Exploring the exporting-downsizing link: Does the type of export strategy and firm efficiency in foreign markets matter?

This study explores the relationship between exporting strategies, firm efficiency, and downsizing. Drawing on the resource-based view, we first test whether there is a link between export intensity and the propensity of a firm to downsize. Next, we examine the impact of direct/indirect exporting st...

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Bibliographic Details
Published inJournal of business research Vol. 108; pp. 324 - 336
Main Authors Campos-García, Irene, Muñoz-Bullón, Fernando, Sanchez-Bueno, Maria J., Zúñiga-Vicente, José Angel
Format Journal Article
LanguageEnglish
Published Elsevier Inc 01.01.2020
Subjects
Direct and indirect export strategy
Downsizing
Exporting
Firm efficiency
Internationalization
Exporting
Direct and indirect export strategy
Internationalization
Downsizing
Firm efficiency
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Summary:This study explores the relationship between exporting strategies, firm efficiency, and downsizing. Drawing on the resource-based view, we first test whether there is a link between export intensity and the propensity of a firm to downsize. Next, we examine the impact of direct/indirect exporting strategies as well as the interactive effects of efficiency and each exporting strategy on the propensity to downsize. We use a sample of Spanish manufacturing firms between 1993 and 2016. Our findings reveal a negative effect of a firm’s level of involvement in foreign markets via exports on the propensity to downsize. Our results also show that the propensity to downsize is lower in firms using a direct export strategy and in more efficient firms opting for this strategy. However, no support for a significant association between the propensity to downsize and the use of an indirect export strategy and efficiency is observed.
ISSN:0148-2963
1873-7978
DOI:10.1016/j.jbusres.2019.10.074