Firm Age: A Case Study

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Firm Age Firm age, indicating a learning-by-doing experience, can also significantly affect firm export decisions, since old firms are able to participate in competitive foreign markets due to their\ cumulative experience, business networks and reputation. In the empirical study of Jongwanich and Kohpaiboon (2008) found that firm age has a significant and positive linear effect on exporting for the case of Thai manufacturing enterprises, implying that older firms are likely to have more operating experience and greater efficiency through their leaning-by-doing process than younger firms. However, Dueñas-Caparas (2006) found a positive linear and negative non-linear relationship between firm age and export performance for the Philippine clothing…show more content…
Leonidou and Kaleka (1998) revealed a strong positive effect of export market knowledge on overall export performance and attributed this to export experience. Alshammari and Islam (2014) found a positive relationship between international experience and export performance with the study of Malaysian exporters and explained that managers with international experience have an extra advantage in understanding different market conditions in foreign markets while according to (Naidu and Prasad et.al 1994) have identified a negative association between international experience and export performance. the two constructs (Baldauf et al., 2000; Brouthers and Nakos, 2005; Lages et al., 2008b; Naidu and Prasad, 1994). Naidu and Prasad (1994) found inexperienced exporters performed better although experienced exporters were more regular exporters and he also argued that more experienced exporters become realistic about the profit impact of exporting and temper their profitability

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