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The internationalisation of manufacturing SMEs in the Western Cape

Thesis (MBA)--Stellenbosch University, 2005. / ENGLISH ABSTRACT: The findings of this study regarding company and export profiles correlated largely with the
findings of the various studies detailed in the literature review. Given the close correlation
with other studies on the same subject, it is the researcher's belief that this study will have a
broad application among prospective exporting SMEs, both regionally and nationally. The
main findings are set out below.
The review of the profile of manufacturing SMEs in the Western Capes uncovered:
• a preference for their local markets;
• the fact that trade frequencies are relatively high;
• that the number of countries entered, represented a relatively narrow focus;
• that Europe enjoyed significant support from the respondents;
• that SADC and the rest of Africa attract relatively low levels oftradc.
Although indicated in the national studies, it was still disappointing to discover the relatively
low levels of export propensity (as defined by export sales as a function of total sales)
prevalent among exporting SMEs. This was reflected by the fact that:
• Only a small percentage of medium-sized SMEs are making inroads in this area.
• The growth estimates for expected annual export sales are disappointing and
possibly even pointing to a declining trend.
The surveyed SMEs indicated that their expansion into international markets is motivated
primarily by:
• the utilisation of excess capacity; and
• the opportunity to grow sales.
There also seems to be an opportunist approach to the export development process stemming
from that fact that:
• Almost 50 % of finns responded to unsolicited orders.
• Exporting SMEs are drawn into the process passively, rather than through a
proactive and conscious decision.
The apparent lack of a clear export orientation among exporting SMEs in the Western Cape is
of particular concern, as evidenced by the factors identified above.
Exporting SMEs have identified the arena of marketing management and market access as
key barriers in the process of internationalising their businesses. In addition, they identified a
lack of knowledge within this field of study within their organisations, as well as marketing
support, as being the areas where they would most like assistance from policy makers.
The following were identified as major barriers:
• access to, and knowledge of specific markets,
• representation in the various markets, and
• an effective marketing function.
The following represented the area of least knowledge:
• international marketing management, and
• market entry channels.
The following represented the most effective ways in which policy makers could assist:
• constraint elimination (Policy making or otherwise).
• marketing support.
The fundings of the review regarding the use of support institutions revealed that:
• Only 45 % of exporting 8MEs actually make use of these institutions.
• 72 % of sample indicated that they only make use of these institutions every six
months or at even less frequent intervals.
Given the findings under this section, it is apparent that those organisations with a vested
interest in export promotion, and government in particular, should take particular note of these
fmdings. It seems that at present the various export promotion bodies (state or private) are
failing to attract 8ME exporters to their products and services, and in so doing make a
meaningful impact on export promotion. / AFRIKAANSE OPSOMMING: Die bevindings van hierdie studie ten opsigte van maatskappy- en uitvoerprofiele het
grotendeels ooreengestem met dit wat gevind is in ander soortgelyke studies. Gegewe die nou-ooreenstemming
met ander studies op dieselfde vakgebied, glo die navorser clat die studie by 'n
groot aantal klein en medium (KMO's) uitvoerorganisasies aanklank sal vind, op beide streek
en nasionale vlak.
Die hoofbevindinge van die studie is soos volg:
Die studie van vervaardigingsmaatskappye in die Wes Kaap het die volgende openbaar:
• 'n voorkeur vir hul plaaslike markte;
• die feit dat handelfrekwensies relatief hoog is;
• dat die getal lande wat betree is, 'n relatiewe nou fokus verteenwoordig;
• dat Europa noemenswaardige ondersteuning van die respondente geniet het;
• dat SADC en die res van Afrika relatieflae vlakke van handel trek.
AlhoeweI dit in nasionale studies aanduidend was, is dit steeds teleurstelend om die relatieve
lae vlakke van heersende uitvoergeneigdheid onder uitvoer-KMO's te ontdek (soos gedefinieer
deur uitvoerverkope as 'n funksie van totale verkope). Dit is weerspieel deur die feit dat:
• Slegs 'n klein persentasie van medium-grote KMO's maak inslag in die area.
• Die groei vooruitskattings vir verwagte jaarlikse uitvoerverkope was teleurstellend en
wys moontlik na 'n dalende tendens.
Die studie het getoon dat KMO's se motivering om die uitvoermark te betree deur onder
andere die volgende gemotiveer word:
• die gebruik van addisionele kapasiteit; en
• die geleentheid om bruto opbrengs te bevorder.
Die KMO's wat ondersoek is het aangedui dat hulle u:itbreiding tot die intemasionale mark
hoofsaaklik gemotiveer is deur:
• die aanwending van oorskotkapasiteit; en
• die geleentheid om verkope te verhoog.
Daar blyk ook 'n opportunistiese benadering te wees rakende die uitvoerontwikkelingsproses,
voortspruitend uit die feit dat:
• Sowat 50 % van die firma's het reageer op ongevraagde plasings.
• Uitvoerende KMO's word passiewelik tot die proses ingetrek, eerder dan deur 'n proaktiewe
en bewustelike besluit.
Die oenskynlike gebrek aan 'n duidelike uitvoer orientasie tussen uitvoerende KMO's in die
Wes-Kaap is van besondere kommer, soos verduidelik met die bogemelde gei"dentifiseerde
faktore.
Uitvoerende KMO's het die arena van bemarkingsbestuur en marktoegang identifiseer as
sleutel hindemisse in die proses van intemasionalisering van hulle besigbede. Bykomend
hiertoe het hulle 'n tekort aan kennis identifiseer binne hierdie studieveld in hulle organisasies,
sowel as bemarkingsondersteuning, as die areas waar hulle die meeste ondersteuning benodig
van beleidsmakers.
Die volgende is identifiseer as sleutel hindemisse:
• toegang tot, en kennis van die spesifieke markte,
• verteenwoordiging in die verskeie markte, en
• 'n effektiewe bemarkingsfunksie.
Die volgende verteenwoordig die areas met die minste kennis:
• internasionale bemarkingsbestuur, en
• markbetredingskanale.
Die volgende verteenwoordig die mees effektiewe wyse waarbinne beleidsmakers kan
ondersteun:
• beperkingseliminasie (beleidsmakers of andersins).
• bemarkingsbystand.
Die bevindinge van die oorsig bertreffende die gebruik van ondersteuningsinstellings het aan
die lig gebring dat:
• Slegs 45 % van die uitvoerende KMO's maak werklik gebruik van hierdie instellings.
• 72 % van steekproef dui daarop dat hulle net van hierdie instellings elke ses maande of
op minder gereelde intervalle gebruik maak.
Gegewe die bevindinge onder hierdie afdeling, is dit duidelik dat daardie organisasies met 'n
gevestigde belang in uitvoerpromosie, en vernaarn die staat, besondere kennis moet neem van
die bevindinge. Op hede blyk dit dat die verskeie uitvoerpromosie- liggame (staat of openbaar)
faal om uitvoerende KMO's te trek tot hulle produkte en dienste, en sodoende 'n
betekenisvolle impak te maak op uitvoerpromosie.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/50500
Date03 1900
CreatorsEsterhuizen, Andre
ContributorsDe Blois, Lieselotte, Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business.
PublisherStellenbosch : Stellenbosch University
Source SetsSouth African National ETD Portal
Languageen_ZA
Detected LanguageUnknown
TypeThesis
Format95 p. : ill.
RightsStellenbosch University

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