PurposeThe 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/approachThis 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.FindingsThe 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/implicationsThe 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 implicationsThe 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/valueThis 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.
Purpose – The purpose of this paper is to build on the resource-based view to analyze the influence of location effects on a firm's ability to develop export-related resources and capabilities which then impacts on export performance. Design/methodology/approach – To test the proposed hypotheses, a sample of small-to-medium exporting firms located in Australia is analyzed using partial least squared modeling. Findings – The findings show that access to location specific advantages (i.e. access to sources of supply, government agencies, export-related services and infrastructure, managerial labor skills, and network opportunities) are essential antecedents for the firm's ability to develop export-related resources and capabilities which in turn drives export performance outcomes. Research limitations/implications – Results from this study are from one state in Australia, and caution should be exercised when generalizing findings to other geographic regions. Practical implications – These findings suggest that location effects do indeed present challenges to regional SME firms. Indeed the substantial impacts of sourcing experienced managerial staff with export-related skills affirm the critical role of human resources. This offers insights concerning the recruitment and reward policies for remote firms having to compete with firms in more attractive or sort after metropolitan locations. Also the findings suggest that managers should give serious thought to the appropriateness of the resources and capabilities needed to increase their export performance. Originality/value – Even though the role and importance of firm location has been highlighted in the export literature, previous export studies have not focussed on dimensions of location as antecedents to firm resources and capability development.
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