International Expansion Within and Outside the Home Region: Performance Implications for Emerging Market Exporters

Abstract This study analyses how international expansion, both within the home region (regional exports) and outside the home region (global exports), affects the performance of emerging-market exporters. In addition, it examines the moderating effect of the level of development of destination countries and the dynamism of the industry in the home country (home-industry dynamism). Using panel data from 2174 Colombian firms during the period 2017–2021 we found that both expansions, within and outside the home region, positively affected performance. Additionally, the relationship between regional exports and performance was positively moderated by lower development levels of the destination countries within the home region. Contrary to expectations, we found no moderating effect from industry dynamism or the level of development of countries outside the home region. These results challenge traditional views on internationalisation and offer new insights for firms in emerging markets.