Product strategies for export ventures: An empirical investigation among SMEs in an emerging economy

Abu Hanifah Ayob, Léo Paul Dana

Research output: Contribution to journalArticle

Abstract

This study examines product strategies of firms in developing countries for export ventures in global markets. It focuses on generic product features: low cost, differentiation, and specialization for analysing how they are associated with the intent to export. A rigorous database was developed from a survey of 142 SMEs in Malaysia. Data was analysed through hierarchical ordinary least squares (OLS) regression analysis. This study finds that only products with differentiation, specialization, or both are intended for export. On the other hand, a low cost attribute deprives the intention of going global. In the context of this emerging economy, the optimal product strategy for exporting is differentiation and specialization coupled with low-cost strategy. The findings challenge traditional view that firms from developing countries possess cost advantage at the international level, thus justifying why some local firms remain reluctant to export.

Original languageEnglish
JournalJurnal Pengurusan
Volume50
Publication statusPublished - 1 Sep 2017

Fingerprint

Product strategy
Venture
Emerging economies
Small and medium-sized enterprises
Empirical investigation
Costs
Developing countries
Data base
Exporting
Regression analysis
Ordinary least squares
Global market
Malaysia

Keywords

  • Cost leadership
  • Differentiation
  • Export ventures
  • Product strategies
  • SMEs
  • Specialization

ASJC Scopus subject areas

  • Business and International Management
  • Accounting
  • Business, Management and Accounting (miscellaneous)

Cite this

Product strategies for export ventures : An empirical investigation among SMEs in an emerging economy. / Ayob, Abu Hanifah; Dana, Léo Paul.

In: Jurnal Pengurusan, Vol. 50, 01.09.2017.

Research output: Contribution to journalArticle

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