Informal Legacy and Exporting Among Sub-Saharan African Firms

• 成果类型: Article
• 署名作者: Larsen, Marcus M.; Witte, Caroline T.
• 署名单位: Copenhagen Business School; BI Norwegian Business School; Erasmus University Rotterdam - Excl Erasmus MC; Erasmus University Rotterdam
• 刊物名称: ORGANIZATION SCIENCE
• ISSN/ISSBN: 1047-7039
• DOI: 10.1287/orsc.2022.1623
• 发表日期: 2023
• 页码: 987-1003
• 关键词: Exporting; Informal economy; experimentation; legitimacy; sub-Saharan African

摘要

Around the world and especially in areas of widespread poverty, firms start their operations without registering with relevant authorities (i.e., in the informal economy). We explore whether firms that initiated their operations in the informal economy but later register have a higher propensity to export than firms that register at the time of their foundation. We reason that the experience of having operated informally provides formally registered firms with the advantage of low-cost and flexible exploration but also a domestic legitimacy liability. We suggest that these factors likely contribute to making foreign export markets more attractive after registration. Based on a comprehensive sample of sub-Saharan African firms, we find that, conditional on registration, firms with an informal legacy have a higher propensity to initiate exporting than firms that started their operations formally. We contribute with theoretical and policy-oriented insights on the dynamics of informality and exporting.