The impact of managerial and firm characteristics on barriers in export businesses

Abstract

The growth of export in many countries all over the world signifies it as the most important mode of internationalization. However, some exporters face difficulties in managing export due to the barriers they face. It is, therefore, important to identify the factors that might influence export barriers. The study attempts to identify the relationship between demographic factors and export barriers which has not been much researched. Demographic factors are represented by managerial or executives’ characteristics as well as firm characteristics. A cross-sectional survey was conducted where a total of one thousand and four hundred and thirty-nine questionnaires were sent to the exporters. The respondents include executives who were in charge of exporting. Two hundred and twelve responses were found to be usable which formed the basis for the analysis. The response rate was 14.9%. The export barriers include marketing barriers, financial barriers, government barriers, informational barriers, administrative barriers, production barriers, and external barriers. Correlation analysis was used to conduct the analysis and it is found that age of executives, age of firms, size of firms, and export experience of firms have a negative relationship with some of the export barriers. On the other hand, there was no relationship between the employee experience and export barriers. This finding contributes to the limited knowledge on the relationship between demographic characteristics with export barriers. Thus, it provides support for the resource-based view. From a practical perspective, it essential for business to accumulate knowledge, expertise and experience in order to reduce the export barriers.