Title: Intra-regional diversification and revenue of export manufacturers

Authors: Deusdedit Augustine Rwehumbiza; Marin Alexandrov Marinov

Addresses: Department of General Management, University of Dar es Salaam, Dar es Salaam, Tanzania ' Department of Business and Management, Aalborg University, Aalborg East 9220, Denmark

Abstract: This study explores the major drivers of more exports revenue from regional markets irrespective of a fairly balanced firms' diversification into both regional and extra-regional markets. It focuses on export manufacturers in a relatively less researched context of low-income developing countries. Drawing on the interplay among three theoretical foundations and insights from multiple-case studies, research findings underpinning the explored phenomenon include: growing demand; lack of input materials to fulfil customer needs in high-income developed countries; own brand manufacturing; capability to overcome foreign competition; and more exports to the proximate regional markets. Only firms with higher capability to mobilise, use and upgrade idiosyncratic resources stand a better chance to generate exports revenue from high-value but competitive developed countries. Generally, these findings suggest that while firms need to build a strategic fit with competitive business environments, home countries need to improve their investment environments to attract competitive and well networked firms.

Keywords: export manufacturers; exports revenue; intra-regional diversification; low-income developing countries.

DOI: 10.1504/EJIM.2020.10019099

European Journal of International Management, 2020 Vol.14 No.6, pp.1024 - 1048

Received: 22 Oct 2018
Accepted: 17 Dec 2018

Published online: 26 Oct 2020 *

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