5.4. Internal factors on the export performance of SMEs
5.4.2. Distinctive Organisational Capabilities
Distinctive capabilities are one of the internal influences that affect the export performance of SMEs and are one of the market driven strategies that enhances a firm‟s performance. In this study there were seven statements that were used to measure this construct (organisational distinctive capabilities). For SMEs to perform better than competitors in the export market, it is envisaged that they possess manufacturing experience which is better and unique compared
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to rivals in the market. Thus, in this study the SMEs owner-managers were asked to ascertain the level of manufacturing experience they possess and this is depicted in Figure 5.10.
Figure 5.10: Core workforce manufacturing experience
Source: Compiled from Primary Data
Figure 5.10 illustrates that the majority (62.7%) of the participants „strongly disagreed‟ with the statement “Our core workforce has manufacturing and export experience.”
Distinctive capabilities mean that a firm has to have a more reliable workforce with distinctive experiences than its rivals. In this case the results demonstrate that the majority of SMEs lacks distinctive capabilities.
The SME owner-managers were also asked to determine the inimitability of their products in the export market as this is one of the characteristics of market-driven firms, and their responses are reflected in Table 5.9.
108 Table 5.9: Our products for exports are inimitable
Source: Compiled from Primary Data
Table 5.9 reflects that the majority (44.9%) of the participants „strongly disagreed‟ with the statement which stated that “Our products for exports are inimitable.” The results revealed that most of the products of SMEs can easily be copied and this generally reduces their distinctive advantages over competitors and perhaps leads to their failure in foreign markets.
Distinctive capability also implies that a firm has to possess rare and intellectually-based resources which enable it to compete favourably with other firms, and as such SME owner- managers were asked to ascertain whether they had these resources and their views are reflected in Figure 5.11.
Figure 5.11: Intellectually-based resources
Source: Compiled from Primary Data
Frequency Percent
Strongly disagree 149 44.9
Disagree 96 28.9
Neutral 13 3.9
Agree 61 18.4
Strongly agree 13 3.9
Total 332 100.0
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Figure 5.11 above illustrates the response to the statement “Our firm has rare and intellectually-based resources to enhance exports.” It became evident that the majority (53.6%) of the participants „strongly disagreed‟ with the statement, implying that the majority of the SMEs do not have unique resources to manufacture distinctive products for export.
Since the reputation of the product in the market also determines the distinctive capability of a firm and is perceived as one of the ingredients of the export performance of a firm, the views of the respondents in regard to the aforementioned are highlighted in Figure 5.12.
Figure 5.12: Reputation of products in the foreign markets
Source: Compiled from Primary Data
Figure 5.12 illustrates that the majority (49.1%) of the respondents „strongly disagreed‟ with the statement “Our firm exports reputable products.” The results revealed that the reputation of the majority of the products exported is poor and this has a negative implication on the success of a firm.
Having discovered the reputation of the product in the foreign market, there was also a need to find out the reputation of the firm in the market in which it conducts its business, and the response is summarised in Table 5.10.
110 Table 5.10: Reputation in the foreign markets
Source: Compiled from Primary Data
Table 5.10 indicates that the majority (53.9%) of the respondents „strongly disagree‟ with the statement “Our reputation in the foreign markets is good.” It is clear from the results that the reputation of the product and the reputation of the firm are both poor.
Distinctive capabilities also imply having a credible and experienced workforce that work towards a common goal. In this regard, the SME owner-managers were asked to determine whether they had a credible and experienced workforce to improve exports. Their responses are given in Figure 5.13.
Figure 5.13: Credible and experienced workforce
Source: Compiled from Primary Data
Figure 5.13 illustrates the response to the statement “We have a credible and experienced workforce to execute our exports.” The majority (50.9%) of the participants strongly
Frequency Percent
Strongly disagree 179 53.9
Disagree 73 22.0
Neutral 12 3.6
Agree 44 13.3
Strongly agree 24 7.2
Total 332 100.0
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disagreed with the statement, which implies that the majority of SMEs do not employ experienced people who have relevant distinctive competencies to do the work.
Furthermore, distinctive capabilities also revolve around having unique and adequate marketing resources that enables a firm to undertake creative marketing to entice customers and as such SMEs owner-managers were asked to determine this ability. Table 5.11 captures the responses that were highlighted.
Table 5.11: Marketing resources to successfully undertake exporting activities
Source: Compiled from Primary Data
Table 5.11 reflects the response to the statement “We have marketing resources to successfully undertake exporting activities.” The majority of the participants strongly disagreed with the statement representing (46.4%) of the respondents. The results indicate that the majority of the participants do not have marketing resources to successfully undertake marketing activities and as such, the ability to influence customers towards liking their products is subdued and this is seen as contributing to the export performance of SMEs.