Journal
JOURNAL OF WORLD BUSINESS
Volume 54, Issue 2, Pages 154-168Publisher
ELSEVIER SCIENCE INC
DOI: 10.1016/j.jwb.2019.01.001
Keywords
Market exit; Market re-entry; Price/quality ratio; Time-out period; Export performance; Two-stage model
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The relevance of nonlinear internationalisation regarding exporting activities and the performance post re-entry remains little understood. This study develops a two-stage model to explain the process of exporting firms' exit and re-entry decisions regarding individual export markets. Specifically, it investigates the dynamic relationships between exit and re-entry stages by focusing on the time-out period. This study empirically tests the decision model by employing export data from the Chinese Customs for the period 2000-2009. The results indicate the importance of the exit stage in shaping re-entry decisions, price/quality ratio and export performance, where time-out period plays a significant role in varying these effects.
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