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Internationalization and performance of small- and medium-sized enterprises

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  • Pangarkar, Nitin
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    Abstract

    In this paper, we examine the relationship between the degree of internationalization (DOI) and performance which represents a central issue in the international business literature. We argue that the substantial literature addressing this relationship is hampered by problematic measures for the key constructs (DOI and firm performance) and inconclusive results. Drawing from the internationalization process and location theories, we propose new measures for DOI (based on the dispersion of sales across geographic regions) and deploy a perceptual, multi-item measure of performance. Based on analyses of 94 survey responses provided by small- and medium-sized enterprises (SMEs) in Singapore, we find that that DOI positively impacts performance.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of World Business.

    Volume (Year): 43 (2008)
    Issue (Month): 4 (October)
    Pages: 475-485

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    Handle: RePEc:eee:worbus:v:43:y:2008:i:4:p:475-485

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    Related research

    Keywords: Degree of internationalization Firm performance Singapore SMEs Host country attractiveness Firm capabilities;

    References

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    Citations

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    Cited by:
    1. Chao, Mike Chen-Ho & Kumar, Vikas, 2010. "The impact of institutional distance on the international diversity-performance relationship," Journal of World Business, Elsevier, vol. 45(1), pages 93-103, January.
    2. Martín-Tapia, Inmaculada & Aragón-Correa, J. Alberto & Rueda-Manzanares, Antonio, 2010. "Environmental strategy and exports in medium, small and micro-enterprises," Journal of World Business, Elsevier, vol. 45(3), pages 266-275, July.
    3. Hsu, Wen-Tsung & Chen, Hsiang-Lan & Cheng, Chia-Yi, 2013. "Internationalization and firm performance of SMEs: The moderating effects of CEO attributes," Journal of World Business, Elsevier, vol. 48(1), pages 1-12.
    4. Xiao, Simon Shufeng & Jeong, Insik & Moon, Jon Jungbien & Chung, Chris Changwha & Chung, Jaiho, 2013. "Internationalization and Performance of Firms in China: Moderating Effects of Governance Structure and the Degree of Centralized Control," Journal of International Management, Elsevier, vol. 19(2), pages 118-137.
    5. Jerzy Cieślik & Eugene Kaciak & Dianne Welsh, 2012. "The impact of geographic diversification on export performance of small and medium-sized enterprises (SMEs)," Journal of International Entrepreneurship, Springer, vol. 10(1), pages 70-93, March.
    6. Zoran Paunović & Darko Prebežac, 2010. "Internationalization of small and medium-sized enterprises," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 22(1), pages 57-76.
    7. Manolova, Tatiana S. & Manev, Ivan M. & Gyoshev, Bojidar S., 2010. "In good company: The role of personal and inter-firm networks for new-venture internationalization in a transition economy," Journal of World Business, Elsevier, vol. 45(3), pages 257-265, July.
    8. Eberhard, Manuel & Craig, Justin, 2013. "The evolving role of organisational and personal networks in international market venturing," Journal of World Business, Elsevier, vol. 48(3), pages 385-397.
    9. Suh, Yongyoon & Kim, Moon-Soo, 2014. "Internationally leading SMEs vs. internationalized SMEs: Evidence of success factors from South Korea," International Business Review, Elsevier, vol. 23(1), pages 115-129.

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