The Export Behavior of Smaller-Sized Wisconsin Manufacturing Firms
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* Export development is perhaps the most widely studied and least understood aspect of attested by the large body of literatureon international trade and by the international business-as extremely empirical approach usually taken by analysts whose unit of study is the firm.1 The latter typically use only very simple implicit models for data gathering, and then let the data speak for themselves. This approach has yielded an array of noncomparable information. A commonly acceptable export model is needed. The analysis summarized here explores the meaningfulness of a "stages" model for examining export behavior, particularly of small- and medium-sized firms. Such a model could be integrated into broader "stages" concepts of the firm. Italso leads to policy implications that differ from that of non-stage concepts.
INTRODUCTION
The model used is-that the export development process of firms tends to occur in the following stages: -Stage One. Management is not interested in exporting; would not even fill an unsolicited export order. -Stage Two. Management would fill an unsolicited export order, but makes no effort to explore the feasibility of exporting. -Stage Three (which can be skipped if unsolicited export orders are received). Management actively explores the feasibility of exporting. Four. The firm exports on an experimental basis to some psychologically close -Stage country.2 Five. The firm is an experienced exporter to that country and adjusts exports -Stage optimally to changing exchange rates, tariffs, etc. -Stage Six. Management explores the feasibility of exporting to additional countries that, psychologically, are further away. -And so on Additional propositions in this model are: that the determinants of firms' behavior are ascertainable empirically, and that they may differ from one export stage to another.
MODEL
To test the above model, questionnaires were mailed to a sample of 816 Wisconsin firms in April 1974. They were drawn randomly from the 4,701 listings in the Classified Directory of Wisconsin Manufacturers, 1974 (published by the Wisconsin Manufacturers' Association) that met criteria
METHODOLOGY
* WarrenBilkeyis Professorof Business at the Universityof Wisconsin-Madison. He received his doctoratein economics from HarvardUniversity.He served for a period as economics adviser to the Presidentof the DominicanRepublic and has published in the fields of internationalbusiness, economic development, and consumer behavior. George Tesar is an Assistant Professorof Marketingand International Managementat GeorgetownUniversity and an Associate at the CenterforStrategicand International Studies in Washington,D.C. He received his MBA from MichiganState Universityand Ph.D. from the Universityof Wisconsin.His research, professional,and of firmsand organizationsand East-Westtrade. publicationinterestsinclude internationalization
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