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Complex internationalization strategies and firm export performance during the great trade collapse

David Córcoles (Facultad de Ciencias Sociales, Universidad de Castilla-La Mancha, Cuenca, Spain)
Carmen Díaz-Mora (Facultad de Ciencias Jurídicas y Sociales, Universidad de Castilla-La Mancha, Cuenca, Spain)
Rosario Gandoy (Facultad de Ciencias Sociales, Universidad de Castilla-La Mancha, Cuenca, Spain)

Journal of Economic Studies

ISSN: 0144-3585

Article publication date: 4 March 2019

419

Abstract

Purpose

Focusing on the global trade collapse and the subsequent recovery period, the purpose of this paper is to examine the export performance of firms that are involved in complex internationalization strategies.

Design/methodology/approach

The authors use a random-effects probit model with panel data and a dynamic panel data model (GMM system) for Spanish manufacturing firms from 2006 to 2013 period.

Findings

It is found that, once firm characteristics are controlled for, complex internationalization plays an important role in continuing to export and, additionally, positively influences the level of exports. Firms active in a complex mix of internationalization strategies have an added advantage, which enables them to confront the uncertainty of foreign markets in better conditions and translates to a lower likelihood of ceasing exporting and to higher export values.

Practical implications

The present paper throws light on this question by showing that the negative impact of trade collapse in 2009 on the export level was lower for firms inserted in complex internationalization strategies and the subsequent recovery was more intense.

Originality/value

The analysis goes one step further and investigates whether the impact is different during the trade collapse in 2009 and the following recovery. Here, previous empirical research at firm level on the role of complex internationalization strategies in trade is contradictory.

Keywords

Acknowledgements

The authors gratefully acknowledge the financial support of the Agencia Estatal de Investigación (Ministerio de Economía y Competitividad) through the Project No. ECO2016-78422-R, co-financed with FEDER funds and the University of Castilla-La Mancha through the internal funding for research groups. The authors of this paper have not made their research data set openly available. Any enquiries regarding the data set can be directed to the corresponding author.

Citation

Córcoles, D., Díaz-Mora, C. and Gandoy, R. (2019), "Complex internationalization strategies and firm export performance during the great trade collapse", Journal of Economic Studies, Vol. 46 No. 2, pp. 246-265. https://doi.org/10.1108/JES-06-2017-0144

Publisher

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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