Firm characteristics, perceived obstacles of instutional environment and export performance: evidence from Vietnamese firms

Tran Quoc Trung1,, Dang Bui Thi Dieu1
1 Foreign Trade University

Main Article Content

Abstract

Although prior studies have investigated the effects of both internal and institutional factors on export performance of Vietnamese firms, we argue that Vietnamese institutional envionment has changed rapidly under the impact of economic integration and we need more research to understand export behavior of Vietnamese firms. In this paper, we examine how their internal factors and perceived obstacles of external factors affect their export intensity and propensity with an updated micro dataset collected form Enterprise Surveys of World Bank conducted in 2009 and 2015. The research findings show that internal factors including firm size and foreign ownership have positive effects on both export propensity and export intensity. Competition from the informal sector and perceived obstacles of customs and trade regulation have negative and positive impacts on export performance respectively. These findings confirm the role of firm size, foreign ownership, competition in firm export performance in a transition country pursuing export-led growth strategy.

Article Details

References

1. Agnihotri, A. and Bhattacharya, S., 2015. Determinants of export intensity in emerging markets: An upper echelon perspective. Journal of World Business, 50(4), pp.687-695.
2. Buchko, A.A., 1994. Conceptualization and measurement of environmental uncertainty: An assessment of the Miles and Snow perceived environmental uncertainty scale. Academy of Management Journal, 37(2), pp.410-425.
3. Buckley, P.J., Clegg, L.J., Cross, A., Liu, X., Voss, H. and Zheng, P., 2010. The determinants of Chinese outward foreign direct investment. In Foreign Direct Investment, China and the World Economy (pp. 81-118). Palgrave Macmillan, London.
4. Sousa, C.M., Martínez-López, F.J. and Coelho, F., 2008. The determinants of export performance: A review of the research in the literature between 1998 and 2005. International Journal of Management Reviews, 10(4), pp.343-374.
5. Carroll, G.R., 1994. Organizations… the smaller they get. California Management Review, 37(1), pp.28-41.
6. Cuervo-Cazurra, A. and Genc, M., 2008. Transforming disadvantages into advantages: Developing-country MNEs in the least developed countries. Journal of international Business Studies, 39(6), pp.957-979.
7. Estrin, S., Meyer, K.E., Wright, M. and Foliano, F., 2008. Export propensity and intensity of subsidiaries in emerging economies. International Business Review, 17(5), pp.574-586.
8. Huang, H.C.R., 2001. Bayesian analysis of the dividend behaviour. Applied Financial Economics, 11(3), pp.333-339.
9. He, X. and Wei, Y., 2013. Export market location decision and performance: The role of external networks and absorptive capacity. International Marketing Review, 30(6), pp.559-590.

10. Katsikeas, C.S., Leonidou, L.C. and Morgan, N.A., 2000. Firm-level export performance assessment: review, evaluation, and development. Journal of the Academy of Marketing Science, 28(4), pp.493-511.
11. Khoury, T.A. and Peng, M.W., 2011. Does institutional reform of intellectual property rights lead to more inbound FDI? Evidence from Latin America and the Caribbean. Journal of World Business, 46(3), pp.337-345.
12. Kim, B.S. and Maddala, G.S., 1992. Estimation and specification analysis of models of dividend behavior based on censored panel data. In Panel Data Analysis (pp. 111124). Physica-Verlag HD.
13. Kim, B.S. and Maddala, G.S., 1992. Estimation and specification analysis of models of dividend behavior based on censored panel data. In Panel Data Analysis (pp. 111124). Physica-Verlag HD.
14. Lages, L.F., Silva, G. and Styles, C., 2009. Relationship capabilities, quality, and innovation as determinants of export performance. Journal of international Marketing, 17(4), pp.47-70.
15. Majocchi, A., Bacchiocchi, E. and Mayrhofer, U., 2005. Firm size, business experience and export intensity in SMEs: A longitudinal approach to complex relationships. International Business Review, 14(6), pp.719-738.
16. Nazar, M.S. and Saleem, H.M., 2009. Firm-level determinants of export performance. International Business & Economics Research Journal, 8(2), pp.105-112.
17. Hiep, N. and Nishijima, S., 2009. Export intensity and impacts from firm characteristics, domestic competition and domestic constraints in Vietnam: A micro-data analysis (No. 238).
18. Peng, M.W., Sun, S.L., Pinkham, B. and Chen, H., 2009. The institution-based view as a third leg for a strategy tripod. Academy of Management Perspectives, 23(3), pp.63-81.
19. Zou, S. and Stan, S., 1998. The determinants of export performance: a review of the empirical literature between 1987 and 1997. International Marketing Review, 15(5), pp.333-356.
20. Krammer, S.M., Strange, R. and Lashitew, A., 2018. The export performance of emerging economy firms: The influence of firm capabilities and institutional environments. International Business Review, 27(1), pp.218-230.
21. Wernerfelt, B., 1984. A resource-based view of the firm. Strategic management journal, 5(2), pp.171-180.
22. Williams, D.A., 2011. Impact of firm size and age on the export behaviour of small locally owned firms: Fresh insights. Journal of International Entrepreneurship, 9(2), p.152.
23. Zhao, H. and Zou, S., 2002. The impact of industry concentration and firm location on export propensity and intensity: An empirical analysis of Chinese manufacturing firms. Journal of International Marketing, 10(1), pp.52-71.