Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/261874 
Year of Publication: 
2020
Citation: 
[Journal:] BRQ Business Research Quarterly [ISSN:] 2340-9436 [Volume:] 23 [Issue:] 2 [Publisher:] Sage Publishing [Place:] London [Year:] 2020 [Pages:] 91-106
Publisher: 
Sage Publishing, London
Abstract: 
This study explores both the individual impact of geographical diversification and its effect combined with product diversification on small and medium-sized enterprises' (SMEs) performance. Unlike most prior studies, this study distinguishes between related and unrelated product diversification. The research setting is a sample of manufacturing SMEs (1994-2014). By using dynamic panel data models, the results provide statistical support for the existence of a horizontal S-shaped relationship between geographical diversification and performance. The findings also indicate that while related product diversification positively enhances the performance of those SMEs engaged in geographical diversification (albeit not indefinitely), unrelated product diversification may significantly impair it, especially for SMEs opting for low and high levels of international diversification. Our study reveals that product and international diversification strategies in the case of SMEs are complementary or substitutive strategies depending on the specific type of product diversification strategy and the level of geographical diversification adopted.
Subjects: 
Geographical diversification
related product diversification
unrelated product diversification
ROA
dynamic panel data
Spanish manufacturing SMEs
JEL: 
F23
L25
M16
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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