Determinants of Adaptation and Differentiation International Strategies of Smes

Abstract

There is a consensus that the market circumstances induce firms to promote strategies adjustments (adaptation and differentiation) to meet its requirements. However, the challenge for academia is to determine the degree to which firms adapt or differentiate their products to export. Thus, this study aims to demonstrate through an empirical study, which characteristics of the firm and the foreign market influence export strategies (adaptation and differentiation) of small and medium businesses. Data were obtained from primary and secondary nature, through semi-structured questionnaire administered to SMEs from Minas Gerais and these were treated by Multiple Regression. The results show that adaptation strategies are influenced more by local conditions of the host country whereas differentiation strategies are influenced by the firm specific characteristics.