Abstract
This paper examines the relationship between firm size and export performance within the US machine tool (MT) industry, a sector comprised primarily of SMEs. Evidence for this analysis is taken from the results of a postal survey of 82 MT exporters representing a cross‐section of company size, product lines, and geographic location. Among these manufacturers, firm size fails to correlate with export‐intensity or export growth. However, the results suggest relationships between firm size and the degree of importance accorded to several problems impacting the MT sector, such as access to export finance and declining local markets. Overall, smaller MT producers do not face major impediments to export activity. Instead, specialization and market niche appear to be important. The paper concludes with a discussion of future growth prospects and competitive issues for these manufacturers.
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