Antecedents to differentiation strategy in the exporting SME |
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| Affiliation: | 1. Atkinson Graduate School of Management, Willamette University, 900 State Street, Salem, OR, 97301, USA;2. Department of Industrial Economics and Technology Management, Norwegian University of Science and Technology, Sentralbygg 2, 438, Gløshaugen, Alfred Getz vei 1, NO-7491, Trondheim, Norway;3. Department of Marketing & Management, University of Southern Denmark, Campusvej 55, DK-5230, Odense M, Denmark;1. National Research Base of Intelligent Manufacturing Service, Chongqing Technology and Business University, Chongqing, 400067, China;2. School of Business Management, Hongik University, Sejong, 30016, South Korea;3. Leeds University Business School, The University of Leeds, Leeds, LS2 9JT, UK;4. College of Business, Hankuk University of Foreign Studies, 270, Imun-dong, Dongdaemun-gu, Seoul, 130-791, South Korea;1. Department of Marketing, International Business & Strategy, Goodman School of Business, Brock University, St. Catharines, Ontario, Canada;2. School of Business, Beijing University, Beijing, China;3. Marketing and International Business, School of Business, Nankai University, Tianjin, China;4. School of Business, The Hang Seng University of Hong Kong, Lee Quo Wei Academic Building, Siu Lek Yuen, Shatin, Hong Kong;1. Queensland University of Technology, QUT Business School – School of Advertising, Marketing and Public Relations, 2 George Street, Brisbane City, QLD 4000, Australia;2. The University of Queensland, UQ Business School, 39 Blair Drive, St Lucia, QLD 4067, Australia;1. MK Business News, 190 Toegye-ro, Jung-gu, Seoul 04627, South Korea;2. Korea University, School of Business, 145 Anam-ro, Seongbuk-gu, Seoul 02841, South Korea |
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| 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. |
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| Keywords: | SMEs Differentiation strategy International performance Empirical study |
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