Role of Technological and Knowledge Resources in a Firm’s Decision to Export: The Case of Inward Oriented Indian Industries

Pradeep Keshari

Chapter Chapter 7 in Globalization of Indian Industries, 2016, pp 141-170 from Springer

Abstract: Abstract The paper mainly examines the role of technological and knowledge resources in a firm’s decision to export in a group of inward oriented capital intensive Indian industries, having low export intensities. It primarily utilises a combination of theoretical frameworks of resource based view, including its extension into dynamic capability approach, and new-new theory of international trade. To undertake the empirical work, it estimates a probit model of the determinants of decision to export with the help of an unbalanced panel of data on a sample of 1835 firms with 13,672 observations covering a period of 12 financial years 2000/01–2011/12. Findings of the study suggests that the technological and knowledge resources, acquired through two foreign channels (i.e. foreign direct investment and imports of intermediate goods), learning by doing (or experience) and employment of capital intensive technique have favourable impacts on the decision to export of a firm in the industries selected for the study. Besides, the results also reveal that marketing assets (i.e. product differentiation advantage), organisational and financial resources measured by firm-size and capacity to raise credit from banks also play important roles in the firm’s decision to export.

Keywords: Intermediate Good; Resource Base View; Export Intensity; Financial Capability; Sustained Competitive Advantage (search for similar items in EconPapers)
Date: 2016
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DOI: 10.1007/978-981-10-0083-6_7

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