How many eggs in how many baskets? National versus regional diversification strategies and export success

Research on the export performance consequences of the degree of export diversification pursed by firms is scant. To address this research gap, this study examines whether firms’ export success levels are tied to the extent to which they adopt national diversification strategies (the number of countries they choose to export to) and/or regional diversification strategies (the number of regions they choose to export to) and unpicks the critical contingencies of these linkages. Based on a sample of 225 UK exporters the authors find that firms gain the highest export performance benefits when they simultaneously increase national and regional export diversification. Interestingly, results also show that the links between the extent to which exporters engage in a national diversification strategy and/or a regional diversification strategy are weaker when firms operate in markets that are very high in market dynamism, and that the relationships are stronger when both resource sharing and interfunctional coordination are high.