Access to finance, technology investments and exporting decisions of Indian services firms
This study provides fresh empirical evidence on the influence of various financing sources on firms’ technology investments and exporting decisions using a panel of firms from the service sector in India during the period 1999–2010. Allowing both activities to be jointly determined, our results show...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Springer
2020
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| Online Access: | https://eprints.nottingham.ac.uk/61869/ |
| _version_ | 1848799914857857024 |
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| author | Yang, Shubin Milner, Chris Lancheros, Sandra Gunessee, Saileshsingh |
| author_facet | Yang, Shubin Milner, Chris Lancheros, Sandra Gunessee, Saileshsingh |
| author_sort | Yang, Shubin |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | This study provides fresh empirical evidence on the influence of various financing sources on firms’ technology investments and exporting decisions using a panel of firms from the service sector in India during the period 1999–2010. Allowing both activities to be jointly determined, our results show that the source of finance matters for exporting and investing in technology. Moreover, the importance of different types of finance varies across industries in the service sector. Overall, we find that internal funds and non-conventional sources of finance play an important role for exporting and investing in technology in both modern and traditional services. However, funding from conventional financial markets exerts divergent effects across service industries: while traditional service firms use resources from the banking sector to fund their technological investments, firms in the modern service sector rely more on funds raised through equity markets to support their exporting and technological efforts. These results contribute to the academic literature and policy debate on the importance of financial mechanisms to promote firms’ strategic investment decisions. |
| first_indexed | 2025-11-14T20:43:14Z |
| format | Article |
| id | nottingham-61869 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T20:43:14Z |
| publishDate | 2020 |
| publisher | Springer |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-618692020-09-11T07:04:05Z https://eprints.nottingham.ac.uk/61869/ Access to finance, technology investments and exporting decisions of Indian services firms Yang, Shubin Milner, Chris Lancheros, Sandra Gunessee, Saileshsingh This study provides fresh empirical evidence on the influence of various financing sources on firms’ technology investments and exporting decisions using a panel of firms from the service sector in India during the period 1999–2010. Allowing both activities to be jointly determined, our results show that the source of finance matters for exporting and investing in technology. Moreover, the importance of different types of finance varies across industries in the service sector. Overall, we find that internal funds and non-conventional sources of finance play an important role for exporting and investing in technology in both modern and traditional services. However, funding from conventional financial markets exerts divergent effects across service industries: while traditional service firms use resources from the banking sector to fund their technological investments, firms in the modern service sector rely more on funds raised through equity markets to support their exporting and technological efforts. These results contribute to the academic literature and policy debate on the importance of financial mechanisms to promote firms’ strategic investment decisions. Springer 2020-07-15 Article PeerReviewed application/pdf en cc_by https://eprints.nottingham.ac.uk/61869/1/090915560765MergePDF.pdf Yang, Shubin, Milner, Chris, Lancheros, Sandra and Gunessee, Saileshsingh (2020) Access to finance, technology investments and exporting decisions of Indian services firms. Open Economies Review . ISSN 0923-7992 Financing sources; Technology investment; Exports; Service firms http://dx.doi.org/10.1007/s11079-020-09595-2 doi:10.1007/s11079-020-09595-2 doi:10.1007/s11079-020-09595-2 |
| spellingShingle | Financing sources; Technology investment; Exports; Service firms Yang, Shubin Milner, Chris Lancheros, Sandra Gunessee, Saileshsingh Access to finance, technology investments and exporting decisions of Indian services firms |
| title | Access to finance, technology investments and exporting decisions of Indian services firms |
| title_full | Access to finance, technology investments and exporting decisions of Indian services firms |
| title_fullStr | Access to finance, technology investments and exporting decisions of Indian services firms |
| title_full_unstemmed | Access to finance, technology investments and exporting decisions of Indian services firms |
| title_short | Access to finance, technology investments and exporting decisions of Indian services firms |
| title_sort | access to finance, technology investments and exporting decisions of indian services firms |
| topic | Financing sources; Technology investment; Exports; Service firms |
| url | https://eprints.nottingham.ac.uk/61869/ https://eprints.nottingham.ac.uk/61869/ https://eprints.nottingham.ac.uk/61869/ |