The Effects of International Diversification on Private SMEs' Performance: An Inverted-S Curve

Abstract

Abstract:

The relationship between international diversification and performance is one of the core topics in the field of international business. In Chinese context, however, the related researches are underdeveloped, especially for private small and medium-sized enterprises (SMEs). Basing on the survey of 168 Chinese private SMEs, we find an inverted-S curve relationship between international diversification and performance. Therefore, two important factors may be underestimated in current literatures, i.e. inward international experience and their risk-avoiding intention. This paper contributes to the literature by finding supports from private SMEs rather than large firms. Implications and future directions are discussed at the end of the paper.

Key words: emerging markets, small and medium-sized enterprises, international diversification, performance, inverted-S curve

Wu Bing, Wang Juan, Yan Haifeng. The Effects of International Diversification on Private SMEs' Performance: An Inverted-S Curve[J]. , 2018, 30(3): 179-187.

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