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Does firm location make a difference to the export performance of SMEs?
Journal article   Peer reviewed

Does firm location make a difference to the export performance of SMEs?

Joanne M Freeman, C Styles and Meredith A Lawley
International Marketing Review, Vol.29(1), pp.88-113
2012
DOI: https://doi.org/10.1108/02651331211201552
url
https://doi.org/10.1108/02651331211201552View
Published Version

Abstract

Australia export performance exports location regional exporters small to medium-sized enterprises
Purpose - The purpose of this research is to explore how location - regional vs metropolitan - impacts a small to medium-sized enterprise (SME)'s access to firm resources and capabilities, and in turn its export performance. Design/methodology/approach - This study involved collecting qualitative data from an expert panel of government trade advisors, as well as managers of SME exporters in Australian regional and metropolitan areas. The data were used to explore three propositions relating to the impact of location. Findings - The data provides support for the propositions that location impacts SME exporters' access to networks and export related infrastructure/services, and in turn export performance. Firms in metropolitan areas have an advantage over those in regional areas. However, contrary to expectations, the relatively lower level of competition in regional areas did not appear to have a negative impact on the export performance of firms located in these areas. Research limitations/implications - The study confirms the importance of exploring the impact of location on export performance. However, the exploratory nature of the study means that results cannot necessarily be generalised beyond the setting in which the data were collected. Future research should examine the impact of location for exporters in a broader sample of countries. Practical implications - The disadvantages for SME exporters located in regional areas that come from a lack of networks and export related infrastructure/services need to be recognized and addressed by the managers of SME exporters and their advisors. The study also highlights the importance of the location decision for these firms. Originality/value - This study is one of the first to explicitly focus on the impact of location on the export performance of SMEs. While exploratory in nature, it highlights the need for further research to better understand this potentially critical moderating variable and both its practical and theoretical implications.

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