Increasing globalization requires SMEs to also adopt market-oriented strategies, as they are perceived to improve the export performance of these enterprises. Thus, the purpose of this research study was to determine the impact of marketing strategies, in particular market-driven strategies on the export performance of SMEs in the manufacturing sector in Zimbabwe.
Introduction
Background to the study
Thus, the question remains: can manufacturing SMEs in Zimbabwe adopt market-oriented strategies to improve their export performance. Therefore, extensive empirical research is needed to determine the impact of market-oriented strategies and external factors on the export performance of manufacturing SMEs in Zimbabwe.
The Research Problem
Therefore, extensive empirical research is needed to determine the effects of market-oriented strategies on the export performance of manufacturing SMEs in a developing economy. Therefore, this study sought to answer the following question, namely, to what extent market-oriented strategies can enhance the export performance of SMEs in Zimbabwe.
Research Aim and Objectives
Research Questions
Research Hypotheses
H4 There is a significant positive relationship between cross-functional collaboration and the export performance of SMEs.
Conceptual Framework
Significance of the Study
Justification for the Study
Overview of the Research Methodology
Informed consent was obtained from the research participants, which included SME owner-managers, policy makers, and export analysts, respectively. In addition, ethical approval was obtained from the University of KwaZulu-Natal (see EC number HSS/0039/017D in Appendix 4).
Scope of the Study
Qualitative data were collected by targeting policy makers such as SME association representatives, Zimtrade, SEDCO and Zimstats using an interview guide. The quantitative data were collected through self-administered questionnaires sent to SME owner-managers based in Harare, Zimbabwe.
Assumption of the Study
Overview of the Thesis
Conclusion
Introduction
Export Performance Measurement
However, “often used measures of export performance are export profitability, export sales growth, export sales and export intensity” (Chen et al., 2016:8). Moreover, the aforementioned assert that "the adoption of multiple measures is vital because no single indicator adequately captures the construct of export performance."
Antecedents of Export Performance
From the above it is clear that export performance measurement is still characterized by divergence and inconsistency (Tan & Sousa, 2011). On the other hand, "the determinants of export performance can be internal organizational factors, namely export marketing strategies, managerial characteristics and organizational characteristics" (Boso, 2010:24).
Internal factors
- Market-driven strategies
- Customer focus
- Creating distinctive capability
- Customer value and organisational capabilities
- Cross-functional cooperation
On the other hand, Saccani, Johansson and Perona (2007:54) argue that "after-sales service is a set of activities that take place after the purchase of the product, dedicated to supporting customers in the use and disposal of goods and is undoubtedly a component of customer focus". Verhoef and Lemon (2013) emphasize that organizations must be customer focused by ensuring timely delivery of the product to the market.
External factors
Export market characteristics
- Environmental turbulence / export market turbulence
- Cultural similarity
Lisboa et al find that "export market research improves export performance under high levels of export market shocks". Although some scholars argue that “there is no significant relationship between culture and firm performance, many scholars, especially Hollensen (2010); Cinkota and Ronkainen (2010); Sorokina (2012); and Pratono and Mahmood (2014), confirm that there is indeed a significant relationship between culture and a firm's export performance.
Industry characteristics
Competitor networks vs. firm networks and export concentration
However, Garg and De argue that “in emerging markets, SMEs usually lack relevant involvement in the firms' international social networks and rely on the social contacts of their owners/managers, which may not be sufficient to create appropriate partnerships with other firms and may prove to be a hindrance to its competitiveness.” Moreover, Ricci and Trionfetti (2011:5) argue that "firms experience a lower probability of exporting if they are influenced by the state or labor networks (public control and unions). In particular, Lengler et al argue that "the lack of competitiveness in an export market contributes positively to export performance".
Technological intensity
Nayak, Singh, Padhye and Wang (2015:4) also highlight it. the survival of companies is firmly linked to how well they embrace modern technology to improve the efficiency of their operations and thus gain competitive advantage.”. Noor Un Nabi and Utz Dornberger (2011:2) confirm that "the technological capability of SMEs has been considered an important strategic resource that enables them to achieve competitive advantage within their industry." The same researchers claim that "SMEs' development of technological capability is essential for them to overcome the rapidly changing and fiercely competitive global markets."
Export Marketing Barriers
- Exogenous barriers
- Resource barriers
- Procedural barriers
- Knowledge and experience barriers
- Exchange rate and its volatility
- Political and legal
Biggs and Shar (2013) agreed with Mambula (2012) that lack of financial assistance is a challenge hampering SME development. Katsikeas and Morgan (2010) agreed with Ibeh (2010) that lack of commitment by managers to pay attention to export marketing activities is a major stumbling block when it comes to the success of SMEs.
Marketing Strategies Currently Employed by SMEs in Zimbabwe
Niche focus strategy
According to Yu and Shen (2011:5) "International niche market emerges where companies become a strong force in a narrowly specialized one or two segments across a variety of country markets." In the same way, the researchers highlight that "the segment must be quite small, so specialization will not attract the attention of large competitors." Chichoni (2014) argues that niche strategy is an effective approach because it exploits the ability of SMEs to develop strategic advantages based on flexibility and specialization. Cooper, Ellram and Poporich (2011:17) confirm that "a "niche focus strategy" has helped SMEs to survive from direct competition triggered by large foreign firms." Yu and Shen (2011:4) have also supported this idea, saying that "SMEs should specialize in serving specific niches in foreign markets that do not face the immediate threat of large competitors from developed countries." Mundum, Alessandro and Stockhett (2000) argue that although a niche strategy may seem appropriate for companies selling their products in international markets, it is also true that niche focus may not be an appropriate strategy, especially if there is a global company exists in the same niche as it may be able to offset poor performance in one particular market with better performance elsewhere.
SME industrial export clusters
Thus, Mahuni and Bonga (2016:31) argue that “the cluster concept is a broader concept that requires the inclusion of different knowledge and skills to contribute to the overall success of the program”. To overcome export marketing challenges arising from lack of skills, resources, product knowledge and logistics in international markets, exporting SMEs can benefit from investing in export clusters in conjunction with their industry competitors (UNCTAD, 2012). It is argued that “a single SME in developing countries cannot alone create a competitive advantage in the global market, even by increasing the efficiency of internal operations, but needs the help of other companies through export clusters” (Ncube, 2012:11).
Conclusion
Introduction
Export Performance Theories
Barney's (2012) Resource-Based View states that the success of any organization is based on its ability to possess and leverage the company's internal resources. However, Boso argues that “the benefits that accrue to exporters through their exporting behavior depend on external environmental forces and organizational characteristics.” In view of the objective of this study, which is to determine “strategies that boost the export performance of SMEs in the manufacturing sector in Zimbabwe, with a particular emphasis on market-driven strategies, this study draws heavily on the RBV to identify the internal determinants of exports.” performance and contingency theory will be used to explain the external determinants of SME export performance.
Resource-Based View Theory
Again, Demoah (2011:60) argues that "the determinants of export behavior of SMEs are entirely internal factors, without considering the influence from the external environment", that is, the use of RBV. Based on the above arguments, the question remains: Does the RBV theory provide an adequate explanation of the export performance of SMEs.
Contingency Theory
Thus, market-driven strategies alone are not sufficient to explain the export performance of SMEs, i.e. the use of CT. Moreover, using a combination of theories rather than a specific theory was considered ideal in this study as a single theory could not adequately explain the export performance of SMEs (Chen et al., 2016).
Proposed Hypotheses
It appears from the above that the impact of distinctive capabilities on the export performance of SMEs has received mixed views. Although some researchers 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) confirm that there is indeed a significant relationship between export market characteristics and a firm's export performance.
Summary
Introduction
Research Philosophy
Research Approach
In this study, this approach was used for the purpose of triangulation, ensuring the validity and complementarity of the data (Pinto, 2010). Creswell (2013:10) states that “quantitative research enables predictions, while qualitative research provides a better understanding of the phenomena.” The aforementioned researcher also claims that “a combination of quantitative and qualitative research results in a richer and more robust profile than either research approach alone” (Creswell, 2013:10).
Research Design
According to Pentz, a cross-sectional survey design allows for the use of structured questions" and many of these questions are reflected in the research instrument (see the Appendix, which confirms that "using a cross-sectional survey design, it is also possible to examine the relationships between variables only, because there is no time ordering of the variables, since data on them are collected more or less simultaneously." This was in keeping with the status of the type of data collected for this study, which was primarily quantitative. This was envisioned as one of the factors that enabled this study to be completed at minimal cost. and within the stipulated time.
Target Population
In view of this, answers about how much and how much aimed to determine the export intensity and export sales volumes generated by the sampled SMEs. This study also sought to determine how customer focus contributes to the export performance of SMEs, how distinctive capabilities contribute to the export performance of SMEs and how cross-functional collaboration contributes to the export performance of SMEs.
Criteria for Selecting Participating Firms
Sample and Sampling
- The research sample
- Sampling techniques and procedures
When the above (Table 4.2) model was used, the same population of 550 produced a sample size of 345, which was also similar to the method used to determine the sample size for the study. A sample size also supported by Krejcie and Morgan's (1970) formula was stratified as follows: leather 44, food processing 132, textiles 169, while on the other hand four policy makers and four export analysts were purposively sampled and interviewed. considering that it involved a small number of informative respondents who provided insightful information to meet the needs of the study (Ibrahim, 2014).
The Research Context
It is argued that “the appropriateness of a sampling design is largely influenced by the degree of accuracy, the availability of resources, time and the sophistication of the population in question” (Creswell, 2013: 14). Moreover, probability sampling techniques also made it possible to statistically estimate the population characteristics from the sample, while the non-probability sampling technique allowed the study to make some statistical inferences about the characteristics of the population (Saunders, Lewis & Thornhill, 2009).
Data Collection Methods
- Interview-guide
- Questionnaire
- Measurement scales
- Designing the questionnaire
- Pilot test
- Validity and reliability of the research instrument
Export performance is measured in different ways for example, through the use of the EXPERF scale (Zou, Taylor & Osland, 1998) or through the STEP scale (Lages & Lages, 2004). Cronbach's alpha (α), was used to measure the internal consistency of the scaled items based on average inter-item correlations.
Data analysis
Quantitative Data Analysis
- Descriptive statistics
- Correlation analysis
- Multiple linear regression analysis
- Structural Equation Modeling
Creswell (2014) defines descriptive statistics as information used to describe the basic characteristics of the data in the study, and includes simple summaries about the samples and dimensions of the data. Gogtay and Thatte (2017:78) confirm that “correlation, also called correlation analysis, is a term used to indicate the association or relationship between two (or more) quantitative variables.” Furthermore, Stangor (2011:17) states that “a particular advantage of correlational research is that it can be used to assess behavior as it occurs in people's everyday lives.” However, correlation analysis cannot provide conclusive information about causal relationships between variables. Therefore, in this study, the correlation analysis was supplemented by the use of the multiple linear regression analysis. It is claimed that “multiple regressions are a statistical technique that analyzes the linear relationship between a dependent variable and multiple independent variables by estimating coefficients for the equation of a straight line.” A multiple linear regression analysis was conducted to test the relationships among the research constructs, namely customer focus, distinctive capabilities, customer value, cross-functional collaboration, export market characteristics, industry characteristics, export marketing barriers and SME export performance.
Qualitative data analysis
- Discourse analysis
- Content analysis
Wilson highlights that "qualitative data is highly explanatory in nature and is usually voluminous." Given that it is argued that "there is no single or best way to analyze qualitative data; and that the analysis will depend on the questions to be answered, the needs of the people who will use the information" (Shanthi et al. In the same spirit, Bengtsson (2016:10) confirms that "in qualitative content analysis, data is presented in words and themes that make it possible to draw a certain interpretation of the results." Data from both the recorded responses and interviews were analyzed through qualitative discourse and content analysis.
Ethical Considerations
- Informed consent
- Honesty and trust
- Ethical clearance
- Privacy and anonymity/confidentiality
- Research standards
This was done to ensure that the names of the participants and those of the firms were not published, especially if those participants felt that by publishing their names, they would be exposed. The study met accurate standards in data collection, data analysis, data interpretation and reporting of the research findings.
Summary
Introduction
Response Rate
Quantitative Data Analysis
- Demographic Data
- Designation
- Level of education
- Gender
- Firm ownership
- Firm registration
- SME industry sector
- Firm‟s asset base
- Number of employees
- Mode of entry into foreign markets
- Export designation
It became apparent that 100% of the participating companies were officially registered, meeting the selection criteria used to qualify respondents to participate in the study. Table 5.3 shows that the largest number (48.2%) of participants were in the textile sector.
Internal factors on the export performance of SMEs
Distinctive Organisational Capabilities
Owner-managers of SMEs were also asked to identify the inimitability of their products in the export market, as this is one of the characteristics of market-oriented companies, and their responses are shown in Table 5.9. The results show that most participants do not have the marketing resources to carry out marketing activities successfully and as such the ability to influence customers to like their products is limited, which is considered to contribute to the export performance of SMEs.
Customer value
In this regard, SME owner-managers were asked to identify whether their products have symbolic/psychological meaning and the responses are shown in Figure 5.17. Figure 5.18 shows that the majority of participants "strongly disagree" with the statement.
Cross-functional cooperation
The SME owner-managers were also asked whether their firms have export innovation teams that produce innovative export solutions and their responses are given in Figure 5.21. The owner-managers were asked about the above and their answers are highlighted in Figure 5.23.
External factors on the export performance of SMEs
Export market characteristics
Since customs duty was identified as one of the factors affecting export performance of SMEs, owner-managers were asked whether customs duty affects their export performance. This was investigated against a sample of SMEs in Zimbabwe and is illustrated in Figure 5.29.
Industry characteristics
Export concentration is weak in the industry,” revealed that the majority (62%) of participants “strongly agreed” with the statement. The participants were also asked to provide their response on how labor intensity affects their firm's operations, and the response is reflected in Figure 5.32.
Export marketing barriers influencing the export performance of SMES
Export marketing barriers
SME owner-managers were asked whether exchange rate volatility affects their exports and Figure 5.38 depicts their responses. Furthermore, export procedural barriers are some of the export marketing barriers that affect the export performance of a firm and given that the SMEs owner-managers were asked to respond regarding the aforementioned, Figure 5.39 reflects the response.
Export performance in general
Relationship among the research variables
Correlation analysis results
All the associations between EMC and CF, DC, CV, CFCI, EMB and SEP were insignificant p<.0.005 except, the relationship between EMC and IC and EMB. Another insignificant pair of relationships was found between CF, DC, CV, CFCI and CI p<.0.702.
Regression Analysis Results
Similarly, Alwi, Abu Bakar, Talib assert that "acceptable value of CRI is 0.7 and above". To calculate composite reliability, the following statement was used in this study; According to Nusair and Hua, items exhibit good convergent validity when they load strongly on their common construct. The literature states that "a loading that is above 0.5 implies convergent validity" (Anderson et al. 1988:411).
Structural model assessment
Path Modelling
Note: CF = Customer Focus; DC = Discernment Skills; CV = Customer Value; CFC = Cross Functional Collaboration; EMC = Export Market Characteristics; IC = Industrial Characteristics; EMB = Export Marketing Barrier; SEP = Export Performance of SMEs. Note: CF = Customer Focus; DC = Discernment Skills; CV = Customer Value; CFC = Cross Functional Collaboration; EMC = Export Market Characteristics; IC = Industrial Characteristics; EMB = Export Marketing Barrier; SEP = Export Performance of SMEs.
Model fit assessment
Hypothesis testing
Discussion of the Hypotheses
This means that export marketing characteristics have a negative impact on the export performance of SMEs. The results obtained after testing H7 confirmed that there is a relationship between the export marketing barrier and export performance of SMEs, as a path coefficient of -0.509 was found.
Analysis of qualitative data
Discourse analysis
One of the objectives of this study was to determine the impact of market-driven strategies (internal factors) on the export performance of SMEs in a developing country context and particularly in Zimbabwe. In the pursuit of being market-driven, the most important guiding principle is "customer focus." The customer is the king.
Strategies that can be employed by SMEs to enhance their export performance
To promote exports in Zimbabwe, there is a need to establish an SME Export Development and Promotion Agency. Links with transnational companies (TNC-SME links), there is a need to create a link between SMEs and Transnational Companies.
Content analysis
This clearly shows that the adoption of market-driven strategies can promote the export performance of SMEs in Zimbabwe. I can say that our SMEs still need to be capacitated first before we are confident enough to say that they can embrace market-driven strategies to improve their export performance" and also statements, in particular, "most of our SMEs are able to copy what others have done before, there is a general lack of entrepreneurship among them in Zimbabwe and this therefore casts doubt on whether our SMEs can be market driven?” clearly indicates that SMEs require adequate resources to be able to embrace market-driven strategies in Zimbabwe.
Summary
The participants had different views on this topic, but agreed as follows: “The establishment of SME consortia and export consortia are a necessary requirement for building critical mass in both manufacturing and exports.” The establishment of SME export consortia can help mobilize crucial resources needed to create sustainable exports. Some participants expressed views such as: “To boost exports, strong and specialized export promotion institutions should be established.” These views are in line with other policy makers who made statements such as: “To promote exports in Zimbabwe, there is a need for the establishment of an SME Export Development and Promotion Agency.” The idea behind a specialized SME promotion agency is that it contributes to creating an enabling environment that facilitates the movement of information relevant to SMEs, such as facilitating appropriate export connections with trading partners, mobilizing relevant resources to stimulating export production and organizing domestic relations. and outbound buyer missions with only relevant SME stakeholders.
Introduction
Internal factors on the Export Performance of SMEs
Thus, H3 which was stated as 'There is a significant positive relationship between customer value and export performance of SMEs in Zimbabwe' is not supported. This study also sought to determine the effect of cross-functional collaboration on SME export performance.
External Factors on the Export Performance of SMEs
The study also attempted to determine the influence of export marketing barriers on the export performance of SMEs. Thus, H7 stated as "The export marketing barriers negatively affect the export performance of SMEs," is accepted.
Effectiveness of the Export Marketing Strategies Employed by the SMEs
Thus, H6 which was stated as "Industry characteristics negatively affect the export performance of SMEs in Zimbabwe," is rejected. Further analysis showed that export marketing barriers and SMEs' export performance are negatively related in a highly significant way (t=5.985).
Export Marketing Strategies that can help SMEs
Summary
Introduction
Summary of the Findings
Conclusions and Recommendations
Overall Recommendations
Managerial implications
Limitations and Future Studies
Contribution of the study
Conclusion
Informed Consent
Survey Questionnaire
Interview Guide
Ethical Clearance
Turnitin Report
Language Editing Confirmation
Publications / Research Articles emerging from the Thesis and related
