Solving Export Marketing Problems of Small and Medium-Sized Firms from Developing Countries

Abstract

This study shows how networks can be used to solve the export marketing problems manufacturing firms in developing countries are facing. Major export barriers perceived by manufacturing firms in Eritrea are identified and, subsequently, differences in perceptions between footwear and textile manufacturers, and small and medium sized firms are examined. The findings suggest that some problems can be solved through individual action by the firms (market or hierarchy). However, small and medium-sized firms on their own can't solve the most important problems, like the lack of market information, the preparation of proper designs and the fulfillment of minimum quantity requirements. The major conclusion is that export market entry by SMEs in developing countries will not be successful if no horizontal and vertical business networks are established.