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Paper info: The moderating role of firm age and size on the relationship between export assistance and performance

Title


The moderating role of firm age and size on the relationship between export assistance and performance

Authors


Anisur Faroque, Hafiza Sultana, Sussie Morrish and Olli Kuivalainen

Place of Publication


The paper was published at the 35th IMP-conference in Paris, France in 2019.

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Abstract


Based on the resources-based view (RBV), resource orchestration (RO), and contingency theory framework, the study aims to investigate the individual and combined effects of government and non-government export assistance on the performance of early internationalizing firms. The study incorporates a contingent approach and considers two characteristics of firms (age/experience and size) as moderators. Data was collected from 705 apparel exporting firms in Bangladesh and analysed through hierarchical regression. Both government and non-government export assistance have significant stand-alone impacts on export performance, whereas the resource bundling effects are much stronger. Although firm age plays no moderating role on the individual effects, it becomes significant when assistance from these different entities is integrated. Firm size is significant only for government support, which can be explained by the contextual features of export promotion programs and apparel exporting firms in the economy. Furthermore, the stronger resource bundling effects in experienced firms indicate greater capability of these firms in integrating resources from heterogeneous sources, along with the increasing knowledge and utilization of export assistance. Despite its cross-sectional research design and narrow scope, the study provides valuable academic insights by combining concepts from two streams of research: export assistance and international entrepreneurship. It also has important practical implications for policy makers and managers.