Progress 05/16/11 to 05/15/14
Outputs
Target Audience: The target audience reached during this project was agribusinesses and members of the academic community. As mentioned above, attending local trade organizations' programs provided an opportunity to meet and to share results of the study with representatives of local businesses. Through formal presentations at various forums (listed below), the project insights and results were shared with the research community. Changes/Problems: Cancellation of website design and hosting, the main aim of designing and hosting a website related to export promotion programs, was to make available such information for the perusal of current or potential agribusiness exporters of South Carolina. During the website-planning phase, it was observed that multiple federal, state, and private web resources exist which disseminate similar information. Therefore, it was conveyed to the 1890 Research Administrator that allocating funds towards the objective related to website design and hosting may not result in additional benefit to the target population. Ergo, the project was modified to exclude the website component of information dissemination plan. What opportunities for training and professional development has the project provided? The project provided knowledge and professional development opportunities for multiple participants. Three graduate and two undergraduate students received training in scientific research methodology during the course of their assistantship. Students learned hypothesis development, survey design, data collection, and analysis by utilizing SPSS software. One graduate student presented a research paper at the Biennial Research Symposium in Jacksonville, Florida. Uwimana, Eric (2013). "Effectiveness of export assistance programs in reducing export barriers: An investigation of small scale agribusinesses in South Carolina", 17th Biennial Research Symposium, Jacksonville, FL. The project contributed towards an increase in international trade knowledge and networking opportunities for three faculty members who collaborated on the project. A Special Topics in Business course was developed based on the project findings as an elective for students pursuing a Minor in International Business, thereby benefitting the larger student population. Professional Development opportunities were made available to the PI in the form of attending regional seminars organized by organizations such as ECI-Find New Markets, Columbia, SC and Charleston Women in International Trade. These following seminars were targeted towards exporters operating in South Carolina: Brereton, Stephen and McMurray, Mike (2013, April). "Canada: Strategic Partner, Ongoing Trade Opportunities", Seminar conducted by ECI-Find New Markets, Columbia, SC. Thomson, Amy (2013, May) “Export Counseling and Services at U.S. Department of Commerce", Seminar conducted by Charleston Women in International Trade, Charleston, SC. The following presentations were also made possible by the assistance received through the grant: Singh, Renu (2013, October), “Export promotion programs-a helping hand for small scale businesses" working paper presented at the Faculty Seminar Series at School of Business, South Carolina State University. How have the results been disseminated to communities of interest? Three main groups of interest identified in this project are small agribusinesses exporters or potential exporters, policy makers, and academic researchers. Two peer-reviewed conference papers were published in proceedings of national conferences. Singh, Renu (2014). " Investigating the Role of Exports Promotion Programs in Augmenting Export Related Resources and Capabilities of Small Scale Enterprises", Proceedings of United States Association of Small Business & Entrepreneurship, Fort Worth, Texas. Singh, Renu (2014). “Examining the Role of Exports Promotion Programs in Increasing Export Capacity of Small Scale Enterprises", Proceedings of the 2014 South East Decision Sciences Institute, Wilmington, NC. Additionally, two non-peer reviewed presentations were also made through which research related to the project was disseminated to academic and practitioner audience. Uwimana, Eric (2013). "Effectiveness of export assistance programs in reducing export barriers: An investigation of small scale agribusinesses in South Carolina", 17th Biennial Research Symposium, Jacksonville, FL. Singh, Renu (2013). " Export promotion programs-a helping hand for small scale businesses" working paper presented at the Faculty Seminar Series at School of Business, South Carolina State University. Currently, workshop material is being prepared in coordination of Small Business Research Center at South Carolina State University to be distributed to workshop participants in the months of March and April 2014. A newsletter summarizing findings will be emailed to all study participants at the end of the study period. What do you plan to do during the next reporting period to accomplish the goals?
Nothing Reported
Impacts
What was accomplished under these goals?
A list of small scale agribusinesses was compiled from the information collected from the Department of Commerce, Southern United States Trade Association, Small Business Administration, business listings from the S.C. County Chamber of Commerce websites, and South Carolina Information Highway. This resulted in a sample frame of 580 companies. Service firms and firms not planning to export in the next five years were ruled out to obtain a sample of 475 agribusiness exporters or potential exporters (potential exporters are defined as firms not exporting presently but actively seeking information to begin exporting within a year). These sample frame units were contacted first through phone, and in case of non-response through emails, to explain the objectives and the relevancy of the study and to request their participation in the survey. 236 companies preferred an email questionnaire whereas 239 companies communicated a preference for postal surveys. To accommodate the request for email questionnaire, an online version of the survey was also developed. A self-administered questionnaire with a cover letter was mailed to firms willing to participate in the study. After each 30-day period, two additional email reminders were sent to increase the response rate. 156 completed questionnaires were received, giving a response rate of 32.8%. The response rate is comparable to the response rate reported in other studies, involving exporting firms. Eight responses were eliminated from the analysis due to missing data, yielding a study sample of 148 firms. Analysis and Results Based on existing literature, 26 items related to trade barriers were reflected in the survey grouped under four main categories: knowledge barriers, resource barriers, procedure barriers, and exogenous barriers. Knowledge and resource barriers were cited as the two biggest barriers by the respondent firms. Lack of information about potential export markets, buyers, and export procedure/documentation attributed to knowledge gaps; whereas, finding financial resources to support exporting activities and finding adequate assistance for export documentation significantly lead to resource inadequacy. Export Promotion Assistance to Small Businesses A comprehensive listing of all export promotion programs was compiled from websites of government agencies such as USDA, SBA, and Department of Commerce; as well as, from various agricultural boards. The programs were broadly classified as (1) informational programs such as distribution of trade-related information to exporters, foreign country market research, and counseling to both new and seasoned exporters, historical trade data, etc. (2) training programs such as seminars, workshops related to export procedure and documentation, product-related counseling, etc. (3) Trade mobility programs such as assistance for participation in trade shows and exhibitions, trade missions, overseas promotion of firm’s products etc., and (4) export financing programs mainly coordinated by Ex-Im bank to insure and finance exports to foreign countries. Respondent firms were categorized based on the level of exporting activity into four groups: (1) non- exporters (62 firms)- those that are presently not exporting but plan to export, (2) partially interested exporters (30 firms)- those that show an export to sales ratio of 10 percent or less, (3) growing exporters (32 firms)- those that have a export to sales ratio of 10 percent or less but export volume was higher than the level achieved five years ago, and (4) regular exporters (24 firms) were those having a current export to sales ratio of more than 10 percent. In the majority of the cases the awareness level for the programs was low indicating the failure of these programs in reaching the targeted firms. Awareness of these programs also depended on the level of internationalization of firms. Lack of awareness was more prominent among non-exporters and partial exporters than the other groups i.e. growing exporters and regular exporters. Five programs were ranked as popular among all four groups although not in the same order. Seminars on exporting indicated the highest awareness level followed by trade missions and trade shows’ participation. The results also indicated that as the awareness increased so did the use of the programs. To promote export activity and usage of export promotion programs amongst non-exporting agribusinesses, it is vital to establish direct linkages between usage of such programs and firm's improvement in the level of export related resources and capabilities. Towards this purpose, a MANAVO was conducted to measure the effects of four types of export promotion programs on a small business export related resources and capabilities. It was hypothesized that information-related export promotion programs, training-related export promotion programs, financial aid-related export promotion programs, and trade mobility-related export promotion programs will have a positive effect on firm's export specific resources and capabilities. Furthermore, the duration of program use is expected to have a positive and growing effect for firms that use export promotion programs longer than those who have used it for a shorter duration. This effect is particularly poignant for developing export related capabilities. The model for the main effects and interaction effects was tested on data collected from 140 small agribusiness firms which had used such programs in the past. The analyses presented a mixed picture in terms of main effects of the predictor variables (types of export promotion programs) on the outcome variables (firm's resources and capabilities). There was a significant positive effect of information-related export promotion program on financial resources and on customer relationship management capabilities. Training-related export promotion programs also significantly increased financial resources and customer management capabilities of the firm. Trade mobility -related programs such as trade shows and trade fairs were found to be significant in increasing financial resources, experiential resources, information capability, customer relationship capability, and product development capabilities of a firm. Similarly financial aid-related export promotion programs showed a positive relationship with all outcome variables with the exception of scale resources. The results of the study indicate that the Export promotion program usage by small businesses brings a measurable and a significant increase in specific resources and capabilities necessary for export market participation. Many times, small firms struggle with key resources to participate successfully in export ventures. In such a case, a government through its export promotion activity can lend a helping hand to increase probability of success for such businesses. Since this research suggests that businesses that have used these programs have benefitted in augmenting their resources, it becomes necessary to inform and to motivate other potential exporters to engage with such programs to increase their chance of success.
Publications
- Type:
Conference Papers and Presentations
Status:
Accepted
Year Published:
2014
Citation:
Singh, Renu (2014). Investigating the Role of Exports Promotion Programs in Augmenting Export Related Resources and Capabilities of Small Scale Enterprises" Proceedings of United States Association of Small Business & Entrepreneurship, Fort Worth, Texas (accepted).
- Type:
Conference Papers and Presentations
Status:
Accepted
Year Published:
2014
Citation:
Singh, Renu (2014). Examining the Role of Exports Promotion Programs in Increasing Export Capacity of Small Scale Enterprises", Proceedings of the 2014 South East Decision Sciences Institute, Wilmington, NC. (accepted).
- Type:
Other
Status:
Submitted
Year Published:
2014
Citation:
Singh, Renu " Export Promotion Programs: A Literature Review and Future Research Directions", International Business Review (revised and resubmitted).
- Type:
Journal Articles
Status:
Submitted
Year Published:
2014
Citation:
Singh Renu. Effectiveness of Export Promotion Programs on Internationalization of a Firm: The moderating Role of Knowledge Acquisition", Journal of International Business Studies (revised and resubmitted).
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Progress 01/01/13 to 09/30/13
Outputs
Target Audience: The target audience reached during this reporting period was agribusinesses and members of the academic community. As mentioned above, attending local trade organizations' programs provided an opportunity to meet and share results of the study representatives of local businesses. Through formal presentations at various forums (listed below), the projects’ insights and results were shared with the research community. Changes/Problems: Cancellation of website design and hosting- the main aim of designing and hosting a website related to export promotion programs was to make available such information for the perusal of current or potential agribusiness exporters of South Carolina. During the website planning phase, it was observed that multiple federal, state, and private web resources exist which disseminate similar information. Therefore, it was conveyed to the 1890 Research Administrator that allocating funds towards the objective related to website design and hosting may not result in additional benefit to the target population. Ergo, the project, was modified to exclude the website component of the information dissemination plan. What opportunities for training and professional development has the project provided? The project provided knowledge and professional development opportunities for multiple participants. Three graduate and two undergraduate students received training in scientific research methodology during the course of their assistantship. Students learned hypothesis development, survey design, data collection, and analysis by utilizing SPSS software. The project contributed towards an increase in international trade knowledge and networking opportunities for three faculty members who collaborated on the project. A Special Topics in Business course was developed based on the project findings as an elective for students pursuing a Minor in International Business, thereby benefitting the larger student population. Professional development opportunities were made available to the PI in the form of attending seminars organized by organizations such as ECI-Find New Markets in Columbia, SC, and Charleston Women in International Trade. The project also provided resources to attend and to present work at major academic conferences such as the United States Association of Small Business and Entrepreneurship and South East Decision Science Institute. How have the results been disseminated to communities of interest? Three main groups of interest identified in this project are small agribusinesses exporters or potential exporters, policy makers, and academic researchers. Small businesses are being reached through local export forums such as the Small Business Development Center at South Carolina State University, ECI located at Moore College of Business, and Women in International Trade in Charleston, South Carolina. Two workshops will be conducted in the coming months for small agribusinesses that have expressed an interest in exporting. A newsletter summarizing the findings will be emailed to all study participants at the end of the study period. The academic community is being reached through presentations at conferences and peer-reviewed publications in academic journals and proceedings. What do you plan to do during the next reporting period to accomplish the goals? The main tasks to be completed in the upcoming reporting period are conducting workshops for small scale agribusinesses and compiling the final report. Two workshops are planned in the coming months with the objective of disseminating information related to the use of exports as a growth strategy, highlighting challenges faced by a new exporter, identifying availability of export assistance from government agencies to mitigate those challenges, and showcasing how other businesses have gained export competency by using such assistance.
Impacts
What was accomplished under these goals?
Three main issues were explored and include the following: (1) status of agribusiness exports from South Carolina (2) classification of export promotion programs available for small businesses, and (3) effects of export promotion assistance on a businesses' export capacity. The following paragraphs present a brief summary of major findings. Agribusiness Exports from South Carolina Secondary data searches were conducted utilizing U.S. Census and trade data published by the United States Department of Agriculture to collect data related to the agribusiness sector of South Carolina. The objectives of data collection were to (1) describe salient characteristics of the agribusiness sector, (2) characterize forest and agriculture production in the state, (3) highlight the status of South Carolina's agricultural exports in relation to other states, and (4) to understand the economic impact of agribusiness sector on South Carolina's overall economy. Data was analyzed using trend analysis and an Input Output model to estimate the impact of various parts of state agribusiness on total economic activity. South Carolina continues to contribute toward international trade in agricultural products with total agricultural exports valued at $ 959.3 million. The top five commodities exported were broilers (young chickens), greenhouse and nursery products, turkeys, cattle and calves, and tobacco. In spite of growth in agricultural exports, relative performance of South Carolina in comparison to other states remains modest. It ranks 35th in the nation in terms of the total agricultural exports (was 34th in 2009), and 29th in terms of the percentage of agricultural export growth over the last five years (was 22nd in 2009). Among the 113 South Carolina agribusiness sectors, 51 (45.1%) had growth in earned income from 2001 to 2009. Among the 126 U.S. agribusiness sectors, 81 sectors (64.3%) experienced growth in earned income during the same period. Forty-eight South Carolina agribusiness sectors had growth in earned income that exceeded that of their U.S. counterparts. Fifty-nine South Carolina agribusiness sectors (52.2%) had per-worker, earned income that exceeded the South Carolina overall average of $39,611. Twelve South Carolina sectors (10.6% of all 113 sectors) had especially high earned income levels (i.e.,greater than $69,321) while only five sectors (4.4%) had especially low earning levels (i.e., less than $9,901). The South Carolina agribusiness sector possesses the potential for cluster development but at this time appears to have well-developed clusters in only a few food processing-production agriculture areas, such as poultry processing and production. Wood and paper products appear to possess more well-developed clusters, but potential remains for further development in that category, as well as in the related furniture category. Three main agribusiness sectors were considered and include the following: farming or agricultural production, food processing, and forestry-based business. Model results indicate that the three sectors make a major contribution to economic activity in South Carolina. It is estimated that these three sectors generate 98,425 direct jobs in South Carolina. The total economic impact of the three core agribusiness sectors was 188,317 jobs, or about 8% of the 2.4 million jobs in South Carolina. In terms of output, the three sectors together directly generate $20.5 billion in total output while the total impact of the sector was $30.3 billion, or 10.6% of the $286.8 billion in total industrial output in South Carolina. The total contribution of the agribusiness system was $51.9 billion in total industry output, $13.1 billion in earned income, $20.5 billion in gross state product, and 454,465 jobs. These values translate into 18.1% of all total industry output, 13.9% of all earned income, $14.0% of all gross state product, and 19.0% of all jobs in the South Carolina economy. Despite a significant economic impact of the agribusiness sector, export growth of agri products has been historically limited to few categories. Export Promotion Assistance to Small Businesses A comprehensive listing of all export promotion programs was compiled from websites of government agencies such as USDA, SBA, and the Department of Commerce; as well as from various agricultural boards. The programs were broadly classified as the following: (1) informational programs such as distribution of trade-related information to exporters, foreign country market research, and counseling to both new and seasoned exporters, and historical trade data, etc. (2) training programs such as seminars, workshops related to export procedure and documentation, and product related counseling, etc. (3) trade mobility programs such as assistance for participation in trade shows and exhibitions, trade missions, and overseas promotion of firm’s products etc., and (4) export financing programs mainly coordinated by Ex-Im bank to insure and to finance exports to foreign countries. Results from the earlier phase of this study point to lack of awareness and perceived use of export promotion programs among small business. Therefore, to promote export activity and usage of export promotion programs amongst non-exporting agribusinesses, it is vital to establish direct linkages between usage of such programs and firm's improvement in the level of export-related resources and capabilities. Toward this purpose, a MANAVO was conducted to measure the effects of four types of export promotion programs on a small business export-related resources and capabilities. It was hypothesized that Information-related export promotion programs, Training- related export promotion programs, financial aid-related export promotion programs, and Trade mobility-related export promotion programs will have a positive effect on firm's export specific resources and capabilities. Furthermore, the duration of program use is expected to have a positive and growing effect for firms that use export-promotion programs longer than those who have used it for a shorter duration. This effect is particularly poignant for developing export-related capabilities. The model for the main effects and interaction effects was tested on data collected from 140 small agribusiness firms which have used such programs in the past. The analyses presented a mixed picture in terms of main effects of the predictor variables (types of export promotion programs) on the outcome variables (firm's resources and capabilities). There was a significant positive effect of information-related export promotion program on financial resources and customer relationship management capabilities. Training-related export promotion programs also significantly increased financial resources and customer management capabilities of the firm. Trade mobility-related programs such as trade shows and trade fairs were found to be significant in increasing financial resources, experiential resources, information capability, customer relationship capability, and product development capabilities of a firm. Similarly, financial aid-related export promotion programs showed a positive relationship with all outcome variables with the exception of scale resources. The results of the study indicate that Export promotion program usage by small businesses brings a measurable and significant increase in specific resources and capabilities necessary for export market participation.Since this research suggests that businesses that have used these programs have benefitted in augmenting their resources, it becomes necessary to inform and to motivate other potential exporters to engage with such programs to increase their chance of success.
Publications
- Type:
Conference Papers and Presentations
Status:
Other
Year Published:
2013
Citation:
Eric Uwimana (2013), "Effectiveness of Export Assistance Programs in Reducing Export Barriers: An Investigation of Small Scale Agribusinesses in South Carolina", 17th Biennial Research Symposium, Jacksonville, FL.
- Type:
Other
Status:
Other
Year Published:
2013
Citation:
Singh, Renu (2013), "Export Promotion Programs-a Helping Hand for Small Scale Businesses" working paper presented at the Faculty Seminar Series at School of Business, South Carolina State University.
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Progress 01/01/12 to 12/31/12
Outputs
OUTPUTS: There were three main research objectives covered during this reporting period: 1. To select the final sample. 2. To identify agencies and analyze export promotion programs targeted to present or potential exporters 3. To study the benefits of Free Trade Agreements on the agribusiness sector of South Carolina A list of small scale agribusinesses was compiled from the information collected from the Department of Commerce, the Southern United States Trade Association, the Small Business Administration, the business listings from the SC County Chamber of Commerce websites, and the South Carolina Information Highway. This resulted in a sample frame of 580 companies. Service firms and firms not planning to export in the next five years were ruled out to obtain a sample of 475 agribusiness exporters or potential exporters. These sample frame units were contacted first through phone and in case of a non-response through emails to explain the objectives and relevancy of the study and to request their participation in the survey. 475 firms agreed to participate in the study. Two-hundred and thirty six companies preferred an email questionnaire whereas 239 companies communicated a preference for postal surveys. A self-administered questionnaire with a cover letter was mailed to firms willing to participate in the study. After each 30-day period, two additional email reminders were sent to increase the response rate. By the end of the reporting period, 98 completed questionnaires were returned. The survey items were coded to prepare the data file, and a preliminary analysis of the collected data was conducted to identify data trends. Research on Export Assistance Programs began with the identification of federal, state, and private entities, offering programs to provide export assistance to small businesses. Personal and telephone interviews were held with the representatives of 14 agencies to identify various programs categorized as export assistance or export promotion programs targeted towards firms in various stages of exporting. A review of academic literature related to Export Assistance programs was also conducted. Keyword searches were conducted using ABI/INFORM complete and Academic One file databases to identify articles related to the subject. Fifty-four articles that suited the project goals were selected from the search result for further review. The main objective of the review was to identify common themes across articles and to prepare a summary table that included research location, a brief description, and major findings. A literature review and preliminary data analysis results were utilized to prepare a conference presentation for the 70th Professional Agriculture Workers Conference at Tuskegee University, Alabama. To study the proposed impact of standing U.S. Free trade agreements with other nations on South Carolina agribusiness sectors, information was collected from trade-related government websites. Each free-trade agreement was scanned for prospective economic sectors that are poised to benefit from the agreement and were then matched with the participation of South Carolina firms in such sectors. PARTICIPANTS: Dr. David Jamison is an Associate Professor of Marketing; he worked on this project for a period of 3 months. Dr. Jamison was primarily responsible for collecting information on Export Assistance programs. Eric Uwimana is a graduate research assistant. He received training on preparation of data files and running statistical analysis (such as Exploratory factor analysis and regression) using SPSS software. In addition to statistical analysis, he conducted an extensive literature review under the guidance of the PI and wrote a conference paper to be presented at the 17th Biennial Research Symposium in Jacksonville, FL. Omotosho Oyetayo is an undergraduate research assistant and was instrumental in contacting sample units for data collection. TARGET AUDIENCES: The two main target audiences for this research are small scale agribusiness exporters and policy makers. This study aims to match resources provided by government agencies to the need of the exporter. The preliminary results indicate that export assistance granting agencies have to adopt strategies to motivate those exporters who experience the greatest resource gap (i.e. non-exporters and partially-interested exporters) to use these resources. Programs should also be grouped according to the level of internationalization of the recipients' firms. Exporting firms can benefit from understanding the common challenges faced during the process of internationalization, as well as how export promotion programs can help overcome these barriers. The study also highlights that the use of export promotion can only be beneficial if firms use it as a strategic tool rather than a short-term tactic. Firm level export commitment and managerial characteristics play an important role in accruing positive results from participating in these programs. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.
Impacts
Preliminary analysis of the 98 companies classified the firms according to the level of internationalization as follows: Non-Exporters (potential exporters): n= 28 Partially-interested exporters: n= 32 Growing exporters: n= 23 Regular exporters: n=15 The main businesses represented by this sample were bakery products, condiments and spices, jams/jellies, dairy products, meat and poultry, beverages, and frozen-canned fruits/vegetables. There was a positive link between level of internationalization and awareness of export-promotion programs. Also, the number and types of perceived barriers to exports differed across the four categories of export participant. Awareness of the programs was low for all exporter categories but more for non-exporters and partially- interested exporters. For non-exporters, the highest awareness was recorded for basic seminars, explaining how to export (60% of non-exporters). Trade shows and trade missions were the most popular programs for all companies despite the level of international involvement. Category 2 and 3 companies (partially-interested and growing exporters) displayed more awareness of programs and inclination to use such programs in comparison to non-exporters. Benefits received from the programs depended on the level of internationalization. Potential exporters' and regular exporters' perception of benefits were lower than category 2 and 3 firms. Five major groups emerged across research conducted on the subject related to Export Assistance Programs: 1. Studies dealt with the awareness, usage, and usefulness of export-promotion programs from the standpoint of non-exporters; 2. The second set of studies dealt with segmenting firms on the basis of level of internationalization as this will influence the variability in type of program needed by these firms; 3. The third group of studies dealt with highlighting the relationship between the usage of programs and factors that stimulate or hinder international ambitions of firms; 4. The fourth group of studies examined the role of export assistance programs in complementing company resources and capabilities; and 5. The fifth set of studies investigated the effect of export-promotion programs on firm performance. The major gaps identified as an outcome of this literature review included the following: The majority of studies has been conducted outside of the USA and considers exporters of all products and services; Few studies represent agribusinesses (e.g. Onunkwo and Epperson (2000), Armah and Epperson (1997)); however, they only consider a specific product-related agribusiness (pecan and orange juice respectively) in their research sample. This highlights a significant gap in agribusiness-export research as availability of programs differ across states and variability in the usage of program exists across industries. Additionally, since small scale industries have limited access to resources, they are likely to benefit most from such programs. In a review of more than 50 studies, none was found to study small agribusinesses in the state of South Carolina.
Publications
- No publications reported this period
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