Technology and Export Two-Way Link: Firm-Level Multidimensional Technology Adoption and Utilization

Andi Susanto, Arif Imam Suroso (), Hermanto Siregar and Harianto
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Andi Susanto: School of Business, IPB University, Bogor 16151, Indonesia
Arif Imam Suroso: School of Business, IPB University, Bogor 16151, Indonesia
Hermanto Siregar: Department of Economics, IPB University, Bogor 16680, Indonesia
Harianto: Department of Agribusiness, IPB University, Bogor 16680, Indonesia

Administrative Sciences, 2025, vol. 15, issue 9, 1-21

Abstract: This study explores the relationship between multidimensional technology adoption and utilization with exports, focusing on textile and clothing firms in Indonesia. Grounded by self-selection and learning-by-exporting hypotheses, this study uses binomial probit and ordinary least squares (OLS) models with data from 376 firms to estimate a two-way link between a granular technology index, export propensity, and export intensity. The findings show that firms adopting and utilizing advanced technology effectively in administrative and production functions are more likely to self-select into exporting. Upon entering export markets, firms significantly increased their adoption and utilization of technologies, primarily in production functions. However, as export intensity increased, production technology upgrading increased slowly, while administrative technology adoption and use decreased. These results provide nuanced insights into how technology evolves across different stages of export activity and underscore targeted technology upgrading programs that address acquisition or routine utilization in every export activity to foster competitiveness.

Keywords: export; learning by exporting; self-selection; technology index (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2025
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