Factors influencing export performance for South African manufacturing SMEs
Date
2014-10-10
Authors
Shaw, Eva Elizabet
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Abstract
The study aims at identifying factors that have influence on the export
performance of South African manufacturing SMEs. Exports are considered an
important contributor towards a country’s economic growth and wealth and an
enabler of inflow of foreign exchange, specialisation, increased production, and
much needed job creation. The research was conducted in South Africa,
against the backdrop of the global financial crisis and a domestic market
affected by economic stagnation in 2008 and the years of slow recovery that
followed.
In spite of the importance of and growing interest in emerging markets,
comparingly few studies have been conducted within this environment and
there is a call for more research to focus on growing economies, especially in
Africa.
The research was conducted by a web-based survey in the form of a structured
questionnaire. The factors of interest, both internal and external to the firm,
were extracted from the broad emerging literature in the field of export
performance measures and determinants. The export performance was
measured as a multi-dimensional construct, capturing both financial and
strategic aspects. The data was analysed and the findings from this research
were mainly extracted by structural equation modelling (SEM) in SPSS and
Amos. The results were then compared with those published by earlier authors.
Main factors contributing toward a higher export performance were found to be:
well-planned export marketing strategy; not the international experience, but the
ability to identify, access and apply market information; export to markets with
stable and free market conditions; a higher level of internationalisation
Factors in this research found to most negatively influence export performance
are financial factors such as e.g. lack of pre-shipping finance and lack of access
to market information, and distance to market, both geographic and psychic.
Description
Keywords
Small business -- Manufactures -- Export marketing -- South Africa