Export behavior of service sector SMEs

Enno Masurel
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Enno Masurel: Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics

No 16, Serie Research Memoranda from VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics

Abstract: Export is vital for almost any sector in the economy. Most research on SME export behavior is carried out in the manufacturing sector. In this article, however, the scope is broadened from the manufacturing sector to the service sector: which problems do SMEs in the service sector face when doing business abroad? In addition, the study involved a comparison with domestic activities. Normally, research on SME export behavior is directed at profit and risk only. In this paper, however, profit and risk perception in the context of international activities is also compared explicitly with domestic activities. The exporting SMEs dealt with in this paper experienced higher profits and lower risks than their non-exporting counterparts thanks to exporting. These conclusions about the service sector confirm research in the manufacturing sector and suggest that exporting SMEs are a homogeneous group that do not reflect the classical dichotomy between products and services. Furthermore, export profit and risk perception in an absolute sense are similar to export profit and risk perception in relation to domestic perception.

JEL-codes: F14 L11 L80 (search for similar items in EconPapers)
Date: 2001
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