Perceptions of U.S. Manufacturing SMEs concerning Exporting: A Comparison Based on Export Experience

Growth in the volume of exports by U.S. firms is desirable because it creates more jobs and leads to a higher standard of living in the United States. Since the U.S. contains just 5 percent of the world's population, relatively vast potential markets for U.S. products exist abroad. Yet knowledge about international marketing and international markets is often unavailable to small and medium-sized U.S. enterprises (Edmunds and Khoury 1986), many of which are inexperienced in the international marketplace. A primary area of interest in studies of export behavior has been the internationalization process in the firm (Cavusgil 1984a; Czinkota and Johnston 1981; Joynt and Welch 1985; Piercy 1981; Samiee and Walters 1991; Steinmann, Kumar, and Wasner 1980). Several factors contribute to this interest. First, successful modeling of the process enhances the predictability of export behavior. Second, significant variables determining the direction, rate, and success of export development need to be identified. The purpose of this study is to examine the perceptions of the CEOs of small and medium-sized enterprises (SMEs) relative to selected exporting activities. An attempt is made to identify differences in executives' perceptions based upon the length of time that their firms have been involved in exporting. It is anticipated that perceptions differ among respondents relative to the length of time their firms have been actively involved in exporting. This study explores potential differences in motivational factors, managerial attitudes and capabilities, and characteristics of the firm based upon varying levels of export experience. The relationship between export experience and perceptions of exporting is important since these perceptions may differ between beginning and long-term exporters. If these differences can be effectively captured, then it may be possible to develop programs to aid organizations in their endeavors to internationalize their marketing efforts. This study attempts to explore the extent of these differences. While many U.S. firms participate in some way in international business, the degree of participation varies widely. In some firms, foreign sales account for only a small percentage of total firm sales while in other firms, a large percentage of sales are attributable to overseas activities. This "variability in participation" may be accounted for by differences in perceptions of requirements for financial or human resources, value of government support for exporting, domestic and foreign market sizes, the importance of various exporting variables, the degree of domestic managerial foci (Axinn 1988, Cavusgil 1984a, Cavusgil and Nevin 1981a), and other factors. Assuming length of experience in exporting is related to various perceptions and attitudes regarding exporting activities, positive changes in these perceptions ought to produce additional sales to entrepreneurial firms. If reasons that limit international marketing efforts can be identified, policies may be formulated to facilitate international trade efforts by these firms. DISCUSSION OF PREVIOUS STUDIES Previous researchers have examined reasons for companies initially exporting (Bilkey 1978; Bilkey and Tesar 1977; Cavusgil, Bilkey, and Tesar 1979). Others have examined the changes in locations of sales offices and manufacturing which are associated with international experience, as well as correlates of export intensity (Axinn 1988, Czinkota and Johnston 1983, Diamantopoulos and Inglis 1988). Steinmann, Kumar, and Wasner (1980) have presented a conceptual model for the internationalization process of small firms that could serve as a basis for future research. The key variables in the model include elements of corporate strategy of small and medium-sized enterprises, the decision to invest abroad, the building-up of facilities abroad, and managing operations abroad. In a study of small firms, Ortiz-Buonafina (1990) investigated the effects of export marketing activities and size of the firm on the internationalization process. …