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Identifying the proper mix of growth-seeking strategies for Spanish SMEs: An analysis during times of economic boom and crisis

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Abstract

This study explores the potential effects of different combinations of growth-seeking strategies on performance in SMEs during long times of economic boom and crisis. Our hypotheses are tested on a representative sample of Spanish SMEs between 1994 and 2014. During these years Spain suffered one of the periods of greatest economic stability/growth in recent years (1994-2008), followed immediately by a period of severe crisis (2009-2014). Using dynamic panel data models, our findings reveal that four combinations exhibit a positive and statistically significant effect on performance in times of economic boom: a related product strategy combined with low, moderate, or high levels of internationalization, and an unrelated one combined with a moderate level of internationalization. Meanwhile, we find only two combinations with a positive impact on SME performance in times of crisis: a related product strategy combined with low and moderate levels of internationalization, respectively

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  • Benito-Osorio, Diana & Colino-Fernández, Alberto & Ángel Guerras-Martín, Luis & Ángel Zúñiga-Vicente, José, 2023. "Identifying the proper mix of growth-seeking strategies for Spanish SMEs: An analysis during times of economic boom and crisis," Small Business International Review, Asociación Española de Contabilidad y Administración de Empresas - AECA, vol. 7(2), pages 605-605, December.
    • Handle: RePEc:aaz:sbir01:v:7:y:2023:i:2:p:e605
    DOI: 10.26784/sbir.v7i2.605
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    More about this item

    Keywords

    SMEs; growth-seeking strategies; product and geographic diversification; economic growth; crisis;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration

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