Better Off Out? The Costs and Benefits of Sub-Saharan Africa's Membership of the World Trade Organization

Factors That Distinguish Proactive Versus Reactive Exporters: Decisions by Export Firms in a Developing Country

“…Findings from previous studies (e.g., Madsen, 1989;Naidu & Prasad, 1994) reveal that foreign-owned firms were more likely to use adapted export marketing strategies than were locally owned firms and this can be attributed to (a) access to better production technology, capital, management, and marketing competence (Beamish, 1993;Beamish, Ron, & Kerry, 1993), (b) their ability to produce efficiently and to possess sophisticated international marketing networks that facilitate distribution (Acquaah et al, 2008;Beamish, 1993;Madichie, 2007;Wilmore, 1992), and (c) business links with other foreign organizations that enable the sharing of resources (Dijk, 2002).…”

“…An exploratory research design was used involving a survey of 105 exporters to identify whether there are significant differences between reactive firms with low levels of adaptation of export marketing strategy and those proactive exporters with high levels of adaptations. The factors that explain whether firms with high levels of Themes Country Acquaah et al (2008) African emerging economies; competitive strategy Ghana Farley et al (2008) Business-to-business markets; firm performance; innovativeness; market orientation South Africa Ibeh et al (2007) Export stimulation; developing economies Nigeria Madichie (2007) Multilateral trading system; WTO membership Sub-Saharan Africa Mpoyi et al (2006) Competitive advantage; strategies Sub-Saharan Africa Muranda (2005) Export processing zones; economic crisis Zimbabwe Okoraofo (2004) Marketing orientation; marketing practices, developing countries Sub-Saharan Africa Shrestha et al (2008) Economic development; efficient and effective system of management All Africa Tesform et al (2006) Export problems; developing countries; footwear; textiles; manufacturing firms Eritrea usually refers to product offerings, and one assumption is that the growing convergence of consumer needs, wants, tastes, and preferences stimulates the marketing mix elements (e.g., the product design, packaging, pricing, advertising, and promotion) to be standardized across all international markets (Levitt, 1983;Okazaki, Taylor, & Doh, 2007). In contrast, the adaptation approach argue that despite increasing globalization, great variations exist between countries in dimensions such as consumer needs and wants, product usage, purchasing power, social and culture, law and regulations, which require appropriate adjustments to the firm's marketing strategy based on the distinctive circumstances of each foreign market (Katsikea & Skarmeas, 2003;Solberg, 2002;Terpstra & Sarathy, 2000).…”

“…Market orientation was found to be an important explainer of firm performance (Farley et al, 2008;Okoraofo, 2004). Madichie (2007) postulated that cooperation and regional trading arrangements could benefit subSaharan states to a greater extent than clinging to membership of the World Trade Organisation. Shrestha, McKinley-Floyd, and Mtwige (2008) concluded that African countries need to develop not only a system of management that is effective and efficient but also one that promotes business growth, economic development, and social responsibility.…”

Small and Medium Sized Enterprises Development under Trade Liberalisation: A Survey of Nigerian Experience

“…It has been suggested that the increasing prevalence of the flexibility and specialisation of SMEs persuades many business analysts to believe in SMEs` strategic role in the industrial structure of developing nations (Berry, 2002). But due to their small size and meagre financial bases, they remain rather vulnerable to external shocks often experienced in the global market as a result of trade liberalisation (Madichie, 2007;Vickery, 2008). Therefore, given favourable policy environment there is reasonable assurance that SMEs can compete successfully both in the local and global market (Briggs, 2007).…”