186 Int. J. Business and Emerging Markets, Vol. 7, No. 2, 2015 Copyright © 2015 Inderscience Enterprises Ltd. Export performance in emerging markets: upgrading evidence from a cluster in Brazil Maria Laura Ferranty MacLennan* Department of Business Studies, University of São Paulo, São Paulo – SP, Av. Prof. Luciano Gualberto, 908, Cidade Universitária – ZipCode: 05508-010, Brazil Email: laura.maclennan@usp.br *Corresponding author Ilan Avrichir Escola Superior de Propaganda e Marketing (ESPM-SP), São Paulo – SP, R. Álvaro Alvim, 123, Vila Mariana – ZipCode: 04018-010, Brazil Email: iavrichir@espm.br Cléber da Costa Figueiredo Department of Business Studies, Escola Superior de Propaganda e Marketing (ESPM-SP), São Paulo – SP, R. Álvaro Alvim, 123, Vila Mariana – ZipCode: 04018-010, Brazil Email: cfigueiredo@espm.br Abstract: This research addresses the impact of different types of upgrading on a firm’s export performance. Consistent with research using the value chain approach and clusters, we showed ways in which small and medium enterprises (SMEs) in a dimension stone cluster upgraded to higher value added activities. Data were analysed using Mann-Whitney U statistics for the surveyed companies. The results supported the hypotheses and indicated a positive association between export performance and product upgrading. Process and functional upgrading also showed significant results. These findings highlighted some managerial contributions, such as the importance of product improvements and international marketing activities for SMEs considering target market demands. This study also indicates the need to upgrade for internationalisation. Keywords: value chains; upgrading; small and medium enterprises; SMEs; exports; local development; export performance; emerging markets; Latin America. Reference to this paper should be made as follows: MacLennan, M.L.F., Avrichir, I. and Figueiredo, C.C. (2015) ‘Export performance in emerging markets: upgrading evidence from a cluster in Brazil’, Int. J. Business and Emerging Markets, Vol. 7, No. 2, pp.186–202.