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

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  • Dikova, Desislava
  • Jaklič, Andreja
  • Burger, Anže
  • Kunčič, Aljaž

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.

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  • Dikova, Desislava & Jaklič, Andreja & Burger, Anže & Kunčič, Aljaž, 2016. "What is beneficial for first-time SME-exporters from a transition economy: A diversified or a focused export-strategy?," Journal of World Business, Elsevier, vol. 51(2), pages 185-199.
    • Handle: RePEc:eee:worbus:v:51:y:2016:i:2:p:185-199
    DOI: 10.1016/j.jwb.2015.05.001
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