Determinants of the export channel selection and export performance

Abstract

The aim of this thesis is to explore how firms can make better use of channel selections to create value from their organisational capabilities, such as product development capabilities (PDC), in export operations by considering the role of resource-based factors such as entrepreneurial orientation (EO) and institutional factors such as cultural-cognitive institutional distance (CCID). Through a systematic review of the contemporary empirical studies on export channel selection, it is found that although previous studies have made advancements in improving our understanding of export channel selection using a variety of theoretical bases, this domain is still immature, in that significant theoretical and methodological gaps exist. Based on this review, the author then carries out an empirical study to explore PDC as the determinant of export channel selection and export performance to address the gaps in current export channel research, integrating resource-based view and institutional theory. Using the data collected from multiple respondents of 294 Chinese export firms, the study finds that firms with higher levels of PDC are more likely to select the hierarchical channel. In addition, the possession of EO negatively moderates the propensity of high PDC-firms to select the hierarchical channel. The study has also found that the moderating effect of EO on PDC-channel selection becomes stronger when the CCID between the home and export market increases, and that the alignment between PDC, EO, CCID, and channel selection can help firms to achieve better export performance. This thesis contributes to the literature by extending the application of RBV and institutional theory in export channel selection, and adds knowledge to the roles of PDC, EO, and CCID in helping firms to achieve better performance in export markets by means of export channel selection.