Internationalization effects on performance: the case of the Portuguese textile and apparel SMEs

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Publication Details

Author list: Pacheco, L. M.
Publication year: 2019
Journal: Journal of Textile and Apparel, Technology and Management (1533-0915)
Volume number: 11
Issue number: 1
Start page: 1
End page: 15
Number of pages: 15
ISSN: 1533-0915
Languages: English-Great Britain (EN-GB)


Abstract

The objective of this paper is to empirically examine the relationship
between the firms’ degree of internationalization and their financial
performance. The literature about performance determinants is abundant
however the relation between performance and internationalization in the
context of Small and Medium Enterprises (SMEs) from a small and open
economy is much less studied. This paper is focused on the Portuguese
textile and wearing firms due to their importance for the economy. It is
used an unbalanced panel data of 638 firms for the period from 2010 to
2016 and applied a random effects model. The results indicate that
internationalization promotes firm performance, in particular when
exports are directed to closer markets and conducted by small firms.
Also, the presence of a non-linear relationship between
internationalization and performance calls for managers’ attention to
its dysfunctional consequences for firm performance, especially at
intermediate levels of internationalization.


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Last updated on 2019-20-05 at 17:03