Intensity and diversity of internationalization among small and medium-sized exporters in China

Abstract

Purpose

This study aims to gauge the interactive effect of export intensity and diversity on export performance among exporters in an emerging economy and explore the moderating effect of export intermediaries on the internationalization–export performance relationship.

Design/methodology/approach

A survey was undertaken among a convenience sample of small and medium exporters located in Guangdong and Fujian Provinces in South China.

Findings

The results show that intensity and diversity interact negatively with export performance, whereas the use of export agents registered a positive effect. Exporters pursuing a strategy of high export intensity will achieve better performance provided that these exports are concentrated in a few countries. Using export agents can help in enhancing the intensity–performance relationship but not that for diversity–performance.

Practical implications

Chinese exporters are advised not to blindly pursue international expansion without regard to their own resources and capabilities. They should try to strike a balance between intensity and diversity and employ external agents when needed.

Originality/value

This research seeks to address the void in the literature on how export intensity and diversity should be balanced to create a positive effect on the performance of exporting ventures in an emerging economy, which is under-addressed in the literature. It is also found that employment of export intermediaries is not always good for export performance.

Citation

Mac, L. and Evangelista, F. (2016), "Intensity and diversity of internationalization among small and medium-sized exporters in China", Multinational Business Review, Vol. 24 No. 3, pp. 229-248. https://doi.org/10.1108/MBR-08-2015-0037