Performance feedback and export intensity of Chinese private firms: Moderating roles of institution-related factors

Meitong Dong (1) , Liwen Wang (2, 3) , Defeng Yang (4) , Kevin Zhou (1)

1 HKU - The University of Hong Kong
2 Audencia Business School
3 Shenzhen Univerisity [Shenzhen]
4 Jinan University [Guangzhou]

Building on the behavioral theory of the firm and institutional view, we examine how performance feedback (i.e., a focal firm's performance relative to its industry peers) affects export intensity and how institution-related factors moderate this relationship. Using a sample of Chinese private manufacturing firms, we find that positive performance feedback lowers export intensity while the relationship between negative performance feedback and export intensity is insignificant. Moreover, outperforming firms are likely to decrease their export intensity even more when they are located in regions of better institutional development or have political connections. Underperforming firms with political connections tend to increase their export intensity. These findings enrich our understanding of the export behavior of emerging market firms.

Keywords: performance feedback; export intensity; institutional development; political connections; behavioral theory of the firm; institutional view

Domains: Humanities and Social Sciences; Business administration

Meitong Dong, Liwen Wang, Defeng Yang, Kevin Zhou. Performance feedback and export intensity of Chinese private firms: Moderating roles of institution-related factors. International Business Review, 2022, 31 (3), pp.101948. ⟨10.1016/j.ibusrev.2021.101948⟩. ⟨hal-03628381⟩