Internal and external determinants of export performance: conceptual analysis
Abstract
In a context of globalization known by the increase in competitive pressure, the use of the exploration of new outlets beyond borders becomes a necessity. Operating and doing business internationally is a determining source for the success and development of firms, however, it is a difficult and complex process to deal in domestic markets only, for a number of reasons. Cultural distance, linguistic knowledge, lack of proximity, etc., are all factors that slow down the development of firms, especially of modest size. Exporting, as being the first step of internationalization, has aroused the interest of several countries of the world and constitutes today an ingredient of success. The “success stories” of small and medium-sized enterprises that have crossed very distant markets have demonstrated that the obstacles to international development can be lifted. This international development requires meeting the challenges of exporting which are linked, among other things, to good knowledge of the foreign market, production efficiency, the advantages of a distinctive product, knowledge of state support services in export, collaborations, networking activities, etc. Through a conceptual analysis, this article aims to identify the main determinants allowing firms to be more efficient in exporting. These determinants are generally of internal and external type; the internal determinants are linked to the capacities and skills of the firm but also to the attributes of the managers and the external determinants are linked to the environment of the domestic and international market of the firm.
JEL Classification: L25, F23.
Paper type: Theoretical Research
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