Anti-crisis activities and export performance in the Covid-19 pandemic: The case of Polish exporters

Abstract

Objective: The article aims to investigate the impact of anti-crisis activities undertaken by the Polish exporting firms on their export sales during the Covid-19 pandemic.

Research Design & Methods: In our study, we used a quantitative research design. We conducted the survey on the sample of 161 manufacturing Polish exporting firms between April 21 and June 25, 2021. To verify the assumed relationships, we used the probit regression model.

Findings: We found that some firm key features, such as firm size, the territorial scope of international activity, the share of foreign ownership in assets, the degree of innovation, and the presence of a market diversification strategy significantly impacted export sales during the pandemic. The results also suggest that a temporary reduction in employment, the sale of new/adapted products, and the search for new foreign export partners strongly supported the sales growth of Polish exporters during the Covid-19 pandemic.

Implications & Recommendations: This study can be valuable for researchers, managers, and policymakers. First, we highlight activities that promote export/sales during the pandemic period, which can be helpful for both researchers and policymakers in creating support tools for exporters. Second, managers may gain valuable lessons on the importance of having an internationalisation strategy and marketing strategies in place during demand and supply shocks.

Contribution & Value Added: The main novelty is a firm-level analysis of the Covid-19 pandemic impact on exporting firms from the perspective of the anti-crisis activities they undertook, which fills a gap in the literature and informs discussions of the potential impact of Covid-19 on export performance.

Keywords

Polish exporting firms, manufacturing; , export sales; , COVID-19 pandemic; , firm’s strategy;, firm-level survey

Author Biography

Aleksandra Kordalska

PhD in Economics (2005, Gdańsk University of Technology, Poland); Assistant Professor at Gdańsk University of Technology. Her scientific interests focus on international trade, in particular on international trade of Central and Eastern European economies. The main research works are related to global value chains, functional specialisation, technological specialisation, and manufacturing servicification.

Correspondence to: Aleksandra Kordalska, PhD, Gdańsk University of Technology, Faculty of Management and Economics, Narutowicza 11/12, 80-233 Gdańsk, Poland, e-mail: Aleksandra.Kordalska@zie.pg.edu.pl

ORCID  http://orcid.org/0000-0002-8842-4777

Magdalena Olczyk

in 1995, she graduated from the University of Gdansk with a degree in economics, specialising in foreign trade. in 2006 she received her PhD in Economics from Gdansk University of Technology and in 2018 she also habilitated in Economics from Gdansk University of Technology. Since 2000, she has been working at the Faculty of Management and Economics at the Gdansk University of Technology in the Department of Economics. She is the author and co-author of over 80 publications in the field of international economics, mainly on international competitiveness, functional specialisation and global value chains in Central and Eastern European countries.

Correspondence to: Magdalena Olczyk, PhD, Gdańsk University of Technology, Faculty of Management and Economics, Narutowicza 11/12, 80-233 Gdańsk, Poland, e-mail: Magdalena.Olczyk@zie.pg.edu.pl

ORCID  http://orcid.org/0000-0002-4880-5890

References

1. Acharya, V.V., & Steffen, S. (2020). The Risk of Being a Fallen Angel and the Corporate Dash for Cash in the Midst of COVID. NBER Working Paper, 27601, 1-54. https://doi.org/10.2139/ssrn.3704158
2. Andersen, A.L., Hansen, E.T., Johannesen, N., & Sheridan, A. (2020). Pandemic, Shutdown and Consumer Spending: Lessons from Scandinavian Policy Responses to COVID-19. Retrieved from http://arxiv.org/abs/2005.04630 on January 10, 2023.
3. Androniceanu, A., & Sabie, O.M. (2022). Overview of green energy as a real strategic option for sustainable development. Energies, 15(22), 8573. https://doi.org/10.3390/en15228573
4. Androniceanu, A. (2020). Major structural changes in the EU policies due to the problems and risks caused by COVID-19. Administratie si Management Public, 34, 137-149. https://doi.or/10.24818/amp/2020.34-08
5. Antràs, P. (2020). Conceptual Aspects of Global Value Chains. World Bank Economic Review, 34(3), 551-574. https://doi.org/10.1093/wber/lhaa006
6. Aral, K., Giambona, E., & Aliouchkin, L. (2020). The COVID-19 pandemic: supply chain disruption, wealth effects, and corporate responses. Social Science Research Network, 3686744, https://doi.org/1037.10.2139 /ssrn. 3686744
7. Arenas, G.C., Majune, S., & Montfaucon, A.F. (2022). The Impacts of Lockdown Policies on International Trade in the Philippines. World Bank Policy Research Paper, 9911, 1-62. https://doi.org/10.1162/asep_a_00804
8. Attinasi, M.G., Balatti, M., Mancini, M., & Metell, L. (2021). Supply chain disruptions and the effects on the global economy. EBC Economic Bulletin, 8/2021. Retrieved from https://www.ecb.europa.eu/pub/economic-bulletin/html/eb202108.en.html on January 10, 2023.
9. Aulakh, P.S., Kotabe, M., & Teegen, H. (2000). Export strategies and performance of firms from emerging economies: evidence from Brazil, Chile, and Mexico. Academy of Management Journal, 43(3), 342-361. https://doi.org/10.2307/1556399
10. Baber, W., & Ojala, A. (2021). Change of international business models during COVID-19. In M. Marinov & S. Marinova (Eds.), Covid-19 and International Business Change of Era (pp. 103-112). Routledge.
11. Balleer, A., Link, S., Menkhoff, M., & Zorn, P. (2020). Demand or Supply? Price Adjustment During the Covid-19 Pandemic. Cesifo Working Papers, 8394(August), 1-35. https://doi.org/10.2139/ssrn.3669497
12. Bennedsen, M., Larsen, B., Schmutte, I., & Scur, D. (2020). Preserving job matches during the COVID-19 pan-demic: firm-level evidence on the role of government aid. GLO Discussion Paper Series, 588, 1-30. https://doi.org/10.13140/RG.2.2.15337.11366
13. Bilan, Y., Karyuk, V., Grishnova, O., & Mishchuk, H. (2023). The attractiveness of tourism in the conditions of modern challenges: methodology, assessment, prospects. Intellectual Economics, 17(1), 152-177. https://doi.org/10.13165/IE-23-17-1-08
14. Bodur, M. (1994). Foreign market indicators, structural resources and marketing strategies as determinants of export performance. In C.N. Axinn (Ed.), Advances in International Marketing (pp. 183-20), JAI Press Inc., Greenwich.
15. Borino, F., Carlson, E., Rollo, V., & Solleder, O. (2021). International firms and COVID-19: Evidence from a global survey. CEPR Working Papers, 75(7), 30-60. Retrieved from https://cepr.org/system/files/publication-files/101427-covid_economics_issue_75.pdf on January 10, 2023.
16. Carletti, E., Oliviero, T., & Subrahmanyam, M.G. (2020). The COVID-19 Shock and Equity Shortfall : Firm-Level Evidence from Italy. The Review of Corporate Finance Studies, 9(3), 534-568. https://doi.org/10.1093/rcfs/cfaa014
17. Cieślik, A., & Michałek, J.J. (2017). Innovation forms and firm export performance: Empirical evidence from ECA countries. Entrepreneurial Business and Economics Review, 5(2), 85-99. https://doi.org/10.15678/EBER.2017.050205
18. Cieślik, B.J., Kaciak, E., & Welsh, D.H.B. (2012). The Impact of Geographic Diversification on Export Perfor-mance of Small and Medium- Sized Enterprises (SMEs). Journal of International Entrepreneurship, 10(1), 70-93. https://doi.org/10.1007/s10843-012-0084-7
19. Cos, P., Colom, A., & Cabasés, A. (2019). Geographic export diversification: Determinants and their link with export performance. Thunderbird International Business Review, 61(2), 397-411. https://doi.org/10.1002/tie.21991
20. Dai, R., Feng, H., Hu, J., Jin, Q., Li, H., Wang, R., Wang, R., Xu, L., & Zhang, X. (2021). The impact of COVID-19 on small and medium-sized enterprises (SMEs): Evidence from two-wave phone surveys in China. China Economic Review, 67(February), 101607. https://doi.org/10.1016/j.chieco.2021.101607
21. Dao, L.T., & Hang, N.P.T. (2022). Factors Affecting Tax Compliance Of Enterprises During the Covid-19 Pan-demic in Vietnam. Montenegrin Journal of Economics, 18(4), 7-17.
22. Daszkiewicz, N. (2016). Determinanty tempa internacjonalizacji przedsiębiorstw ze szczególnym uwzględnie-niem born globals. Studia Ekonomiczne. Zeszyty Naukowe Uniwersytetu Ekonomicznego w Katowicach, 271, 7-16.
23. Daszkiewicz, N., & Wach, K. (2012). Internationalization of SMEs: Context, models and implementation. Gdańsk University of Technology Publishers.
24. Daszkiewicz, N., & Wach, K. (2013). Małe i średnie przedsiębiorstwa na rynkach międzynarodowych. Wydaw-nictwo Uniwersytetu Ekonomicznego w Krakowie.
25. de Lucio, J., Mínguez, R., Minondo, A., & Requena, F. (2022). Impact of Covid-19 containment measures on trade. Interna-tional Review of Economics and Finance, 80(February), 766-778. https://doi.org/10.1016/j.iref.2022.02.051
26. Doryń, W. (2016). Eksport według klasy wielkości przedsiębiorstw–analiza struktury. Ekonomia XXI Wieku, (12), 9-21. https://doi.org/10.15611/e21.2016.4.01
27. Fabiani, S., Lamo, A., Messina, J., & Rõõm, T. (2015). European firm adjustment during times of economic crisis. IZA Journal of Labor Policy, 4(1), 1-28. https://doi.org/10.1186/s40173-015-0048-3
28. Eschachasthi, R. (2022). Exporters in the Time of COVID-19 Pandemic : Evidence from Indonesia. Economics and Finance in Indonesia, 68(1), 1-16. Retrieved from http://efi.ui.ac.id/index.php/efi/article/view/945/pdf on January 8, 2023.
29. Fahlenbrach, R., RagethRene, K., & Stulz, M. (2021). How Valuable Is Financial Flexibility when Revenue Stops? Evidence from the COVID-19 Crisis. Review of Financial Studies, 34(11), 5474-5521. https://doi.org/10.1093/rfs/hhaa134
30. Gigauri, I., & Bogacz-Wojtanowska, E. (2022). Effects of the pandemic crisis on social enterprise: A case study from Georgia. Economics and Sociology, 15(2), 312-334. https://doi.org/10.14254/2071-789X.2022/15-2/19
31. Gorynia, M., & Trąpczyński, P. (2022). The Internationalisation of Polish Firms under Covid 19 Conditions – Results of an Exploratory Study, Optimum. Economic Studies, 4(110) 2022, 3-16. https://doi.org/10.15290/oes.2022.04.110.01
32. Gourinchas, P.O., Kalemli-Ozcan, S., Penchiakova, V., & Sander, N. (2022). Estimating SME failures in real time: An application to the Covid-19 crisis. NBER Working Paper Series, 27877, 1-42. Retrieved from https://www.nber.org/system/files/working_papers/w27877/w27877.pdf on February 8, 2023.
33. Hadasik, B., & Kubiczek, J. (2022). E-commerce market environment formed by the COVID-19 pandemic – a strategic analysis. Forum Scientiae Oeconomia, 10(3), 25-52. https://doi.org/10.23762/FSO_VOL10_NO3_2
34. Haddoud, M.Y., Nowinski, W., Jones, P., & Newbery, R. (2019). Internal and external determinants of export performance: Insights from Algeria. Thunderbird International Business Review, 61(1), 43-60. https://doi.org/10.1002/tie.21972
35. Halmai, P. (2022). COVID-19 Crisis and Supply Side Bottlenecks in the EU. Shorter and Longer Term Pro-spects. Montenegrin Journal of Economics, 18(4), 19-30.
36. Hirsh, S., & Adar, Z. (1974). Firm size and export performance. World Development, 2(7), 41-46. https://doi.org/10.1016/0305-750X(74)90046-1
37. Jaklič, A., & Burger, A. (2020). Complex internationalisation strategies during crises: The case of slovenian exporters during the great recession and covid-19 pandemic. Teorija in Praksa, 57(4), 1018-1041. Re-trieved from http://www.dlib.si/?URN=URN:NBN:SI:DOC-29VZ5GVK on January 10, 2023.
38. Jongwanich, J., & Kohpaiboon, A. (2008). Export Performance, Foreign Ownership, and Trade Policy Regime: Evidence from Thai Manufacturing. Asian Development Bank Economics Working Paper Series, 140, 1-41.
39. Kaźmierska-Jóźwiak, B., Sekuła, P., & Socha, B. (2021). Analysis of the effects of COVID-19 on companies listed on the War-saw Stock Exchange. Forum Scientiae Oeconomia, 9(4), 99-116. https://doi.org/10.23762//FSO_VOL9_NO4_5
40. Kirpalani, V., & McIntosh, N. (1980). International marketing effectiveness of technology-oriented small firms. Journal of International Business Studies, 11, 81-90. https://doi.org/10.1002/tie.5060230310
41. Kiforenko, O. (2023). Correlation between the Greatest Agricultural Products Exporters to the EU: is Ukraine included?. AGRIS On-line Papers in Economics and Informatics, 15(3), 87-103.
42. Kryeziu, L., Bağış, M., Kurutkan,M.N., Krasniqi, B.A., & Haziri, A. (2022). COVID-19 impact and firm reactions towards crisis: Evidence from a transition economy. Journal of Entrepreneurship, Management, and Inno-vation, 18(1), 169-196. https://doi.org/10.7341/20221816
43. Kudej, M., Gavurova, B., & Rowland, Z. (2021). Evaluation of the selected economic parameters of Czech companies and their potential for overcoming global crises during the Covid-19 pandemic. Journal of In-ternational Studies, 14(1), 258-275. https://doi.org/10.14254/2071-8330.2021/14-1/18
44. Kurz, C., & Senses, M.Z. (2016). Importing, exporting, and firm-level employment volatility. Journal of Interna-tional Economics, 98, 160-175. https://doi.org/10.1016/j.jinteco.2015.08.003
45. Lebastard, L., Matani, M., & Serafini, R. (2023). GVC exporter performance during the COVID-19 pandemic: the role of supply bottlenecks. ECB Working Paper Series, 2766, 1-53. https://doi.org/10.1111/j.1467-629x.1984.tb00054.x
46. Leonidou, L.C., Katsikeas, C.S., & Samiee, S. (2002). Marketing strategy determinants of export performance: A meta-analysis. Journal of Business Research, 55(1), 51-67. https://doi.org/10.1016/S0148-2963(00)00133-8
47. Li, C., & Lin, X. (2021). COVID-19 and trade: Simulated asymmetric loss. Journal of Asian Economics, 75(101327), 1-12. https://doi.org/10.1016/j.asieco.2021.101327
48. Marinov, M., & Marinova, S. (2021). Challenges to International Business. In M. Marinov & S. Marinova (Eds.), Covid-19 and International Business Change of Era (pp. 26-34). Routledge.
49. Matthee, M., Saville, A., Flowerday, W., & Bezuidenhout, C. (2022). Tougher than the rest? The impact of COVID-19 on South African exporters. Journal of Transport and Supply Chain Management, 16, 1-9. https://doi.org/10.4102/jtscm.v16i0.756
50. Meza, F. (2020). Forecasting the impact of the COVID-19 shock on the Mexican economy. Retrieved from https://centrocovid.itam.mx/sites/default/files/paper_forecasting_fm_202008.pdf on January 10, 2023.
51. Mishchuk, H., Bilan, Y., & Mishchuk, V. (2023). Employment risks under the conditions of the Covid-19 pan-demic and their impact on changes in economic behaviour. Entrepreneurial Business and Economics Re-view, 11(2), 201-216. https://doi.org/10.15678/EBER.2023.110211
52. Nikensari, S.I., Puspitasari, N.F.D., Setyadharma, A., & Ratnawati, N. (2021). Determinants of world trade stagnation in three regions. Journal of International Studies, 14(2), 149-164. https://doi.org/10.14254/2071-8330.2021/14-2/10
53. OECD. (2020). Tackling coronavirus (COVID-19): Contributing to a global effort. SME policy responses. Retrieved from https://www.oecd.org/dac/development-assistance-committee/daccovid19statement.htm on Jan-uary 15, 2023.
54. OECD. (2022). International trade during the COVID-19 pandemic: Big shifts and uncertainty, Policy Brief, (10 marz 2022). Retrieved from https://read.oecd-ilibrary.org/view/?ref=1129_1129345-casormobh7&title=International-trade-during-the-COVID-19-pandemic on July 15, 2023.
55. Papanikolaou, D., & Schmidt, L. (2020). Working remotely and the supply-side impact of Covid-19. NBER Technical Working Papers, 27330, 1-24. https://doi.org/10.3386/w27330
56. Pham, T., Monkhouse, L., & Barnes, B.R. (2017). The influence of relational capability and marketing capabil-ities on the export performance of emerging market firms. International Marketing Review, 34(5), 606-628. https://doi.org/10.1108/IMR-07-2014-0235
57. Pini, M., & Tchorek, G. (2022). Comparative analysis of export determinants in Italian and Polish firms: The moderating role of non-family management. Journal of Entrepreneurship, Management and Innovation, 18(2), 41-67. https://doi.org/10.7341/20221822
58. Ramelli, S., & Wagner, A.F. (2020). Feverish stock price reactions to COVID-19. Review of Corporate Finance Studies, 9(3), 622-655. https://doi.org/10.1093/rcfs/cfaa012
59. Reymen, I., Andries, P., Berends, H., Mauer, R., Stephan, U., & van Burg, E. (2018). Understanding dynamics of strategic decision making in venture creation: A process study of effectuation and causation. Strategic Entrepreneurship Journal, 9(4), 351-379. https://doi.org/10.1002/sej.1201
60. Richard, B., & Tomiura, E. (2020). Thinking ahead about the trade impact of COVID-19. In R. Baldwin & B. Weder di Mauro (Eds.), Economics in the Time of COVID-19 (pp. 59-71). Centre for Economic Policy Rese-arch.
61. Rybaczewska, M., Kłopocka, A., Kuszewski, T., & Sułkowski, Ł. (2023). Grocery shopping behaviour in the era of COVID-19: Panel data analysis from convenience store sector in England, Scotland and Wales. Eco-nomics and Sociology, 16(2), 210-228. https://doi.org/10.14254/2071-789X.2023/16-2/13
62. Sforza, A., & Steininger, M. (2021). Globalization in the Time of COVID-19. Cesifo Working Papers, 8184(March), 1-55. https://doi.org/10.2139/ssrn.3567558
63. Srbinoski, B., Petreski, B., & Petreski, M. (2022). The covid-19 impact on exports in North Macedonia—firm-level analysis. Economic Research-Ekonomska Istrazivanja, 35(1), 7147-7174. https://doi.org/10.1080/1331677X.2022.2063918
64. Szustak, G., Gradoń, W., & Szewczyk, Ł. (2021). Household financial situation during the COVID-19 pandemic with particular emphasis on savings—An evidence from Poland compared to other CEE states. Risks, 9(9), 166. https://doi.org/10.3390/risks9090166
65. Tesar, G. (2020). Effects of COVID-19 on the Export Operations of Smaller Manufacturing Enterprises. In COVID-19 and International Business (pp. 267-277). Routledge. https://doi.org/10.4324/9781003108924
66. Wach, K., & Głodowska, A. (2021). How do demographics and basic traits of an entrepreneur impact the internationalization of firms?. Oeconomia Copernicana, 12(2), 399-424. https://doi.org/10.24136/oc.2021.014
67. World Bank. (2020). Global economic prospects: A World Bank Group flagship report (Issue June). Retrieved from http://hdl.handle.net/10986/33748 on January 10, 2023.
68. Vannoorenberghe, G. (2012). Firm-level volatility and exports. Journal of International Economics, 86(1), 57-67.
69. Vološin, J., Smutka, L., & Selby, R. (2011). Analysis of the external and internal influences on the CR agrarian foreign trade. Agricultural Economics, 57(9), 422-435. https://doi.org/10.17221/137/2010-agricecon
70. Xiang, S., Rasool, S., Hang, Y., Javid, K., & Javed, T. (2021). The Effect of COVID-19 Pandemic on Service Sector Sustainability and Growth. Frontiers in Psychology, 12(May), 1-10. https://doi.org/10.3389/fpsyg.2021.633597
71. Zehir, C., Can, E., & Karabog, T. (2015). Linking entrepreneurial orientation to firm performance: The role of differentiation strategy and innovation performance. Procedia—Social and Behavioral Sciences, 201, 358-367. https://doi.org/10.1016/j.sbspro.2015.11.381