Enhancing the export performance of manufacturing small and medium enterprises in Zimbabwe.
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Date
2018
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Abstract
The increase in globalisation requires small and medium-sized enterprises to also adopt market-driven strategies as they are perceived to enhance the export performance of these enterprises. While much of the studies on market-driven strategies have concentrated on large companies in developed countries, very little research has been conducted in developing countries, with few focusing on small and medium (SME) sized enterprises. Thus, the aim 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. The objectives were to determine the effects of internal factors, namely, customer focus, distinctive capabilities, customer value, and cross-functional cooperation, as well as external factors such as export market and industry characteristics, on the export performance of SMEs. Furthremore export marketing barriers and the effectiveness of the export marketing strategies currently being employed by these enterprises were determined, to identify strategies that could help the SMEs to enhance their export performance.
A mixed research approach was employed to improve the validity and reliability of the research results. From a target population of 550, structured questionnaires were sent to 345 owner-managers who were stratified according to the products processed. In addition, an interview-guide was developed and four (4) policy-makers and four (4) export business analysts were interviewed. Descriptive and inferential statistical analyses were conducted on the quantitative survey data using SPSS (Version 21). The qualititaive data obtained thorugh the interviews was analysed using qualitative discourse and content analysis.
It became evident from this study that the internal factors (customer focus, distinctive capabilities, customer value, and cross-functional cooperation) do not significantly enhance the export performance of SMEs in Zimbabwe, whereas external factors are a major barrier to their export performance. Furthermore, it was ascertained that a niche strategy could enhance exports better than industrial clusters. Evidence from the policy makers and export analysts reveal that the formation of SME consortia, creating an enabling business environment, and an Export Development and Promotion Agency, could enhance exports.
Several recommendations flow from the findings, inter-alia, the need to establish SME export consortia. SME owner-managers should prioritise investing in customer value which would
have a positive influence on their export performance. It was therefore recommended that the management of SMEs should prioritise finding ways to minimise barriers to export performance.
Key words: Exports, SMEs, Manufacturing Sector, Market-Driven Strategy
Description
Doctoral Degree. University of KwaZulu-Natal, Durban.