Factors affecting the timing of the export development process in Spanish manufacturing firms

Abstract

We study entry timing in the export development process of Spanish manufacturing firms. We interpret this process as a sequential path which allows us to identify the following export stages: (I) the pre-engagement phase, where firms do not export; (II) the initial phase, where firms export via an agent; and (III) the advanced phase, where firms export via a sales subsidiary. This study explores factors, which can accelerate or decelerate the decision to change phases. Data are taken from the Spanish Survey on Business Strategies that comprises 1,478 firms in 2002. Event history analysis is applied to our dataset. Obtaining product or process innovations is the most significant motivation for an early entry in the initial and advanced phases of the export development process. Network ties, a broader scope of products, firm size and foreign ownership participation are also key factors in accelerating entries.