Intra-regional diversification and revenue of export manufacturers
by Deusdedit Augustine Rwehumbiza; Marin Alexandrov Marinov
European J. of International Management (EJIM), Vol. 14, No. 6, 2020

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.

Online publication date: Mon, 26-Oct-2020

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