This paper presents a transaction costs analysis of the firm size and export intensity relationship. We submit that relation-specific investments and the costs of safeguarding these investments play a significant role in export relationships. Firm size related differences with respect to these factors are used to explain the different relationships between firm size and export intensity that have been found in previous studies. The theoretical framework is tested empirically, and support is found for different industries.

export intensity, firm size, international business strategy, investments, trade costs
Statistical Decision Theory; Operations Research (jel C44), Organizational Behavior; Transaction Costs; Property Rights (jel D23), Models of Trade with Imperfect Competition and Scale Economies (jel F12), Multinational Firms; International Business (jel F23), Business Administration and Business Economics; Marketing; Accounting (jel M), Marketing (jel M31)
hdl.handle.net/1765/11497
ERIM Top-Core Articles
Journal of International Business Studies
Erasmus Research Institute of Management

Verwaal, E, & Donkers, A.C.D. (2002). Firm size and export intensity: a transaction costs and resource-based perspective. Journal of International Business Studies, 603–613. Retrieved from http://hdl.handle.net/1765/11497