Exporter networks, innovation, and performance: an institutional approach

Abstract

Several studies have attempted to analyze the determinants of export performance. Most of them have been dedicated to assessing the role of corporate, managerial, and organizational resources, as well as company size and experience. Others sought to measure the effect of innovation on export performance. However, there are few studies that address the effect institutional framework has on export performance. The present study aims to evaluate the institutional determinants of companies' export performance, seeking to fill a gap in the international business literature by examining the ways in which the institutional framework of the country of origin affects companies' export performance. Although several studies have investigated the effect country of origin institutions have on internationalization and export performance, there are few studies that have evaluated the modes and mechanisms by which such institutions act and shape companies' export performance. This study's contribution is using structural equation modeling to show that institutional framework has no direct effect on export performance, but acts indirectly through specific transmission mechanisms. This approach points to social networks and innovation as two mechanisms that perform specific functions to configure institutional effects. Although the empirical results did not show statistical significance for the innovation dimension, the network mechanism has been shown as a specific and efficient mechanism for transmitting institutional framework effects on export performance.

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