Identifying Factors for Successful Exporting by Small Businesses: Implications for Competitive Advantage
This study develops a logit choice model of factors that can contribute to developing a competitive advantage for exporting by a small business. The data used in the study are from 142 small businesses in the gulf coast region of the United States. Among various factors, international training, level of preparation to enter foreign markets and as active promotional strategy are found to be significant predictors of obtaining a competitive advantage for exporting. Within the active promotional strategy, additional analysis revealed the use of letter campaigns and international salesman to be the most effective strategies for consistent exporting by small businesses. The predictive validity, evaluated by the U-method, of the proposed framework was high and managerial inferences are drawn for small businesses to obtain a competitive advantage for exporting to foreign markets.