The role of competitive strategies on export market selection by SMEs in an emerging economy

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

The study examines the relationship between competitive strategies and export market selection by small and medium-sized exporters in an emerging economy. Drawing from the literature on comparative advantages of exporters from developing countries and demand characteristics in export markets, hypotheses are constructed on how cost leadership, differentiation and focus strategies are associated with exports to developed and developing countries. Survey data from 214 manufacturing SME exporters in Malaysia is used to empirically examine the relationships using ordinary least squares regression. The results suggest that cost strategies are positively associated with exports to developed countries but not developing countries. Differentiation strategies show the opposite effect, cost strategies and focus strategies are negatively associated with exports to both types of markets. This study contributes by demonstrating that competitive strategies act as a firm-level factor influencing export market selection. Implications and limitations of the study are presented.

Original languageEnglish
Pages (from-to)208-225
Number of pages18
JournalInternational Journal of Business and Globalisation
Volume14
Issue number2
DOIs
Publication statusPublished - 13 Feb 2015

Fingerprint

Emerging economies
Export markets
Small and medium-sized enterprises
Competitive strategy
Market selection
Exporters
Developing countries
Costs
Developed countries
Ordinary least squares
Differentiation strategy
Survey data
Influencing factors
Cost leadership
Manufacturing
Comparative advantage
Malaysia

Keywords

  • Competitive strategies
  • Emerging economies
  • Export market selection
  • Globalisation
  • Malaysia
  • SME exporters

ASJC Scopus subject areas

  • Business, Management and Accounting(all)

Cite this

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