Firm internationalisation and export incentives from a Middle Eastern perspective

Journal of Small Business and Enterprise Development 09/2006; 13(4). DOI: 10.1108/14626000610705804
Source: OAI


Purpose: The purpose of this research is to explore the incentives to export that Lebanese entrepreneurs face when engaging in international business. Design/methodology/approach: The study was based on an empirical investigation of the incentives to export that Lebanese firms face when engaging in international business. The sample of firms came from a wide cross section of industries and was provided by the Lebanese Ministry of Industry. A questionnaire was developed and pre-tested using a small sample of exporters with the final instrument used to personally interview all respondents. Findings: A total of 17 of the 20 export incentives tested were identified as being significantly important. Also, it was concluded that exporters and non-exporters largely agree in their views of the various incentives to exporting. Research limitations/implications: One of the research limitations was the sampling technique. Convenience sampling was used in this project. Although it has many advantages, it also has some limitations, including respondent self-selection. Practical implications: The study findings suggest that exporters and non-exporters perceive the same incentives to export to be important. However, exporters and non-exporters had different attitudes towards one export incentive being "Decline in the Value of Currency Relative to Foreign Markets". Originality/value: From the multiple comparisons test conducted on "Decline in the Value of Currency Relative to Foreign Markets" for those who export 11 percent to 40 percent of their total sales and those who export 41 percent or more of their total sales the attitudes towards this export incentive are significantly different from each other.

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    • "Exporting also allows New Zealand firms to spread their risk across several markets. Exporters also gain from stronger sales and profits, utilization of idle capacity, longer or larger production runs and increased productivity (Ahmed et al., 2006). These benefits are particularly important given New Zealand's relatively small domestic market. "

    Full-text · Chapter · Feb 2015
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    • "Tesfom and Lutz (2006) report the complete overview on the barriers with respect to internationalisation of SMEs. Research reports on barriers are found on developed countries and with respect to developing nations, the gap still exists (Ahmad and Julian, 2006; Al-Hyari et al., 2012). Hence, the analysis on the export barriers with respect to Indian apparel SMEs is an area to be studied for the benefit of apparel industry. "
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    ABSTRACT: India is traditionally identified as a manufacturing hub. It is well known for its heritage and skill sets in its textile business. The phase out of multi-fibre agreement (MFA) has impacted a dynamic turn over in the market with tough competitions from other hubs. The players are having barriers to sustain and project as a potential hub. The paper tries to establish the contextual relationship among the various barrier points in the expansion of garment manufacturing SMEs in the global arena. Factors are modelled with the technique called interpretive structural modelling (ISM) by incorporating qualitative judgments from the views of Indian manufacturers, who are the suppliers to leading global brands. The aim of this paper is to categorise and analyse the dependence power as well as driving power of those barriers using MICMAC analysis and to give a different dimension to the post-MFA impact research on the Indian apparel SME domain.
    Full-text · Article · Jan 2015 · International Journal of Business and Globalisation
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    • "The majority of studies have reported upon data gathered in industrialised typically Western countries (Ahmad and Julian, 2006; Leonidou, 2004). It is unfortunate to note that not much is known about the international activities of these firms in developing countries. "
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    ABSTRACT: Purpose ‐ This study aims to identify some of the major barriers that may hinder potential small to medium-sized enterprise (SME) exporters and non-exporters from exporting their operations in the international market. Design/methodology/approach ‐ Based on the aim of this study, a questionnaire based survey method was conducted among 250 Jordanian manufacturing SMEs using random sampling with usable response rate of 54 per cent. Data were analysed using relevant statistical methods ranging from factor analysis to regression analysis. Findings ‐ The results show that economic/political-legal and governmental barriers, financial and information barriers have a significant negative relationship with the export performance of SMEs in Jordan. Also, the results show that exporters and non-exporters significantly agree in their views of the various barriers. Research limitations/implications ‐ The study was carried out on SMEs operating in Jordan. Hence, caution should be taken when generalisation across cultures is considered. However, the findings of the study provide public and company policy makers with valuable guidelines for the formulation of suitable export marketing strategies and national export assistance programs. Originality/value ‐ This is ascribed to the relatively small local market size and to the country's gradual shift from heavy reliance on import substitution strategies in the last two decades to contemporary export orientation. Also, there is now a need for an urgent action plan to correct the deficit in the trade balance in the Jordanian economy. This action plan needs to include what causes Jordanian SMEs to export or prevents them from doing so. Once the relative importance of these barriers is detected, their validity in predicting the probability of a SME firm being an exporter can be tested.
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