The effect of government export incentives on the export performance of companies, a case study of member companies of Gilan Stock Exchange

Number of pages: 133 File Format: word File Code: 30762
Year: 2013 University Degree: Master's degree Category: Management
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    Dissertation for Master's degree (M.A)

    Abstract:

    The internationalization of business has been greatly manifested in global markets. In today's global markets, there are many companies that turn to exports, because the local markets for companies and manufacturers are saturated. The issue of foreign trade is one of the most important issues in the country's economic development. The purpose of this research is to investigate the effect of government export incentives on the export performance of companies. In this research, export tools and incentives were measured into 4 sections: financial goals, strategic goals, organizational learning goals, and communication with shareholders. The statistical population of the research is made up of member companies of Gilan Stock Exchange. The research questionnaire was completed by senior managers, middle managers and exporting managers in manufacturing companies. Data analysis was done through Pearson correlation and finally all research hypotheses were confirmed.

    Key words: government export incentives, financial goals, strategic goals, organizational learning goals, communication with shareholders

    Introduction:

    Foreign trade is one of the most important topics in the economic development of the country. This sector is a source of foreign exchange income for investment and absorption of new technology in order to increase the productive capacity of the economy of any country. The classics believe that trade is a means to expand the domestic market, division of labor, increase efficiency, improve productivity and economic growth and development and acts as an engine of economic growth and development. On the other hand, diversity in exports for countries like Iran that have a single product export, oil, is also of double importance. Non-oil exports increase foreign exchange earnings and increase the share in world trade and international markets (Khalilian and Farhadi, 2012).

    As a result of the increasing trend towards the global economy and the dependence of companies on resources, goods and commercial services, international business is especially looking for individual and organizational trends to improve the level of performance. Exporting is the fastest and easiest way for small companies to enter global markets. In fact, small and medium-sized companies enter the field of export for long-term survival and growth. Companies enter the export market to gain competitive advantage for growth and survival. According to the resource-based approach [1], company resources are competitive advantage resources. According to Barney [2] (2000), competitive advantage means using the value created by the company in such a way that this value is not used by other competitors at the same time (Stoian et al, 2011).

    For the survival of the export management level, governments provide export incentives for exporters, which are available to companies and people who operate in this field in various ways. The purpose of this study is to investigate the effect of these export incentives on the export performance of companies. The first chapter includes the statement of the problem, objectives, research questions, hypotheses, importance and necessity, the theoretical framework of the research, the conceptual and operational definition of the research variables and the scope of the research.

    Statement of the problem:

    The goal of export companies is to supply goods to foreign markets, earn profit, continuous income and increase competitiveness over time. Identifying export determinants in order to improve the country's export performance is the most important factor in creating a balance between the world economy. The last decade has been distinguished from previous decades due to globalization and competition in businesses. Markets of consumer products, industrial goods and services or resource markets such as capital, materials and technology are highly integrated globally. At the same time, the formation of various trade agreements and the establishment of open trade policies between countries have led to the induction of protectionist tools and the removal of trade barriers (Tahghiqi et al., 2017). Export development programs are provided by the government, trade associations and other organizations to help companies overcome these limitations and play a key role in encouraging international business activities. Although there is no systematic review that shows the relationship between government programs and the export performance of companies, but there are several reports that show the positive effect of the extensive use of export incentives on the growth of companies' exports (Wazife Doost and Zarinnegar, 2018).

    Dimensions of export performance have been expressed differently by different researchers, in most researches they focus more on the financial dimension of export performance of companies. Haghighi et al. (2007) have divided export performance into 2 categories, foreign and domestic, which are industry characteristics, foreign market characteristics, and domestic market characteristics, including external factors and export marketing strategies, management perception and orientation, management characteristics, and company capabilities, including internal factors. Due to its complex nature, export performance is one of the most unknown areas in international business. Therefore, it is not surprising to state that there is no general agreement on the concept of export performance dimensions, and research in this field has so far focused mostly on financial performance. Zaozu (2002) researched the amount of export concentration, and Morgan et al. (2004) conducted a study on sales volume, export market share and profit. In this research, export performance dimensions are divided into 4 general categories:

    Achieving financial goals

    Achieving the goal of communicating with shareholders

    Achieving strategic goals

    Achieving organizational learning goals

    Achieving financial goals is very important and necessary for companies in the long term. But on the other hand, export performance does not only include financial goals and includes other elements as well. One of the dimensions is strategic goals. Exporting companies may have strategic goals such as international expansion of activities. In addition, companies can measure their export success by comparing with the amount of exports of competing companies. Apart from the financial performance scales, it is very important to achieve functional and operational goals for companies.

    Communication with different people and stakeholders should be considered when measuring export performance. Shareholders and managers may have different approaches and views on export performance, which is also very difficult to measure operationally. The measurement of export performance that is related to shareholders, for example, can also be among other groups such as employees and customers. Since there are no acceptable dimensions of export performance among researchers, companies use various dimensions. Companies that do not achieve their financial goals in the long term are likely to leave the market, but among them there are also companies that learn and study the characteristics of the export market and acquire new skills and upgrade themselves with organizational capabilities. Therefore, organizational learning goals have become part of the goals of many exporting companies (Durmisogln et al, 2012).

    Various factors affect the export performance of companies and are even needed for success in the export market. Companies need to use resources and optimize their export activities. Export incentives are tools and services that help companies improve their export performance. Export incentives are scales and factors that support the export activities of companies. Things like export seminars, consulting, presentation of books in the field of export and export budgeting, export incentives also promote success in the field of export. In this research, export tools and incentives are divided into two general parts: 1) Providing subjective knowledge, 2) Providing practical knowledge.

    Subjective knowledge such as providing information about exports, holding seminars, consulting about exports, introducing export offices in important export countries, conducting research on the international market. Promotion of the company's products abroad, export insurance, introduction of important exporting companies to buyers, export budget (Durmisogln et al, 2012). Therefore, the purpose of this research is to investigate the impact of government export services and incentives, as an independent variable, on the export performance dimensions of exporting companies, as a dependent variable. This research seeks to answer the question of whether export services and incentives have an effect on the export performance of exporting companies and members of the Gilan Stock Exchange? Importance and necessity of research: Today, the role of exports is more important for the country than earning foreign currency, this role is in employment, production, economic growth and so on. appears

  • Contents & References of The effect of government export incentives on the export performance of companies, a case study of member companies of Gilan Stock Exchange

    List:

    List.. Page

    Abstract.. M

    Chapter One: Generalities. 1

    1-1) Introduction. 2

    1-2) statement of the problem. 3

    1-3) The importance and necessity of research. 6

    1-4) The theoretical framework of the research. 7

    1-4-1) conceptual model of research. 8

    1-5) research objectives. 8

    1-6) research questions. 9

    1-7) research hypotheses. 9

    1-8) Definition of variables. 10

    1-8-1) Conceptual definition of research variables. 10

    1-8-2) operational definition of research variables. 11

    1-9) research area. 12

    Chapter Two: Literature and research background. 13

    2-1) Introduction. 14

    2-2) Export and its importance. 15

    2-3) Analysis of Iran's foreign trade trend. 21

    2-4) Obstacles, problems and export restrictions. 22

    2-5) Providing a comprehensive framework for export development. 26

    2-6) export performance. 28

    2-7) dimensions of export performance and its measurement criteria. 30

    2-8) export incentives and stimuli. 36

    2-9) export performance and export incentives. 39

    2-9-1) Financial goals. 39

    2-9-2) The purpose of communicating with shareholders. 40

    2-9-3) Strategic goals. 41

    2-9-4) organizational learning goals. 41

    2-10) government export tools and incentives. 42

    2-10-1) subjective knowledge. 42

    2-10-2) practical knowledge. 43

    2-11) conceptual model of research. 44

    2-12) related research. 48

    2-12-1) Internal investigation. 48

    2-12-2) Foreign research. 49

    2-13) Conclusion. 51

    Chapter three: research method. 52

    3-1) Introduction. 53

    3-2) research method. 53

    3-3) Statistical population. 53

    3-4) sampling method. 54

    3-5) Methods and tools of information gathering. 55

    3-6) validity and reliability of the questionnaire. 58

    3-6-1) Narrative. 58

    3-6-2) Reliability. 59

    3-7) Information analysis method. 60

    Chapter four: data analysis. 61

    4-1) Introduction. 62

    4-2) Description of respondents' demographic variables. 63

    4-3) Description of research variables. 85

    4-4) Checking the normality of research variables. 91

    4-5) Investigating the status of research variables. 92

    4-6) Test of research hypotheses. 93

    Chapter Five: Conclusion. 96

    5-1) Introduction. 97

    5-2) Results of descriptive statistics. 97

    5-3) Results of inferential statistics and conclusions. 98

    5-4) Suggestions for research. 100

    5-5) Suggestions for future researchers. 101

    5-6) research limitations. 102

    Resources and attachment. 103

    Resources.. 104

    Appendix.. 108

    Appendix 1: Questionnaire. 109

    Appendix 2: The amount of alpha of research variables. 113

    English abstract. 117

     

     

     

     

     

     

     

     

    Tables Page

    Table 2-1) export obstacles and problems. 25

    Table 2-2) Determinants of export performance. 31

    Table 2-3) Dimensions of export performance from the perspective of different researchers. 35

    Table 3-1) research variables and related questions. 56

    Table 2-3) The amount of alpha of research variables. 60

    Table 1-4) Gender of research respondents. 63

    Table 4-2) Respondents' education. 64

    Table 4-3) Age of respondents. 65

    Table 4-4) Time of the company's activity in the matter of export. 66

    Table 4-5) different geographical areas of the company. 67

    Table 6-4) variable description of the company's exports to countries. 68

    Table 7-4) Variable description of the change in the number of exporting countries. 69

    Table 4-8) Description of the variable in the number of export products of the company. 70

    Table 9-4) description of saturation variable in domestic markets. 71

    Table 4-10) variable description of the loss of investment risk in foreign markets. 72

    Table 11-4) Variable description of growth forecast in foreign markets. 73

    Table 12-4) Description of the variable seeking more customers. 74

    Table 13-4) description of the variable sequence of competitors. 75

    Table 14-4) Description of the export variable part of the company's strategy. 76

    Table 15-4) description of the preference variable of the senior managers of the company. 77

    Table 16-4) variable description of export incentives. 78

    Table 17-4) description of random variable. 79

    Table 18-4) variable description of financial problems. 80

    Table80

    Table 19-4) variable description of lack of sufficient information on exports. 80

    Table 20-4) variable description of lack of target existence. 81

    Table 21-4) variable description of lack of honesty in the market. 81

    Table 4-22) Variable description of contact with target markets. 81

    Table 4-23) variable description of time limits in international markets. 82

    Table 24-4) variable description of lack of familiarity with customer behavior in target markets. 82

    Table 4-25) variable description of lack of expert people in the company. 83

    Table 26-4) Variable description of insufficient support. 83

    Table 4-27) variable description of export tools and incentives. 84

    Table 28-4) variable description of financial goals. 85

    Table 29-4) variable description of communication with shareholders. 86

    Table 4-30) variable description of strategic goals. 87

    Table 4-31) variable description of learning objectives. 89

    Table 4-32) Kolmogorov-Spirnov test. 90

    Table 33-4) Inferential statistics of the t-test of research variables. 91

    Table 34-4) Descriptive statistics of the t-test of the research variables. 91

    Table 35-4) Correlation coefficient of the first hypothesis. 92

    Table 4-36) Correlation coefficient of the second hypothesis. 93

    Table 37-4) Correlation coefficient of the third hypothesis. 94

    Table 4-38) Correlation coefficient of the third hypothesis. 95

     

    Charts:

    Chart 2-1) Export obstacles and problems. 29

    Chart 2-2) Determinants of export performance. 36

    Chart 3-2) Dimensions of export performance from the perspective of different researchers. 41

    Chart 3-1) research variables and related questions. 64

    Chart 3-2) The amount of alpha of research variables. 68

    Chart 4-1) Gender of research respondents. 63

    Chart 4-2) Respondents' education. 64

    Chart 4-3) Age of respondents. 65

    Chart 4-4) Activity time in the company in the matter of export. 66

    Chart 4-5) different geographical areas of the company. 67

    Chart 6-4) Variable description of the company's exports to countries. 68

    Chart 7-4) Variable description of the change in the number of exporting countries. 69

    Chart 4-8) Description of the variable in the number of export products of the company. 70

    Chart 9-4) Description of saturation variable in domestic markets. 71

    Chart 4-10) Variable description of the loss of investment risk in foreign markets. 72

    Chart 4-11) Variable description of growth forecast in foreign markets. 73

    Chart 4-12) Description of variable seeking more customers. 74

    Chart 4-13) Description of the variable sequence of competitors. 75

    Chart 14-4) Description of the export variable part of the company's strategy. 76

    Chart 4-15) description of the preference variable of senior managers of the company. 77

    Chart 16-4) variable description of export incentives. 78

    Chart 4-17) Random variable description. 79

    Chart 18-4) variable description of financial problems. 80

    Chart 4-19) variable description of lack of sufficient information about exports. 80

    Chart 20-4) variable description of lack of target existence. 81

    Chart 4-21) variable description of lack of honesty in the market. 81

    Chart 4-22) Variable description of contact with target markets. 81

    Chart 4-23) variable description of time limits in international markets. 82

     

    Form. Page

    Figure 1-1) Research conceptual model. 9

    Figure 2-1) The comprehensive framework of export development. 31

    Figure 2-2) Research conceptual model. 53 53 Formulas. Page

    Formula 3-1) Cochran's formula. 61

    Formula 2-3) Cronbach's alpha formula.

    67

    Source:

    Resources:

    Uma, Sekaran, 1380, research methods in management, Saebi, Mohammad and Shirazi, Tehran, Islamic State Management Education Center

    . Dear God Abbas, 2013, the impact of diversifying exports from primary and agricultural goods to industrial products on the long-term trend of the trade relationship in Iran, Business Research Quarterly, No. 32, pp. 183-224. Jabal Ameli, Farkhandeh, 2015, factors affecting the export of pistachio, saffron, dates in the basket of non-oil export goods (1370-1380), Journal of Agricultural Economics and Development, fourth year, number 54, 85-101.

    Hosseini. Ahmed, Ghazizadeh. Mustafa, Spongani

The effect of government export incentives on the export performance of companies, a case study of member companies of Gilan Stock Exchange