Geographic export diversification: Determinants and their link with export performance

This study examines company‐specific factors that may help explain the choice of an export‐market strategy and explores how the selected export strategy contributes to explaining company's export performance (XP). Concentrating on a specific area within a broad spectrum of export behavior analy...

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Bibliographic Details
Published in:Thunderbird international business review 2019-03, Vol.61 (2), p.397-411
Main Authors: Cos, Pilar, Colom, Antonio, Cabasés, Angels
Format: Article
Language:English
Subjects:
Companies
export intensity
export performance
Exports
export‐market expansion strategies
geographic export diversification
international marketing
Investments
Market strategy
Ownership
R&D
Research & development
Spanish exporters
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Summary:This study examines company‐specific factors that may help explain the choice of an export‐market strategy and explores how the selected export strategy contributes to explaining company's export performance (XP). Concentrating on a specific area within a broad spectrum of export behavior analysis has enabled us to examine these factors in greater depth. The results of our research, which was carried out using a sample comprising Spanish exporting companies, show a firm's size, a firm's age, and a firm's greater foreign ownership in its share capital are all determining factors for adopting a strategy geared to export‐market diversification. A greater level of investment in R&D and greater international commitment are also important in this regard. We suggest reinforcing these two factors because there is evidence of a better XP among firms that have a wider range of foreign markets.
ISSN:1096-4762
1520-6874
DOI:10.1002/tie.21991