Determinants of internationalization: differences between service and manufacturing SMEs

Arbeitspapier

This paper empirically investigates the antecedents of internationalization of SMEs, focusing on differences between the manufacturing and service sectors. Specifically, employing a bivariate probit model based on survey data of approximately 3,900 East German firms, I analyze which firm-related and external factors affect a firm's decision to export and/or relocate production or other operations abroad. Generally, I find that SMEs from the manufacturing sector do more exporting than service firms. The results reveal that size, having main competitors located abroad, and introducing a novel product all are significantly positively related to the internationalization of SMEs regardless of industry affiliation. However, manufacturing firms in the high-tech sector are far more likely to be engaged in internationalization activity than are service firms, regardless of whether the latter are high-tech. Locational conditions and cooperation activities are generally less important for internationalization of service firms, too, compared to their manufacturing counterparts.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: DIW Discussion Papers ; No. 886

Classification and Topics

• Classification: Wirtschaft ; International Business Administration ; Business Economics: General ; Firm Performance: Size, Diversification, and Scope ; Real Estate Markets, Spatial Production Analysis, and Firm Location: General ; Innovation; Research and Development; Technological Change; Intellectual Property Rights: General
• Subject: Internationalization ; service ; manufacturing ; bivariate probit model ; Multinationales Unternehmen ; Verarbeitendes Gewerbe ; Dienstleistungssektor ; Exportindustrie ; Schätzung ; Neue Bundesländer

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Lejpras, Anna
• Event: Veröffentlichung
• (who): Deutsches Institut für Wirtschaftsforschung (DIW)
• (where): Berlin
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/29800
• Last update: 10.03.2025, 11:42 AM CET