Determinants of export performance: a framework and empirical investigation on Ethiopian manufacturing export firms

Abstract

Exports can play an important role in contributing to the growth of a country's economy. Thus, investigating the key factors that influence export performance is a significant step in ensuring sustainable economic development for the country. The aim of the study is to develop and test a model for identifying and analysing the major determinants influencing Ethiopian manufacturing firms’ export performance. The study adopted structural equation modeling (SEM) as a method to analyse data from 349 participants (N = 349) to carry out EFA and CFA. To analyse the data, SPSS Version 25 and AMOS 18 were used for examining the measurement model. In addition, the study investigated the important-performance map analysis to comprehend the relative significance of dependent variables. The study aimed to combine the contingency theory with the resource-based view (RBV) and attempted to adequately address the research question: What are the successful determinants influencing the export performance of Ethiopian manufacturing export firms? The Tobit and Probit models' regression results showed that there is a statistically significant positive relationship between firm characteristics, management determinants, competitive intensity, technological factors, foreign market characteristics, and export performance with the mediating variable of export marketing strategy. Also, the investigation of the important-performance map (IPMA) revealed that all the unstandardized sum weights of the exogenous constructs' importance (FC, MD, CI, FMC, FM) are not equally significant factors for the target endogenous construct (EMS and EP). Consequently, competitive intensity and management determinants had advanced scores that influenced export performance. The current study has significant implications for researchers, practitioners, export managers, and policymakers. It may serve as a reference to help incorporate critical elements that need to be considered when formulating decisions and policies. Furthermore, the study adds to the body of knowledge on export marketing literature by examining theoretical and empirical evidence and investigating the direct and indirect determinants of export performance as well as potential mediators of export marketing strategy.