PREDICTORS OF EXPORT STRATEGY AND PERFORMANCE OF SMALL-SIZED AND MEDIUM-SIZED FIRMS

The industrial organization model suggests that market position in an industry is a significant input to multinational enterprise's (MNE's) internationalization decision and subsequent performance. The transaction cost models consider the characteristics of a MNE's industry and requirements of location as most relevant to the internationalization decision. The strategic management (SM) model considers strategy and resources as factors which are firm-specific that exert influence on performance. This empirical study dealing with small- and medium-sized firms validates export development strategy in the context of the SM Model.