Firm-Level Determinants of Export Performance of Ghanaian Small and Medium Enterprises

ABSTRACT

The purpose of this study is to examine the firm-level determinants of export performance of Small and Medium Enterprises (SMEs) using the Strategic Export Model. This study attempts to understand how internal/firm-level variables can be used to complement macro-level policies and programmes to help improve the level of exports in Ghana. The aim of this study therefore is to examine how firm characteristics, firm competencies and capabilities, and firm export marketing strategies of SMEs lead to export performance (export intensity, management perception of export profitability, and management satisfaction with export performance).

This study is explanatory, using quantitative method focused on Small and Medium Enterprises (SMEs) involved in active exporting as at 2013. Cross-sectional survey questionnaires were used to solicit from 111 firms registered with the Ghana Export Promotion Authority on export determinants and their export performance. The data collected was analysed using descriptive and regression analysis. The results of the study found that the three constructs used as firm-level determinants in the study namely: firm characteristics, firm competencies and capabilities, and firm export marketing strategies are generally positively and significantly related to firm‟s export performance. This study recommends that export firms and policy must improve upon the competiveness of exporters through the elimination of export barriers, promotion of firm‟s competencies, and formulation and implementation of marketing strategies that can be adopted by export firms.