Determinants and measures of export performance – comprehensive literature review

As one of the key indicators of the firm’s ability to leverage successfully its resources and capabilities in the international context, export performance has been one of the most extensively studied phenomena. A plethora of studies have been conducted pertaining to provide better understanding of the factors (firm- or environment-specific) and behaviours (e.g., export strategy) that make exporting a successful venture. Following a comprehensive literature review undertaking in this study the current state of the export performance literature could be summarisedas (i) methodologically fragmented in that there is a variety of analytical and methodological approaches, (ii) conceptually diverse, a large number of determinants have been identified as having direct or indirect influence on the firm’s export performance, and a large number of indicators have been used to conceptualise and operationalise the export performance measures, and (iii) inconclusive, the studies have produced inconsistent results of the impact of different determinants on export performance.

The STEP scale: a measure of short-term export performance improvement

This article is a direct response to a recent observation in the literature that managers appear to be short-term oriented in their assessment of the performance of an export venture (Madsen 1998). On the basis of a cross-national survey of exporting firms, the authors present a three-dimensional scale for assessing managerial judgment of short-term export performance (i.e., the STEP scale). The three dimensions are (1) satisfaction with short-term performance improvement, (2) short-term exporting intensity improvement, and (3) expected short-term performance improvement. The scale presents evidence of reliability as well as convergent, discriminant, and nomological validity, and it reveals factorial similarity and factorial equivalence across both samples. The authors outline managerial and public policy implications that stem from the scale and identify avenues for further export marketing research.

Voluntary export restraints between Britain and Japan: the case of the UK car market (1971–2002)

The rise in international markets of new, productive Japanese car manufacturers provoked intense world competition, which created serious doubts about the economic sustainability of an industry mostly dominated until the 1970s by European and North-American multinational companies. Ultimately, this crisis provoked a deep transformation of the industry, with consequences that had a permanent impact on European companies in the sector. American and later European manufacturers were successful in lobbying governments to provide protection. Using a rich source of data from the UK, I show that the ‘new trade policy’, voluntary export restraint (VER), placed on Japanese exports of new cars from 1977 to December 1999, was binding. This case study illustrates the strategies used by Japanese manufacturers to gain access to the European market through the UK market via strategic alliances and later through transplant production, against which continental European nation states were unable to fully insulate themselves. It is also shown that the policy had a profound effect on the nature of Japanese products, as Japanese firms responded to the quantity restraints by radically altering the product characteristics of their automobiles and shifting towards larger autos and new goods, to maximise their profits subject to the binding constraint.

Knowledge creation in export trading

In this research, we investigate how knowledge in the export trading industry is created. Prior research focuses on general businesses in local market environment. This research specifically focuses on export trading with overseas market needs. These needs require attention to different types of control and requirements beyond that of a local market. In this paper, Nonaka et al.'s theory of organizational knowledge creation is explored. We specifically examine the processes of knowledge creation through four modes of knowledge conversion. Empirical investigations in export trading organizations are conducted. We examine how export firms obtain new knowledge for innovations based on collective knowledge being used in export trading. The findings indicate that the knowledge management processes in export firms allow for the creation of new knowledge. The collective knowledge (from groups and individuals) forms a basis for innovations and competitive intelligence. This collective knowledge also creates foresight, insight and hindsight in the export trading context.

A principal components analysis of New Zealand Board compostion : factors that influence an export strategy

Principal Topic Internationalisation strategies are important for company expansion because New Zealand, with its four million people, has such a small market. There may or may not exist ”agency costs” in the use of Outside Directors. Ownership patterns may also influence Internationalisation.

Methodology/Key Propositions This study uses Principal Component Analysis both in a grounded theory approach and in a confirmatory approach.

Results and Implications We find evidence that in New Zealand, contrary to some previous research elsewhere, outside Directors actually have less influence on Internationalisation than Inside Directors. Private ownership also seems to have a greater association with Internationalisation than other ownership types. A highly reliable sample of 1989 New Zealand company directors showed that such factors as gender, age and location and even industry sector were irrelevant. Two factors were important in explaining whether a company goes off-shore. These are the size and magnitude of the company as well as the ownership type and role of the CEO. In essence, this study validates New Zealand’s present strategy of ”picking winners”, that is, selecting firms based upon factor components. This study adds strength to that strategy because it identifies the concrete components that should be taken into account when picking companies for special treatment, e.g. export promotion.

Strategic people management of coal mining firms in Central Queensland

Purpose – This paper aims to propose a conceptual framework to explore the link between strategic human resource management (SHRM) and firm performance of the coal mining companies in Central Queensland (CQ), Australia.

Design/methodology/approach – The paper reviews literature relating to the process and issues of transforming human resource practices and industrial relations of the coal industry in Australia for the past decade. Theoretical development and empirical studies on the SHRM-performance linkage are discussed. Based on the literature review, the paper develops an integrated model for testing the relationship between SHRM and firm performance in the context of CQ's coalmines and proposes a number of research propositions.

Findings – Three perceivable outcomes are likely derived from application of this framework in the field. First, a testing of the linkage between strategic HRM and firm performance in the coal industry, using an integrated approach, would complement the empirical deficiency of treatments on the prior SHRM models. Second, data at firm level could be collected to develop a better understanding of how the adoption of strategic HRM practices in coal companies can affect firm performance. Third, the extent of flexibility practices, use of contractors and associated management practices could be identified.

Originality/value – The coal industry is central to economic development of regional Queensland. The industry contributes substantially to GDP via employment, investment and product export. An exploration of the impact of SHRM on the coal industry will likely result in identifying some best practices that could be potentially adopted in the wider business community to foster regional economic development in Australia and worldwide.

Design management methodology to strengthen firm and industry competitiveness in the construction design services export sector

The aim of this research was to investigate strategies deployed by successful construction design-related firms towards achieving high levels of firm competitiveness in international markets. A reflexive capability model, developed through a critical analysis of related internationalisation literature, is composed of three key areas; internationalisation process, market knowledge and design management. Firm reflexive capability is explored through the management of social, cultural and intellectual capital. The concept of reflexivity is borrowed from sociology. Reflexivity is reinterpreted as the ‘firm’s’ ability to be aware, responsive and adaptable to self, market and project needs assessment. A cross case analysis explored the barriers and success factors through three constructs; internationalisation process, design management and market knowledge of three firms. This paper demonstrates that international firm competitiveness is dependent upon the strategic inter-relational management of social, cultural and intellectual capital for maximum advantage of the utilisation and leverage of one form of capital to gain another. This leads to the development of increasing reflexive capability to support internationalisation. An outcome of this research is the identification of the central relation between a level of reflexive capability within the firm and the firm’s level of success in international markets. This research is part of an ongoing program of research on international collaborative practice. A Reflexive Capability Matrix was developed from the findings of one research project and then validated through a second research project (only the capability matrix is presented in this paper though). The reflexive capability approach is appropriate to all firms but what is speculated upon is that the reflexive capability is particularly intrinsic to small to medium sized construction design firms who work globally. A reflexive capability is a characteristic of successful and innovative firms internationalising and working within global models of practice.

Multi-market industrial organizational economic models for the internationalization process by small and medium enterprise construction design service firms

Small and medium enterprises (SMEs) are critical to strategic initiatives in an economy; however, their contribution to foreign trade is not as significant. SMEs are one of the principal driving forces in economic development. One of the greatest challenges is the internationalization process for longevity rather than seeing the process as initial market entry. The internationalization process research has typically involved four key constructs: market selection, decision to enter, entry modes and factors affecting entry modes. Past research has focused on large manufacturing firms. The export of architectural, engineering and construction (AEC) firms has undergone growth, yet there is still significant opportunity for further growth. The majority of AEC firms are SMEs. Notwithstanding assistance provided through international trade missions, organized export firm support networks and information packages by a burgeoning number of government agencies, there are still perceived barriers to market entry and long-term economic sustainability for SMEs. There are a number of problems faced by SMEs acting in foreign trade. This investigation explores the successful initial internationalization process constructs and identifies unique project-oriented sector characteristics. The study identified similarities and differences between two firms that have been exporting to various localities, including Eastern Europe, Africa, Middle East, UK, Asia and South America, for more than two decades. The similarities and differences were identified within eight major constructs: purpose, firm type, market image and design philosophy, entry mode strategy, institutional arrangement, factors affecting mode of entry, market selection and firm strategy in relation to project selection. The primary reasons for internationalization were associated with the firms' motivations related to growth and financial viability. This article discusses the various internationalization processes and strategies intrinsic to each case study and establishes a detailed set of empirical observations from which to develop further a grounded theoretical model of reflexive capability for the internationalization process. This study contributes to the body of knowledge around the SME AEC design service firm's internationalization process, as a dynamic, evolving and continuously adaptable construct for project-based sectors.

Sustaining the international competitive advantage of Asian firms : a conceptual framework and research propositions

The sudden loss of export markets by many Asian firms during the Asian financial crisis (AFC) has raised important questions on how firms in the region can regain and sustain their competitive advantage in international markets. This paper develops a conceptual model which focuses on certain key elements of a firm's internal resources as critical sources of competitive advantage and offers research propositions. It is argued that Asian firms can enhance their international competitive advantage by leveraging their internal resources within an external environment generally conducive to growth.

Comparative advantage, heterogeneous firms and variable mark-ups

We develop a model of comparative advantage with monopolistic competition, that incorporates heterogeneous firms and endogenous mark-ups. We analyse how these features vary across countries with different factor endowments, and across markets of different size. In this model we can obtain trade gains via two channels. First, when we open the economy, most productive firms start to export their product, then, they demand more producing factors and wages rises, thus, those firms that are less productive will be forced to stop to produce. Second channel is via endogenous mark-ups, when we open the economy, the competition gets ``tougher'', then, mark-ups falls, thus, those firms that are less productive will stop to produce. We also show that comparative advantage works as a ``third channel'' of trade gains, because, all trade gains results are magnified in comparative advantage industry of both countries. We also make a numerical exercise to see how endogenous variables of the model vary when trade costs fall.

A technological innovation for capsicums production in Peru: the mechatronics arms

Peru agricultural exports have increased in recent years due to (i) free trade agreements with many countries (United States, Canada, European Union, China, Thailand, Singapore, Japan, Chile, among others), (ii) an increasing international demand for healthy products, (iii) country´s economic development and (iv) more private investments in this sector (Velazco 2012). Also, if we can compare among Peru three main regions (Coast, Andean highlands and the Jungle), It is the Coast (western region) that has a developed agricultural production due to unique weather conditions, private investments, public infrastructure, transport costs and quality of land (Gomez, 2008). This country development is also related to the production of non-traditional products for export like asparagus, artichokes, capsicums, bananas, grapes, among others; produced by agro industrial companies and small farmers and that are mainly labor intensive (Gomez, 2008 and Velazco, 2012). This very successful export diversification and self-discovery process was the result of a combination of strong natural comparative advantages (mainly excellent agro climatic conditions) and a significant innovation effort. It meant the introduction and expansion of new products and markets, the entry of new firms, and experimental research and the adoption of new techniques and process technologies developed abroad (in irrigation, crop management, post-harvesting, sanitary control, storage and packing) to produce high-quality, niche (gourmet) and higher value-added products, in line with consumer trends in sophisticated food markets. In products such as asparagus, mango, organic coffee and capsicums, Peru has become a leading world exporter (OECD). For this reason one of the government main tasks for the next years is to meet urgent agriculture producer’s needs in the areas of technological Innovation and business management (MINAG). In this context, this thesis analyzes the applicability of a new technology – the mechatronic arms – specifically to capsicums production sector in Peru. We chose Capsicums production sector (paprika, chilli pepper) because is mainly labor intensive and is the sector where my family company (DIROSE SAC) operates. This innovation consists in a 40 arms mechatronic combine, and it was first created in order to improve the efficiency on the labor intensive phase of harvest for this kind of agriculture products. It is estimated that a laborer with brief training operating the machine would be equivalent to 40 people that not only would work during daytime, but also on the night shift as well. Also, using this new technology can allow a company to make additional crops that would increase their yields and annual revenues. This thesis was developed as a business plan to make this new product available for other agriculture companies that operates in the capsicums production sector in Peru; however, this new technology has the potential to be modified in order to be available to other kind of agriculture products, in Peru and other countries.

Export growth in Latin America: policies and performance

Includes bibliography

E-commerce and export promotion policies for small- and medium-sized enterprises: East Asian and Latin American experiences

Includes bibliography

The strategies pursued by Mexican firms in their efforts to become global players

Includes bibliography

Dissecting the Chilean export boom

Includes bibliography