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

Pawan K. Chugan¹ and Shivangi Singh^1,

¹Institute of Management, Nirma University, Ahmedabad

Cite this paper:
Pawan K. Chugan and Shivangi Singh. 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. 2015; 3(3):90-95. doi: 10.12691/jbe-3-3-1

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.

Keywords:
export commitment firm-level export performance clustering small and medium sized firms

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