SMEs Performance and Internationalization: A Traditional Industry Approach

Mara Madaleno (), Celeste Varum () and Isabel Horta ()
Additional contact information
Mara Madaleno: GOVCOPP, University of Aveiro, DEGEIT, Department of Economics, Management, Industrial Engineering and Tourism, Campus Universitario de Santiago
Celeste Varum: GOVCOPP, University of Aveiro, DEGEIT, Department of Economics, Management, Industrial Engineering and Tourism, Campus Universitario de Santiago
Isabel Horta: INESC TEC, IDMEC polo FEUP, FEUP, Faculty of Engineering University of Porto

Annals of Economics and Finance, 2018, vol. 19, issue 2, 605-624

Abstract: This study approaches the internationalization-performance (I-P) relationship following an innovative strategy, using DEA to calculate a financial performance metric that considers several financial indicators. We then apply a truncated regression to evaluate the relationship between financial performance and internationalization for a sample of firms in the footwear Portuguese industry for the period 2010-2013, using several controls, while exploring potential non-linear effects. Results tend to support the conclusion that export participation leads to increased efficiency, eventually through the so-called learning effects. For our case, the relationship is U-shaped. So, beyond a certain level the degree of international engagement might compromise efficiency.

Keywords: Internationalization; Performance; Internationalization-Performance relationship; Data envelopment analysis; Footwear portuguese industry; Financial indicators (search for similar items in EconPapers)
JEL-codes: C4 F4 G1 M2 O3 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://down.aefweb.net/AefArticles/aef190210MadalenoVarumHorta.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cuf:journl:y:2018:v:19:i:2:madaleno:varum:horta

Access Statistics for this article

Annals of Economics and Finance is currently edited by Heng-fu Zou

More articles in Annals of Economics and Finance from Society for AEF Contact information at EDIRC.
Bibliographic data for series maintained by Qiang Gao ().