Abstract
The export participation of SMEs in the Swedish computer and business service industries has increased rapidly over the last decade. Despite this, export participation rates—including those of micro enterprises—remained low at 13 per cent in computer services and 8 per cent in business services in 2010. Based on uniquely linked firm-level datasets with full coverage of micro enterprises, this study investigates the determinants of the export participation of Swedish SMEs in the computer and business service industries. Exports include both goods and services. Estimates based on the conditional fixed-effects logit model show a significantly positive relationship between initial labour productivity and the decision to export. One new and interesting finding is that the magnitude of the relationship between the probability to export and initial labour productivity is low when controlling for firm effects. Surprisingly, the impact of labour productivity on exporting in computer services does not differ between micro enterprises and other SMEs (10–249 employees). In business services, the relationship between export probability and labour productivity on the one hand and skill intensity on the other is significant for micro enterprises, but not for other SMEs (10–249 employees).
References
Andersson, M., and H. Lööf (2009). Learning-by-exporting revisited: The role of intensity and persistence. The Scandinavian Journal of Economics 111(4), 893–916. https://static.sys.kth.se/itm/wp/cesis/cesiswp149.pdf10.1111/j.1467-9442.2009.01585.xSearch in Google Scholar
Andersson, M., H. Lööf, and S. Johansson (2008). Productivity and international trade: Firm level evidence from a small open economy. Review of World Economics 144(4), 774–801. https://static.sys.kth.se/itm/wp/cesis/cesiswp99.pdf10.1007/s10290-008-0169-5Search in Google Scholar
Bell, J. (1995). The internationalisation of small computer software firms. A further challenge to “stage” theories. European Journal of Marketing 29, 60–75. http://www.emeraldinsight.com/doi/abs/10.1108/03090569510097556Search in Google Scholar
Bell, J. (1997). A comparative study of the export problems of small computer software exporters in Finland, Ireland and Norway. International Business Review 6, 585–604. http://www.sciencedirect.com/science/article/pii/S096959319700033410.1016/S0969-5931(97)00033-4Search in Google Scholar
Bernard, A.B., and J.B. Jensen (2004). Why some firms export. The Review of Economics and Statistics 86(2), 561–569. http://www.nber.org/papers/w834910.1162/003465304323031111Search in Google Scholar
Chamberlain, G. (1980). Analysis of covariance with qualitative data. Review of Economic Studies 47, 225–238. http://www.jstor.org/stable/229711010.2307/2297110Search in Google Scholar
Clerides, S., S. Lach, and J. Tybout (1998). Is learning-by-exporting important? Microdynamic evidence from Colombia, Mexico and Morocco. Quarterly Journal of Economics 113, 903–947. http://www.nber.org/papers/w5715.pdf10.1162/003355398555784Search in Google Scholar
Coviello, N.E., and H.J. Munro (1997). Network relationships and the internationalisation process of small software firms. International Business Review 6, 361–386. http://www.sciencedirect.com/science/article/pii/S096959319700010310.1016/S0969-5931(97)00010-3Search in Google Scholar
Dunning, J.H. (1970). Studies in International Investments, London, Allen & Unwin.Search in Google Scholar
Eickelpasch, A., and A. Vogel (2011). Determinants of the export behaviour of German business services companies. The Service Industries Journal 31(4), 513–526. http://www.diw.de/documents/publikationen/73/diw_01.c.96995.de/dp876.pdf10.1080/02642069.2010.504304Search in Google Scholar
Eliasson, K., P. Hansson, and M. Lindvert (2012). Do firms learn by exporting or learn to export? Evidence from small- and medium-sized enterprises. Small Business Economics 39, 453–472. http://link.springer.com/article/10.1007%2Fs11187-010-9314-310.1007/s11187-010-9314-3Search in Google Scholar
Fernández, Z., and M.J. Nieto (2005). Internationalization strategy of small and mediumsized family businesses: Some influential factors. Family Business Review 18(1)-, 77–89. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=72728810.1111/j.1741-6248.2005.00031.xSearch in Google Scholar
Filatotchev, I., X. Liu, J. Lu, and M. Wright (2011). Knowledge spillovers through human mobility across national borders: Evidence from Zhongguancun Science Park in China. Research Policy 40(3), 453–462. http://www.sciencedirect.com/science/article/pii/S004873331100012610.1016/j.respol.2011.01.003Search in Google Scholar
Garvey, D., and L. Brennan (2006). The internationalisation of indigenous Irish software technology companies: An exploratory study. Irish Journal of Management 26, 81–108. http://connection.ebscohost.com/c/articles/22440123/internationalisationindigenous-irish-software-technology-companies-exploratory-studySearch in Google Scholar
Gashi, P., I. Hashi, and G. Pugh (2014). Export behaviour of SMEs in transition countries. Small Business Economics 42(2), 407–435. http://link.springer.com/article/10.1007%2Fs11187-013-9487-7#page-110.1007/s11187-013-9487-7Search in Google Scholar
Greenaway, D. and R. Kneller (2007). Firm heterogeneity, exporting, and foreign direct investment. The Economic Journal 117(517), 134–161. http://onlinelibrary.wiley.com/doi/10.1111/j.1468-0297.2007.02018.x/epdf10.1111/j.1468-0297.2007.02018.xSearch in Google Scholar
Greenaway, D., J. Gullstrand, and R. Kneller (2005). Exporting may not always boost firm productivity. Review of World Economics 141(4), 561–582. http://link.springer.com/article/10.1007%2Fs10290-005-0045-510.1007/s10290-005-0045-5Search in Google Scholar
Hansson, P., and N.N. Lundin (2004). Exports as an indicator on or promoter of successful Swedish manufacturing firms in the 1990s. Review of World Economics 140, 415–445.Search in Google Scholar
Harris, R., and Q.C. Li (2009). Exporting, R&D, and absorptive capacity in UK establishments. Oxford Economic Papers 61, 74–103. http://oep.oxfordjournals.org/content/61/1/74.fullSearch in Google Scholar
Helpman, E., M.J. Melitz and S.R. Yeaple (2004). Export versus FDI with Heterogeneous Firms. American Economic Review 94(1), 300–16.10.1257/000282804322970814Search in Google Scholar
Hill, P. (1999). Tangibles, intangibles and services: a new taxonomy for the classification of output. Canadian Journal of Economics 32(2) 426–446.10.2307/136430Search in Google Scholar
Hollenstein, H. (2005). Determinants of international activities: Are SME’s different?. Small Business Economics 24, 431–450. http://link.springer.com/article/10.1007%2Fs11187-005-6455-x10.1007/s11187-005-6455-xSearch in Google Scholar
Kox, H.L., and H. Rojas-Romagosa (2010). Exports and productivity selection effects for Dutch firms. De Economist 158(3), 295–322. http://www.cpb.nl/sites/default/files/publicaties/download/exports-and-productivityselection-effects.pdfSearch in Google Scholar
Lejárraga, I., and H. Oberhofer (2015). Performance of small-and medium-sized enterprises in services trade: evidence from French firms. Small Business Economics 45(3), 673–702. http://dx.doi.org/10.1007/s11187-015-9647-z10.1007/s11187-015-9647-zSearch in Google Scholar
Leonidou, L.C. (1995). Export barriers: non-exporters’ perceptions. International Marketing Review 12, 4–25. http://www.emeraldinsight.com/doi/abs/10.1108/02651339510080070?journalCode=imr10.1108/02651339510080070Search in Google Scholar
Leonidou, L.C. (2004). An analysis of the barriers hindering small business export development. Journal of Small Business Management 42, 279-302. http://onlinelibrary.wiley.com/doi/10.1111/j.1540-627X.2004.00112.x/abstract10.1111/j.1540-627X.2004.00112.xSearch in Google Scholar
Leonidou, L.C., C.S. Katsikeas, D. Palihawadana, and S. Spyropoulou (2007). An analytical review of the factors stimulating smaller firms to export: Implications for policy-makers. International Marketing Review 24(6), 735–770. http://www.emeraldinsight.com/doi/abs/10.1108/0265133071083268510.1108/02651330710832685Search in Google Scholar
Lööf, H. (2010). Are services different exporters? Applied Economics Quarterly 56, 99–117. http://ejournals.duncker-humblot.de/toc/aeq/56/1Search in Google Scholar
Love, J.H., and M.A. Mansury (2009). Exporting and productivity in business services: Evidence from the United States. International Business Review 18(6), 630–642. http://www.sciencedirect.com/science/article/pii/S096959310900116410.1016/j.ibusrev.2009.08.002Search in Google Scholar
Melitz, M.J. (2003). The impact of trade on intra-industry reallocations and aggregate industry productivity. Econometrica 71(6), 1695–1725. www.nber.org/papers/w888110.1111/1468-0262.00467Search in Google Scholar
Miles, I. (2005). Innovation in services. In: Fagerberg, J., Mowery, D.C., Nelson, R.R. (Eds.), The Oxford Handbook of Innovation. Oxford University Press, Oxford http://www.oxfordhandbooks.com/view/10.1093/oxfordhb/9780199286805.001.0001/oxfordhb-9780199286805Search in Google Scholar
OECD (2013). Fostering SMEs’ participation in global markets: Final report, Entrepreneurship and Local Development, Paris. http://www.oecd.org/officialdocuments/publicdisplaydocumentpdf/?cote=CFE/SME(2012)6/FINAL&docLanguage=En.Search in Google Scholar
Ojala, A., and P. Tyrväinen (2007). Market entry and priority of small and medium-sized enterprises in the software industry: An empirical analysis of cultural distance, geographic distance, and market size. Journal of International Marketing 15(3), 123–149. http://journals.ama.org/doi/abs/10.1509/jimk.15.3.12310.1509/jimk.15.3.123Search in Google Scholar
Schott, P. K. (2004). Across-product versus within-product specialization in international trade. Quarterly Journal of Economics 119, 647–78. http://qje.oxfordjournals.org/content/119/2/647.short10.1162/0033553041382201Search in Google Scholar
Temouri, Y., A. Vogel, and J. Wagner (2013). Self-selection into export markets by business services firms–Evidence from France, Germany and the United Kingdom. Structural Change and Economic Dynamics 25, 146–158. http://www.sciencedirect.com/science/article/pii/S0954349X1200009410.1016/j.strueco.2012.02.004Search in Google Scholar
Terjesen, S., C. O’Gorman, and Z. Acs (2008). Intermediated mode of internationalisation: new software ventures in Ireland and India. Entrepreneurship & Regional Development 20, 89–109. http://www.tandfonline.com/doi/abs/10.1080/08985620701630946#.Vg0yhVK2UxI10.1080/08985620701630946Search in Google Scholar
Wagner, J. (1995). Exports, firm size, and firm dynamics. Small Business Economics 7, 29–39. http://www.jstor.org/stable/4022885010.1007/BF01074314Search in Google Scholar
Wagner, J. (2001). A note on the firm size–export relationship. Small Business Economics 17, 229–237. http://link.springer.com/article/10.1023/A%3A101220240588910.1023/A:1012202405889Search in Google Scholar
Wagner, J. (2007). Exports and productivity: A survey of the evidence from firm-level data. The World Economy 30, 60–82. http://www.blackwell-synergy.com/links/doi/10.1111/j.1467-9701.2007.00872.x10.1111/j.1467-9701.2007.00872.xSearch in Google Scholar
Weterings, A., and S. Koster (2007). Inheriting knowledge and sustaining relationships: What stimulates the innovative performance of small software firms in the Netherlands? Research Policy 36(3), 320–335. http://www.sciencedirect.com/science/article/pii/S0048733306002162Search in Google Scholar
Wolfmayr, Y., E. Christen and M. Pfaffermayr (2013). Pattern, determinants and dynamics of Austrian service exports—A firm-level analysis. FIW-Research Reports 2012/13 No. 05, Research Centre International Economics (FIW). http://www.wifo.ac.at/forschung/forschungsprojekte/projektberichte?detailview=yes&publikation_id=46699Search in Google Scholar
© 2015 Martin Falk et al., published by Sciendo
This work is licensed under the Creative Commons Attribution 4.0 International License.