Does location matter to export performance?

Abstract

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.