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Massey Univ~~s=ty Li')rary
New Zealar?d
& P~cifi: Colle~:+o1
TllE EXPOR1 INC HEHAVTOt:R OF MA:\l'FACTllRT ~(; FI R~lS
.:it Massl'y l'niv(:rsity
by
NCATRE MARGARET PATRICT A J\[)l)[S 1979
Massey University Library
New Zealand & Pacific Collection
J\f\STRJ\CT
Increasing emphasis has been placed on the need for m'1nufact:urcd exports to make a more important contribution to the New Zealand economy, due to declining demand for agricultural produce and a growing balance of trade deficit. The New Zealand government, over the past twenty ye.1rs, has introduced a variety of export incentives to encourage manufacturing
firms to export.
'l'hL' aim of this thesls is to exnminc whaL happt•ns to m;111uf.:icturing firms when they expand their operations to internntional mnrkcts. Tl1c adoption of the export function has implications for growth and survivril of
firms, especially for small firms which predominate in the New Zealand manufacturing sector.
Firms can be classified according to their different stngcs of
organisational grLiwth. Thresholds must be ovL•rcome if a firm is Lu dL'Vt:ltip
antl expand i Ls upL· r<i t ion spdcL'.
i
intern;1tioll:1l oriv11t.1tion :1ml lLlrL·ig;1 n.1rkL·t t'•l!11!~itrncnt in in< r<'ml·nt.ii sL:11-;L·,.;
ll i s c us s ion c L' n t res n n des c r i. b in g t h l' ·1 c tu :i J L' x p n r L i n L'. .1 (' t i v i t y o f
manufacturers at a macro level. This cli.scussinn Lhl•n pi-ovidcs ct platfurm for analysing the exporting hL·havi.our within the i11rli.viclua1 firms and finally leads to an examination of how exporting firms have contributed to the peripheral urban economies to which they belong.
ACKNOWLEDGEMENTS
I would like to express my gratitude to a number of people who have assisted me in the undertaking of this thesis.
Dr Richard Le Heron, who initially directed me towards this research area, has throughout the ycilr provided the necL'ssnry v.uid;incc and
motivation. I have sincerely appreciated his constructive criticisms <Jnd thoughtful encouragement. To him, I owe a spc·cial thrinks.
l \vuuld a]so J ikl• to thank Professor K. Thnmsun for his Lntl'rt'.;L nvL·r the duration of my studies at Massey.
Without the cooperation of the many company personnel who gave up valuable time to give interviews and complete questionnaires, such a work could not be undertaken. I appreciate their assistance.
My sincere thanks also go to Miss Patricia Driscole, my typist, whose competent typing and patience contributed much to the finril preparation of this thesis.
Finally, l wish to thank my parents, grandparents and fa~il y for their patience, Jove and understanding over the time r h~ve spent at University.
ii
TABLE OF CONTE TS
ABSTRACT
P CKNOWLEDGEM:ENTS TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES CHAPTER 1
MANUFACTURED EXPORTS IN NEW ZEAlA\ID Government Export Stimulation Programme An Overview of New Zealand Manufacturing Rese;:irch Focus
Definition of Terms
Organis<.Jtlon of Lhe ThcsLs Footnotes
CHAFTE!{ 2
BACKCROL'D TO THE RESEARCH
Exports in the Devulopmcnt Process Governmcnl in the D0vclnpn.l'nt Proc,•ss Firms Ln tlw lk·vl'lnpmvnt Process
The Exporting Behaviour of Man11facturi ng Firms Export Behaviour Models
FL)otnotes CHAPTER 3
RESEARCH DESIGN
Research Methodology Location of the Study The Basic Data Sources The Collection of Data
CHAPTER 4
Design of the Interview and Mail Questionnaire Limitations to the Analysis
Classification of the Data
THE EXPORTING BEHAVIOUR OF MANUFACTURING FIRMS Export Linkage Development
Entry and Exit, Survival and Growth Export Performance
Exporting Behaviour
Stages of Export Behavioural Development
PAC: l~
ii
i i i
v
vi
4 9 9 11 12 11
l "
J 4
I';
[ IJ
IS 22
•Jr:
_J
JO
JI
31 31 31 33 33 34 34 36
40 40 40 40 42 46 46
i i i
Reasons for Entry Into Exporting Goals of Exporting Firms
Reasons for not continuing exporting activity Difficulties of Exporting
Factors of Importance to Exporters
Competitive Advantage of Exporting Firms Comparison of the Technology
Form of Exporting Capital Assets
Difficulty of Market Access
~~rket and Product Expansion Strategies The Export Contribution of the Peripheral Urban Economies
CHAPTER 5
SUMMARY OF FINDINGS AND CONCLUSIONS
Rate and Nature of Export Linknge Development The Exporting Firm
A Case for the Small Exporting Firm Implications for Pol icy-Makers
AI'PENDICES
lHBLIOGRAP!!Y
iv
PAGE
49 49 53 53 53 55 55 58 58 n I
6 l fd
fi8
68 68 n8 69 70 7'.!.
80
TABLE
1. 1.
]. 2. _]. 3.
l. 4. 1. 5.
3. 1.
3. 2. 3.3. 4. 1.
4. 2. 4.3. 4. 4. 4. 5.
4. 6.
4. 7. 4.iL
4 . ') .
The Foreign Sector Exports
LIST OF TABLES
Manufactured Exports as a PcrcenU1ge of C.N.P.
Exports by Industry Group, 1973-1974 Major Export Incentives
Response Rate of the Surveyed Firms
Surveyed Area's Shares of National Totals, 1975-1976 Distribution of Exporting Firms by Industry Group, 1979 Summary of Trade Flows by Size of Firm (percentages) Growth of Exporting Firms, 1974-1978
Comparison of Export Performance, 1974-1978
The Organisational Structure of Exporting Firms, 1979 Stages of Export Behaviour, 1979
Years Engaged in Exporting Activity Reasons for Entry into Exporting
Reasons for Initiill Entry into Exporting in New Zc.•1L111d RL·searcli
4.10. The Difficulties of Exporting Rnnk0d by Size of Firm 4.11. Factors of Import;_ince to Exporters
4. 12. Advantages of the Exporting Firms
4. 13. Comparison of Technologies in Overseas nnd N.Z. Firms, 1974-1978
4. 14. Form of Exporting, 1979
4.15. Use of Export Agents
4.16. Firms Undertaking Building Expansions, 1974-1978 4.17. Firms Undertaking Machinery Expansions, 1974-1978 4. 18. Difficulty Encountered in New Zealand's Market Areas
L1. 19. Difficulty Encountered in the \..'orld Market Areas 4.20. Market Expansion Strategies
4.21. Timing of Market Expansions 4.22. Pr duct Expansion Strat gies 4.23. Timing of Product Expansions
4.24. Summary of the Origin and Destination of Trade Flows, 1974-1878 (percentages)
PAGE
2 3 5 6 8 35 37 38
4 l
43 45 47 48 48 50
)J
' '· '
C ' _) I
56
57
57 59 59 60 60 62 62 65 65 66
66
67
v
FIGURE 2. 1.
2. 2. J. 1.
LIST OF FIGURES
Organisational Growth, Export Behaviour Development and Spatial Interaction
Product-Market Strategies for Growth Exporling and Organisational Growth
PAGE
19
20 32
vi
