Should SMEs diversify their global destinations? The role of market insights and digital transformation

Abstract

PurposeThis study aims to investigate the relationship between geographic diversification (GD) and export performance (EP) by analysing a sample of small exporters in an emerging market.Design/methodology/approachThe study sample comprised 96 small and medium-sized exporting enterprises (SMEs) in Vietnam. The data is analysed using multiple regression analysis (MRA), Hayes' process model and fuzzy-set qualitative comparative analysis (fsQCA).FindingsThe results indicate that GD significantly negatively affects EP. In this dilemma, the export market orientation (EMO) and digital transformation positively moderated the relationship between GD and EP, such that the negative effect of GD on EP was weaker when EMO and digital were stronger.Originality/valueThis initial study contributes significantly to international business theories and practices, which reveal the role of GD via firm digital capacity and EMO in thriving SMEs’ EP. This study might grant new insight into international business and a critical approach to addressing the new insights small firms may face in a fragile but technologically advanced world.

Market Diversification and Competitiveness of Fresh Grape Exports in Peru

“…Therefore, a successful export strategy requires a continuous commitment to innovation, process and product improvement, and a deep understanding of consumer expectations and trade barriers. In essence, the theory suggests that to be competitive on the international stage, a country must focus on building and maintaining solid relationships, constantly adapting to market trends, and committing to excellence and differentiation of its products [48].…”