profitability. Using the Regional Project on Enterprise Development (RPED) dataset covering the period 1991–2002, the results of this study indicate that export status and export intensity have positive effects on productivity, confirming the learning‐by‐exporting hypothesis. Competition on the international market exposes exporting firms to new technologies, and this has the potential of increasing their productivity. Thus, economic policy initiatives should be directed at encouraging firms to enter the export market. Existing exporters should also be motivated to intensify their exporting efforts by exporting more of their output to foreign markets. © 2011 Wiley Periodicals, Inc.     

Where at home do exporters produce and export?

Foreign growth can induce changes in production structures across domestic regions through international trade. With a two‐country model with the explicit incorporation of two regions in the home country, we show that effects of foreign growth on exports and production to be possibly asymmetric among home regions. This foreign‐growth effect is especially prominent in Asia with China emerging as the largest trading country. We empirically test our theoretical hypothesis with the data set of Japanese regions. We find evidence that the growth of Asian countries leads to a change in the regional structure of exports and production in Japan. With respect to an adjacent Asian country, the growth of a foreign country exerts opposite effects on production among Japanese regions.     

Does external technology acquisition determine export performance? Evidence from Chinese manufacturing firms

Although technology profile has been one of the key determinants of firms’ export performance in the international business literature, most research has focused on only the role of internal technology efforts rather than the role of external technology. This study thus aims to extend our understanding of the determinants of export performance by examining the impact of the inter-organizational dimension of innovation strategy to export performance, which has been ignored in the prevailing “strategy tripod” perspective of exporting research. This study is based on a sample of 141 Chinese indigenous manufacturing firms that engaged in inward technology licensing between 2000 and 2003. The empirical results indicate that external technology acquisitions positively influence Chinese firms’ export performance. Moreover the exporting performance of using external technology varies depending on the their sources (domestic and foreign). The exporting firms that acquired technology from foreign countries outperformed those relied on domestically developed technology.     

Do firms learn by exporting or learn to export? Evidence from small and medium-sized enterprises

Using a matching approach, we compare the productivity trajectories of future export-entrants and matched nonentrants. Future exporters have higher productivity than do nonentrants before entry into international markets, which indicates self-selection into exports. More interestingly, we also observe a productivity increase among export-entrants relative to nonentrants before export entry. This might be explained by higher investments in physical capital prior to export entry. We find no evidence that the productivity gap between export-entrants and nonentrants continues to grow after export entry. Our results suggest that learning to export occurs but that learning by exporting does not. In contrast to previous studies on Swedish manufacturing, we focus particularly on small and medium-sized enterprises (SMEs).     

Ready to export? The role of export readiness for superior export performance of small and medium-sized enterprises

Drawing on the entrepreneurship perspective and the network-based view on internationalisation, this exploratory study contributes to our understanding of why some exporters succeed while others do not, through an empirical examination of export readiness factors. The paper provides an operationalisation of export readiness for small and medium-sized enterprises (SMEs). Based on a sample of 96 New Zealand SMEs, we find that export readiness is a complex construct involving finance, trade and exchange, and marketing. The study provides evidence that internal export stimuli are important antecedents of export readiness, while factors traditionally assumed to be critical to export success, such as importing and pre-export domestic expansion, may not be prerequisites to being export-ready. Finally, the study examines the link between export readiness and subsequent, initial export performance and finds a strong, positive relationship. Our study contributes to the export literature by providing a deeper and more integrated understanding of the antecedents of export readiness in a small, open economy, and its implications for subsequent export performance.     

Does corruption boost or harm firms’ performance in developing and emerging economies? A firm-level study

In the last decade, a growing number of studies have addressed the ongoing debate about whether corruption “sands” or “greases” the wheels of business at the firm level. This study revisits this debate and proposes a comprehensive theoretical framework to test whether corruption harms or boosts firm performance, as well as the extent to which this relationship is mediated by the countries’ institutional settings, the size and strategic behaviour of the firms, and market competition. Based on a sample of 21,250 firms located in 117 emerging and developing countries, and resorting to instrumental variable (IV) estimations, three main results were found: (a) regardless of the proxy used for corruption and firm performance, the former clearly harms the latter; (b) corruption “greases the wheels” of business for African firms but it “sands the wheels” for firms in Latin America, the Caribbean, Eastern Europe, Central Asia, and Southern Asia; and (c) the negative impact of corruption on performance is mitigated for larger and exporting firms.     

Employee-owned and capitalist firms: is performance linked to ownership?

This paper does a comparative analysis of the economic performance between employee-owned firms (EOFs) and conventional capitalist companies (non-employee-owned firms, NEOFs). EOFs show good economic performance if the different objectives that distinguish them from NEOFs are considered. These differences stem precisely from the different capital-ownership structures. Nevertheless, the results deteriorate if profitability and productiveness are analysed. The results for productivity differ from theoretical thought which considers that the main differences between these two types of structures should be explained by the double condition people have as both partners and workers in the EOF; this link between company and workers should translate into increased productiveness. The results of the analysis do not empirically demonstrate the positive effects that were expected with an EOF structure. There are, however, sufficient motives for extending the study to the compared analysis of other subjects that work under specific legal regulations and even to the compared analysis of other regulative forms that exist in other Member States of the European Union.     

Morality or economic interest? The impact of moral motives and economic factors on the purchase of fair trade groceries

In this article, we compare the impact of moral motives and economic factors on the purchase of fair trade groceries. Moral motives are measured by three different constructs, which are derived from different theoretical perspectives: one from the classical theory of attitude, one from the subjectively expected utility theory and one from the norm‐activation model. The empirical results of the analysis show that moral motives as well as economic factors are important determinants for explaining the purchase of fair trade groceries. Furthermore, the study indicates that the impact of moral motives is greater than that of economic factors, and among the moral factors, the personal norm is especially explanatorily powerful.     

Just about money? CEO satisfaction and firm performance in small family firms

This paper examines how family ownership and family ties influence the relative importance of economic and non-economic goals on the CEO’s satisfaction with the firm. Using a sample of small high-tech family and non-family firms, we show that the influence of past firm economic performance on CEO satisfaction is weaker in the case of CEOs leading a family firm. Our results also suggest that this influence becomes weaker as the family firm transitions into subsequent generations. However, contrary to our expectations, we were not able to find a differential effect of firm performance on CEO satisfaction between CEOs who belong to the controlling family and those who do not.     

Business performance and social media: Love or hate?

The social media space has become a common place for communication, networking, and content sharing. Many companies seek marketing and business opportunities via these platforms. However, the link between resources generated from these sites and business performance remains largely unexploited. Both managers and financial advisors can profit from the lessons learned in this study. We conceptualize four channels by which social media impacts financial, operational, and corporate social performance: social capital, customers’ revealed preferences, social marketing, and social corporate networking. An empirical test of our framework shows that ‘followers’ and ‘likes’ positively influence a firm's share value, but only after a critical mass of followers is attained. Our estimates suggest that Twitter is a more powerful tool to enhance business performance than Facebook.     

When do firms invest in offensive and/or defensive marketing?

Market conditions may lead firms to increase offensive marketing activities aimed at attracting new customers, and/or to enhance defensive relationship building intended to retain current customers. Characteristics of the marketing environment are examined, including firms' interest in technology adoption and perceived need to apply it to provide structure for the supply chain, product development, quality control, and social impact. Such indicators relate to the firm's perception of “competitive intensity” in the marketplace. Survey results from 196 manufacturing companies show that technology adoption propensity and competitive intensity are associated with greater investments in offensive marketing activities as well as customer and employee engagement.     

Alignment or entrenchment? Corporate governance and cash holdings in growing firms

This study contends that the association between corporate cash holdings and corporate governance is subject to the investment environments that firms face. For example, firms with an abundance of investment opportunities have a strong incentive to hold cash in order to maintain their competitive positions. Shareholders accept high levels of cash holdings in such growing firms if corporate governance can protect their interests. This study examines the effects of corporate governance on cash holdings for a sample of high-tech firms. The results show that CEO ownership, the directorship of venture capitalists (VCs), and independent directors play critical roles in corporate cash policy. In addition, the boards are more effective when the firms' CEOs are also their founders or when VCs hold a large stake of company shares. The effects of corporate governance are more significant in younger firms while the effects of firm-specific economic variables are more significant in older firms in the sample.     

Board of directors and export spillovers: What is the impact on extensive margins of trade?

Increased export experience on the board of nonexporting firms has a causal effect on their propensity to enter foreign markets in later periods. Using a universal set of Swedish employer–employee panel data for the period 2000–14, this paper finds evidence on spillover from exporters to non-exporting SMEs through outside board directors. The identification strategy to account for endogenous selection of external board members relies on external instruments and applications of different instrumental variable approaches, capturing also unobserved heterogeneity. Our findings are robust to controlling for export background among managers and employees, as well as firm size, human capital, total factor productivity, productivity spillovers, firm location and industry classification.     

Which green matters for whom? Greening and firm performance across age and size distribution of firms

Small Business Economics - A growing body of literature links firm performance with sustainability efforts. We contribute to this literature by developing a novel framework for contextualising...     

A twentieth-century triangle trade: selling black beauty at home and abroad, 1945–1965

This study examines the careers of African American beauty culturists as they worked in the United States, Europe, and Africa between 1945 and 1965. Facing push back at home, African American beauty entrepreneurs frequently sought out international venues that were hospitable and receptive to black Americans in the years following World War II. By strategically using European sites that white Americans regarded as the birthplace of Western fashion and beauty, African American entrepreneurs in the fields of modeling, fashion design, and hair care were able to win accolades and advance their careers. In gaining support abroad, particularly in Europe, these beauty culturists capitalized on their international success to establish, legitimize, and promote their business ventures in the United States. After importing a positive reputation for themselves from Europe to the United States, African American beauty entrepreneurs then exported an image of themselves as the world's premier authorities on black beauty to people of color around the globe as they sold their products and marketed their expertise on the African continent itself. This essay demonstrates the important role that these black female beauty culturists played, both as businesspeople and as race leaders, in their generation's struggle to gain greater respect and opportunity for African Americans both at home and abroad. In doing so it places African American beauty culturists within the framework of transatlantic trade networks, the Black Freedom Movement, Pan-Africanism, and America's Cold War struggle.     

Do cross-border mergers and acquisitions increase short-term market performance? The case of Chinese firms

Despite the new momentum in cross-border mergers and acquisitions (M&As) by emerging market firms, we have a limited understanding of the impact of these activities. Drawing on signalling theory and the institution-based view, this paper examines the extent of stock market reactions to the announcement of cross-border M&A deals, based on an event study of a sample of Chinese firms during the period 2000–2012. The findings indicate that the announcement of cross-border M&As results in a positive stock market reaction; this effect is more significant in the mainland Chinese stock markets (Shanghai and Shenzhen) than that in the Hong Kong market. The shareholders of Chinese firms that acquire a target firm in a host country with a low level of political risk gain higher cumulative abnormal returns than those firms targeting companies in countries with a high level of political risk. The shareholders of Chinese state-owned enterprises experience lower abnormal returns compared with those of Chinese privately owned firms when engaging in cross-border M&A deals.