Management Characteristics, Attitudes and the Decision to Export

Abstract

The incessant trend towards the internationalisation of the marketplace will continue to dominate the agendas of managers of Australia's manufacturing establishments as they approach the next millennium. Empirical studies of the determinants of the firm's export marketing behaviour have been quite prolific and internationally comprehensive (Aaby and Slater 1989) and the characteristics and attitudes of the firm's main decision makers are often posed as important explanatory variables. The current study also examines the significance of managerial characteristics, commitment and attitudes towards exporting behaviour, by concentrating on a sample of firms drawn from a single industry (food and beverage processors) and with similar size and locational characteristics (small-medium firms located in regional Victoria).

A logistic regression model with a binary dependent variable (ie current exporter vs non-exporter) and, initially, 19 independent variables was formulated and estimated. An optimal model utilising only six of the most significant, management-related variables was able to predict the probability of a firm being an exporter with an accuracy of over 90% . The importance of management's willingness to commit both its mind and its firm's resources to the export endeavour and its recognition of the importance of price competitiveness were significant discriminators of active export behaviour. Exporting managers were also found more likely to be tertiary educated and foreign language fluent but not necessarily any younger than their non-exporting counterparts.