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

Resumen

Descripción

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.

Citación

Campos-García, I., Muñoz-Bullón, F., Sanchez-Bueno, M. J., & Zúñiga-Vicente, J. A. (2020). Exploring the exporting-downsizing link: Does the type of export strategy and firm efficiency in foreign markets matter? Journal of Business Research, 108, 324-336. 10.1016/j.jbusres.2019.10.074
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