Transcript www.ijobm.com

THE DETERMINANTS OF FIRM EXPORT
PERFORMANCE IN EXPORTING TO EMERGING
MARKET:
EVIDENCE FROM PETROCHEMICAL INDUSTRY
Academic Supervisor: Prof. Dr. Abu Bakar Bin Abdul Hamid
Dr. Melati Binti Ahmad Anuar
PhD Student: Frashid Movaghar Moghaddam
19. 1.2012
PERESENTATION
OUTLINE
RESEARCH ROADMAP
Research Roadmap
Introduction
Review of Literatures
Research Methodology
Findings (Objectives)
Contribution and Managerial
Implication
INSPIRING CREATIVE AND INNOVATIVE MINDS
RESEARCH
ROAD MAP
RESEARCH ROADMAP
CONTRIBUTIONS
Conceptual Framework
Determinants of Export Performance
Background
Area of Concern
PhD Research
Review of
Literature
Methodology
Quantitative
FINDINGS
Sub elements
of Internal and External variables
Process of evaluating determinate of
export performance
Firms from developing country
in Asia
Petrochemical company in Iran
Information about
emerging market
INSPIRING CREATIVE AND INNOVATIVE MINDS
INTRODUCTION
Vital role of exporting in the world and countless benefits of
export for firms and countries cause the increasing attention to
the determinants of export performance.
Petrochemical industry is the main non-oil export product with
38.6% of all non-oil exporting. Exports of petrochemical
products value, selling worth value and added value showed 30%,
28% and 40% of growth in (2005 – 2009)
5
INTRODUCTION
INSPIRING CREATIVE AND INNOVATIVE MINDS
6
INTRODUCTION
Emerging
market
The main non-oil
products export to
China are petrochemical
products
China scored the third main partner
of Iranian Goods
The largest and most important emerging
economies are Brazil, Russia, India and China
(BRIC), and the most famous economic giant
among these countries is China.
EMs are growing markets with rapid economic development that are
being transformed from a pre-market stage to the mature Western
economy. Ems offer considerable opportunities for the consumption
of the countries
goods and
servicesAND
(Enderwick,
2007; Kvint,
2009)
INSPIRING
CREATIVE
INNOVATIVE
MINDS
7
INTRODUCTION
The percentage of
petrochemical
products export to
China increases
every year.
INSPIRING CREATIVE AND INNOVATIVE MINDS
8
PROBLEM STATEMENT
The main problems of the this study is the recognition of effective determinants of
export performance, fragmentary or conflicting knowledge about determinants of
export performance, and creation of comprehensive integrated model, (Nazar and Saleem,
2009; Gertner et al., 2006; Ogunmokun and Ng, 2004; Ahmed et al., 2004; Julian and O’Cass, 2003; Julian and O’Cass, 2002a; Baldauf et
al., 2000; Thirkell and Dau, 1998; Diamantopolous, 1999; Zou and Stan, 1998).
Researchers give less attention to external factors. The existing literatures are
insufficient insights for recognizing external determinates
Sousa et al., 2008).
(Zou and Stan, 1998; Baldauf et al., 2000
Although, domestic market characteristics is neglect in the previous
studies (Sousa et al., 2008; Zou and Stan, 1998).
INSPIRING CREATIVE AND INNOVATIVE MINDS
9
PROBLEM STATEMENT
There is a conflicting knowledge about Internal Factors.
Scholars have different opinion about the positive or negative effects of firm
characteristics .
The is not agreement among researchers about what constitutes a managerial
factor (Brodrechtova, 2008; Salavou and Halikias , 2008; Lee and Griffith, 2004; ; Thirkell and Dau, 1998; Cavusgil and
Zou, 1994; Rocha and Christensen, 1994).
Although, many researcher considered marketing strategy is one of major
elements of export performance (Tooksoon and Mohamad, 2008) the variety of performance
measurement led to the opposing findings about export marketing strategy,
(Aaby and Slater, 1989; Baldauf et al., 2000; Leonidou et al., 2002; Lee and Griffith, 2004). In addition, the lack
of detailed analysis on dimensions of export marketing strategy is a popular
problem inherent in the previous studies (Leonidou, et al., 2002).
INSPIRING CREATIVE AND INNOVATIVE MINDS
10
PROBLEM STATEMENT
The differences among developed and developing economies and unique
conditions in developing countries led to the previous researches are not
appropriate for firms in developing country (Mohamad, 2009; Calantone et al., 2006; Souse
et al, 2008; Souse 2004; Lee and Griffith 2004; Theodosiou and Leonnidou, 2003; Julian and O’Cass, 2002a; Baldauf
et.al, 2000; Aulakh et al., 2000; Aulakh et al., 2000; Katsikeas, 1996; Dominguez and Brenes, 1997).
Previous researchers had some problem in their methods.
First, previous researchers used a firm (total product to total export market) or
export venture (one product or a product line to a specific market) that have
posed some problems, but recent researchers should analyzed the firm’s main
export venture (MEV) (Sousa al, 2008; Mavrogiannis et al., 2008 ; lages and Montgomery, 2004; lages and
lages, 2004; Sousa, 2004; Morgan et al., 2004 ; Morgan, 2000 Cavusgil and Zou, 1994; Zou and Stan, 1998)
INSPIRING CREATIVE AND INNOVATIVE MINDS
11
PROBLEM STATEMENT
Second, there are a limited number of studies that uses single and relatedindustry that led to better understanding on the relationship of export
marketing strategy and export performance
(Abdul Adis and Md. Sidin, 2010; Sousa et al., 2008;
Meyer, et al. 2009; Wu, and Pangarkar, 2006; Wong, 2007; Contractor et al., 2005; Sosa 2004; Zou and Stan 1998)
Third, previous researchers used limited informants or respondents.
However, multiple informants will improve assessment of export performance
(Sousa et al., 2008; Sousa, 2004).
INSPIRING CREATIVE AND INNOVATIVE MINDS
12
PROBLEM STATEMENT
China as emerging market being one of the important target markets for
Iranian petrochemical firms but, they do not have sufficient information
about determinants of export performance in China market (Enderwick, 2009; Navarro
et al., 2009; Koksal, 2008; Vakhshri, 2006; London and Hart, 2004; Lages, 2003; Julian and O’Cass, 2003;
Julian and O’Cass, 2002a)
Although, Iranian petrochemical companies have a lot of competitive advantages in
the China market, and China needs more petrochemical products, export performance
of Iranian petrochemical companies is not satisfactory.
(Iran oil ministry, 2009; Central Bank of
Iran, 2009; Fizebakhsh, 2002; Vakhshri, 2006)
INSPIRING CREATIVE AND INNOVATIVE MINDS
13
OBJECTIVES
OBJECTIVE,RESEARCH
HYPOTESIS,
QUESTIONS
RESEARCH OBJECTIVE
1
To determine the influence of
export marketing strategy elements
on export performance of Iranian
petrochemical firms in China market
RESEARCH HYPOTESIS &
QUESTIONS
Ha, Ha1, Ha2,Ha3, Ha4
Qb, Qb1, Qb2,Qc
2
3
To recognize which external factors
and internal factors associated with
export performance of Iranian
petrochemical firms in exporting to
China market
To analyze critically the key success
factors and improvement for Iranian
petrochemical firm’s export
performance in China market
Hb1.1, Hb1.2, Hb1.3, Hb1.4
Hb2.1,Hb2.2, Hb2.3, Hb2.4
Hc1.
Hc1.1, Hc1.2, Hc1.3, Hc1.4, Hc1.5, Hc1.6,
Hc1.7, Hc1.8, Hc1.9, Hc1.10
Hd
Hd.1, Hd.1.1,Hd.1.2,Hd.1.3,Hd.1.4, Hd.1.5
Hd2,Hd2.1,Hd2.2,Hd2.3,Hd2.4, Hd2.5
The results of Questions and
Hypothesis
INSPIRING CREATIVE AND INNOVATIVE MINDS
14
Scope of Study
 The scope of this research revolves around exploring the export
performance of Iranian petrochemical industry to the China as emerging
markets
Sufficient
Experience
in China
Market
Sufficient
amount of
Export
Export to China
Directly
INSPIRING CREATIVE AND INNOVATIVE MINDS
15
REVIEWOF
OFLITERATURES
LITERATURE
REVIEW
Export Performance: The range that company obtain its objective when export to
international market
Measurement of Export Performance
categorized into:
Determinants of Export
Performance:
1- Objectively measurement (with
1- Export marketing strategy elements
financial measures)
2- Internal factors
2- Subjectively measurement (with
3- External factors
financial and non-financial measures)
(Mohamad et al., 2009; Sousa et al., 2008; Mavrogiannis
et al., 2008; Morgan et al., 2004; Sousa, 2004
Shamsuddoha, 2004; Cicic et al., 2002).
(Zarin Negar and Vazife Dost, 2009; Mavrogiannis, et al. 2008;
Calantone et al., 2006; Haahti et.al, 2005; Shamsuddoha, 2004;
Lages and Montgomery, 2004; O’Cass and Julian, 2003; Cicic
et al., 2002; Leonidou et al, 2002; Baldauf et.al, 2000;
Cavusgil and Zou, 1994)
REVIEW OF LITERATURES
Export marketing strategy
Export marketing strategy played as central role in export performance and have direct
impact on export performance
(Mohamad et al., 2009; Salavou and Halikias (2008; Mavrogiannis, et al. 2008; Lages,
2003; Julian and O’Cass, 2003; Leoniduo et al., 2002)
Export Marketing Strategy Elements
1
Product marketing strategy
Mavrogiannis, et al., (2008); Leonidou, et al.,
(2002); Thirkell and Dau, (1998) and ………
2
Place marketing strategy
Eusebio, et al. (2007); Lages et al., (2004); Ambler,
(2000) and Ogunmokun, (2001) and …..
3
Promotion marketing strategy
Abdul-Adis, (2010); Eusebio, et al. (2007);
Leonidou, et al., (2002); Lee and Griffith (2004) and
….
4
Price marketing strategy
Langes and Montgomery, (2005); Lee and Griffith
(2004); Zou et al., (2003) and ….
17
REVIEW OF LITERATURES
Attitudinal
Characteristics
Skill - based
Characteristics
Internal variables
Management
Characteristics
Export Commitment and Support
Management International Orientation
Customer Orientation
Perception toward Competitiveness
Perception towards Export Advantages and Barriers
Export Experience
language Proficiency
Education level of Manager
Firm Size, Firm Age, Firm International Experience
Firm
Characteristics
Connectedness or Conflict in Firm, Export Market Orientation,
Firm Information about Market, Competitors, and Customers Firm
Technology level
Firm Relationship Commitment, Bureaucracy in Firm
INSPIRING CREATIVE AND INNOVATIVE MINDS
18
REVIEW OF LITERATURES
Export Market Attractiveness
Export Market Competitiveness
Export Market
External variables
Export Market Barrier
Characteristics
Cultural Differences or Similarity
Domestic Market Attractiveness
Domestic Market
Characteristics
Export Assistance
Domestic Export Barriers
Domestic Market Political Aspect
Attraction Foreign Direct Investment (FDI)
INSPIRING CREATIVE AND INNOVATIVE MINDS
19
CONCEPTUAL FRAMEWORK
RESEARCH METHODOLOGY
DETAILS OF
RESEARCH
Multiple
informants
Type of
Research
within
each
Investigation
methods
company will
Quantitative
Correlation
improve
(Sousa et al., 2008; Zou
Simple Linear
assessment
on
and Stan, 1998).
Regression
Survey
export
performance
(Sousa,
Unit 2004).
of Analysis
Individual (Manager
and Non-Manager of
petrochemical firms
that export to China
sufficiently and directly
MEASUREMENT
DATA
ANALYSIS
Researcher
Interference
Research Type
Measurement
Descriptive
Minimal
Applied
5 point likert
scale
Statistic,
Correlation,
Simple Linear
Time Horizon
Cross-Sectional
Sampling Design
Probability Sampling,
Simple Random Sampling
Regression
Data Collection
Questionnaire
Sousa et al., (2008)
Zou and Stan, (1998)
96%
86%
Questionnaire
Response Rate
Sampling Size
Reliability: Cronbach alpha
Respondent rate: 80.6 %
Morgan formula
Validity: Face and Content
Usable Return rate: 77.5%
N
=
98,
S=
78
INSPIRING CREATIVE AND INNOVATIVE MINDS
Goodness of Measurements
DATA ANALYSIS (Reliability)
Main Variable
Export Marketing
Strategy
External Factors
Internal factors
Firm Export Performance
Total Cronbach's Alpha
Sub -Variables
Price marketing strategy
α = 0.740
Product marketing strategy
α = 0.761
Promotion marketing strategy
α = 0.821
Place marketing strategy
α = 0.723
Export market characteristics
α = 0.816
Domestic market characteristics
α = 0.815
Firm characteristics
α = 0.720
Management skill-based
α = 0.780
Management perception
α = 0.710
α = 0.895
α = 0.762
α = 0.797
α = 0.942
DATA ANALYSIS (Normality)
Variables
Kolmogorov-Smirnov Test
Skewness and Kurtosis Test
Export Marketing
Strategy
Sig.=0.077
Skewness =.449
Kurtosis= -.530
External Factors
Sig.=0.200
Skewness =-.877
Kurtosis= 2.205
Sig.=0.200
Skewness =.108
Kurtosis= -.150
Skewness =.064
Kurtosis= -.630
Internal Factors
Firm Export Performance
Sig.=0.200
KEY FINDING (OBJECTIVE 1)
The Correlation analysis revealed a moderate positive
correlation between product marketing strategy and
performance r = 0.475, (P-value< 0.05).
Thus, higher level of product marketing strategy
associated with higher levels of firm export
performance.
Concerning adjusted R square is
adj.R2= 0.215 with Sig = 0.000. the
product marketing strategy
explains 21.5 percent of variance
in firm export performance.
As a result, there is support for
Ha1
KEY FINDING (OBJECTIVE 1)
The results show a slightly positive significant
correlation coefficient r = 0.365, (P-value < 0.05)
between price marketing strategy and firm export
performance.
Concerning Adjusted R square is
adj.R2 =0.121 with Sig = 0.001. As
a result, the price marketing
strategy explains 12.1% percent
of variance in firm export
performance.
As a result, there is support for
Ha2
KEY FINDING (OBJECTIVE 1)
The Correlation analysis revealed a moderate positive
correlation between promotion marketing strategy
and export performance r = 0.444, (P-value < 0.05).
Thus, higher level of promotion marketing strategy
associated with higher levels of firm export
performance.
Concerning Adjusted R square is
adj.R2= 0.186 with Sig = 0.000.
the18.6% percent of the variance in
FEP can be explained by the variance
in promotion marketing strategy.
As a result, there is support for
Hypothesis Ha3
KEY FINDING (OBJECTIVE 1)
Correlation analysis revealed a moderate positive
correlation between place marketing strategy
and firm export performance r = 0.404, (P-value <
0.05).
Concerning adjusted R square is
adj.R2 =0.152 with Sig = 0.000. As
a result, the place marketing
strategy describes 15.2% percent
of variance in firm export
performance
As a result, there is support for
Hypothesis Ha4
KEY FINDING (OBJECTIVE 1)
The correlation between export marketing
strategy and firm export performance was, r
=0.535, (P-value< 0.05). Therefore, there is
moderate and positive correlation between two
variables.
Concerning The Adjusted R square is
adj.R2= 0.245 with (P- value= 0.000).
The 24.5% percent of the variance in
firm export performance can be
explained by the variance in export
marketing strategy.
As a result, there is support for
Hypothesis Ha
KEY FINDING (OBJECTIVE 2)
Correlation analysis revealed a strong positive correlation
between export market attractiveness and performance
r = 0.589, (P< 0.01).
Concerning the adjusted R square is adj.R2=
0.338 with Sig = 0.000. the 33.8% percent of
the variance in firm export performance can be
explained by the variance in export market
attractiveness.
As a result, there is support for Hb1.
KEY FINDING (OBJECTIVE 2)
The correlation of cultural difference and firm export
performance was, r = 0.035, p > 0.01.Thus, there was no
correlation between two variables
H1.2 cannot
support.
KEY FINDING (OBJECTIVE 2)
Correlation analysis revealed a moderate or medium
positive correlation between the export market
competitiveness and performance r = 0.416, (P < 0.01).
The adjusted R square is adj.R2= .173 with
Sig = 0.000. As a result, about 17.3%
percent of the variance in firm export
performance can be explained by the
variance in the export market
competitiveness.
As a result Hb1.3 is confirmed
KEY FINDING (OBJECTIVE 2)
Correlation analysis show a slightly negative significant
correlation coefficient r = - 0.384, (P < 0.05) between the
export market barrier and firm export performance.
Concerning Adjusted R square is adj.R2 =
0.148, with Sig = 0.014 the 14.8 % percent
of the variance in firm export performance
can be explained by the variance in export
market barrier.
As a result, there is support for hypothesis
Hb1.4
KEY FINDING (OBJECTIVE 2)
The results show a slightly negative significant
correlation coefficient r = -0.247, (P < 0.05) between
domestic market attractiveness and firm export
performance.
Concerning the adjusted R square is adj.R2
= 0.048 with Sig = 0.036 the 4.8% percent
of the variance in firm export performance
can be explained by the variance in
domestic market attractiveness.
As a result, there is support for Hb 2.1
KEY FINDING (OBJECTIVE 2)
There was no correlation between attraction foreign
direct investment (FDI) and firm export performance due
to r = 0.114, (P-value > 0.05).
Hypothesis Hb 2.2
cannot support.
KEY FINDING (OBJECTIVE 2)
The results show a slightly negative significant correlation
coefficient r = -0.284, (P < 0.05) between the domestic
export barrier and firm export performance.
Concerning the Adjusted R square is adj.R2 = 0.091, with
Sig = 0.019 about 9 % percent of the variance in firm
export performance can be explained by the variance in
domestic export barrier.
As a result, there is support for hypothesis Hb 2.1
KEY FINDING (OBJECTIVE 2)
There is no correlation between export assistance in Iran
and firm export performance because r = 0.222, (P-value >
0.05).
Hypothesis Hb 2.4 is
rejected.
KEY FINDING (OBJECTIVE 2)
There was no correlation between bureaucracy
in firm and firm export performance because r = 0.096 and (p-value > 0.05).
Hc1.1cannot confirms.
KEY FINDING (OBJECTIVE 2)
There is no correlation between firm relationship
commitment and firm export performance,
because r = 0.190, P-value > 0.05
Hc1.2. cannot
confirm.
KEY FINDING (OBJECTIVE 2)
Correlation analysis show weak positive
correlation between firm technology level and
firm export performance r = 0.284, (P-value < 0.05).
The adjusted R square is adj.R2=0.068 with Sig=
0.013. As a result, 6.8% of firm export performance
is weakly related to firm technology level.
Thus, Hc1.3 is confirmed.
KEY FINDING (OBJECTIVE 2)
The finding describes weak positive
correlation between firm information level
and firm export performance r = 0.268, (Pvalue < 0.05).
The adjusted R square is adj.R2=0.059 with p-value
< 0.05. As a result, 5.9 % of variance in firm export
performance can be explained by variance in firm
technology level.
Thus, Hc1.4 seems to be confirmed
KEY FINDING (OBJECTIVE 2)
There was no correlation between
connectedness in firm and firm
export performance
Hc1.5.
cannot
support
KEY FINDING (OBJECTIVE 2)
The correlation of conflict in firm
and firm export performance was, r =
- 0.097, (p > 0.01). There was no
correlation between two variables.
Hc1.6 cannot support
KEY FINDING (OBJECTIVE 2)
The correlation between firm
international experience and firm
export performance was, r = 0.277, (Pvalue < 0.05). Therefore, there is weak
correlation between two variables. .
The adjusted R square is adj.R2=0.064 with
Sig=0.016. As a result, 6.4 % of variance in
firm export performance is related to firm
international experience.
thus, Hc1.7. was supported
KEY FINDING (OBJECTIVE 2)
The correlation of firm age and firm
export performance was, r = 0.125, (p >
0.05). The relationship was positive
however; there was no correlation
between two variables.
Hc1.8
cannot support
KEY FINDING (OBJECTIVE 2)
The correlation of firm size and firm
export performance was, r = 0.011, (p >
0.05).Thus, there was no correlation
between two variables.
Hc1.9
cannot
support
KEY FINDING (OBJECTIVE 2)
The results Show a slightly positive
significant correlation coefficient r =
0.371, (P-value < 0.05) between firm
export market orientation and firm
export performance.
The adjusted R square is adj.R2= =0.126 with
Sig = 0.001. As a result, firm export market
orientation describes 12.6% percent of
variance in firm export performance.
thus, Hc1.10 was supported.
KEY FINDING (OBJECTIVE 2)
Correlation analysis revealed a moderate
and positive correlation between firm
characteristics and firm export performance
was, r = 0.346, (P-value < 0.05).
The adjusted R square is adj.R2= 0.108 with
Sig= 0.002. As a result, 10.8 % of variance in
firm export performance is related to variance
in firm characteristics.
As a result, there is support for hypothesis
Hc1.
KEY FINDING (OBJECTIVE 2)
The correlation between management export
commitment and support and firm export
performance was, r = 0.237, (P-value< 0.05).
Therefore, there is weak and positive
correlation between two variables.
The adjusted R square is adj.R2= =0.043 with Sig =
0.040. As a result, of the management export
commitment and support describe 4.3 % percent of
variance in firm export performance.
Thus, Hd.1.1 is confirmed.
KEY FINDING (OBJECTIVE 2)
The results Show a slightly positive
significant correlation coefficient r = 0.331,
(P-value < 0.05) between manager
perception towards export opportunities
and threat and firm export performance
The adjusted R square is adj.R2= 0.110 with Sig
=0.040. As a result, 11% of variance in firm export
performance can be explained by the variance in
manager perception towards export opportunities
and threat.
Thus, Hd1.2. is confirmed
KEY FINDING (OBJECTIVE 2)
The correlation between management
international orientation and firm export
performance was, r = 0.260, (P-value< 0.05).
Therefore, there is weak and positive
correlation between two variables.
The adjusted R square is adj.R2= 0.055 with Sig=
0.023. As a result, the management international
orientation explains 5.5% percent of variance in
firm export performance.
Thus, Hd.1.3 is confirmed
KEY FINDING (OBJECTIVE 2)
The correlation of management customer
orientation and firm export performance
was, r = 0.074, (p > 0.05).Thus, there was no
correlation between two variables.
Hd.1.4 cannot
confirm.
KEY FINDING (OBJECTIVE 2)
The correlation of management perception
toward competitiveness and firm export
performance was, r = 0.134, (p > 0.05). Thus,
there was no correlation between two
variables.
Hd1.5 cannot confirm.
KEY FINDING (OBJECTIVE 2)
The finding show there is moderate and
positive correlation between attitudinal
characteristics of managers and firm export
performance due to the correlation between
these two variables were r = 0.436, (P-value<
0.0
The adjusted R square is adj.R2= 0.130 with Sig =
0.002. As a result, the attitudinal characteristics of
managers explain 13% percent of variance in
firm export performance.
Thus, Hd.1. is confirmed.
KEY FINDING (OBJECTIVE 2)
The correlation of total export
experience to overseas and firm
export performance was, r = 0.218,
(p > 0.05).Thus, there was no
correlation between two
variables.
Hd2.1 cannot
confirm
KEY FINDING (OBJECTIVE 2)
The correlation between total export
experience to China and firm export
performance was, r = 0.314, (P-value < 0.05).
Therefore, there is weak and positive
correlation between two variables.
The adjusted R square is adj.R2= 0.168 with Sig
= 0.005. As a result, the total export experiences
to China explain 16.8% percent of variance in
firm export performance
results seem to confirm Hd2.2.
KEY FINDING (OBJECTIVE 2)
The correlation between managers experience in
overseas (management international
experience) and firm export performance was, r
= 0.375, (P-value< 0.05). Thus, there is weak
and positive correlation between two
variables.
The adjusted R square is adj.R2= 0.128 with Sig
= 0.001. As a result, the managers experience in
overseas explain 12.8% percent of variance in
firm export performance.
As a result, there is support for hypothesis
Hd2.3
KEY FINDING (OBJECTIVE 2)
The correlation of foreign language
proficiency of manager and firm export
performance was, r = 0.188, (p > 0.05). Thus,
there was no correlation between two variables.
Hypothesis Hd2.4 cannot confirm
KEY FINDING (OBJECTIVE 2)
The correlation between education level of
managers and firm export performance was, r =
0.359, (P-value< 0.05). Hence, there is weak
and positive correlation between two variables.
The adjusted R square is adj.R2= 0.106 with Sig = 0.023.
As a result, the manager education level explains 10.6%
percent of variance in firm export performance.
Results seem to confirm Hd 2.5.
KEY FINDING (OBJECTIVE 2)
The correlation between manager skill-based
characteristics and firm export performance was,
r = 0.470, (P-value< 0.05). Hence, there is
moderate and positive correlation between
two variables.
The adjusted R square is adj.R2= 0.201 with Sig = 0.002.
As a result, the skill-based characteristics explain 20.1%
percent of variance in firm export performance. As a
result, there is support for hypothesis Hc.2
KEY FINDING (OBJECTIVE 2)
The results show a slightly positive significant
correlation coefficient r = 0.349, (P-value< 0.05)
between manager characteristics and firm
export performance.
The adjusted R square is R2= 0.177 with Sig = 0.002. As a
result, about 17.7 percent of the variance in firm export
performance can be explained by the variance in manager
characteristics. As a result, there is support for hypothesis Hd
Key success factors (objective 3)
Export Marketing Strategy
Elements
1-price-marketing strategy
2-promotion-marketing strategy
3-product marketing strategy
4-place marketing strategy
Firm Characteristics
1- Higher level of technology
2- Information of company
3- International experience
4-Firm’s export market
orientation
Management Characteristics
Key
Success
Factors
1- Export commitment and support
2-Perception towards export
opportunities and threat
3-International orientation
4- Experiences
5- Education level
External Variables
1- Export market atractiveness
2- Export market competitive
INSPIRING CREATIVE AND INNOVATIVE MINDS
61
Finalized Framework
INSPIRING CREATIVE AND INNOVATIVE MINDS
62
CONTRIBUTION : Major Findings
1
Current study contributes to recognition of effective determinants and
facilitates comparing the determinants of export performance. In addition,
new variable were examined by the conceptual framework to make
agreement on the parameters of a stable framework for researching the
export performance phenomenon
INSPIRING CREATIVE AND INNOVATIVE MINDS
63
CONTRIBUTION : Major Findings
1
Current study contributes to recognition of effective determinants of export
performance and facilitates comparing and recognizing the determinants of
export performance. In addition, new variable were examined by the
conceptual framework to make coherence and agreement among researchers
on the parameters of a stable framework for researching the export
performance phenomenon
This study evaluating external variables widely. Later, export market
characteristics and domestic market characteristics are reported and tested to
supply adequate insights for recognizing external determinates.
INSPIRING CREATIVE AND INNOVATIVE MINDS
2
64
CONTRIBUTION : Major Findings
1
Current study contributes to Recognition of effective determinants of export
performance and facilitates comparing and recognizing the determinants of
export performance. In addition, new variable were examined by the
conceptual framework to make coherence and agreement among researchers
on the parameters of a stable framework for researching the export
performance phenomenon
Evaluating external variables widely. Later, export market characteristics and
domestic market characteristics are reported and tested to supply adequate insights
for recognizing external determinates.
3
2
Understanding of internal variables and many sub variables of internal determinants
INSPIRING CREATIVE AND INNOVATIVE MINDS
65
CONTRIBUTION : Major Findings
1
Current study contributes to recognition of effective determinants of export
performance and facilitates comparing and recognizing the determinants of
export performance. In addition, new variable were examined by the
conceptual framework to make coherence and agreement among researchers
on the parameters of a stable framework for researching the export
performance phenomenon
This study Evaluating external variables widely. Later, export market
characteristics and domestic market characteristics are reported and tested to
supply adequate insights for recognizing external determinates.
3
2
Understanding of internal variables and many sub variables of internal determinants
Current study contributes to evaluating export performance and determinate
of export performance. Firstly, this research analyzed the firm’s main export
venture (MEV). Secondly, this study focus on single and related- industry that
allow scholars to control the industry-specific influence. Third, this study due to
respondent have different views, applied multiple informants.
INSPIRING CREATIVE AND INNOVATIVE MINDS
4
66
CONTRIBUTION : Major Findings
5
This research enhances the understanding of marketing issues, determinants
of export performance and evidence of exporters within the developing
countries in Asia to evaluate whether our current knowledge can be generalized
to developing countries.
INSPIRING CREATIVE AND INNOVATIVE MINDS
67
CONTRIBUTION : Major Findings
5
This research enhances the understanding of marketing issues, determinants of
export performance and evidence of exporters within the developing countries in
Asia to evaluate whether our current knowledge can be generalized to developing
countries.
This study has been conducted for the first time in Iran petrochemical
industry to recognized the effective components of firm export performance.
INSPIRING CREATIVE AND INNOVATIVE MINDS
6
68
CONTRIBUTION : Major Findings
5
This research enhances the understanding of marketing issues, determinants of
export performance and evidence of exporters within the developing countries in
Asia to evaluate whether our current knowledge can be generalized to developing
countries.
This study has been conducted for the first time in Iran petrochemical industry to
recognized the effective components of firm export performance.
7
6
Extending information about emerging market especially China market and
sufficient information about determinants of export performance in
exporting to emerging market.
INSPIRING CREATIVE AND INNOVATIVE MINDS
69
Managerial Implications
1
The overall results of this research is the understanding into how
managers can enhance its business performance in international market
through the more attention to the determinants and critical success
factor of export performance especially in petrochemical companies
INSPIRING CREATIVE AND INNOVATIVE MINDS
70
Managerial Implications
1
The overall results of this research is the understanding how Iranian
companies can enhance its business performance in international market
through more attention to the determinants and critical success factor of
export performance especially in petrochemical companies
2
The managers need to give considerable attention to the ability of using
successful export marketing strategy due to it is critical and vital for a
company’s export performance in China market.
INSPIRING CREATIVE AND INNOVATIVE MINDS
71
Managerial Implications
1
The overall results of this research is the understanding into how Iranian
companies can enhance its business performance in international market
through the more attention to the determinants and critical success factor of
export performance especially in petrochemical companies
2
The managers need to give considerable attention to ability of using
successful export marketing strategy due to it is critical and vital for a
company’s export performance in China market.
The study show that top managers have to understand the importance of
firm characteristics variables to improve FEP. They are consist of higher
level of firm technology, adequate information of company, international
experience, and firm’s export market orientation.
INSPIRING CREATIVE AND INNOVATIVE MINDS
3
72
Managerial Implications
4
Companies should hire the managers with better skilled-based and
attitudinal characteristics due to managers are the major force behind the
beginning development, sustenance, and prosperity in exporting. They are
consist of manager export commitment and support, manager perception
towards export opportunities and threat, manager international
orientation, the manager experiences, education level of managers.
INSPIRING CREATIVE AND INNOVATIVE MINDS
73
Managerial Implications
4
5
Companies should hire managers with better skilled-based qualification and
attitudinal characteristics due to managers are the major force behind the
initial development, sustenance, and prosperity in exporting. They consist
of manager export commitment and support, manager perception towards
export opportunities and threat, manager international orientation, the
manager experiences and education level of managers.
The external variables must be perceived by Iranian managers carefully
due to they cannot be controlled. The external variable consist of export
market attractiveness, export market competitive, export market barrier,
domestic market barrier, domestic market attractiveness, lack of export
assistance in domestic and low level of FDI.
INSPIRING CREATIVE AND INNOVATIVE MINDS
74
Managerial Implications
6
The managers should attention the business conditions and effective
variables in exporting to emerging markets. This study prepare good
information about exporting to China markets.
INSPIRING CREATIVE AND INNOVATIVE MINDS
75
LIST OF PUBLICATIONS
Articles publications
1- Management Influence on Firm Export Performance: A Review of Empirical literature 19892009. Movaghar Moghaddam, Farshid, Prof. Dr. Abu Bakar Bin Abdul Hamid, African Journal of
Business management, (2012). Index
in ISI Journal list
2- The influence of export Marketing Strategy Determinants on Firm Export perfromance: A
Review of Empirical literature 1993-2010, International Journal of Fundamental Psychology &
Social Sciences.(2011)
Conference Publications
1- The Export Marketing Strategy Influence on Export Performance: A Review of Empirical
literature 1993-2010, (2011), Global Strategic Management conference (GSMC), Dearborn,
Detroit Metro, Michigan, USA.
2- Management attitudinal characteristics influence on firm export performance: A review of the
Empirical Literature 1989-2009. (2011). Advances in Business-Related Scientific Research
Conference (ABSRC), Italy(accepted only)
3- Determinants of market share for sheets producers firms, (2011), International Conference on
Human Resource Development (ICHRD 2011), Malaysia.
4- Management Skill-based Characteristics Influence on Firm Export Performance, (2012), AsiaPacific Business Research, Malaysia.
76
INSPIRING CREATIVE AND INNOVATIVE MINDS
THE DETERMINANTS OF FIRM