The Relationship Between Firm Size, Competitive Advantages and Export Performance Revisited

Abstract

The Relationship Between Firm Size, Competitive Advantages and Export Performance Revisited 0YSTEIN MOEN IS ASSOCIATE PROFESSOR AT the Norwegian Institute of Science and Technology, Trondheim, Norway. This study examines the impact of firm size on the competitive advantages and export motives of industrial firms. 335 small and medium-sized Norwegian firms participated. The results indicate that small firms tend to have a strong advantage with regard to products and technology while they are weaker than larger firms with regard to marketing. The relationship between firm size and competitive advantage appears to be nonlinear. The proactive motives for exporting are more important than the incidental or reactive motives, regardless of firm size. Comparing export motives by firm size shows that proactive motives are more important for large firms than for small firms. Five out of the size possible relations between firm size and export performance were non-significant. International marketing researchers often export that small firms will be less competitive than larger firms. This belief is not supported by the findings of this stuidy. The results instead indicate that small firms have different competitive advantages from larger firms, not that thiey are less competitive. One possible explanation is that only the most competitive small firms engage in international markets.