Export propensity, export intensity and firm performance: The role of the entrepreneurial founding team

Panagiotis Ganotakis and James H Love
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Panagiotis Ganotakis: Leeds University Business School, University of Leeds, Leeds, UK
James H Love: Economics and Strategy Group, Aston Business School, Aston University, Birmingham, UK

Journal of International Business Studies, 2012, vol. 43, issue 8, 693-718

Abstract: We investigate how the characteristics and experience of the entrepreneurial founding team (EFT) affect the export orientation and subsequent performance of the businesses they establish, while allowing for the mutually reinforcing relationship between exporting and productivity. Using a sample of UK technology-based firms, we hypothesise and confirm that the set of EFT human capital needed for entering export markets is different from that required for succeeding in export markets. Commercial and managerial experience helps firms become exporters, but once over the exporting hurdle it is education, both general and specific, that has a substantially positive effect. The overall pattern of human capital effects on productivity is similar to those for export propensity. We also find evidence that productive firms are more likely both to enter export markets and to be export intensive, and that exporting boosts subsequent firm productivity.

Date: 2012
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