The role of informal competition in driving export propensity of emerging economy firms
An attention based approach
Bibliographic Data
| ID | 11194392 |
|---|---|
| Authors | Rouhin Deb (Indian Institute of Management Shillong, corresponding author), Harsh Vardhan Samalia (0000-0002-9292-1098, Indian Institute of Management Shillong), Santosh Kumar Prusty (0000-0002-7065-7134, XIM University) |
| Year | 2020 |
| Volume | 40 |
| Issue | 1/2 |
| Pages | 184-203 |
| Publication date | 2020-02-20 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | International Journal of Sociology and Social Policy (JOURNAL) |
| Journal identifiers | ISSN: 0144-333X • E-ISSN: 1758-6720 |
| Publisher | Emerald (PUBLISHER) |
| DOI | 10.1108/ijssp-06-2019-0131 |
| OpenAlex | W2999267743 |
| Language | EN |
| Citations received | 4 |
| References cited | 72 |
Purpose Competitive pressure from informal firms has always been a threat to the formal enterprises. However, the strategic choices a firm makes to deal with such competitive pressures still remain under-explored. The purpose of this paper is to examine the influence of informal competitive pressures in driving export propensity of formal firms. Design/methodology/approach The paper is based on a standard error logistic model, and the model takes into account the contingent relationships along with the primary relationship. The authors draw the sample of 9,812 manufacturing firms spanning across the Indian sub-continent from the World Bank enterprise survey conducted in the year 2014. Findings The empirical results indicated that the level of competition from informal firms is positively associated with the propensity to export. The primary relationship is also affected by various contingent factors such as regulatory obstacles, bribery and new product development. Research limitations/implications Although the World Bank enterprise survey data provide a broad coverage, the study warranted few proxy measures in order to operationalize formal competition as it was not captured directly in the concerned data set. Practical implications The analysis demonstrates that informal competition has direct effect on the firm’s propensity to export. The findings indicate that export is an attractive action alternative for firms facing informal completion in an emerging economy. The results further indicate that this effect strengthens as institutional factors such as regulatory obstacles and bribery increase. Social implications The paper is an attempt to alter the prevailing negative view on informality. The findings indicate that informal competition spurs competitiveness in the formal sector indicating its positive role in the economic growth of the nation. Originality/value The paper takes cue from attention-based view of the firm and the institutional escapism logic to affirm the role of informal competition and various contingent institutional and strategic factors in driving export propensity
Business · Competition (biology · Economics · Empirical research · Industrial organization · Operationalization · Proxy (statistics · Sample (material · Survey data collection · Global trade and economics · Innovation and Socioeconomic Development · International Business and FDI
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| Citations per year | 1.33 |
|---|---|
| Citation span | 2023 - 2026 (4) |
| Highly cited | No |