<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>This study analyses the role of investment in intangible and tangible fixed assets on firm internationalisation pace. Financial microdata of the largest 300 Croatian exporters for the period 2006-2015 were examined by system dynamic panel GMM. Results illustrate that investments in intangible assets significantly and positively increase export growth but not domestic revenue growth. The study also analysed differences in internationalisation and localisation growth depending on investments in intangible and tangible fixed assets. Investments in intangible assets positively affect firm internationalisation growth, while an increase in intangible assets negatively affects localisation growth. Significance of this study is twofold. Firstly, it provides evidence of the importance of investments in intangible assets for export growth and internationalisation growth. Secondly, it shows that investments in intangible assets are more important that investments in fixed assets, thereby providing practical implication for firms aiming to increase the pace of their international expansion.</p>
</abstract>

This study analyses the role of investment in intangible and tangible fixed assets on firm internationalisation pace. Financial microdata of the largest 300 Croatian exporters for the period 2006-2015 were examined by system dynamic panel GMM. Results illustrate that investments in intangible assets significantly and positively increase export growth but not domestic revenue growth. The study also analysed differences in internationalisation and localisation growth depending on investments in intangible and tangible fixed assets. Investments in intangible assets positively affect firm internationalisation growth, while an increase in intangible assets negatively affects localisation growth. Significance of this study is twofold. Firstly, it provides evidence of the importance of investments in intangible assets for export growth and internationalisation growth. Secondly, it shows that investments in intangible assets are more important that investments in fixed assets, thereby providing practical implication for firms aiming to increase the pace of their international expansion.

Internationalisation-Localisation Debate in Case of Croatian Exporters’ Intangible-Tangible Asset Investment

Lecturer, University of Zagreb, Faculty of Economics and Business

South East European Journal of Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

This study analyses the role of investment in intangible and tangible fixed assets on firm internationalisation pace. Financial microdata of the largest 300...

Internationalisation-Localisation Debate in Case of Croatian Exporters’ Intangible-Tangible Asset Investment

Published Online: Jun 23, 2022

Page range: 68 - 78

DOI: https://doi.org/10.2478/jeb-2022-0005

Keywords
Export, internationalisation, localisation, intangible asset investment, Croatia

© 2022 Maja Bašić, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Internationalisation-Localisation Debate in Case of Croatian Exporters’ Intangible-Tangible Asset Investment

Published Online: Jun 23, 2022

Page range: 68 - 78

DOI: https://doi.org/10.2478/jeb-2022-0005

KeywordsExport, internationalisation, localisation, intangible asset investment, Croatia

© 2022 Maja Bašić, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
Export, internationalisation, localisation, intangible asset investment, Croatia