Abstract
The purpose of this paper is to explore the levels of trust within small and medium-scale enterprise export networks, using Ghana’s Export Associations (EAs) as a case study. Exploratory and case study designs were employed for the study. Besides, the study adopted the mixed-methods approach, involving the collection of qualitative data from 19 EAs via semi-structured interviews, and analysed thematically using Nvivo 12. Quantitative data was also collected from 259 SME exporters and statistically analysis (i.e. mean, standard deviation and correlation) was done using SPSS. The results indicated low trust between SME exporters and EA leaders (vertical trust). EA leaders had low trust for SME exporters regarding financial commitment; meeting attendance and sharing trade information. SME exporters had low trust for EA leadership in communicating information, adhering to promises, members’ interest and acting with equity. There was low trust among SME exporters (horizontal trust). Additionally, there was much more ‘horizontal trust’ than ‘vertical trust’ within EAs. The study provides a framework for analysing the effectiveness of SME export networks. Academics and policy-makers will find the results useful when analysing governance and relationships within export networks. This paper is significant in separately measuring trust within networks from vertical and horizontal perspectives. Keywords – Trust levels, Trust Theory, SME, Export Networks, and Export Associations DOI: 10.7176/JMCR/67-08 Publication date: April 30 th 2020
Highlights
In the contemporary globalized trade regime, cooperation is a required response to intensified global competition, and joint action is essential for responding successfully to major challenges in business involving developing countries (Rutashobya & Jaensson, 2004)
As small and medium scale enterprises (SMEs) are considered the catalyst for export growth for developing countries, there is a compelling case for networking amongst sub-Saharan African small firms (Ibeh, 2003) because they may have to rely on networks and relationships to overcome their size disadvantages as they internationalize (Madhok, 1997; Rutashobya & Jaensson, 2004)
Exporters Associations (EAs) leaders were further required to describe the extent of trust they had for SME exporters in the network context, based on three trust dimensions suggested by Ghana Export Promotion Authority (GEPA) – information sharing by members with the Association; members’ financial commitment; and members’ attendance to Association meetings and programmes
Summary
In the contemporary globalized trade regime, cooperation is a required response to intensified global competition, and joint action is essential for responding successfully to major challenges in business involving developing countries (Rutashobya & Jaensson, 2004). As SMEs are considered the catalyst for export growth for developing countries, there is a compelling case for networking amongst sub-Saharan African small firms (Ibeh, 2003) because they may have to rely on networks and relationships to overcome their size disadvantages as they internationalize (Madhok, 1997; Rutashobya & Jaensson, 2004). Partnering through export networks is an alternative way for many resource-constrained SMEs to end their isolation in the current highly competitive world trade and to become competitive in foreign markets (Ruzzier, Hisrich & Antoncic 2006). It follows that export networks are essential to meeting new customers, winning new business, building existing partnerships and delivering on contracts.
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