What is beneficial for first-time SME-exporters from a transition economy: A diversified or a focused export-strategy?

Desislava Dikova, Andreja Jaklič (), Anže Burger and Aljaz Kuncic

Journal of World Business, 2016, vol. 51, issue 2, 185-199

Abstract: We examine whether more focused or more diversified exporting is beneficial for first-time SME-exporters from a small European transition economy (TE). We test the impact of market (geographic) diversification, product diversification and export intensity (export volume) on firm performance. In addition, we test whether a complex export strategy – of simultaneous product- and market-diversification – is beneficial for TE SMEs. We use panel data of all reported, first-time Slovenian exporters in the period 1995–2010. We find that a diversified export strategy in terms of product, market and intensity is positively related to performance although with decreasing returns. Furthermore, a complex diversification strategy pays off for first time TE SME-exporters, but in a decreasing fashion.

Keywords: SMEs; First-time exporters; Export performance; Export diversification; Complex export diversification strategy; Transition economy (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (21)

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DOI: 10.1016/j.jwb.2015.05.001

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