Abstract
Exporting is the most common and widely used mode to enter into business at an international level. Export performance is crucial to identify the performance level of the organizations. This measure determines whether the organization is performing well. However, export development is also critical since it provides information on the future direction of the organization. Therefore, the aim of this study is to identify the link between export performance and export development of organizations. In addition, managements’ motivation is tested to identify its influence on export performance and also export development. Furthermore, the study also aims to identify the influence of managements’ motivations in the relationship between export performance and export development. Correlation analysis and multiple regression analysis are used to test the data. The respondents of the study are organizations in the manufacturing sector. 212 of the contacted organizations responded. The findings revealed that export performance has a direct link with export development. Managements’ motivation is found to have a direct influence on export performance and export development. In addition, managements’ motivation also has a role in the relationship between export performance and export development whereby it serves as a mediator. Therefore, management has to be motivated in order for the organization to pursue further export development, even though they have a favorable export performance level.
Highlights
Organizations intending to further their business internationally have generally given more preference to exporting, there are numerous modes to enter international market
The findings revealed that export performance has a direct link with export development
The data is collected from exporting organizations based on the Export Directory provided by the Malaysian Trade and Development Corporation (MATRADE)
Summary
Organizations intending to further their business internationally have generally given more preference to exporting, there are numerous modes to enter international market. This is clearly stated by Dhanaraj and Beamish (2003) who pointed out that exporting has become the predominant mode of international expansion. Governments of developing countries including Malaysia encourage organizations to expand their business internationally and the common method is through exporting. Malaysia had formulated a long term industrial plan known as the Industrial Master Plan which is currently in its third stage. Malaysia External Trade Development (MATRADE) provides various programmes in assisting organizations in terms of exporting
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