The Impact of Barriers on Export Behavior of a Developing Country Firms: Evidence from Tanzania

Milanzi, Mursali A.

doi:10.5539/ijbm.v7n3p10

Cited by 33 publications

(51 citation statements)

References 31 publications

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“…Because of the evidence, Edmunds and Khoury (1986) strongly declared that SMEs must be involved in international markets. Exports play a crucial role for SMEs both as an economic activity and as a driver of economic development of a nation (Milanzi 2012). For instance, about one-fifth of manufacturing SMEs enjoy sales revenues ranging from 10% to 40% of their total sales revenues from exports (Damoah 2011).…”

Section: Introductionmentioning

confidence: 99%

“…Sanderson (2014) argued that identifying the importance of the sector was mainly because of the fact that the majority of large firms were downsizing and in the worst scenario, closing shop. Despite the growing importance of SMEs in Zimbabwe and the worldwide acknowledgement of SME contribution to economic activities, few are participating in the buying and selling of goods in global markets (Bhalla et al 1999;Chingwaru & Jakata 2015;CZI 2015;Gumede 2000;Kapoor, Mugwara & Chidawaenzi 1997;Milanzi 2012;Mpofu 1998;Zindiye 2008). Pinho and Martins (2010) also echoed the same sentiments and pointed out that SMEs that engage in selling and buying of goods at a global stage stand to benefit in numerous ways, although only a few seem to exploit such opportunities.…”

Section: Introductionmentioning

confidence: 99%

“…This trend is more pronounced in emerging economies and often exhibited by SMEs. Milanzi (2012) argued that evidence suggests that a few SMEs are taking part in the selling and buying of goods and services at a global stage, especially SMEs from sub-Saharan Africa. Among those SMEs who buy and sell goods at a global stage, a smaller portion of their output finds its way to the global market (Chingwaru 2014).…”

Section: Introductionmentioning

confidence: 99%

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The impact of SME access to finance and performance on exporting behaviour at firm level: A case of furniture manufacturing SMEs in Zimbabwe

2018

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Milanzi (2012) also acknowledged the importance of SMEs and their contributions towards a nation's total exports. In that regard, Edmunds and Khoury (1986) provided evidence revealing Orientation: Globally, the majority of Small and Medium-sized entities (SMEs) are resource constrained. As a result, not all SMEs are able to fully exploit the benefits associated with international trade as they face challenges when exporting their produce.Research purpose: This article presents an investigation into the impact of access to finance on firm performance and exporting behaviour of SMEs in Harare, Zimbabwe.Motivation for the study: The article stems from the observation that although there is a growing importance and contribution of SMEs worldwide, research has shown that only a few of these SMEs are involved in international trade.Research design, approach and method: A cross-sectional study was employed with quantitative methods being utilised. The collected data were analysed using a structural equation modelling technique, which employed the Smart partial least squares software (version 2.0). Main findings:The key findings reveal that a significant positive relationship between access to finance and SMEs exporting behaviour does exist. Furthermore, the study's findings challenge the notion that firm performance has a significant impact on exporting behaviour and show a negative impact of access to finance on SME firm performance. Practical/managerial implications:There is a need to put systems in place in Zimbabwe that that will (1) prioritise the need to have clear routes to market and increase awareness among SME owners, and (2) help SMEs overcome high costs associated with participating in export of goods and services. Contribution/value-add:The article provides a unique empirical analysis of the relationship that exists between access to finance, firm performance and export behaviour of SME firms in Zimbabwe, and thereby makes a valid contribution to SME literature.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The impact of SME access to finance and performance on exporting behaviour at firm level: A case of furniture manufacturing SMEs in Zimbabwe

2018

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“…However, findings may not be applicable to developing economies as a majority of studies are focussed on North American or European SME sectors (Bruton, Ahlstrom and Obloj, 2008). Socioeconomic aspects of developed countries differ from developing countries (Gao et al, 2010;Peng et al, 2008), so generalising could be misleading (Milanzi, 2012).…”

Section: Introductionmentioning

confidence: 99%

Barriers to enter in foreign markets: evidence from SMEs in emerging market

Rahman

Uddin

Lodorfos

2017

IMR

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Purpose -For Small and Medium Enterprises (SMEs), entering foreign markets is considered a key strategy for growth and survival. However, the decision to enter is hardly straightforward.SMEs need to analyse the key barriers to entering these markets, so the purpose of this paper is to identify the obstacles that exist to SMEs in an emerging economy.Design/methodology/approach -This study has collected primary data through questionnaires from 212 Bangladeshi SMEs. A mixed method data analysis technique is used to analyse firms from micro and macro level. Following the running example based case study approach, this paper has developed and validated a partial least square based structural model (PLS-SEM) to assess the key barriers to entering foreign markets.Findings -In entering into foreign markets, and emerging economies, this study has identified key socio-economic barriers faced by Bangladeshi SMEs. Additionally, the study has successfully framed the obstacles as a second order hierarchical model. Originality/value -Consider that foreign market entry is perhaps more affected by social barriers as explained by existing theories, including the Uppsala model. Using institutional interpretation, this study reveals that in developing countries, SME international market expansion is more sensitive to the existence of economic barriers.

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“…Okoroafo and Perryy (2010) state that promotion tools can be in the form of magazines, videos, one-onone promotion and online promotion that are available for a minuscule fee. Milanzi (2012) suggested that managers should make use of internet facilities for communication, market intelligence and export performance. Promotional plan can also include product's value added programmes such as repair services and warranty programs.…”

Section: Export Promotionmentioning

confidence: 99%