Understanding Factors That Impact Firms’ Intent to Export in the Future

Unlike previous studies, where the emphasis is to predict the export behavior and export performance of firms, this study is focused on understanding the factors that impact firms’ intent to export in the future. Based on the logic of the RBV theory, a firm’s internal resources such as management knowledge and experience, unique product offering and managerial knowledge of international business are key determinants of the firm’s export intention. The importance of management’s commitment to understanding the export behavior of firms is illuminated in Leonidou, Katsikeas and Piercy’s (1998) found that the extent of planning and objective setting for export activities is more intense in firms with committed management than in firms that lack management commitment to export. Given this evidence, we propose: Hla: There is a positive relationship between management’s commitment to export and firms' export intention. The results from Barker and Kaynak (1992) suggest that the most important export barriers for non-exporters are high start-up costs, insufficient information about exporting, and lack of foreign contact. Given this evidence, we propose: H2: There is a significant difference between exporters’ and non-exporters’ perception of risk associated with starting new export ventures. A study by Dichtl, Koglmayr and Mueller (1990) found that the most significant barriers to trade for exporters are price related, while market development costs were found to be the most important barrier to export for non-exporters. Given this evidence, we propose: H3: There is a significant difference between exporters’ and non-exporters’ perception of operational and procedural risk of exporting.