Exploring the Relationship Between Export Intensity and Exporter Characteristics, Resources, and Capabilities: Evidence From Chile

This study focuses on exporters in Chile in order to compare the characteristics, resources, and capabilities for export success (RACFES) possessed by high, medium, and low intensity exporters. Data for this study were collected throughan Internet survey of Chilean manufacturers that export. Of the 480 companies in the sample, 133 responded to the questionnaire consisting of 69 items, yielding a total response rate of 28%. The analysis of variance procedure was used to analyze linear items and the chi square procedure was used for nonlinear items. The results indicated that export intensity in Chile is very strongly associated with firms that are smaller in size, have had export operations for longer periods of time, are highly involved in foreign markets, and are vertically integrated with their international target markets. These firms have also been very successful in overcoming export barriers. They make greater use of promotional strategies to expand their export markets and use sales agents as a means for reducing distribution costs. These firms are more likely to have vertically integrated their Chilean operation with their international target markets and to have created working international networks. The major limitation of this research is that it was carried out in only one South American country, with a rather limited sample size. A practical implication of this study is that companies in small countries, endowed with comparative advantages based on natural resources, can successfully penetrate export markets by imitating Chile's thriving export companies. Export penetration factors for small, resource-based countries like Chile are not very different from those for large developed countries.