HCBE Faculty Articles
International Involvement and Production Efficiency among Startup Firms
Document Type
Article
Publication Title
Global Economic Review
ISSN
1226-508X
Publication Date
2016
Abstract/Excerpt
The economic theory of small firms often requires a reasoning process distinct from those typically used for large multinational enterprises (MNEs), since small firms typically do not possess the resources MNEs commonly employ to outperform similar domestic firms. In the current analysis, we argue that new small firms with international sales can better predict their revenue stream than can comparably aged firms with only domestic sales, and, as a result, international selling firms have higher levels of technical productive efficiency. We employ 7829 firm-year observations from the 2007 to 2011 years of the Kauffman Firm Survey microdata sample in our analysis. A stochastic frontier model empirically supports the result that technical productive efficiency is positively related to the foreign sales ratio. These results hold after controlling for multiple relevant owner and firm characteristics, as well as accounting for potential endogeneity concerns.
DOI
https://doi.org/10.1080/1226508X.2015.1084240
Volume
45
Issue
1
First Page
42
Last Page
62
NSUWorks Citation
Baek, Hyungkee Young and Neymotin, Florence, "International Involvement and Production Efficiency among Startup Firms" (2016). HCBE Faculty Articles. 794.
https://nsuworks.nova.edu/hcbe_facarticles/794
