Exploitative Learning by Exporting

Elena Golovko, Cindy Lopes Bento, Wolfgang Sofka

    Research output: Contribution to conferencePaperResearchpeer-review

    Abstract

    Decisions on entering foreign markets are among the most challenging but also potentially rewarding strategy choices managers can make. In this study, we examine the effect of export entry on the firm investment decisions in two activities associated with learning about new technologies and learning about new markets ? R&D investments and marketing investments, in search of novel insights into the content and process underlying learning by exporting. We draw from organizational learning theory for predicting changes in both R&D and marketing investment patterns that accompany firm entry into exporting and link these changes to firm productivity. Our results show that marketing investments are equally likely to be triggered by exporting as R&D investments. Furthermore, our results suggest that although export entry is accompanied by increases in both R&D and marketing expenditures, it is predominantly the marketing-related investment decisions associated with starting to export that lead to increases in firm productivity. We conclude that learning-by-exporting might be more properly characterized as ?learning about and exploiting new markets? rather than ?learning about new technologies? as prior research often assumed.
    Original languageEnglish
    Publication date2015
    Number of pages39
    Publication statusPublished - 2015
    EventThe DRUID Society Conference 2015: The Relevance of Innovation - LUISS Business School, Rome, Italy
    Duration: 15 Jun 201517 Jun 2015
    Conference number: 37
    http://druid8.sit.aau.dk/druid/registrant/index/login/cid/16

    Conference

    ConferenceThe DRUID Society Conference 2015
    Number37
    LocationLUISS Business School
    CountryItaly
    CityRome
    Period15/06/201517/06/2015
    SponsorLUISS Guido Carli - Libera Università Internazionale degli Studi Sociali Guido Carli
    Internet address

    Cite this

    Golovko, E., Lopes Bento, C., & Sofka, W. (2015). Exploitative Learning by Exporting. Paper presented at The DRUID Society Conference 2015, Rome, Italy.
    Golovko, Elena ; Lopes Bento, Cindy ; Sofka, Wolfgang. / Exploitative Learning by Exporting. Paper presented at The DRUID Society Conference 2015, Rome, Italy.39 p.
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    title = "Exploitative Learning by Exporting",
    abstract = "Decisions on entering foreign markets are among the most challenging but also potentially rewarding strategy choices managers can make. In this study, we examine the effect of export entry on the firm investment decisions in two activities associated with learning about new technologies and learning about new markets ? R&D investments and marketing investments, in search of novel insights into the content and process underlying learning by exporting. We draw from organizational learning theory for predicting changes in both R&D and marketing investment patterns that accompany firm entry into exporting and link these changes to firm productivity. Our results show that marketing investments are equally likely to be triggered by exporting as R&D investments. Furthermore, our results suggest that although export entry is accompanied by increases in both R&D and marketing expenditures, it is predominantly the marketing-related investment decisions associated with starting to export that lead to increases in firm productivity. We conclude that learning-by-exporting might be more properly characterized as ?learning about and exploiting new markets? rather than ?learning about new technologies? as prior research often assumed.",
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    year = "2015",
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    Golovko, E, Lopes Bento, C & Sofka, W 2015, 'Exploitative Learning by Exporting' Paper presented at, Rome, Italy, 15/06/2015 - 17/06/2015, .

    Exploitative Learning by Exporting. / Golovko, Elena; Lopes Bento, Cindy; Sofka, Wolfgang.

    2015. Paper presented at The DRUID Society Conference 2015, Rome, Italy.

    Research output: Contribution to conferencePaperResearchpeer-review

    TY - CONF

    T1 - Exploitative Learning by Exporting

    AU - Golovko, Elena

    AU - Lopes Bento, Cindy

    AU - Sofka, Wolfgang

    PY - 2015

    Y1 - 2015

    N2 - Decisions on entering foreign markets are among the most challenging but also potentially rewarding strategy choices managers can make. In this study, we examine the effect of export entry on the firm investment decisions in two activities associated with learning about new technologies and learning about new markets ? R&D investments and marketing investments, in search of novel insights into the content and process underlying learning by exporting. We draw from organizational learning theory for predicting changes in both R&D and marketing investment patterns that accompany firm entry into exporting and link these changes to firm productivity. Our results show that marketing investments are equally likely to be triggered by exporting as R&D investments. Furthermore, our results suggest that although export entry is accompanied by increases in both R&D and marketing expenditures, it is predominantly the marketing-related investment decisions associated with starting to export that lead to increases in firm productivity. We conclude that learning-by-exporting might be more properly characterized as ?learning about and exploiting new markets? rather than ?learning about new technologies? as prior research often assumed.

    AB - Decisions on entering foreign markets are among the most challenging but also potentially rewarding strategy choices managers can make. In this study, we examine the effect of export entry on the firm investment decisions in two activities associated with learning about new technologies and learning about new markets ? R&D investments and marketing investments, in search of novel insights into the content and process underlying learning by exporting. We draw from organizational learning theory for predicting changes in both R&D and marketing investment patterns that accompany firm entry into exporting and link these changes to firm productivity. Our results show that marketing investments are equally likely to be triggered by exporting as R&D investments. Furthermore, our results suggest that although export entry is accompanied by increases in both R&D and marketing expenditures, it is predominantly the marketing-related investment decisions associated with starting to export that lead to increases in firm productivity. We conclude that learning-by-exporting might be more properly characterized as ?learning about and exploiting new markets? rather than ?learning about new technologies? as prior research often assumed.

    M3 - Paper

    ER -

    Golovko E, Lopes Bento C, Sofka W. Exploitative Learning by Exporting. 2015. Paper presented at The DRUID Society Conference 2015, Rome, Italy.