FACTORS INFLUENCING EXPORT PERFORMANCE IN INTERNATIONAL MARKETING: A STUDY OF AUSTRALIAN FIRMS

Abstract

This paper presents the results of a study that explored why some Australian exporting firms had a better export performance than others. It examined variations in export performance in terms of motivation to export; firm characteristics; marketing expertise, managers' attitudes towards exporting; managers' personal characteristics; marketing strategies; and exporting problems encountered. Introduction and Theoretical Background Although exporting has received considerable attention in the international marketing literature most of the studies dealing with export practices and performance were done in overseas countries (e.g. Aaby & Slater 1989; Axinn 1988; Baker 1992; Bijimolt 1993; Bijmolt & Zwart 1994; Bilkey 1978; Calof 1993, 1995; Cavusgil & Naor 1987; Cavusgil and Zou, 1994; Cavusgil and Kirpalani 1993; Christensen et al 1987; Crespy et al 1993; Culpan 1989; Crick and Katsikeas 1995; Kaynak 1992; Kaynak and Bredenlow 1987; Kaynak and Wellington 1993; Kaynak and Kuan, 1993, Kedia and Chhokar 1985, 1986; Moini 1995; Ogunmokun and Li, 2001, Sullivan and Banerschmidt 1989, Thirkell and Dau, 1998,), and very little is known about the export practices of Australian firms. Various studies done in overseas countries have identified some factors that may influence export performance. For example, management characteristics such as motivation to export, perceptions and personal characteristics; firm characteristics such as size, competencies, marketing mix strategy, marketing policy and planning, relationship strategy; as well as country characteristics such as whether it is a developed or underdeveloped country. However, according to Cavusgil and Kirpalani (1993), and Ogunmokun and Li (2001) an area of great concern is that there are only a few generalizable conclusions that can guide firms in their export endeavours. Given that very little is known about the determinants of export performance among Australian firms, this study was designed to explore why some Australian firms had better export performance than others. It attempts (1) to establish the extent to which differences exist between organizations with a high level of export performance and organizations with a low level of export performance in terms of the following factors: motivation to export; firm characteristics; marketing expertise, managers attitudes towards exporting; managers personal characteristics; marketing strategies; and exporting problems encountered, and (2) to ascertain the relative importance of each of the above factors in differentiating organizations with a high level of export performance from organizations with a low level of export performance. Research Methodology The Sample Since size may affect export performance, in order to exclude very big businesses from the study, 800 companies in Australia that had less than 200 employees were randomly drawn from the Australian Exports Directory. Using less than 200 employees as a cut off point for a study dealing with small to medium-sized companies is not uncommon in the literature. For example the study by Kedia and Chhokar (1986) defined small and medium-sized firms as those with less than 200 employees. The Australian Exports Directory published by the Australian Trade Commission (AUSTRADE) used for selecting the companies for this study, contains a list of exporting companies in Australia (both Australian and foreign-owned). Each listing provides concise information regarding the company's products, present export areas, number of employees, key person(s) to contact, annual turnover, ownership, and mission statements. Questionnaires were sent to all the 800 companies that were randomly selected from the Australian Exports Directory. Out of the 800 questionnaires sent, 38 were returned undelivered; 126 companies claimed that although they were listed as exporters in the directory they were not currently exporting goods or services: and 40 companies claimed they did not receive the questionnaire, thus reducing the sample to 596 exporters. …