The relationship between diversification and performance in export intermediary firms

The study examines the impact of product, functional and geographical diversification on the sales, exports and profitability of export intermediaries (EIs). It is based on a mailed survey of a sample of 135 British EIs. The results indicated that product and unrelated functional diversification are important to an EI's export stability. EIs that tend to tarry undifferentiated products also exhibit more stable export sales. Although geographical diversification itself was not found to affect performance, focus on the economically developed countries seems to be critical for an EI's stability and growth of sales and exports.