Internationalization modes other than exporting: the missing determinant of export performance

The purpose of this paper is to develop and empirically evaluate a model of the firm-level determinants of export performance that includes the firm’s internationalization modes other than exporting. The determinants included in the model are: the firm’s commitment to developing an international marketing strategy, the organizational structure for exports, international modes other than exporting (foreign direct investment, international alliances, global sourcing), and some characteristics of the firm already extensively explored in other studies (size, age, international experience). Using information gathered on 147 Italian manufacturing SMEs and applying a structural equation modeling procedure, the above-mentioned firm internationalization methods are shown, as a whole, to have a statistically significant, positive and direct influence on export performance. The same can be said of the strategic variable and the organizational variable, whereas the firm characteristics have only an indirect effect on export performance, mediated by the previous three determinants. The study presents some limitations. In particular, it was limited to manufacturing SMEs in a particular geographical area (North-East Italy). Replications in other territories are needed to validate the current findings. Moreover, the results of the statistical analysis reveal a moderate support to the research model with regard to some fit indices. These issues could be addressed in future research. The most important outcome of the study refers to the influence of the internationalization modes other than exporting. Although a great deal of theoretical and empirical literature analyzed the determinants of export performance, this relationship has been largely neglected.