Antecedents of export performance in the second largest 500 firms of Turkey

Abstract

Exporting emerges as the primary mode of foreign market entry for emerging economy firms. Despite the large number of studies on determinants of export performance, a consensus could not be reached on the issue. This study aims to investigate the impact of a firm’s international experience, export marketing strategy, internal organization and utilization of governmental support on export performance. In analysis of export marketing strategy, the extent to which a firm adapts its products, prices and promotion strategies, its use of international trade fairs as a promotional tool and distribution channels are taken into consideration. As far as, internal organization is concerned, specifically, the size of firm’s export department and its reliance on regular training are considered. Finally, for governmental support, state’s and its export credit agency’s support is taken into account. The sample is drawn from the exporting firms in the Second Largest 500 Firms of Turkey List published by Istanbul Chamber of Industry. Among the 278 firms in the sample, 42 filled the survey, the main tool of data collection, leading to a response rate of 15 percent. Due to the small size of the sample, mainly non-parametric analyses have been used. There are two main findings of the study. First of all, as expected, firms with more international experience have better export performances. Second, and contrary to what was proposed in the study, direct exporters have better performances than companies that use intermediaries or that establish their own marketing and sales subsidiaries in foreign markets.