Does firm location make a difference to the export performance of SMEs?

Abstract

Purpose The 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/approach This 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. Findings The 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/implications The 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 implications The 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/value This 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.

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