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SMEs Performance and Internationalization: A Traditional Industry Approach

Author

Listed:
  • Mara Madaleno

    (GOVCOPP, University of Aveiro, DEGEIT, Department of Economics, Management, Industrial Engineering and Tourism, Campus Universitario de Santiago)

  • Celeste Amorim 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)

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.

Suggested Citation

  • Mara Madaleno & Celeste Amorim Varum & Isabel Horta, 2018. "SMEs Performance and Internationalization: A Traditional Industry Approach," Annals of Economics and Finance, Society for AEF, vol. 19(2), pages 605-624, November.
    • Handle: RePEc:cuf:journl:y:2018:v:19:i:2:madaleno:varum:horta
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    More about this item

    Keywords

    Internationalization; Performance; Internationalization-Performance relationship; Data envelopment analysis; Footwear portuguese industry; Financial indicators;
    All these keywords.

    JEL classification:

    • C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • G1 - Financial Economics - - General Financial Markets
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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