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

• Published in: Small Business International Review Vol. 7; no. 2; p. e605
• Main Authors: Benito-Osorio, Diana, Colino-Fernández, Alberto, Guerras-Martín, Luis Ángel, Zúñiga-Vicente, José Ángel
• Format: Journal Article
• Language: English
• Published: Asociación Española de Contabilidad y Administración de Empresas (AECA), Universidad Politécnica de Cartagena (UPCT) 31.12.2023
• Subjects: crisis; economic growth; growth-seeking strategies; product and geographic diversification; smes
• ISSN: 2531-0046; 2531-0046
• DOI: 10.26784/sbir.v7i2.605

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