The Effect of Exporting to Country of Origin on the Financial Performance of Immigrant-Owned SMEs
Abstract
Immigrant-owned SMEs primarily export to their owners’ country of origin. However, conflicting findings suggest theoretical ambiguity in how their country-of-origin export strategy influences their financial performance. Adopting a contingent perspective, we theorize how socially embedded immigrant owners derive superior performance from an intensive country-of-origin export strategy. Based on a sample of 6,319 immigrant-owned SMEs, we find that SMEs led by immigrant owners with longer length of stay in the country of residence, and whose country of origin is geographically proximate to their country of residence, generate superior financial performance from an intensive country-of-origin export strategy."