Export Strategies and Performance of Small and Medium-sized Enterprises: Evidence from Korean Manufacturing SMEs

This study examines the export strategies of small and medium enterprises (SMEs) and the financial and non-financial aspects of their export performance. Hypotheses derived from previous studies and the unique characteristics of SMEs were empirically examined in a sample of Korean manufacturing SMEs. Findings suggest that the differentiation strategy has a significantly positive effect on export performance in both performance aspects, while the cost leadership strategy is insignificant. Market standardization helps to make foreign market sales considerably more effective in terms of operational, non-financial performance although it may not be of significant help or may even deter SME export sale profitability. The relationship between geographical diversification and export performance in terms of SMEs’ export profitability is linear.