Geographical co-location on Chilean SME's export performance

Recent studies report conflicting results on the impact of geographic co-location on small firm's export performance. This paper contributes to the management literature by providing a new conceptual framework that explains the apparently disassociated findings of recent studies. It is proposed that specific positive externalities are the principal components of the co-location effect on export performance. This is examined in the context of a particular South American economy, Chile. Unexpectedly, results indicate that geographical co-location has a negative effect on export performance in this particular environment. This has implications for practitioners and further research.