60
organisation (SMEs) was taken into account. Therefore in this context, the empirical validation of this theoretical template utilised a firm‟s factors such export market characteristics, industry characteristics and export market charateristics as proxies for contingent factors (external factors). Since several studies (Pride & Ferrel, 2010; Auboin &
Ruta, 2011:3; Khattab et al., 2012; Sorokina, 2012; Jalali, 2012; Ricci & Trionfetti, 2012:552; Hashem & Irshaidat, 2014:104; Xie & Suh, 2014:210) advocate that export market characteristics, industry characteristics and export market characteristics have an effect on the export performance of a firm, the CT was used to develop H5, H6 andH7.
61
Morgans (2005) highlight that marketing strategies become effective if they are aligned with existing company resources, and the firm becomes more competitive. A study conducted in Malaysia on the impact of distinctive capabilities on the performance of SMEs confirmed that there is significant correlation between distinctive capabilities and the performance of SMEs (Man & Wafa n.d:559). However, a similar study done by Man (2009:205) revealed that
“there is no significant relationship between distinctive capabilities and the export performance of SMEs.”
It is apparent from the above that the impact of distinctive capabilities on the export performance of SMEs has received mixed views. Thus, in terms of the objective of this study this relationship was further explored in a developing country context by hypothesising follows:
H2 There is a significant positive relationship between distinctive capabilities and the export performance of SMEs.
Allahham (2013:2) asserts that “customer value is the overall assessment of the utility of the product taking into consideration what is received, in comparison with what is given.”
Customer value is a crucial factor in maintaining customer relationships and purchase intentions (Zhuang et al., 2010). Smith and Colgate (2007) argue that customer value is positively related to a firm‟s performance, and that firms that perform better if they take into consideration customer focus initiatives, namely; the provision of a product that fulfils the desired needs of the customers, the ability to create a product that generate long lasting impressions on the customer, the ability to manufacture a product that enables customers to attach a psychological meaning after consumption and to provide a product that must be commensurate with the value offered by the product (cost/price relationship). To explore this relationship further and in the context of manufacturing SMEs in Zimbabwe, it was hypothesised that:
H3 There is a significant positive relationship between customer value and the export performance of SMEs.
Some researches have shown that cross-functional cooperation is positively related to a firm‟s performance (Pylväs, 2012; Topolšek & Čurin 2012). For example, Topolšek and Čurin (2012:3) highlight that “Scholars who researched operations suggest that inter-dependence is a “catalyst” for inter-functional integration and is positively related to company success.”
62
The above researchers affirm that the creation and maintenance of internal relations among the departments, functions and employees in a company is necessary in order to improve company operation and its employees. Thus, this intended to establish the relationship between cross-functional cooperation and the export performance of manufacturing SMEs in a developing country context, by hypothesising as follows:
H4 There is a significant positive relationship between cross-functional cooperation and the export performance of SMEs.
Reis and Forte (2016) assert that export market characteristics that affect firm performance are environmental turbulence, cultural similarity and market competitiveness among others.
Hollensen (2010) highlights that there are also several factors of the socio-cultural environment which affect exporting businesses namely; common language, values, manners, customs, technology and culture, social factors, education, attitudes, aesthetics and religion.
However, Slater, Olsom and Finegan (2011) ascertained different results and reported that there is no significant relationship between a firm‟s culture and its performance due to overriding focus. Furthermore, results from research done by Uzkurt et al. (2013) also showed an insignificant relationship between the organisational culture and a firm‟s performance. Notwithstanding the aforementioned, recent evidence suggests that industry characteristics have a positive effect on a firm‟s export intensity (Reis and Forte, 2016).
Although some scholars argue that there is no significant relationship between export market characteristics and export performance some, notably, Hollensen (2010); Cinkota and Ronkainen (2010); Sorokina (2012); Pratono and Mahmood (2014); and Reis and Forte (2016 affirm that there is indeed a significant relationship between export market characteristics and a firm‟s export performance. Thus, to explore this relationship further with respect to manufacturing SMEs in Zimbabwe, it was hypothesised that:
H5 The export market characteristics negatively affect the export performance of SMEs.
Research conducted by Reis and Forte (2016) highlighted that the industrial characteristics that affect firm performance are technological intensity, capital intensity, R & D intensity, labour productivity, export orientation and concentration. A number of scholars notably, Clougherty and Zhang (2009); Ricci and Trionfetti (2012); Ricci and Trionfetti (2012);
Eberhard and Craig (2013); Xie and Suh (2014); Wierts et al., (2014); Love and Roper (2015); Reis and Forte (2016); and Lengler et al. (2016), highlight that industry
63
characteristics have a major impact on the firm‟s export performance. Thus, to address the objectives of this study and explore the relationship further in the context of manufacturing SMEs in Zimbabwe, it was hypothesised that:
H6 Industry characteristics negatively affect the export performance of SMEs.
A study by Kazimoto (2014) reveals that a range of export marketing barriers were preventing SMEs from realising the full benefits of international trade. Cardoso (2010) affirms that trade agreements are also among the marketing trade barriers affecting SMEs in that, trade agreements may open markets to companies in participating nations, but they can also discriminate against third party traders, thereby negatively affecting the export performance. In this study, export marketing barriers refer to the external forces that have an influence on the performance of SMEs, namely, political and legal environment (Hashem &
Irshaidat, 2014), exchange rate and its volatility (Auboin & Ruta, 2011). Studies by certain researchers (Keim & Hillman, 2008; Khattab et al., 2012) indicate that political environments namely; political ideology, laws, political regulations and political interferences have an impact on the export performance of a businesses. Similarly, Khattab et al. (2012) and Sorokina (2012) highlight that political instability, attitudes against the exporting country or negative attitude towards the product, and the politicisation of trade unions put unnecessary pressure on the firm‟s businesses, thus negatively affecting export performance. In light of the above, it was hypothesised that:
H7 Export marketing barriers negatively affect the export performance of SMEs.
Figure 3.2 depicts the hypothesised relationships which will be tested using a sample of SMEs in the context of a developing country, namely Zimbabwe.
64
Figure 3.2: Conceptual Framework for Managing the export performance of SMEs
Source: Developed by the researcher from the literature