British Exporters Research Articles

Deliberate Surrender? The Impact of Interwar Indian Protection

Abstract What is the role of trade policy in promoting intra-Empire trade? We address the question in the context of interwar India, whose trade policies have been accused of harming British export interests. We quantify the impact of trade policy on the value and composition of Indian imports, using novel disaggregated data on both trade policies and imports for 114 commodity categories coming from 42 countries. We find that, even though Indian protection lowered total imports, it substantially boosted imports from the United Kingdom. Despite the rising tariff barriers facing British exporters, trade diversion from other countries ensured that Indian trade policy benefited them overall.

Why Exporters Need Export Credit

Jon Coleman, Chairman of the British Exporters Association, discusses the importance of credit insurance to export trade. It acts as an ‘enabler’ of trade and mitigates against some of the risks companies must take to trade across borders.

Resource determinants of strategy and performance: The case of British exporters

This study adopts the RBV of the firm in order to identify critical advantage-generating resources and capabilities with strong positive export strategy and performance implications. The proposed export performance model is tested using a structural equation modelling approach on a sample of 356 British exporters. We examine the individual as well as the concurrent (simultaneous) direct and indirect effects of five resource bundles on export performance. We find that four resources/capabilities: managerial, knowledge, planning, and technology, have a significant positive direct effect on export performance, while relational and physical resources exhibited no unique positive effect. We also find that the firm's export strategy mediates the resource–performance nexus in the case of managerial and knowledge-based resources. The theoretical and methodological grounding of this study contributes to the advancement of export related research by providing better specification of the nature of the effects – direct or indirect – of particular resource factors on export performance.

Complementary effect of entrepreneurial and market orientations on export new product success under differing levels of competitive intensity and financial capital

The literature implies that entrepreneurial and market orientations are market-based resources that are essential for securing business success, but their performance impacts are unclear. In the specific field of export research, there is limited information on the interactive effect of these two market-based resources on export new product performance. Accordingly, the current study investigates the joint impacts of these two resources on export new product performance under differing levels of competitive intensity and financial capital. Using a survey of 212 British exporters, the study shows that seeking complementarity between entrepreneurial-oriented and market-oriented behaviors is a useful strategy for export new product success, especially when there is a suitably high level of competitive intensity in the export market environment, and when the export unit has greater access to financial capital. Theoretical and managerial implications of the results are discussed.

The role of firm‐specific advantages in UK export initiation

PurposeThe aim of this study is to identify potentially significant differences in perception of export motives based on the variations in the firm‐specific advantages (FSAs) and the firm's export strategy. It proposes that Rugman's (1981) (FSA/country‐specific advantage (CSA)) framework provides a sound theoretical base for integrating findings from different studies.Design/methodology/approachA set of export motives are identified as key initiation stimuli and their significance is tested on an original data set of 356 British exporters. The factor analysis produced four conceptually meaningful groups of motives. Propositions were developed to test the discriminating effect of the firm‐specific resources and capabilities on export stimulation and the potential variations in critical export motivators when executing different export strategies.FindingsFindings endorse the study's main propositions: internal proactive motives are the most significant export initiation factors; distinct firm‐specific resources and capabilities play a significant differentiating role in the firm's perception of specific export stimuli; and the spread and scope of the firm's export strategy was found to have significant impact on the firm's sensitivity to specific export stimuli.Research limitations/implicationsThe study's findings contribute to the body of knowledge of export initiation motives by: endorsing the FSA/CSA matrix as an integrative approach in studying export stimuli; producing novel empirical evidence of the differentiating effect of particular FSAs on export stimulation; and investigating the potential variations in critical export motives according to the number and distance of export markets entered and the number of export market entry modes adopted. The nature and characteristics of the sample present limitations.Originality/valueThe study provides a guideline that may help sporadic and non‐exporters to develop a strategy to migrate their activities from a passive response to unsolicited orders and customer followership to an active pursuit of international opportunities.

UNDERSTANDING THE INTERRELATIONSHIPS AMONG RISK BEHAVIOUR, LEARNING AND MARKET ORIENTATIONS IN INTERNATIONAL BUSINESS RELATIONSHIPS

This paper aims to provide understandings on the interrelationships among risk behaviour, learning orientation and market orientation and business relationship development. This paper was developed based on a qualitative study of six British firms exporting to the Indonesian market. Data was collected through a series of in-depth interviews carried out in UK and Indonesia. The finding was established through a hermeneutic process. The exploration provides an understanding that risk behaviour, learning and market orientations are interrelated and they explain the fluctuation of relationship elements and thus the development of relationship between the British exporters and Indonesian Importers. Learning orientation has a greater role as it also influences the development through market orientation and risk behaviour. The discussion suggests that a company with a better learning orientation will have a better market orientation, become a risk taker and a better ability to develop business relationships.

Geographic Orientation and Performance

The main objectives of the study are to investigate the regional competitive orientation of British exporting SMEs, to explore the relationship between the firm’s level of geographic diversification and its organizational characteristics and to assess the nature of the international (geographic) diversification/export performance nexus. The main contribution of this study is in providing novel empirical evidence on the degree of regional orientation among British exporting SMEs and its implications for their performance. The findings imply that while British exporters are predominantly regional in their geographic spread, they might be more multi-regional and global oriented than previously thought.

Knowing the shape of demand: Britain's exports of ponchos to the Southern Cone, c. 1810s–70s

British textile exporters have supplied South America since well before the Napoleonic Wars. However, only from the 1810s onwards did British merchants establish houses in the region, quickly mastering the market. As far as the demand for coarse cloaks was concerned, both creoles and natives stuck firmly to ponchos. Because of the intrinsic characteristics of ponchos, local demand led British supply and, in an innovative process of adaptation, British manufacturers exported ponchos on a considerable scale to the markets of southern South America.

Matching Modes of Export Strategy Development to Different Environmental Conditions

Despite its increasing importance on current literature, prior research on export strategy development is limited to the examination of the effectiveness of only two strategy‐making modes (formal planning and the entrepreneurial mode) in a non‐comparative manner. In contrast, this study evaluates and compares the effects of four different strategy‐making approaches on export performance and examines which of the four approaches performs better under different environmental conditions. Specifically, the study examines three characteristics of the environment: dynamism, hostility and diversity. Empirical research on a sample of British exporters confirmed that the choice of the strategy development mode is an important element in the determination of export performance and that environmental conditions moderate this relationship. Of the export strategy‐making modes examined, the entrepreneurial and adaptive modes appear to be the most successful.

The MIXADAPT Scale: A Measure of Marketing Mix Adaptation to the Foreign Market

This study presents a four-dimensional multi-item scale for assessing the degree of marketing mix adaptation to the foreign market (the MIXADAPT scale). The scale shows evidence of reliability as well as convergent, discriminant and nomological validity in samples of Portuguese and British exporters. Additionally, the scale reveals factorial similarity and factorial equivalence across the two samples. The findings are used to generate managerial and theoretical implications as well as directions for future research.

The RELQUAL scale: a measure of relationship quality in export market ventures

In this article, the authors develop a new measurement scale (the RELQUAL scale) to assess the degree of relationship quality between the exporting firm and the importer. Relationship quality is presented as a high-order concept. Findings reveal that a better quality of the relationship results in a greater (1) amount of information sharing, (2) communication quality, (3) long-term orientation, as well as (4) satisfaction with the relationship. The four multi-item scales show strong evidence of reliability as well as convergent, discriminant and nomological validity in a sample of British exporters. Findings also reveal that relationship quality is positively and significantly associated with export performance. Suggestions for applying the measure in future research are presented.

The Relqual Scale: A Measure of Relationship Quality in Export Market Ventures

In this article the authors develop a new measurement scale (the RELQUAL scale) to assess the degree of relationship quality between the exporting firm and the importer. Relationship quality is presented as a high order concept. Findings reveal that a better quality of the relationship results in a greater 1) amount of information sharing, 2) communication quality, 3) long-term orientation, as well as 4) satisfaction with the relationship. The four multi-item scales show strong evidence of reliability as well as convergent, discriminant and nomological validity in a sample of British exporters. Findings also reveal that relationship quality is positively and significantly associated with export performance. Suggestions for applying the measure in future research are presented.

The UK Economy

Economic growth at the turn of the year has been relatively weak. In the last quarter of 2002 the economy expanded by 0.4 per cent and, based on our estimates of monthly GDP, we anticipate growth of 0.3 per cent in the first quarter of this year. An important factor behind this weakness has been the poor performance of UK exports. Until recently, low export volumes were easily explained by the weakness of world trade. World trade volumes shrank throughout 2001, and have since increased only gradually. But, we estimate that the volume of world trade in goods, weighted using UK export market shares, is now close to its level at the end of 2000. In contrast, the volume of UK goods exports is currently around 7½ per cent below its peak level at the beginning of 2001. The loss of export market share was not evident until the second half of 2002 and comes after a period of remarkable stability in both the real exchange rate and export market share (chart 1). While it is possible that these observations can be attributed to temporary factors, they may instead indicate that the high level of the exchange rate since 1998, and the pressure this has put on exporters' profit margins, has left British exporters less able to cope with a sustained period of lower global demand. Data for the first two months of the year do not suggest that growth in export volumes in the first quarter of 2003 will be sufficient to regain the export market share lost towards the end of last year.

The STEP Scale: A Cross-National Scale for Short-Term Export Performance Improvement

This paper is a direct response to a recent observation in the literature that managers appear to be short-term oriented when they assess the performance of an export venture (Madsen 1998). Based on a survey of Portuguese and British exporters, this paper presents a three-dimensional scale for assessing managerial judgment of Short-Term Export Performance (the STEP scale). The three dimensions are: 1) satisfaction with short-term performance improvement; 2) short-term exporting intensity improvement; and 3) expected short-term performance improvement. The findings are used to generate implications for public policy making and managerial practice as well as directions for future research.

Internationalizing the market orientation construct: an in-depth interview approach

While the market orientation construct has received considerable attention in the recent literature, no systematic research has examined the nature of market orientation as applied to an export setting. Based on in-depth interviews with British exporters, this exploratory study offers insights into how a market orientation is manifested in such a setting and investigates possible factors influencing firms’ ability to implement a market orientation in their export operations. The results reveal that there are different patterns of export market orientation, determined largely by organizational and environmental influences.

LANGUAGE AND EXPORT BARRIERS IN THE MANUFACTURING SECTOR

In response to a number of regional UK language surveys (e.g., Hagen, 1988, 1993), which indicate that a significant proportion of UK firms have lost trading (export) opportunities due to a lack of foreign language skills, the Department of Trade and Industry recently launched a campaign (including an advice and language audit service) with the aim improving the foreign language skills of British exporters (Authers, 1993).

Export Performance of Small British West Country Firms

AbstractExports provide a significant component of sales for many small firms. This study describes, for a selected sample of smaller British exporters, various characteristics of these firms and determines those factors which correlate with export performance (intensity, profitability and growth). Conclusions are drawn concerning export management and further research.

Will ERM entry make British companies more competitive?

In the wake of Britain's entry into the ERM, this article looks at the consequences for British exporters' competitiveness. Outlining the changing macroeconomic pressures which will ensue and the policies of exporters in the past, we suggest the practical steps companies will need to take to gain advantage from the new environment as well as to mitigate the impact of a less forgiving exchange rate regime.

Recruitment, Motivation, Training and Evaluation of Overseas Distributors

Shrewd channel leadership is required to maximise the benefits and to minimise the many potential problems of exporting through independent overseas distributors. Exporters need to apply effective programmes for distributor recruitment, motivation, support, training, planning, evaluation and control. Recent empirical findings about these issues are, however, scarce. This article provides fresh insights gained in an exploratory study of various dimensions of overseas distributor‐management by British exporters. In terms of recommended practice the findings are equivocal. Distributor recruitment, motivation and evaluation is in general seen as being reasonably well done although there are many areas where scope for improvement is apparent. Distributor training is generally scant and ill‐directed. Areas where improvement may be possible are suggested explicitly and implicitly in the text. Throughout the article, exporters are urged to adopt a “partnership” route to overseas channel management and there is considerable indication in the findings that many of the firms take the kinds of actions embodied in such an approach.

The Management of Documentation by British Exporters

Even in a relatively routine international transaction fifteen or more separate parties can be involved. Information has to be supplied at the right time for up to fifty commercial and official procedures. This information is normally exchanged using paper documentation.