Export Commitment and its Impact on Firm-Level Export Performance: Evidence from SMEs Cluster of Ahmedabad, India

Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport, vol. 3, no. 3 (2015): 90-95. Science and Education Publishing (SciEP), USA doi: 10.12691/jbe-3-3-1

6 Pages Posted: 24 Feb 2016

See all articles by Pawan K. Chugan

Pawan K. Chugan

Nirma University - Institute of Management

Shivangi Singh

Nirma University - Institute of Management

Date Written: November 2015

Abstract

Fast changing economic environment has led exporting to be evolved as one of the fastest growing economic activities in the recent times. However, in this highly competitive global era exporting firms have to overcome several barriers in achieving superior performance in the international markets. Enhancing firms’ commitment towards exporting is one such step towards ensuring successful international ventures by them. It is essential for the firms to build their commitment towards exporting so that they can ensure effective and profitable actions. In this regard, the role played by firm’s management is crucial as successful international operations require experienced and motivated personnel. The study therefore, focuses on the performance of exporting firms from the angle of commitment towards exporting exhibited by them, along with studying the moderating role of the phenomenon of clustering of firms in this relationship. The study draws its sample from small and medium sized exporting firms belonging to drugs and pharmaceutical industry of Ahmedabad city of the Gujarat State of India. On the commitment side it is found that a high degree of managerial commitment, which comes mostly from the owners, is a key to achieve better export performance. Looking at this direct relationship, it is also found that the SMEs benefit from clustering in the form of linkages, common supply chain network, labour pooling, information and knowledge sharing, etc. and therefore, the variables in the study act as competitive advantage for firms’ better export performance.

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Keywords: Export commitment, Firm-level export performance, Clustering, Small and Medium sized firms

JEL Classification: D21, D23, F10, F13, F14, F19, F21, F23, F40, F49, J24, L21, M19, M54

Suggested Citation

Chugan, Pawan Kumar and Singh, Shivangi, Export Commitment and its Impact on Firm-Level Export Performance: Evidence from SMEs Cluster of Ahmedabad, India (November 2015). Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport, vol. 3, no. 3 (2015): 90-95. Science and Education Publishing (SciEP), USA doi: 10.12691/jbe-3-3-1 . Available at SSRN: https://ssrn.com/abstract=2736385

Pawan Kumar Chugan (Contact Author)

Nirma University - Institute of Management ( email )

Sarkhej Gandhinagar Highway
Ahmedabad, Gujarat 382481
India
+912717241900 (Phone)
+912717241916 (Fax)

Shivangi Singh

Nirma University - Institute of Management ( email )

Sarkhej-Gandhinagar Highway
Via Gota
Ahmedabad, Gujarat 382481
India

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