Antecedents to differentiation strategy in the exporting SME

Gary Knight*, Oystein Moen*, Tage Koed Madsen*

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

Small- and medium-sized enterprises (SMEs) face various constraints related to size and resource base. Such firms face additional liabilities when they venture into foreign markets. Given such conditions, exporting SMEs should develop and leverage appropriate orientations and strategies, with a view to maximizing firm performance. In this paper, we examine the antecedents to differentiation strategy in the exporting SME. We focus on differentiation strategy because, among the generic strategies, it provides especially important competitive advantages to SMEs. Using survey data from several hundred SMEs, we examine key factors that support the use of differentiation strategy in exporting smaller firms. Findings support our model and hypotheses, and reveal strong roles for Entrepreneurial Orientation, International Growth Orientation, and International Learning Orientation, in the development of Differentiation Strategy. Findings hold implications for SMEs and resource-constrained firms generally.

Original languageEnglish
Article number101740
JournalInternational Business Review
Volume29
Issue number6
Number of pages14
ISSN0969-5931
DOIs
Publication statusPublished - Dec 2020

Keywords

  • Differentiation strategy
  • Empirical study
  • International performance
  • SMEs

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