Smes and export performance

Large corporations have not been the only actors of multinational and global growth in recent decades. Small and medium-sized firms have demonstrated not only their capability of being convincing interpreters of internationalization processes, but they have also evidenced a variety in approaches to international markets. As a consequence, the theories that used to consider the internationalization of SMEs in a framework of homogeneity of behaviors and growth path, have to be revisited to take into account variety of strategic and organizational approaches as well as variety in international growth paths. Moreover, the key question arising is whether the concept itself of size has to be revisited in the light of the parallel de-structuring of large corporations and innovative market seizing and growing organizational complexity of small firms. The paper assumptions have been tested on a sample of Italian SMEs: the research reveals that nor size neither age of the firms are correlated to export performance. The latter seems to depend primarily on the product/market segment strategy, the main variable capable of defining the different clusters emerging in international SMEs.

Firm size related to export performance

Purpose: This paper provides an overview of exporting firms, as a special case SMEs of the Republic of Kosovo, that are exporters based on relevant academic literature. Empirical evidence reveals that most of the SMEs, have positive relations with some determinants as the number of employees. To verify whether exporting is the first step in the process of internationalization, the findings of this study are linked with related literature on exporting aspects. This also offers a more in-depth understanding of the relation between variables used in the study and export performance. Design/Methodology/Approach: The paper used quantitative data and face to face interviews with respondents. The descriptive statistics were calculated to give an overview of the distribution, mean and the standard deviation of the dataset. Internal consistency and reliability analysis on a Likert scale was performed using Cronbach’s Alpha coefficient. Findings: The firm size was shown to be highly statistically significant and positively related, indicating that the importance of economies of scale in the probability of being engaged in export is high. The obtained results from the conducted research on SMEs in Kosovo show that the dependency of managers’ education and training were corresponding with those attained when testing dependency of managers’ age and their international experience. Practical Implications: Development policy should be made towards the added value and growth of competitive competencies of SMEs in the domestic market and the external market, as well the process to take facilitating steps in exporting promotional activities. Agency for supporting SMEs should coordinate activities to improve the conditions for exporting enterprises by allowing access to public infrastructure. Originality/Value: This paper is summarized with some specific recommendations for the management of SMEs and for government institutions to improve export performance.peer-reviewe

Resource determinants of strategy and performance: the case of British exporters

This study adopts the RBV of the firm in order to identify critical advantage-generating resources and capabilities with strong positive export strategy and performance implications. The proposed export performance model is tested using a structural equation modeling approach on a sample of 356 British exporters. We examine the individual as well as the concurrent (simultaneous) direct and indirect effects of five resource bundles on export performance. We find that four resources/capabilities: managerial, knowledge, planning, and technology, have a significant positive direct effect on export performance, while relational and physical resources exhibited no unique positive effect. We also find that the firm’s export strategy mediates the resource-performance nexus in the case of managerial and knowledge-based resources. The theoretical and methodological grounding of this study contributes to the advancement of export related research by providing better specification of the nature of the effects – direct or indirect – of particular resource factors on export performance

Testing for linear and quadratic effects between price adaptation and export performance: The impact of values and perceptions

Managerial perceptions are essential in explaining strategic decisions. It is, therefore, surprising that despite the number of studies that have examined the impact of managerial characteristics in exporting, little research has been reported in the export literature that investigates the importance of managers' perceptions on strategic decisions and resultant performance outcomes. To address this gap in the literature, the authors examine the key determinants of managers' psychic distance as well as its influence on international pricing decisions, and this in turn, on the export performance of SMEs. We also examine the quadratic effects of price adaptation on export performance. This is particularly relevant since price adaptation and export performance have been assumed in the literature to have a linear relationship. The results show that managers' perceptions have a significant impact on pricing decisions and resultant performance outcomes. Our findings also indicate that price adaptation has an inverted U-shaped relationship with export performance

Determinants of Export Performance of Pakistan: Evidence from the Firm-Level Data

This paper explores the determinants of export performance at the level of firms in respect of their characteristics and supply side constraints. The analysis is based on a survey of export-oriented firms in four major sectors. The results indicate a relationship between the better performance of foreign-owned firms to their better know-how and resources compared to the domestically owned firms. Export performance is positively affected by the level of investment in market/client oriented technologies. Lack of certification of product and process standards is the main supply side constraint adversely affecting the firms’ export performance. Facilitation measures like export processing zones, internationally recognised testing labs, and industrial clusters would be helpful in improving the export performance of firms.Trade, Exports, Firms, Performance, Manufacturing

Exports and Property Prices in France: Are they Connected?

France has seen a marked deterioration in its export performance in the last 10 years or so. Previous empirical research pointed out that weak export performance was due to i) vigorous domestic demand; ii) lower mark-ups due to head-to-head competition with Germany; iii) low non-price competitiveness of French export goods; iv) offshoring of entire production processes (especially in the automobile sector); and v) difficulties of French manufacturing firms to reach critical size for exporting. This paper adds an additional explanation to this list. We argue that resource reallocation from the exporting to the construction sector triggered by fast rising property prices hindered France to meet world export demand vis-à-vis its products. Our econometric analysis shows that the resource reallocation argument helps explain French export performance between the early 2000s and 2007, unexplained by traditional models. This result is confirmed for a set of OECD countries that experienced a marked decline in their export performance and sustained real-estate boom after 2000.OECD, France, competitiveness, exports, export performance, construction, house prices, resource allocation

Beyond tariffs and quotas : why don't African manufacturers export more?

There has been much concern about Africa's recent export performance. Even though tariff and non-tariff barriers to trade have been falling, Africa's share of world exports has declined and most African countries remain highly dependent on a narrow range of primary commodities for export earnings. The author looks at factors that affect the export performance of manufacturing enterprises in eight African countries. In addition to enterprise characteristics (such as size, ownership, and education of the manager), policy-related variables also affect export performance. Manufacturing enterprises are less likely to export in countries with restrictive trade and customs regulation and poor customs administration. In contrast, there is less evidence that the quality of domestic transportation infrastructure has a large impact on export performance. Although the coefficient on this variable is negative, it is statistically insignificant in most model specifications.

Export Performance of Indonesian Manufactured Goods in Australia

Export Performance of Indonesian Manufactured Goods in Australia The exports of Indonesian manufactured products to Australia are performing poorly, even if compared to those of Malaysia and Thailand. The objectives of this study is to investigate the factors behind the poor export performance of Indonesian manufactured products in Australia. Two types of research techniques were conducted. Firstly a literature review, which includes the study of the theoretical framework of International trade, previous related research results and collecting secondary data from various sources. These techniques were used to investigate the causal factors from a macro or general point of view. Secondly, mail survey. Two types of questionnaire were designed, one was forwarded to seventy eight Australian importers, and the other was sent to seventy eight Indonesian exporters. These were aimed at investigating the factors behind the problems from a micro or specific point of view. In addition, two interviews were conducted, first with the Indonesian Commercial Attache4 in Canberra, and second with the Director of Indonesian Commercial Office in Sydney. Descriptive and qualitative analysis was applied to major parts of the data obtained, with statistical manipulations applied to the remainder. T-statistic or student test as well as analysis of variance (ANOVA), F-test and orthogonal contrast test were applied to test the significances.The information collected indicates that macro aspects, such as communication problems, Indonesian banking practices, lack of information and shipment seem to play a more significant role in the poor export performance of Indonesian manufactured products to Australia than did the micro or specific aspects like the price and the quality of products

Geography and Export Performance: External Market Access and Internal Supply Capacity

This paper investigates the determinants of countries' export performance looking in particular at the role of international product market linkages. We begin with a novel decomposition of the growth in countries' exports into the contribution from increases in external demand and from improved internal supply-side conditions. Building on the results of this decomposition we move on to an econometric analysis of the determinants of export performance. Results include the finding that poor external geography, poor internal geography, and poor institutional quality contribute in approximately equal measure to explaining Sub-Saharan Africa's poor export performance.