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Early internationalization patterns and export market persistence: a pseudo-panel data analysis

Yancy Vaillant (), Esteban Lafuente and Manoj Chandra Bayon ()
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Yancy Vaillant: Toulouse Business School (TBS)
Manoj Chandra Bayon: Pontificia Universidad Javeriana de Cali

Small Business Economics, 2019, vol. 53, issue 3, No 8, 669-686

Abstract: Abstract This study evaluates the international market persistence of early exporting businesses. The relationship between time in the market and export propensity/intensity levels was analyzed to identify the persistence of the internationalization patterns of entrepreneurial ventures. The empirical application employs a pseudo-panel approach at the business age- and industry-based cohort level drawn from a group of independent cross-sectional surveys that include information for 13,961 independently and randomly selected business owners for the period 2007–2012. The results show that the proportion of firms that export significantly diminishes following the initial post start-up years and that low export intensity levels at start-up leads to greatest tenacity and persistence of the exporting efforts for new firms. The results contribute to the recent discussions on whether early internationalization is an effective strategy and should be encouraged.

Keywords: Market persistence; Entrepreneurial internationalization; Export propensity; Export intensity; Pseudo-panel data analysis (search for similar items in EconPapers)
JEL-codes: L26 M13 M21 (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1007/s11187-018-0071-z

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