Firm characteristics and managerial perceptions of NAFTA: An assessment of export implications for USSMEs

The North American Free Trade Agreement (NAFTA) may present significant opportunities or significant threats for small and medium-sized firms based in the U.S. Arguments are developed that explore the relationship among four internal firm characteristics and managers' perceptions of NAFTA. Managers' perceptions of NAFTA are measured as either favorable or unfavorable. The firm dimensions examined are strategy, performance, export experience, and size. The findings imply that managers' exhibiting favorable perceptions of NAFTA are related positively to differentiation strategy, performance, export experience, and size. A cost-leadership strategy demonstrated no discernable relationship with regard to perceptions about NAFTA. Implications and directions for future research are discussed.