Skip to main content

ETHNOS_APP

Home • Search • Journals • List 0

The role of informal competition in driving export propensity of emerging economy firms

An attention based approach

Bibliographic Data

ID11194392
AuthorsRouhin 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)
Year2020
Volume40
Issue1/2
Pages184-203
Publication date2020-02-20
Open AccessYes
TypeARTICLE
VenueInternational Journal of Sociology and Social Policy (JOURNAL)
Journal identifiersISSN: 0144-333X • E-ISSN: 1758-6720
PublisherEmerald (PUBLISHER)
DOI10.1108/ijssp-06-2019-0131
OpenAlexW2999267743
LanguageEN
Citations received4
References cited72

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

  • Gender Differences in Enterprise Export Performance

    Open Access•Tesfaye Lemma, Michael Machokoto et al.•World Economy•2026

  • Ownership types, institutions, and the internationalization of emerging economy new ventures

    Open Access•Gonzalo Molina-Sieiro, Katia M Galdino et al.•Small Business Economics•2023

  • Does competition from informal firms hurt job creation by formal manufacturing SMEs in developing and emerging countries? Evidence using firm-level survey data

    Open Access•Mohammad Amin•Small Business Economics•2023

  • The effect of informal competition on the performance of formal firms

    Open Access•Vasileios Vlachos•International Journal of…•2024

  • Defining International Entrepreneurship and Modeling the Speed of Internationalization

    Open Access•Benjamin M Oviatt, Patricia P Mcdougall•Entrepreneurship Theory and…•2005

  • Building Inclusive Markets in Rural Bangladesh

    Johanna Mair, Ignasi Martí et al.•Academy of Management Journal•2012

  • You Say Illegal, I Say Legitimate

    Justin W Webb, László Tihanyi et al.•Academy of Management Review•2009

  • The Internationalization of Chinese Firms

    Open Access•J Child, Suzana B Rodrigues•Management and Organization Review•2005

  • Conducting R&D in Countries with Weak Intellectual Property Rights Protection

    Open Access•Minyuan Zhao•Management Science•2006

  • The Psychology of Rivalry

    Gavin J Kilduff, Hillary Anger Elfenbein et al.•Academy of Management Journal•2010

  • Common method biases in behavioral research

    Philip M Podsakoff, Scott B Mackenzie et al.•Journal of Applied Psychology•2003

  • Testing for Weak Instruments in Linear IV Regression

    Open Access•James H Stock, Motohiro Yogo•Identification and Inference for…•2005

  • Determinants of the Level of Informality of Informal Micro-Enterprises

    Open Access•Colin C Williams, Muhammad Shehryar Shahid et al.•World Development•2015

  • Practices of subjectivity

    Open Access•Pietro Saitta•International Journal of…•2017

  • How close are formal and informal work

    Open Access•Joanna Shapland, Jason Heyes•International Journal of…•2017

  • Informality

    Open Access•Aeggarchat Sirisankanan•International Journal of…•2017

  • Economic crisis and “white informal economy” – a slippery slope

    Open Access•Bojan Dobovšek, Boštjan Slak•International Journal of…•2017

  • Corruption and Development

    Open Access•Augustine M Nwabuzor, Augustine Nwabuzor•Journal of Business Ethics•2005

  • Out of the shadows

    Open Access•Colin C Williams•Work Employment and Society•2014

  • Institutional Logics and the Historical Contingency of Power in Organizations

    Patricia H Thornton, William Ocasio•American Journal of Sociology•1999

Citations per year1.33
Citation span2023 - 2026 (4)
Highly citedNo

Tools

Open DOI
Ethnos_APP • Open Source Project • MIT License • Frontend v2.0.0 • Privacy and Cookies • API Documentation: api.ethnos.app/docs • API Source Code: GitHub • DOI: 10.5281/zenodo.17049435 • Frontend Source Code: GitHub • DOI: 10.5281/zenodo.17050053 • cruz.rio.br • Expectantes Misericordiae