The Within-Industry Diversification and SME Performance


ผศ.ดร.เกียรติชัย กาฬสินธุ์, MissVaraporn Pangboonyanon Varaporn Pangboonyanon


Academy of International Business – Southeast Asia Regional Conference


We examine the impact of within-industry diversification on SME performance in emerging
markets (EM). We draw on resource-based view and institutional perspective and argue that
within-industry diversification can enhance EM SME performance. EM SMEs can gain
additional benefits from scope economies and from market returns by filling institutional
voids and gaps in business ecosystems. These effects become stronger when EM SMEs are
more efficient, but become weaker when the institutional contexts are more developed. We
test hypotheses on 195 firms, originated from five countries in Southeast Asia, during 2009 to
2014. The empirical results provide support to our arguments.

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