What Drives Regional Export Performance? Comparing the Relative Significance of Market Determined and Internal Resource Factors (Report‪)‬

ABSTRACT: Previous analysis of networking activities among SME exporters in regional NSW, Australia indicates that they tended to be isolated entrepreneurs, who relied primarily on their internal innovation and marketing capacities rather than on local networks and clusters as suggested by regional development theory (Vaessen and Keeble, 1995). Many of these firms were small, new 'born global' firms that had entered world markets with an innovative niche product and helped by the very low Australian exchange rates prevailing at that time. To be a successful exporter, the small firm must acquire sufficient resources to cover the higher risks of operating in international markets, as well as adopt strategies that are consistent with prevailing market conditions. In this study, SME exporters are divided into four categories based on their growth performance between 1996/97 and 2000/01: negative, modest, good and fast. Each group is analysed to determine the relationship between their export growth performance and a series of market orientated and internal resource variables. This analysis is performed using logistical equation models, controlling for a number of structural variables.