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THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET: EVIDENCE FROM PETROCHEMICAL INDUSTRY . Academic Supervisor: Prof. Dr. Abu Bakar Bin Abdul Hamid Dr. Melati Binti Ahmad Anuar. PhD Student: Frashid Movaghar Moghaddam. 19. 1.2012. RESEARCH ROADMAP. - PowerPoint PPT Presentation

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Page 1: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:
Page 2: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING

MARKET: EVIDENCE FROM PETROCHEMICAL INDUSTRY

Academic Supervisor: Prof. Dr. Abu Bakar Bin Abdul Hamid Dr. Melati Binti Ahmad Anuar

PhD Student: Frashid Movaghar Moghaddam

19. 1.2012

Page 3: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

RESEARCH ROADMAP

INSPIRING CREATIVE AND INNOVATIVE MINDS

PERESENTATION OUTLINE

Introduction

Review of Literatures

Research Methodology

Findings (Objectives)

Contribution and Managerial Implication

Research Roadmap

Page 4: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

RESEARCH ROADMAP

Area of Concern

Conceptual Framework

Review of Literature

MethodologyQuantitative

PhD Research

FIN

DIN

GS

Background

INSPIRING CREATIVE AND INNOVATIVE MINDS

RESEARCH ROAD MAP

CONTRIBUTIONS

Determinants of Export Performance

Sub elements of Internal and External variables

Process of evaluating determinate of export performance

Firms from developing country in Asia

Petrochemical company in Iran

Information about emerging market

Page 5: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

INTRODUCTION

5

Vital role of exporting in the world and countless benefits of export for firms and countries cause the increasing attention to

the determinants of export performance.

Petrochemical industry is the main non-oil export product with 38.6% of all non-oil exporting. Exports of petrochemical

products value, selling worth value and added value showed 30%, 28% and 40% of growth in (2005 – 2009)

Page 6: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

INTRODUCTION

6INSPIRING CREATIVE AND INNOVATIVE MINDS

Page 7: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

INTRODUCTION

7INSPIRING CREATIVE AND INNOVATIVE MINDS

Emergin

g marketThe main non-oil

products export to China are petrochemical

products

China scored the third main partner of Iranian Goods

The largest and most important emerging economies are Brazil, Russia, India and China (BRIC), and the most famous

economic giant among these countries is China.

EMs are growing markets with rapid economic development that are being transformed from a pre-market stage to the mature Western economy. Ems offer considerable opportunities for the consumption of the countries goods and services (Enderwick, 2007; Kvint, 2009)

Page 8: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

INTRODUCTION

8INSPIRING CREATIVE AND INNOVATIVE MINDS

The percentage of petrochemical

products export to China increases

every year.

Page 9: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

PROBLEM STATEMENT

9INSPIRING CREATIVE AND INNOVATIVE MINDS

The main problems of the this study is the recognition of effective determinants of

export performance, fragmentary or conflicting knowledge about determinants of

export performance, and creation of comprehensive integrated model, (Nazar and Saleem,

2009; Gertner et al., 2006; Ogunmokun and Ng, 2004; Ahmed et al., 2004; Julian and O’Cass, 2003; Julian and O’Cass, 2002a; Baldauf et

al., 2000; Thirkell and Dau, 1998; Diamantopolous, 1999; Zou and Stan, 1998).

Researchers give less attention to external factors. The existing literatures are

insufficient insights for recognizing external determinates (Zou and Stan, 1998; Baldauf et al., 2000

Sousa et al., 2008). Although, domestic market characteristics is neglect in the previous

studies (Sousa et al., 2008; Zou and Stan, 1998).

Page 10: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

10INSPIRING CREATIVE AND INNOVATIVE MINDS

There is a conflicting knowledge about Internal Factors. Scholars have different opinion about the positive or negative effects of firm

characteristics .The is not agreement among researchers about what constitutes a managerial

factor (Brodrechtova, 2008; Salavou and Halikias , 2008; Lee and Griffith, 2004; ; Thirkell and Dau, 1998; Cavusgil and Zou, 1994; Rocha and Christensen, 1994).

Although, many researcher considered marketing strategy is one of major elements of export performance (Tooksoon and Mohamad, 2008) the variety of performance measurement led to the opposing findings about export marketing strategy, (Aaby and Slater, 1989; Baldauf et al., 2000; Leonidou et al., 2002; Lee and Griffith, 2004). In addition, the lack of detailed analysis on dimensions of export marketing strategy is a popular problem inherent in the previous studies (Leonidou, et al., 2002).

PROBLEM STATEMENT

Page 11: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

PROBLEM STATEMENT

11INSPIRING CREATIVE AND INNOVATIVE MINDS

The differences among developed and developing economies and unique conditions in developing countries led to the previous researches are not appropriate for firms in developing country (Mohamad, 2009; Calantone et al., 2006; Souse et al, 2008; Souse 2004; Lee and Griffith 2004; Theodosiou and Leonnidou, 2003; Julian and O’Cass, 2002a; Baldauf et.al, 2000; Aulakh et al., 2000; Aulakh et al., 2000; Katsikeas, 1996; Dominguez and Brenes, 1997).

Previous researchers had some problem in their methods.First, previous researchers used a firm (total product to total export market) or export venture (one product or a product line to a specific market) that have posed some problems, but recent researchers should analyzed the firm’s main export venture (MEV) (Sousa al, 2008; Mavrogiannis et al., 2008 ; lages and Montgomery, 2004; lages and lages, 2004; Sousa, 2004; Morgan et al., 2004 ; Morgan, 2000 Cavusgil and Zou, 1994; Zou and Stan, 1998)

Page 12: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

PROBLEM STATEMENT

12INSPIRING CREATIVE AND INNOVATIVE MINDS

Second, there are a limited number of studies that uses single and related-

industry that led to better understanding on the relationship of export

marketing strategy and export performance (Abdul Adis and Md. Sidin, 2010; Sousa et al., 2008;

Meyer, et al. 2009; Wu, and Pangarkar, 2006; Wong, 2007; Contractor et al., 2005; Sosa 2004; Zou and Stan 1998)

Third, previous researchers used limited informants or respondents.

However, multiple informants will improve assessment of export

performance (Sousa et al., 2008; Sousa, 2004).

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PROBLEM STATEMENT

13INSPIRING CREATIVE AND INNOVATIVE MINDS

Although, Iranian petrochemical companies have a lot of competitive advantages in

the China market, and China needs more petrochemical products, export performance

of Iranian petrochemical companies is not satisfactory. (Iran oil ministry, 2009; Central Bank of

Iran, 2009; Fizebakhsh, 2002; Vakhshri, 2006)

China as emerging market being one of the important target markets for Iranian petrochemical firms but, they do not have sufficient information about determinants of export performance in China market (Enderwick, 2009; Navarro et al., 2009; Koksal, 2008; Vakhshri, 2006; London and Hart, 2004; Lages, 2003; Julian and O’Cass, 2003; Julian and O’Cass, 2002a)

Page 14: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

INSPIRING CREATIVE AND INNOVATIVE MINDS

RESEARCH OBJECTIVES

14

Ha, Ha1, Ha2,Ha3, Ha4To determine the influence of

export marketing strategy elements on export performance of Iranian

petrochemical firms in China market

Qb, Qb1, Qb2,Qc

Hb1.1, Hb1.2, Hb1.3, Hb1.4Hb2.1,Hb2.2, Hb2.3, Hb2.4

Hc1.Hc1.1, Hc1.2, Hc1.3, Hc1.4, Hc1.5, Hc1.6,

Hc1.7, Hc1.8, Hc1.9, Hc1.10Hd

Hd.1, Hd.1.1,Hd.1.2,Hd.1.3,Hd.1.4, Hd.1.5 Hd2,Hd2.1,Hd2.2,Hd2.3,Hd2.4, Hd2.5

To recognize which external factors and internal factors associated with

export performance of Iranian petrochemical firms in exporting to

China market

To analyze critically the key success factors and improvement for Iranian

petrochemical firm’s export performance in China market

1

2

3

RESEARCH OBJECTIVE RESEARCH HYPOTESIS &

QUESTIONS

The results of Questions and Hypothesis

OBJECTIVE, HYPOTESIS, QUESTIONS

Page 15: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

Scope of Study

The scope of this research revolves around exploring the export performance of

Iranian petrochemical industry to the China as emerging markets

15INSPIRING CREATIVE AND INNOVATIVE MINDS

Sufficient amount of Export Export to China Directly Sufficient Experience in China

Market

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REVIEW OF LITERATURE

Export Performance: The range that company obtain its objective when export to

international market

Determinants of Export Performance: 1- Export marketing strategy elements 2- Internal factors 3- External factors(Zarin Negar and Vazife Dost, 2009; Mavrogiannis, et al. 2008; Calantone et al., 2006; Haahti et.al, 2005; Shamsuddoha, 2004; Lages and Montgomery, 2004; O’Cass and Julian, 2003; Cicic et al., 2002; Leonidou et al, 2002; Baldauf et.al, 2000; Cavusgil and Zou, 1994)

Measurement of Export Performance categorized into:

1- Objectively measurement (with

financial measures)

2- Subjectively measurement (with

financial and non-financial measures) (Mohamad et al., 2009; Sousa et al., 2008; Mavrogiannis et al., 2008; Morgan et al., 2004; Sousa, 2004 Shamsuddoha, 2004; Cicic et al., 2002).

REVIEW OF LITERATURES

Page 17: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

17

Export Marketing Strategy Elements1 Product marketing strategy Mavrogiannis, et al., (2008); Leonidou, et al.,

(2002); Thirkell and Dau, (1998) and ………

2 Place marketing strategy Eusebio, et al. (2007); Lages et al., (2004); Ambler, (2000) and Ogunmokun, (2001) and …..

3 Promotion marketing strategy Abdul-Adis, (2010); Eusebio, et al. (2007); Leonidou, et al., (2002); Lee and Griffith (2004) and ….

4 Price marketing strategy Langes and Montgomery, (2005); Lee and Griffith (2004); Zou et al., (2003) and ….

Export marketing strategy

Export marketing strategy played as central role in export performance and have direct

impact on export performance (Mohamad et al., 2009; Salavou and Halikias (2008; Mavrogiannis, et al. 2008; Lages,

2003; Julian and O’Cass, 2003; Leoniduo et al., 2002)

REVIEW OF LITERATURES

Page 18: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

REVIEW OF LITERATURES

18INSPIRING CREATIVE AND INNOVATIVE MINDS

Internal

variables

Internal

factors

Management Characteristics

Attitudinal

Characteristic

s

Export Commitment and Support

Management International Orientation

Customer Orientation

Perception toward Competitiveness

Perception towards Export Advantages and Barriers

Skill - based

Characteristic

s

Export Experience

language Proficiency

Education level of Manager

Firm Characteristics

Firm Size, Firm Age, Firm International Experience

Connectedness or Conflict in Firm, Export Market Orientation,

Firm Information about Market, Competitors, and Customers Firm Technology level

Firm Relationship Commitment, Bureaucracy in Firm

Page 19: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

REVIEW OF LITERATURES

19INSPIRING CREATIVE AND INNOVATIVE MINDS

External

variables

Export Market

Characteristics

Export Market Attractiveness

Export Market Competitiveness

Export Market Barrier

Cultural Differences or Similarity

Domestic Market Characteristics

Domestic Market Attractiveness

Export Assistance

Domestic Export Barriers

Domestic Market Political Aspect

Attraction Foreign Direct Investment (FDI)

Page 20: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

CONCEPTUAL FRAMEWORK

Page 21: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

Type of Investigation

Researcher Interference

Measurement

Time Horizon

Cross-Sectional

Sampling Design

Probability Sampling, Simple Random Sampling

Data Collection Unit of AnalysisIndividual (Manager and Non-Manager of petrochemical firms that export to China

sufficiently and directly

DETAILS OF RESEARCH MEASUREMENT

DATA ANALYSIS

Research methods

Quantitative (Sousa et al., 2008; Zou

and Stan, 1998).

Survey

INSPIRING CREATIVE AND INNOVATIVE MINDS

Correlation Simple Linear

Regression

Minimal5 point likert

scale

Questionnaire Sousa et al., (2008) 96% Zou and Stan, (1998) 86%

Descriptive

Statistic,

Correlation,

Simple Linear

Regression

RESEARCH METHODOLOGY

Research Type

Applied

Sampling Size

Morgan formula N = 98, S= 78

Goodness of Measurements

Reliability: Cronbach alphaValidity: Face and Content

Questionnaire Response Rate

Respondent rate: 80.6 %Usable Return rate: 77.5%

Multiple informants within each

company will improve

assessment on export

performance (Sousa, 2004).

Page 22: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

Main Variable

Export Marketing Strategy

Internal factors

Firm Export Performance

Price marketing strategy

Place marketing strategy

Domestic market characteristics

α = 0.740

External Factors Export market characteristics

Firm characteristics

DATA ANALYSIS (Reliability)

Sub -Variables

Product marketing strategy

Promotion marketing strategy

Management perception

Management skill-based

α = 0.761

α = 0.723

α = 0.815

α = 0.816

α = 0.821

α = 0.780

α = 0.710

α = 0.720

α = 0.942

α = 0.895

Total Cronbach's Alpha

α = 0.762

α = 0.797

Page 23: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

Variables

Export Marketing Strategy

Internal Factors

Firm Export Performance

Sig.=0.077

External Factors

Skewness =.449

DATA ANALYSIS (Normality)

Kolmogorov-Smirnov Test

Kurtosis= -.530

Sig.=0.200

Sig.=0.200

Sig.=0.200

Skewness and Kurtosis Test

Skewness =-.877

Skewness =.108

Skewness =.064

Kurtosis= 2.205

Kurtosis= -.150

Kurtosis= -.630

Page 24: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

KEY FINDING (OBJECTIVE 1)

The Correlation analysis revealed a moderate positive correlation between product marketing strategy and

performance r = 0.475, (P-value< 0.05). Thus, higher level of product marketing strategy

associated with higher levels of firm export performance.

Concerning adjusted R square is adj.R2= 0.215 with Sig = 0.000. the

product marketing strategy explains 21.5 percent of variance

in firm export performance.As a result, there is support for

Ha1

Page 25: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

KEY FINDING (OBJECTIVE 1)

Concerning Adjusted R square is adj.R2 =0.121 with Sig = 0.001. As

a result, the price marketing strategy explains 12.1% percent

of variance in firm export performance.

As a result, there is support for Ha2

The results show a slightly positive significant correlation coefficient r = 0.365, (P-value < 0.05)

between price marketing strategy and firm export performance.

Page 26: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

KEY FINDING (OBJECTIVE 1)

The Correlation analysis revealed a moderate positive correlation between promotion marketing strategy and export performance r = 0.444, (P-value < 0.05). Thus, higher level of promotion marketing strategy

associated with higher levels of firm export performance.

Concerning Adjusted R square is adj.R2= 0.186 with Sig = 0.000.

the18.6% percent of the variance in FEP can be explained by the variance

in promotion marketing strategy. As a result, there is support for

Hypothesis Ha3

Page 27: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

KEY FINDING (OBJECTIVE 1)

Correlation analysis revealed a moderate positive correlation between place marketing strategy

and firm export performance r = 0.404, (P-value < 0.05).

Concerning adjusted R square is adj.R2 =0.152 with Sig = 0.000. As

a result, the place marketing strategy describes 15.2% percent

of variance in firm export performance

As a result, there is support for Hypothesis Ha4

Page 28: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

KEY FINDING (OBJECTIVE 1)

The correlation between export marketing strategy and firm export performance was, r =0.535, (P-value< 0.05). Therefore, there is

moderate and positive correlation between two variables.

Concerning The Adjusted R square is adj.R2= 0.245 with (P- value= 0.000). The 24.5% percent of the variance in

firm export performance can be explained by the variance in export

marketing strategy.As a result, there is support for

Hypothesis Ha

Page 29: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

KEY FINDING (OBJECTIVE 2)

Correlation analysis revealed a strong positive correlation between export market attractiveness and performance

r = 0.589, (P< 0.01).

Concerning the adjusted R square is adj.R2= 0.338 with Sig = 0.000. the 33.8% percent of

the variance in firm export performance can be explained by the variance in export market

attractiveness. As a result, there is support for Hb1.

Page 30: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

KEY FINDING (OBJECTIVE 2)

The correlation of cultural difference and firm export performance was, r = 0.035, p > 0.01.Thus, there was no

correlation between two variables

H1.2 cannot support.

Page 31: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

KEY FINDING (OBJECTIVE 2)

Correlation analysis revealed a moderate or medium positive correlation between the export market

competitiveness and performance r = 0.416, (P < 0.01).

The adjusted R square is adj.R2= .173 with Sig = 0.000. As a result, about 17.3% percent of the variance in firm export performance can be explained by the

variance in the export market competitiveness.

As a result Hb1.3 is confirmed

Page 32: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

KEY FINDING (OBJECTIVE 2)

Correlation analysis show a slightly negative significant correlation coefficient r = - 0.384, (P < 0.05) between the

export market barrier and firm export performance.

Concerning Adjusted R square is adj.R2 = 0.148, with Sig = 0.014 the 14.8 % percent of the variance in firm export performance can be explained by the variance in export

market barrier. As a result, there is support for hypothesis

Hb1.4

Page 33: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

KEY FINDING (OBJECTIVE 2)

The results show a slightly negative significant correlation coefficient r = -0.247, (P < 0.05) between

domestic market attractiveness and firm export performance.

Concerning the adjusted R square is adj.R2

= 0.048 with Sig = 0.036 the 4.8% percent of the variance in firm export performance

can be explained by the variance in domestic market attractiveness.

As a result, there is support for Hb 2.1

Page 34: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

KEY FINDING (OBJECTIVE 2)

There was no correlation between attraction foreign direct investment (FDI) and firm export performance due

to r = 0.114, (P-value > 0.05).

Hypothesis Hb 2.2 cannot support.

Page 35: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

KEY FINDING (OBJECTIVE 2)

The results show a slightly negative significant correlation coefficient r = -0.284, (P < 0.05) between the domestic

export barrier and firm export performance.

Concerning the Adjusted R square is adj.R2 = 0.091, with Sig = 0.019 about 9 % percent of the variance in firm

export performance can be explained by the variance in domestic export barrier.

As a result, there is support for hypothesis Hb 2.1

Page 36: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

KEY FINDING (OBJECTIVE 2)

There is no correlation between export assistance in Iran and firm export performance because r = 0.222, (P-value >

0.05).

Hypothesis Hb 2.4 is rejected.

Page 37: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

KEY FINDING (OBJECTIVE 2)

There was no correlation between bureaucracy in firm and firm export performance because r = -

0.096 and (p-value > 0.05).

Hc1.1cannot confirms.

Page 38: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

KEY FINDING (OBJECTIVE 2)

There is no correlation between firm relationship commitment and firm export performance,

because r = 0.190, P-value > 0.05

Hc1.2. cannot confirm.

Page 39: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

KEY FINDING (OBJECTIVE 2)

Correlation analysis show weak positive correlation between firm technology level and

firm export performance r = 0.284, (P-value < 0.05).

The adjusted R square is adj.R2=0.068 with Sig= 0.013. As a result, 6.8% of firm export performance

is weakly related to firm technology level. Thus, Hc1.3 is confirmed.

Page 40: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

KEY FINDING (OBJECTIVE 2)

The finding describes weak positive correlation between firm information level and firm export performance r = 0.268, (P-

value < 0.05).

The adjusted R square is adj.R2=0.059 with p-value < 0.05. As a result, 5.9 % of variance in firm export performance can be explained by variance in firm

technology level.Thus, Hc1.4 seems to be confirmed

Page 41: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

KEY FINDING (OBJECTIVE 2)

There was no correlation betweenconnectedness in firm and firm

export performance

Hc1.5. cannot support

Page 42: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

KEY FINDING (OBJECTIVE 2)

The correlation of conflict in firm and firm export performance was, r =

- 0.097, (p > 0.01). There was no correlation between two variables.

Hc1.6 cannot support

Page 43: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

KEY FINDING (OBJECTIVE 2)

The correlation between firm international experience and firm

export performance was, r = 0.277, (P-value < 0.05). Therefore, there is weak correlation between two variables. .

The adjusted R square is adj.R2=0.064 with Sig=0.016. As a result, 6.4 % of variance in firm export performance is related to firm

international experience. thus, Hc1.7. was supported

Page 44: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

KEY FINDING (OBJECTIVE 2)

The correlation of firm age and firm export performance was, r = 0.125, (p >

0.05). The relationship was positive however; there was no correlation

between two variables.

Hc1.8 cannot support

Page 45: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

KEY FINDING (OBJECTIVE 2)

The correlation of firm size and firm export performance was, r = 0.011, (p >

0.05).Thus, there was no correlation between two variables.

Hc1.9 cannot support

Page 46: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

KEY FINDING (OBJECTIVE 2)

The results Show a slightly positive significant correlation coefficient r = 0.371, (P-value < 0.05) between firm export market orientation and firm

export performance.

The adjusted R square is adj.R2= =0.126 with Sig = 0.001. As a result, firm export market

orientation describes 12.6% percent of variance in firm export performance.

thus, Hc1.10 was supported.

Page 47: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

KEY FINDING (OBJECTIVE 2)

Correlation analysis revealed a moderate and positive correlation between firm

characteristics and firm export performance was, r = 0.346, (P-value < 0.05).

The adjusted R square is adj.R2= 0.108 with Sig= 0.002. As a result, 10.8 % of variance in firm export performance is related to variance

in firm characteristics. As a result, there is support for hypothesis

Hc1.

Page 48: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

KEY FINDING (OBJECTIVE 2)

The correlation between management export commitment and support and firm export

performance was, r = 0.237, (P-value< 0.05). Therefore, there is weak and positive

correlation between two variables.

The adjusted R square is adj.R2= =0.043 with Sig = 0.040. As a result, of the management export

commitment and support describe 4.3 % percent of variance in firm export performance.

Thus, Hd.1.1 is confirmed.

Page 49: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

KEY FINDING (OBJECTIVE 2)

The results Show a slightly positive significant correlation coefficient r = 0.331,

(P-value < 0.05) between manager perception towards export opportunities and threat and firm export performance

The adjusted R square is adj.R2= 0.110 with Sig =0.040. As a result, 11% of variance in firm export

performance can be explained by the variance in manager perception towards export opportunities

and threat. Thus, Hd1.2. is confirmed

Page 50: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

KEY FINDING (OBJECTIVE 2)

The correlation between management international orientation and firm export

performance was, r = 0.260, (P-value< 0.05). Therefore, there is weak and positive

correlation between two variables.

The adjusted R square is adj.R2= 0.055 with Sig= 0.023. As a result, the management international orientation explains 5.5% percent of variance in

firm export performance. Thus, Hd.1.3 is confirmed

Page 51: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

KEY FINDING (OBJECTIVE 2)

The correlation of management customer orientation and firm export performance

was, r = 0.074, (p > 0.05).Thus, there was no correlation between two variables.

Hd.1.4 cannot confirm.

Page 52: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

KEY FINDING (OBJECTIVE 2)

The correlation of management perception toward competitiveness and firm export

performance was, r = 0.134, (p > 0.05). Thus, there was no correlation between two

variables.

Hd1.5 cannot confirm.

Page 53: THE DETERMINANTS OF FIRM EXPORT PERFORMANCE IN EXPORTING TO EMERGING MARKET:

KEY FINDING (OBJECTIVE 2)

The finding show there is moderate and positive correlation between attitudinal

characteristics of managers and firm export performance due to the correlation between

these two variables were r = 0.436, (P-value< 0.0

The adjusted R square is adj.R2= 0.130 with Sig = 0.002. As a result, the attitudinal characteristics of

managers explain 13% percent of variance in firm export performance. Thus, Hd.1. is confirmed.

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KEY FINDING (OBJECTIVE 2)The correlation of total export

experience to overseas and firm export performance was, r = 0.218,

(p > 0.05).Thus, there was no correlation between two

variables.

Hd2.1 cannot confirm

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KEY FINDING (OBJECTIVE 2)

The correlation between total export experience to China and firm export

performance was, r = 0.314, (P-value < 0.05). Therefore, there is weak and positive correlation between two variables.

The adjusted R square is adj.R2= 0.168 with Sig = 0.005. As a result, the total export experiences to China explain 16.8% percent of variance in

firm export performanceresults seem to confirm Hd2.2.

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KEY FINDING (OBJECTIVE 2)

The correlation between managers experience in overseas (management international

experience) and firm export performance was, r = 0.375, (P-value< 0.05). Thus, there is weak

and positive correlation between two variables.

The adjusted R square is adj.R2= 0.128 with Sig = 0.001. As a result, the managers experience in overseas explain 12.8% percent of variance in

firm export performance. As a result, there is support for hypothesis

Hd2.3

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KEY FINDING (OBJECTIVE 2)

The correlation of foreign language proficiency of manager and firm export

performance was, r = 0.188, (p > 0.05). Thus, there was no correlation between two variables.

Hypothesis Hd2.4 cannot confirm

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KEY FINDING (OBJECTIVE 2)

The correlation between education level of managers and firm export performance was, r =

0.359, (P-value< 0.05). Hence, there is weak and positive correlation between two variables.

The adjusted R square is adj.R2= 0.106 with Sig = 0.023. As a result, the manager education level explains 10.6%

percent of variance in firm export performance. Results seem to confirm Hd 2.5.

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KEY FINDING (OBJECTIVE 2)

The correlation between manager skill-based characteristics and firm export performance

was, r = 0.470, (P-value< 0.05). Hence, there is moderate and positive correlation between

two variables.

The adjusted R square is adj.R2= 0.201 with Sig = 0.002. As a result, the skill-based characteristics explain 20.1%

percent of variance in firm export performance. As a result, there is support for hypothesis Hc.2

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KEY FINDING (OBJECTIVE 2)

The results show a slightly positive significant correlation coefficient r = 0.349, (P-value< 0.05)

between manager characteristics and firm export performance.

The adjusted R square is R2= 0.177 with Sig = 0.002. As a result, about 17.7 percent of the variance in firm export

performance can be explained by the variance in manager characteristics. As a result, there is support for hypothesis Hd

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INSPIRING CREATIVE AND INNOVATIVE MINDS

Key success factors (objective 3)

61

Key Success Factors

Management Characteristics

1- Export commitment and support

2-Perception towards export opportunities

and threat3-International

orientation 4- Experiences

5- Education level

External Variables 1- Export market

atractiveness2- Export market

competitive

Firm Characteristics1- Higher level of

technology2- Information of

company 3- International

experience4-Firm’s export market

orientation

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INSPIRING CREATIVE AND INNOVATIVE MINDS

Finalized Framework

62

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INSPIRING CREATIVE AND INNOVATIVE MINDS

Current study contributes to recognition of effective determinants and facilitates comparing the determinants of export performance. In addition, new variable were examined by the conceptual framework to make agreement on the parameters of a stable framework for researching the export performance phenomenon

1

63

CONTRIBUTION : Major Findings

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INSPIRING CREATIVE AND INNOVATIVE MINDS

Current study contributes to recognition of effective determinants of export performance and facilitates comparing and recognizing the determinants of export performance. In addition, new variable were examined by the conceptual framework to make coherence and agreement among researchers on the parameters of a stable framework for researching the export performance phenomenon

12

64

CONTRIBUTION : Major Findings

This study evaluating external variables widely. Later, export market characteristics and domestic market characteristics are reported and tested to supply adequate insights for recognizing external determinates.

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INSPIRING CREATIVE AND INNOVATIVE MINDS

Current study contributes to Recognition of effective determinants of export performance and facilitates comparing and recognizing the determinants of export performance. In addition, new variable were examined by the conceptual framework to make coherence and agreement among researchers on the parameters of a stable framework for researching the export performance phenomenon

12

365

CONTRIBUTION : Major Findings

Evaluating external variables widely. Later, export market characteristics and domestic market characteristics are reported and tested to supply adequate insights for recognizing external determinates.

Understanding of internal variables and many sub variables of internal determinants

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INSPIRING CREATIVE AND INNOVATIVE MINDS

Current study contributes to recognition of effective determinants of export performance and facilitates comparing and recognizing the determinants of export performance. In addition, new variable were examined by the conceptual framework to make coherence and agreement among researchers on the parameters of a stable framework for researching the export performance phenomenon

12

366

CONTRIBUTION : Major Findings

This study Evaluating external variables widely. Later, export market characteristics and domestic market characteristics are reported and tested to supply adequate insights for recognizing external determinates.

Understanding of internal variables and many sub variables of internal determinants

Current study contributes to evaluating export performance and determinate of export performance. Firstly, this research analyzed the firm’s main export venture (MEV). Secondly, this study focus on single and related- industry that allow scholars to control the industry-specific influence. Third, this study due to respondent have different views, applied multiple informants.

4

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INSPIRING CREATIVE AND INNOVATIVE MINDS

This research enhances the understanding of marketing issues, determinants of export performance and evidence of exporters within the developing countries in Asia to evaluate whether our current knowledge can be generalized to developing countries.

5

67

CONTRIBUTION : Major Findings

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INSPIRING CREATIVE AND INNOVATIVE MINDS

This research enhances the understanding of marketing issues, determinants of export performance and evidence of exporters within the developing countries in Asia to evaluate whether our current knowledge can be generalized to developing countries.

56

68

CONTRIBUTION : Major Findings

This study has been conducted for the first time in Iran petrochemical industry to recognized the effective components of firm export performance.

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INSPIRING CREATIVE AND INNOVATIVE MINDS

This research enhances the understanding of marketing issues, determinants of export performance and evidence of exporters within the developing countries in Asia to evaluate whether our current knowledge can be generalized to developing countries.

56

69

CONTRIBUTION : Major Findings

This study has been conducted for the first time in Iran petrochemical industry to recognized the effective components of firm export performance.

Extending information about emerging market especially China market and sufficient information about determinants of export performance in exporting to emerging market.7

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INSPIRING CREATIVE AND INNOVATIVE MINDS

Managerial Implications

70

The overall results of this research is the understanding into how managers can enhance its business performance in international market through the more attention to the determinants and critical success factor of export performance especially in petrochemical companies

1

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INSPIRING CREATIVE AND INNOVATIVE MINDS

Managerial Implications

71

The managers need to give considerable attention to the ability of using successful export marketing strategy due to it is critical and vital for a company’s export performance in China market.

2The overall results of this research is the understanding how Iranian companies can enhance its business performance in international market through more attention to the determinants and critical success factor of export performance especially in petrochemical companies

1

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INSPIRING CREATIVE AND INNOVATIVE MINDS

Managerial Implications

72

The overall results of this research is the understanding into how Iranian companies can enhance its business performance in international market through the more attention to the determinants and critical success factor of export performance especially in petrochemical companies

1 The managers need to give considerable attention to ability of using successful export marketing strategy due to it is critical and vital for a company’s export performance in China market.

2The study show that top managers have to understand the importance of firm characteristics variables to improve FEP. They are consist of higher level of firm technology, adequate information of company, international experience, and firm’s export market orientation. 3

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INSPIRING CREATIVE AND INNOVATIVE MINDS

Managerial Implications

73

Companies should hire the managers with better skilled-based and attitudinal characteristics due to managers are the major force behind the beginning development, sustenance, and prosperity in exporting. They are consist of manager export commitment and support, manager perception towards export opportunities and threat, manager international orientation, the manager experiences, education level of managers.

4

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INSPIRING CREATIVE AND INNOVATIVE MINDS

Managerial Implications

74

Companies should hire managers with better skilled-based qualification and attitudinal characteristics due to managers are the major force behind the initial development, sustenance, and prosperity in exporting. They consist of manager export commitment and support, manager perception towards export opportunities and threat, manager international orientation, the manager experiences and education level of managers.

4The external variables must be perceived by Iranian managers carefully due to they cannot be controlled. The external variable consist of export market attractiveness, export market competitive, export market barrier, domestic market barrier, domestic market attractiveness, lack of export assistance in domestic and low level of FDI.

5

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Managerial Implications

75

The managers should attention the business conditions and effective variables in exporting to emerging markets. This study prepare good information about exporting to China markets.6

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INSPIRING CREATIVE AND INNOVATIVE MINDS

LIST OF PUBLICATIONS

76

Articles publications 1- Management Influence on Firm Export Performance: A Review of Empirical literature 1989-2009. Movaghar Moghaddam, Farshid, Prof. Dr. Abu Bakar Bin Abdul Hamid, African Journal of

Business management, (2012). Index in ISI Journal list

2- The influence of export Marketing Strategy Determinants on Firm Export perfromance: A Review of Empirical literature 1993-2010, International Journal of Fundamental Psychology & Social Sciences.(2011) Conference Publications1- The Export Marketing Strategy Influence on Export Performance: A Review of Empirical literature 1993-2010, (2011), Global Strategic Management conference (GSMC), Dearborn, Detroit Metro, Michigan, USA.2- Management attitudinal characteristics influence on firm export performance: A review of the Empirical Literature 1989-2009. (2011). Advances in Business-Related Scientific Research Conference (ABSRC), Italy(accepted only)3- Determinants of market share for sheets producers firms, (2011), International Conference on Human Resource Development (ICHRD 2011), Malaysia. 4- Management Skill-based Characteristics Influence on Firm Export Performance, (2012), Asia-Pacific Business Research, Malaysia.

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THE DETERMINANTS OF FIRM