Non-traditional Export Sector Research Articles

Key factors influencing the export performance of SMEs in Rwanda: evidence from the non-traditional export sector

Purpose This study aims to develop and empirically test a model that describes the factors influencing a firm’s export performance; a model that can be adopted by future export researchers, policymakers and practitioners. Specifically, this study aimed to identify the main factors affecting the export performance of manufacturing small- to medium-sized enterprises (SMEs) in Rwanda and determine the extent of influence of each identified factor on export performance. Design/methodology/approach The research design combines both exploratory research and causal research designs to test the proposed model. Interview guide and survey questionnaires were used to collect the raw data. The collected quantitative data were analysed using the structural equation modelling technique with the Analysis of Moment Structures software. Findings The findings revealed that all the factors identified, namely, organisational, entrepreneurial and industrial, and market factors had a significant positive impact on the export performance of SMEs. Moreover, entrepreneurial factors were proven to be the most influencing factors in export performance followed by market-level factors. In this context, the proposed resource-market-based model of export performance was tested and validated in a less developed country, Rwanda, for exporting SMEs. Originality/value The proposed model of export performance extends the existing literature in two ways: firstly, it integrates internal and external factors to explain the export performance of an SME and secondly, it tests the relative importance of these factors in driving and maintaining international performance.

Export association drivers and SME export performance in a non-traditional export sector

Export association drivers and SME export performance in a non-traditional export sector

Creating value for whom? Digitization and governance practices of nontraditional export firms in Africa

AbstractThe nontraditional export (NTE) sector promises to be the antidote to Africa's economic woes in the face of dwindling traditional exports. Adopting the Porter's Value Chain Framework and a case study design, we explore how alcoholic beverage companies in the African NTE sector could create value in their upstream, midstream, and downstream value chain activities through effective governance and digitization. In exploring these intricacies of governance and digitization within African global value chains (GVCs), we draw on two major case studies, Diageo South Africa and Kasapreko Ghana Limited. Our study shows that the NTE sector can contribute to both economic and social upgrading activities, contribute to industrialization and create international competitiveness for African firms. Second, GVC governance and digitization, even though still at its infant stages in Africa, has the potential in propelling economic value through the NTE sector.

How the policy environment influences value chain linkages: a comparative study of cocoa and pineapple in Ghana

This paper takes its point of departure from the school of thought that linkages in agricultural commodity value chains may hold the key to making actors in the chain innovative. Ghana's agricultural export sector is characterized by two main types of export: traditional and non-traditional. The traditional agricultural export sector is driven largely by the cocoa industry, while the pineapple industry represents one of the leading commodity industries in the non-traditional export sector. Using a multiple case study methodology, the paper seeks to examine how the policy environment could strengthen value chain linkages and make activities in the value chains more competitive. The study was derived from interactions with actors in the cocoa and pineapple value chains, namely input suppliers, producers, buyers, processors and some support services providers and regulatory agencies. The intention was to assemble their perceptions as interpreted in their own settings. The study showed how the existing policy on research, extension and marketing had encouraged better linkages horizontally and vertically among actors in the pineapple value chain. On the other hand, the policy underpinned by a public sector leadership in the cocoa value chain, had lowered the motivation for stronger linkages in the cocoa value chain. In terms of policy implication, the study makes a strong case for more participation of private sector actors as it is more likely to expand the platform for more interactive learning among actors for their mutual benefit.

Gender and Agriculture: Inefficiencies, Segregation, and Low Productivity Traps

Women make essential contributions to agriculture in developing countries, where they constitute approximately 43 percent of the agricultural labor force. However, female farmers typically have lower output per unit of land and are much less likely to be active in commercial farming than their male counterparts. These gender differences in land productivity and participation between male and female farmers are due to gender differences in access to inputs, resources, and services. In this paper, the authors review the evidence on productivity differences and access to resources. The authors discuss some of the reasons for these differences, such as differences in property rights, education, control over resources (e.g., land), access to inputs and services (e.g., fertilizer, extension, and credit), and social norms. Although women are less active in commercial farming and are largely excluded from contract farming, they often provide the bulk of wage labor in the nontraditional export sector. In general, gender gaps do not appear to fall systematically with growth, and they appear to rise with Gross domestic product (GDP) per capita and with greater access to resources and inputs. Active policies that support women’s access and participation, not just greater overall access, are essential if these gaps are to be closed. The gains in terms of greater productivity of land and overall production are likely to be large. This paper is organized as follows. Section 2 provides an overview of the differences in male and female productivity within predominantly food crops. Section 3 discusses the major elements needed for production, documents the male–female gap, and explores the existing evidence on why these gaps exist. Section 4 concludes.

The political ecology of Chilean salmon aquaculture, 1982–2010: A trajectory from economic development to global sustainability

Through the case of the salmon aquaculture sector in Chile, the risks involved in the development of a non-traditional export sector are reviewed, in order to point to failings (lessons not learned) and opportunities (lessons learned, new plans), and the changing scales of stakeholder interactions. In particular the paper highlights the ways in which sustainability considerations have gained ground in terms of evaluating sectoral development and what is expected from this development. These considerations have emerged as a result of the increasing globalisation of the sector, through investment, exports and international ‘attention’ from an increasingly diverse set of stakeholders. These sustainability considerations have generated a range of conflicts linked to these diverse actors. The actors are local, national and global, operating through alliances to bring pressure on others. The conflicts relate to environmental quality, foreign direct investment (FDI), local socio-economic development, regional development, national economic strategies, and new globalised issues relating to the production and consumption of foodstuffs. The contemporary panorama in the sector is significantly different from the early origins in the 1980s under the dictatorship – the period of ‘the socio-ecological silence’ – also different from the 1990s period of economic expansion – ‘the economic imperative’. Over the past twenty-five years, the Chilean aquaculture sector has evolved from experimental production to a major global industry. Regulatory frameworks and civil society awareness and mobilisation have struggled to ‘catch up’ with the dynamism of the sector, however the gap has reduced and the future of the sector within the contemporary context of ‘glocal’ sustainability is now under the microscope: the ‘sustainable globalisation perspective’. The collapse of the sector during the period 2008–2010 as a consequence of the ISA virus is a key moment with production severely diminished. The way out of the crisis, via new legislation and inspection regimes, will create a new structure of aquaculture governance. Nevertheless, the crisis marks a turning point in the industry, revealing the weaknesses built into the former productive system.

The value chain and e-business in exporting: Case studies from Ghana’s non-traditional export (NTE) sector

Purpose The purpose of this paper is to develop an understanding of the possibilities and challenges facing the application of e-business in the Ghanaian exporting sector. The paper also ascertains, from a value chain perspective, the extent of e-business usages within two export organizations in Ghana’s Non-traditional Export (NTE) sector. The two export firms profiled were from the private and governmental/public sectors of Ghana’s NTE sector. Design/methodology/approach The paper adopted a case study approach. This approach was chosen in view of its ability to contribute to deep and detailed knowledge, especially in areas that are characterized by rapid changes. It was also chosen because it is useful for analysing contemporary events. The primary source of data was obtained through semi-structured interviews with senior management personnel in the firms we studied. The data obtained was analysed thematically. Findings Across the various value chain activities, the private sector firm showed deeper e-business use concentration than the governmental export organization. More importantly, across the two cases, the value chain activities of export organizations in developing economies that could be most strategically leveraged using e-business are customer service, sales and marketing, operations, logistics and procurement, in that order. Originality/value The study is one of a few studies that aim to build on the existing value chain theories in relation to e-business. This study focused on an emerging economy context. Practical implications Developing economy export firms looking to develop capabilities and better leverage their e-resources to build competitive advantage should focus on building their customer service and marketing competencies first.

E‐business financing: preliminary insights from a developing economy context

PurposeThe deployment and strategic use of e‐business, from basic e‐mail utilization to total enterprise integration, involves the commitment of financial and technical resources. The resources have to be financed. The purpose of this paper is to ascertain the views of trade promotion organizations, donors, export associations and banks on e‐business financing in Ghana's non‐traditional export (NTE) sector, with the view to making policy contributions to the e‐business financing phenomenon in a developing economy (DE) context.Design/methodology/approachThe research design is qualitative since this is an exploratory study and deep preliminary insights were sought about a hitherto under‐researched information systems topic from a developing country perspective. Officials from the trade promotion; export association, donor and financial communities were interviewed to generate insights to help understand the phenomenon under investigation.FindingsSome banks find it difficult financing e‐business in NTE firms because it is considered a new area with relatively higher risks and uncertainties. Banks would rather grant small loans to a few select small and medium enterprise exporters in an attempt to limit their default risk. The trade promotion organization is helping (albeit in a moderate manner) with up‐skilling for the improvement in e‐competencies in Ghana's NTE sector. The export product association in collaboration with the donor interviewed is in the throes of designing e‐business interventions in Ghana's NTE sector after recently completing an e‐readiness survey in the same sector.Originality/valueThis paper presents a modest contribution to the export firm‐electronic business literature from a resource‐centered perspective, in a DE context. Studies on e‐business financing in DEs are virtually non‐existent and the policy prescriptions could apply with minor modifications to other related contexts in respect of e‐business financing.

Female-owned businesses and access to finance: evidence from the Ghanaian non-traditional export sector

This study uses data from a sample of Ghanaian non-traditional exports (NTEs) to determine differences in obtaining formal finance between male and female-owned firms. Findings revealed that there is adverse discrimination in the lending process placing women at a disadvantage. Women are either unfairly denied credit or discouraged in the credit application process with the end result that they are less likely to obtain formal loans. In addition, women do not network as effectively as men. Thus, they do not have the same access to sources of information and capital. Female-owned businesses tend to rely on informal finance sources because of the unwillingness of the formal sector to lend to them. Female-owned clients are also effectively shut out from the formal market due to high collateral requirements and high minimum deposit requirements. There is therefore a high conformity of the results of this study with similar studies in other parts of the world. Recommendations are made in this regard. Gender and Behaviour Vol. 4(1) 2006: 508-521

Do Ghanaian non-traditional exporters understand the importance of sales management?

Sales strategies which firms adopt to enter, penetrate and grow in export markets is an issue pertinent to the export business and yet this has received little empirical attention in management literature. This study sought to investigate the design and implementation of sales management policies and strategies in the non-traditional export sector of Ghana. The study showed that there is a positive relationship between export sales turnover and export sales strategy design and implementation. No relationship was established between the planning of daily sales activities and sales turnover as almost all firms had daily sales plans irrespective of their sales turnover. The older the firm in export business, the more likely it was for management to put in place strategies that will facilitate the growth and profitability of the firm. This might be the case that as firms stay longer in business they are likely to improve on their managerial experience curves and for that matter adopt more pragmatic management strategies that will enhance the success of their businesses. Results show that management of non-traditional export firms in Ghana should be critically concerned with the design and implementation of comprehensive sales management strategies, taking into consideration other factors like internet use and planning of sales presentation in order to achieve enhanced performance results in foreign markets. IFE PsychologIA Vol. 14(1) 2006: 26-39

How are SMEs Financed? Evidence from the Ghanaian Nontraditional Export Sector

The study explored the determinants of small and medium-sized nontraditional exporters' choice of type of finance (formal or informal). The empirical results revealed a negative relationship between age and formal finance, suggesting that newer firms depend more on formal finance and less on informal finance. In addition, the study found positive and significant relationships between formal finance and size and growth of the firm. This suggests that larger and high-growth firms require more funds to finance their expansion and growth opportunities and therefore employ formal finance. Finally, the results of the study also indicated that the proportion of formal finance increases with increasing international activities, suggesting that, as firms engage more in international business, they employ more formal finance and less informal finance. Recommendations are made in this regard.

Ghana’s non-traditional export sector: expectations, achievements and policy issues

The past 14 years in Ghana have been characterized by frantic government efforts to resuscitate the economy through structural reforms recommended and supported by donor agencies, particularly the World Bank and the International Monetary Fund (IMF). The Non-traditional Export Sector (NTES) has been accorded unparalleled attention in economic development due to persistent deterioration in the terms of trade for the country’s major/traditional exports – cocoa, timber, and minerals (gold, diamond, bauxite and manganese). This paper discusses the planning strategies, expectations, and policy dilemmas of institutions supporting the export diversification drive, and analyzes the performance of the NTES in terms of export earnings. While the expectations of the government and the Ghana Export Promotion Council (GEPC) have been quite high, in relative terms the achievements of the NTES have been moderate, a situation which demands more visionary strategic planning and policy formulation.

The Politics of Trade Liberalization in Africa

Previous articleNext article No AccessThe Politics of Trade Liberalization in AfricaHenry BienenHenry Bienen Search for more articles by this author PDFPDF PLUS Add to favoritesDownload CitationTrack CitationsPermissionsReprints Share onFacebookTwitterLinkedInRedditEmail SectionsMoreDetailsFiguresReferencesCited by Economic Development and Cultural Change Volume 38, Number 4Jul., 1990 Article DOIhttps://doi.org/10.1086/451830 Views: 39Total views on this site Citations: 12Citations are reported from Crossref Copyright 1990 The University of ChicagoPDF download Crossref reports the following articles citing this article:Nils-Christian Bormann, Yannick I. Pengl, Lars-Erik Cederman, Nils B. Weidmann Globalization, Institutions, and Ethnic Inequality, International Organization 75, no.33 (Apr 2021): 665–697.https://doi.org/10.1017/S0020818321000096Adewole Musiliu Adeolu How Resource Endowment Affects Institution and Development: A Theoretical Analysis, SSRN Electronic Journal (Jan 2017).https://doi.org/10.2139/ssrn.2896066Danielle Resnick, Finn Tarp, James Thurlow THE POLITICAL ECONOMY OF GREEN GROWTH: CASES FROM SOUTHERN AFRICA, Public Administration and Development 32, no.33 (Jun 2012): 215–228.https://doi.org/10.1002/pad.1619Martha C. Johnson Lobbying for trade barriers: a comparison of poultry producers' success in Cameroon, Senegal and Ghana, The Journal of Modern African Studies 49, no.44 (Nov 2011): 575–599.https://doi.org/10.1017/S0022278X11000486Nicolas van de Walle The Institutional Origins of Inequality in Sub-Saharan Africa, Annual Review of Political Science 12, no.11 (Jun 2009): 307–327.https://doi.org/10.1146/annurev.polisci.11.063006.092318Edward Addo, Robert Marshall Ghana’s non-traditional export sector: expectations, achievements and policy issues, Geoforum 31, no.33 (Aug 2000): 355–370.https://doi.org/10.1016/S0016-7185(99)00049-4Richard Grant Economic Globalisation: Politics and Trade Policy in Ghana and Kenya, Geopolitics 4, no.11 (Jun 1999): 57–82.https://doi.org/10.1080/14650049908407637Richard Grant, John Agnew Representing Africa: The Geography of Africa in World Trade, 1960-1992, Annals of the Association of American Geographers 86, no.44 (Dec 1996): 729–744.https://doi.org/10.1111/j.1467-8306.1996.tb01774.xDerick W. Brinkerhoff, Nicolas P. Kulibaba Perspectives on participation in economic policy reform in Africa, Studies In Comparative International Development 31, no.33 (Sep 1996): 123–151.https://doi.org/10.1007/BF02738991 Bibliographie, (Jan 1996): 279–321.https://doi.org/10.3917/kart.hibou.1996.01.0279Nicolas Van De Walle Political liberation and economic policy reform in Africa, World Development 22, no.44 (Apr 1994): 483–500.https://doi.org/10.1016/0305-750X(94)90106-6Yilma Gebremariam Obstacles to trade liberalization and economic cooperation among west African states, Journal of International Development 5, no.11 (Jan 1993): 79–92.https://doi.org/10.1002/jid.3380050105