Firm Characteristics on Export Performance (Case of Ethiopian Exporting Firms)
Keywords:
export, export performance, firm’s characteristicsAbstract
International trade is becoming the agenda of discussion among businesses and different stakeholders as a result of its contribution to countries economy through generating enormous foreign currencies. Better export performance of the firms can plays a crucial roles by giving firms and nations a realistic opportunity for growth. This study has shown firm characteristics indicators (firm size in terms of full time employees, the age of the firms, length of overseas experience, capital origin of the firms) in relation with export performance in the context of Ethiopian exporters. The main purpose of this study was to assess the significant relationship between firm’s characteristics and export performance of the firm. Quantitative research has been conducted through a survey, using a questionnaire with 389 sample exporters taking part in it in which 88 percent response rate achieved. Primary data has collected from each strata using systematically selected key informants like CEO and senior experts having deep knowledge about export practices of the firm. Descriptive statistics, correlation, and multiple regression were employed as a tools of data analysis. As per the finding of the study there is a correlation among firm characteristic indicators and export performance, and adjusted regression result shows that 52 per cent of the variation in export performance can be explained by the firm characteristic indicators. Regression finding revealed that firm’s overseas exporting experience (beta =.178) was rated as the most influential factor followed by firms capital origin. For these reasons, it has been suggests that firms get, for their CEOs and experts, , continuous and productive training on international trade; and firms are able to have enough educated, trained number of full time employees, and Ethiopian investment policy needs to allow and encourage foreign firms (firms with huge capital/resource/international experience or capabilities) wants to be engaged on exporting activities either jointly or privately to attracts more foreign currencies which in turn boosts the nation’s economy and improves the livelihood of the people in the country.
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