The Export Market Expansion Strategies and Export Performance of Finnish SMEs

Abstract

The main purpose of this study was to examine the influence of different export market expansion strategies on export performance between Finnish small- and medium sized firms. The purpose was also to examine the potential relationships between certain situational variables, expansion strategies and export performance. Study also included the aspect of geographical distance and the importance of main export markets in the context of export market expansion strategies.

In order to achieve the purposes study also intended to: 1) identify different export expansion strategies and certain situational variables that are associated with them and export performance; 2) identify how different export expansion strategies are associated with export performance; 3) examine how applied expansion strategies can be classified between Finnish SMEs; 4) examine the impacts of export expansion strategies on export performance; 5) examine the impacts of situational variables on export performance; 6) examine the impacts of situational variables on export market expansion strategy choice; and 7) examine the potential joint effect of situational variables and export market expansions strategies on export performance.

A cross-sectional survey was used in this study and sample consisted of 267 Finnish exporting firms. Total of 6 situational variables were analyzed against export market expansion strategies and export performance. 14 hypotheses were constructed and the data was analyzed with SPSS 15.0 software by ANOVA, cross-tabulation, correlation-, and regression analyses.

The results indicated that there is a relatively large difference in the export performance between different export market expansion strategies. Export market diversification strategies showed better export performance than concentration strategies. Most of the situational variables showed also moderate impact on export performance and export market expansion strategy choice. Total of nine hypotheses were fully accepted, two only partially and three hypotheses were rejected.