An Analysis of Factors Associated with Export Performance: a Comparative Study of Australian, Canadian and New Zealand Manufacturing Firms

Abstract

In view of the increasing uncertainty in the long-term export prospects for New Zealand's agricultural products it is essential that manufactured goods come to comprise a greater share of the total export mix. To this end, New Zealand economic planners have established certain national export targets in respect of manufactured goods. The achievement of these targets requires the development of an effective and efficient strategy at the level of the firm. It is at this level that the role of marketing is critical. This study focussed attention on marketing’s role in the realization of national export targets and, in particular, sought to establish why some firms were able to achieve a greater export-to-total sales ratio than other firms. Specifically, the objectives of the research were: 1) To investigate empirically certain export marketing practices of manufacturing firms in Australia, Canada and New Zealand to determine differences which may exist, and to examine how these might correlate with relative degrees of export performance. 2) To investigate empirically the degree to which New Zealand manufacturing firms, relative to similar Australian and Canadian firms, had adopted marketing-oriented philosophies and practices. In response to a mail questionnaire usable questionnaires were submitted by 186 Australian, 173 Canadian and 122 New Zealand firms (representing 64, 58 and 69 per cent, respectively, of those firms sampled). The relationship between export performance and various independent marketing variables was examined in respect of ten variables: relative importance of exporting in the firm's operations; administrative procedures for handling exports; number of different countries exported to; channels of distribution used in exporting; type and sources of research for exporting; basis of initial entry into exporting; source of competition in export markets; method of pricing for export; frequency of visiting export markets; and degree of adoption and implementation of the marketing concept. Analysis of these variables enabled a profile to be drawn for each country of firms attaining a high level of export performance. In addition, extensive secondary analysis was carried out providing comparisons between companies, industries, and so on. The results provided implications for both individual manufacturing firms and government policy-makers, as well as for theory.