SBANC Newsletter
March
1, 2005
Issue
361-2005
QUOTE
"Opportunity
is missed by most people because it is dressed in overalls
and looks like work."
-- Thomas Edison
FEATURE
PAPER
Export Performance:
A Critical Analysis of Its Effects and Uses In Diversification
This
paper was presented by Ernest H. Hall, Jr. of the University
of Southern Indiana and Jooh Lee of Rowan University,
at the 34th annual meeting of the Decision Sciences Institute
in Washington, DC on November 22-25, 2003.
The ability
to develop superior export performance is considered to be vital
to public policy makers and business
managers (Katsikeas, Leonidou, & Morgan, 2000). Policy makers
are interested in exporting as a vehicle for accumulating foreign
exchange reserves, increasing employment levels, increasing productivity,
and enhancing social prosperity (Czinkota, 1994). From the vantage
point of corporate executives and business managers exporting is
an avenue through which a firm can improve its profitability, capacity
utilization, reinforce competitive advantage, and ensure company
survival (Kumcu, Harcar, & Kumcu, 1995; Samiee & Walters,
1990). Exporting affords firms the opportunity to dispose of excess
production (Cannon, 1981; Tookey, 1064), to enter a new international
market (Czinkota & Ronkainen, 1998; Kotabe & Helsen, 1998),
or to expand its existing markets in foreign countries (Kamath,
Rosson, Patton, & Brooks, 1987; Reid, 1983).
From a strategic perspective, the use of exporting as an avenue
to increased revenues represents a more conservative approach to
entering international markets. Through the use of exporting, firms
are able to enter markets quicker than other methods of entry.
In addition, exporting allows firms the flexibility to redirect
their efforts to other markets, should a foreign market become
unappealing. In many cases, exporting provides firms with the best
of all worlds. First, the use of exporting as a vehicle for increasing
revenues allows firms ready access to a wide variety of different
markets. Firms have the prerogative to choose from all of the countries
in which they believe their products might find a suitable market.
Second, the firm can minimize the capital necessary to enter
other markets through exporting. The amount of money that is
necessary to enter a market via exporting is considerably less
than other means of market entry. So, small or under capitalized
firms are able to minimize the size effects enjoyed by large
and cash rich firms.
Third, international distributors of the exported products provide
ready access to markets in which they are intimately familiar.
The foreign distributors have the distribution channels already
in place for handling a firm’s products. Such familiarity
with the local customs and culture provide an additional benefit
that may help firms in promoting their products within the confines
of unknown markets. The use of local distributors minimizes information
asymmetries that result from entering unknown or different cultures.
Fourth, by using exporting, a firm can minimize the risks to
which it is exposed. Firms that employ the use of wholly owned
subsidiaries will be exposed to all of the risks and challenges
that are associated with entry into a foreign market. Any political,
economic or sociological risks that may be peculiar to the host
country will be directly applicable to the firm and its investments.
Read the Entire Paper...
TIP
OF THE WEEK
Sources of Export Counseling
Trade
Information Center. U.S. individuals and firms
new to exporting can begin their search for export counseling by
calling the Department
of Commerce’s Trade Information Center (TIC). The federal government
has set this up as the first stop for information about all federal
export assistance programs as well as country and regional market
information. Before calling the TIC at 1-800-USA-TRADE to talk with
a trade specialist, we advise that you visit the Trade Information
Center web site at www.ita.doc.gov/td/tic/.
Trade
Information Center Web Site. Among the items
you will find at the TIC index page are links to government export
programs, trade
promotion events, and trade lead information. For example, there
are links to nearly 100 sites for trade leads. Go to the TIC Web
site, click on “Export Resources,” and then on “Guide
to Trade Leads.” The TIC Web site is intended to inform the
inexperienced about available resources before they contact the TIC
directly for assistance.
The Trade Information Center is just one component
of the Commerce Department’s International Trade Administration
(ITA). The ITA is the primary U.S. government agency responsible
for assisting
firms that already are exporting.
International
Trade Administration (ITA). The ITA offers a wide
range of export promotion activities that include export counseling,
analysis of foreign markets, assessment of industry competitiveness,
and development of market opportunities and sales representation
through export promotion events. Three units of ITA work together
to provide these services:
1. Market
Access and Compliance (MAC)—MAC specialists
seek to open foreign markets to American products by developing
strategies
to overcome obstacles faced by U.S. businesses in foreign countries
and regions. They also monitor foreign country compliance with trade
agreements.
2. Trade
Development—This
unit promote the trade interests of American industries and offers
information on markets and trade
practices worldwide. It is divided into 14 sectors: (1) aerospace,
(2) automotive affairs, (3) consumer goods, (4) e-commerce, (5)
energy, infrastructure, and machinery, (6) environmental technologies
industries,
(7) financial services, (8) information technologies, (9) materials,
metals, and chemicals, (10) microelectronics, medical equipment,
and instrumentation, (11) telecommunication technologies, (12)
textiles, apparel, and consumer goods, (13) tourism, and (14) other
service
industries. Industry desk officers work with industry representatives
and associations to identify trade opportunities by product or
service, industry sector, and market. They also develop export
marketing plans
and programs. Besides counseling American businesses in exporting,
the unit’s industry experts conduct executive trade missions,
trade fairs, and marketing seminars.
3. U.S.
and Foreign Commercial Service (US&FCS)—The ITA’s
U.S.&FCS has commercial officers working in 92 countries who
can provide background information on foreign companies and assist
in finding foreign representatives, conducting market research,
and identifying trade and investment opportunities for American
firms.
The district offices also conduct export workshops and keep businesspeople
informed about domestic and overseas trade events that offer potential
for promoting American products.
Small
Business Administration. The Office of International Trade
of the Small Business Administration (SBA) offers assistance through
SBA district offices to current and potential small business exporters
through two programs that are provided in field offices around the
country: Business Development Assistance and Financial Assistance.
The Office of International Trade also works through
1. SCORE
programs—Experienced
executives offer free one-on-one counseling to small firms.
2. SBDCs and CIBERs—Small Business Development Centers (SBDCs)
in many universities and colleges give export counseling, especially
to inexperienced newcomers. Centers for International Business and
Research, located in 30 universities, are also intended to assist
firms with exporting.
3. U.S. Export Assistance Centers—One-stop offices ready to
help small and medium-sized businesses with local export assistance.
Ball,
D., Frantz, P., Geringer, J., McCulloch, W., & Minor,
M. 2006. "International
Business, The Challenge of Global Competition" 10
ed. p. 452-453. New York, New York: McGraw-Hill Irwin.
CONFERENCES
The CIBER Institute
The 2005 International
Applied Business Research (IBER) Conference and College Teaching & Learning
(TLC) Conference will be held at the Marriott Resort in Puerto Vallarta,
Mexico on March
14-18, 2005.
The ABR Conference provides a forum for faculty to present their research
on any business, economics, or business related topic. The TLC Conference
provides a forum for faculty and administrators to share proven and
innovative methods in teaching at the college level.
For more information, visit: http://www.ciberinstitute.org
ABSEL 2005 National Conference
The Association for Business Simulation and Experiential Learning
is holding its 2005 National Conference at Grosvenor Resort in
Orlando, Florida. The conference dates are March 16-18, 2005.
ABSEL's annual conference is a meeting place for professionals
to exchange information and network with colleagues who are dedicated
to teaching business through innovative and effective methods.
For more information, visit: http://www.absel.org/Conferences/conference.html
Western Decision Sciences Institute
The Western Decision Sciences Institute (WDSI) is holding its 34th
Annual Meeting at The Sutton Place Hotel in Vancouver, British
Columbia, Canada on March 22-26, 2005. Topics of the conference
include Accounting I & II, Business & Public Policy, Marketing,
Management Information Systems, etc.
For more information, visit: http://www.wdsinet.org
Allied
Academies International Conference Submission Changes
The Allied Academies will hold its 2005 International meeting at
the Hilton Hotel in Memphis, Tennessee. Presentation dates will
be April 14 - 16, 2005, with registration on the evening of April
13. Allied Academies has extended the submission deadline for those
of you who could use some extra time. The early registration deadline
is
February
28,
the
proceedings deadline is March 7, and the award submission deadline
is now March 14.
For more information, visit: http://www.alliedacademies.org/memphis-call.html
Gateway Series for Entrepreneurship
The topic of the 2005 Gateway
conference is "Assessing Outcomes in Entrpreneurship Education." The
conference will aid in learning about and discussing world-class outcome
assessment techniques, and is co-sponsored by the Kauffman Foundation
and the
Entrepreneurship Affinity Group of the AACSB.
The conference will be held at Saint Louis University on April 14-16, 2005.
For more information, visit: http://www.slu.edu/centers/jsces/programs.html
To register for this conference, email the Jefferson Smurfit Center for Entrpreneurial
Studies at jsces@slu.edu or
katzja@slu.edu or call 314-977-3850
CALL
FOR PAPERS
IPSI-2005 Belgrade
IPSI is holding a Symposium on Challenges in the Internet and Interdisciplinary
Research at the University of Belgrade, Serbia on June 2-5, 2005.
Topics for the symposium include: Education, Computer science and
engineering, B2B, B2C, E-Business Management.
Submission Deadline: April 15, 2005
For more information, visit: http://belgrade.internetconferences.net/
Decision Sciences Institute
The 36th Annual Meeting of the Decision Sciences Institute will be
held at San Francisco Marriott (Downtown) in
California on November 19-22, 2005.
Submission Deadline: April 1, 2005
For more information, visit: http://www.dsi2005.org/
The
CIBER Research Institute
The Ciber Research Institute will hold its EABR Conference (business & economics)
and TLC Conference (teaching methods, styles, and administration) at the Athens
Marriott on June 13-17, 2005.
Submission Deadline: May 15, 2005
For more information, visit: http:/www.CIBERinstitute.org
Society
for Marketing Advances Annual Conference
The Society for Marketing Advances (SMA) will hold its Annual Conference at the
Sheraton Gunter Hotel in San
Antonio, Texas on November 2-5, 2005. This year’s meeting will include
the Elsevier Science Distinguished Scholars Series, the Sherwin-Williams Distinguished
Teaching Competition
Award,
and the McGraw-Hill/Irwin Stephen J. Shaw Award for Outstanding Conference Paper.
Submission Deadline: April 1, 2005
For more information, visit: http://www.marketingadvances.org
EFMD
35th EISB Conference
The European Foundation for Management Development (EFMD) will be holding its
35th EISB Conference in Barcelona, Spain on September
12–14, 2005. The Conference theme is "Sustaining the Entrepreneurial
Spirit Over Time: Implications for young companies, family businesses, and established
companies."
Submission Deadline: March 31, 2005
For more information, visit: http://www.iese.edu/en/events/OtrosEventos/EISB/CallForPapers/CallForPapers.asp
ANNOUNCEMENTS
Women's History
Month
In recognition of Women's History Month (March), the National Women's
Business Council has updated its fact sheet, Women Business Owners
and their Enterprises.
For more information, visit: http://www.nwbc.gov/ResearchPublications/keyFacts.html
NFIB Takes
a Look at State Small-Business Climates
The National Federation
of Independent Business (NFIB) provided a snapshot of the small-business
climate in states throughout the nation today as it unveiled its inaugural Small-Business
Conditions report. This is a new tool designed to provide
small-business owners, communities and elected officials with the most
current information on small business and economic conditions in 26
different U.S. states. The data for those states will also be compared
to neighboring states/regions.
Sign up to receive the Small-Business Conditions report at http://www.NFIB.com/research
Or call 1-800-552-6342
The SBANC Newsletter is provided as
a service to the members of our affiliates: Academy
of Collegiate Marketing Educators (ACME), Association
for Small Business& Entrepreneurship (ASBE), Decision Sciences
Institute (DSI), Federation of Business
Disciplines (FBD), International Council for Small
Business Congress (ICSB), Institute
for Supply Management, The International Small Business
Congress (ISBC), Marketing Management Association
(MMA), Small Business
Administration
(SBA), Service Corps of Retired Executives, Small Business
Institute (SBI), Society for
Marketing Advances (SMA), United States Association
for Small Business& Entrepreneurship
(USASBE), U.S. Department of Veterans Affairs and Western
Decision Sciences Institute (WDSI). If you are interested
in membership or would like
further information on one of our affiliates, please
see our web site at http://www.sbaer.uca.edu
SBANC STAFF
Main Office Phone: (501) 450-5300
Dr. Don B. Bradley III, Executive
Director of SBANC & Professor
of Marketing
Direct Phone: (501) 450-5345, E-mail: donb@uca.edu
Esther
Mead, Co-Lead Development Director, E-mail: estherledelle@yahoo.com
Amanda Harris, Development Intern,
E-mail: abharris84@yahoo.com
Michael Flanagin, Development Intern, E-mail: whiffleball@aol.com
To subscribe or unsubscribe to the SBANC
Newsletter, please E-mail SBANC at sbanc@uca.edu
