The Link between Export Performance and Export Development: Does Managements’ Motivation Play a Role?

Abstract

Exporting is the most common and widely used mode to enter into business at an international level. Export performance is crucial to identify the performance level of the organizations. This measure determines whether the organization is performing well. However, export development is also critical since it provides information on the future direction of the organization. Therefore, the aim of this study is to identify the link between export performance and export development of organizations. In addition, managements' motivation is tested to identify its influence on export performance and also export development. Furthermore, the study also aims to identify the influence of managements' motivations in the relationship between export performance and export development. Correlation analysis and multiple regression analysis are used to test the data. The respondents of the study are organizations in the manufacturing sector. 212 of the contacted organizations responded. The findings revealed that export performance has a direct link with export development. Managements' motivation is found to have a direct influence on export performance and export development. In addition, managements' motivation also has a role in the relationship between export performance and export development whereby it serves as a mediator. Therefore, management has to be motivated in order for the organization to pursue further export development, even though they have a favorable export performance level.

Selling flowers in Romania

“…This statement was also mentioned by Kuppusamy (2012), who said that "Exporting is the most common and widely used mode to enter into business since the export performance is crucial to identify the performance level of the organizations". In this regard, Moses et al (2013) stated that "Trade can be a powerful engine for economic growth, poverty reduction, and development".…”

Issues connected on the trade of flowers in Romania

“…In the same meaning, Anantharaman (2008) was stated that "the increasing numbers of organizations involved in exporting intensifies the competition level...". In the same sense, Kuppusamy (2012) come to the conclusion that "exporting is the most common and widely used mode to enter into business at the international level. Export performance is crucial to identify the performance level of the organization ....".…”

An appreciative inquiry into the first export order

“…It has been long established that the characteristics of the management team, broadly defined to include their experience and motivation, are key to influencing their respective firm's export development (Leonidou et al, 1998;Acedo and Galan, 2011;Kuppusamy and Anantharaman, 2012). The way in which respective management teams react to export barriers that are perceived or actual; also, stimuli that are internal or external to the firm, plus that are proactive or reactive in nature, are likely to vary (Leonidou, 1995;Morgan, 1997;Leonidou et al, 2007;Kahiya, 2013).…”