Abstract

The difficulties of exporting require immense commitment on the part of owner-managers of SMEs. This article sought to investigate how the commitment of owner-managers to the export market influences the export capacity of SMEs in a developing country context such as South Africa. It found that export commitment influences export capacity indirectly by means of the SME’s export capabilities and confirms the importance of an experiential learning process in the case of SME exporters within developing countries. The article emphasises the importance of the SME owner-manager’s commitment to set upon the often difficult and energy sapping experiential learning process for developing export capacity. Up to now, much of the literature on SME internationalisation from developing countries addresses what factors contribute towards their internationalisation but not how they internationalise. We have integrated three concepts in the internationalisation literature - export commitment, export capability and export capacity - into a process model on how export capacity develops among SMEs.

Highlights

  • Developing country economies increasingly look at ways to increase their export-led growth

  • We argue that export commitment sets off an experiential learning process (Zhou & Wu, 2014) that is important to developing export capability

  • The purpose of this study was to investigate the effect of export commitment on the export capacity of small and medium enterprises (SMEs) based in South Africa

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Summary

Introduction

Developing country economies increasingly look at ways to increase their export-led growth. In a developing country such as South Africa, small and medium enterprises (SMEs) contribute significantly to the economy. Insufficient production capacity due to economies of scale and the fixed costs involved in exporting activities prevent them from devoting some of their production to export markets (Westhead, Wright & Ucbasaran, 2002). Because of such capacity constraints, we might expect SMEs to be less represented in export markets relative to their larger counterparts (Gashi, Hashi & Pugh, 2014)

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