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EXPORT BARRIERS FACED BY JAMAICAN SMALL AND MEDIUM SIZED
MANUFACTURING BUSINESSES
Internationalization as a business strategy allows organizations to achieve growth; this
strategy can act as a competitive advantage by broadening an organization’s customer base and
allowing it to enter new markets (Kahiya & Dean, 2016). Researchers established the positive
influence of internationalization on an enterprise's growth potential and performance (Lu &
Beamish, 2001). In addition, researchers have found that export-led growth can also positively
impact a country's economy (Narayan et al., 2007). Nevertheless, small and medium-sized
(SMEs) firms, especially those in the least developed and developing countries, face many
unique challenges and barriers when competing internationally with large multinational
organizations (Kahiya & Dean; Williams, 2012, 2015). While many of these challenges are
known, a concerted effort by export experts to categorize these barriers across the globe is
underway.
This quantitative, descriptive, and exploratory research study ranked the categorized
export barriers that Jamaican manufacturing SMEs experienced. Jamaica has a small and open
economy and is considered one of 152 developing countries by the International Monetary Fund
standards (Worlddata.info, 2022). Chapter 1 introduces the background and overview of the
business problem and the research purpose, research questions, rationale, and theoretical
framework. Finally, Chapter 1 explains the study’s significance, defines essential terms, provides
its assumptions, limitations, and delimitations, and concludes by outlining Chapters 2 through 5.
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Background
SMEs affect the development of nations. Therefore, the internationalization of SMEs has
captured the interest of scholars and enterprise owners worldwide (Kahiya & Dean, 2016; Lu &
Beamish, 2001; Paul et al., 2017). In the business context, internationalization is the expansion of
a company's operations from local, domestic operations to establishing an international presence
that ultimately results in income from global sales (Alexander & Myers, 2000). Many scholars in
the extant literature have discussed internationalization as a critical strategy firms use to achieve
and sustain competitive advantage (Arteaga-Ortiz & Fernández-Ortiz, 2010; Kahiya & Dean;
Nicholson & Lashley, 2016; Williams, 2015). However, due to an inherent lack of resources and
capabilities, small and medium-sized enterprises (SMEs), particularly those in developing
economies, often struggle to achieve export levels that contribute meaningfully to the growth of
the organization (Kahiya & Dean; Kahiya et al., 2014). In small, open, and developing
economies like Jamaica's, the impact of small and medium firms on the national economy is
significant in terms of employment and output/performance, hence the need to understand and
resolve factors that restrict the growth potential and survival chances of these SMEs (Kahiya et
al.; Williams).
Jamaica’s economy has unique export-specific development challenges faced by SMEs.
In 2016, Jamaica's merchandise trade deficit was $3.56 billion, reflecting a decline of $60 million
in overall export earnings from the previous year (Planning Institute of Jamaica [PIOJ], 2017).
The POIJ (2017) cited the manufacturing industry contributing significantly to this downturn.
The manufacturing industry also accounted for approximately 8.5% of Jamaica's
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Gross Domestic Product (GDP) in 2016, and export earnings in the sector declined relative to
2015 (PIOJ, 2017). However, the manufacturing industry's employment level increased to 77,500
persons, reflecting 6.6% of the total employed labor force (PIOJ, 2017). With a population of
2,730,900 in 2016, the country had a relatively small market size (PIOJ, 2017). Worldometer
(2022) noted Jamaica’s population at 2,985,094 as of May 21, 2022, an increase of 8.5% over 5
years. MIIC (2013) discussed a resulting "low customer base" (p. 11) that emphasized the need
for international diversification and globalization in the country. In addition, as of 2016, the
economy carried a heavy debt burden, with a debt-to-GDP ratio of over 122% (PIOJ, 2017). The
government was trending toward increasing and maintaining debt, negatively affecting private
sector firms, including SMEs (PIOJ, 2017; Williams & Jones, 2010).
The PIOJ (2019) noted that by 2020, improvements to the Jamaican export and
manufacturing economy had begun as per their plans. Unfortunately, in 2019, a new virus named
SARS-CoV-2 emerged in Asia. This virus is now known as the cause of the disease COVID-19.
The International Committee on Taxonomy of Viruses was responsible for naming the virus with
the SARS prefix (World Health Organization [WHO], 2020a). In 2020, the WHO named the
disease COVID-19. The new name represented the year the virus first appeared and delineated it
from the original SARS virus, which had frightening connotations for Asians who had
experienced a deadly SARS epidemic in 2003 (WHO, 2020a). On February 11, 2020, WHO
reported monitoring the disease’s spread throughout the world. On that date, 43,103 global cases
of COVID-19 existed in 25 countries (WHO, 2020b). WHO declared the global pandemic
officially on March 11, 2020 (Cucinotta & Vanelli, 2020).
Jamaica reported its first COVID-19 cases the week of March 9, 2020. Since that time
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(and as of June 2022), the PIOJ has not provided new statistics on the economic growth
projections. The Jamaican export sectors have declined significantly due to the pandemic
(International Monetary Fund, 2022).
Business Problem
SMEs in developing countries struggle to compete internationally (Williams, 2015). The
general business problem is that SMEs lose competitive advantages and market share when they
cannot export their products. Most of the currently available business resources for exporters
facilitate established and experience organizations’ growth; many of these resources are not
applicable or relevant to the strategies needed by SMEs (Paul et al., 2017). This problem inhibits
the effectiveness of interventions by owners and policymakers, as the needs in each specific
context (economy, industry, and culture) direct the type of aid needed to effectively "increase
exporting from microeconomic and macroeconomic perspectives" (Arteaga-Ortiz & Fernández-
Ortiz, 2010, p. 415).
The specific business problem this study addressed is the loss of market share of
manufacturing SMEs located in Jamaica. Multiple export researchers have called out the lack of
resources, information, and data regarding many developing countries and the types of
challenges, barriers, and struggles that SMEs face in attempting to enter the export market
(Arteaga-Ortiz & Fernández-Ortiz, 2010; Nicholson & Lashley, 2016; Paul et al., 2017; Tybout,
2000). In Jamaica's case, the country's export performance was “anemic” and had not recovered
since the global economic recession in 2008–2009 (NES, 2015). This anemia worsened due to
the global pandemic (International Monetary Fund, 2022).
The manufacturing sector's contribution to GDP in Jamaica remains below the global
average (International Monetary Fund, 2022; NES, 2015), which highlights the need for
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increased growth in the industry. While the government of Jamaica set a target to grow its
manufacturing export sector by 25% and reach an export level of $25 million by the year 2019
(NES), the global pandemic stopped the progress which was beginning to occur. As noted in
February 2022, both service and traditional goods exports from Jamaica have dropped below the
2000 levels, removing all of the hard-earned gains achieved through 2019.
Research Purpose
This quantitative descriptive study aimed to categorize and rank export barriers perceived
by actual manufacturing SMEs in Jamaica. In charting a course for future research on the topic,
Paul et al. (2017) highlighted that very few studies currently exist in (a) the context of
developing economies and (b) industry-specific contextual settings related to barriers in specific
markets. Indeed, the researchers highlighted that a significant gap exists, as they have done most
studies in the context of developed countries.
Scholars in export barrier research have agreed that several geographic regions are
underrepresented in available studies (Nicholson & Lashley, 2016; Paul et al., 2017; Tybout,
2000; Williams, 2015). Indeed, there is a shortage of scholarship regarding enterprise
globalization in the Caribbean, which researchers need to address. This quantitative research
adds to the body of practitioner knowledge and updates the work previously done in the field,
recognizing that the literature agreed that the presence and relative influence of barriers would
change over time due to the economy, policy changes, and fluctuating industry environment
(Nicholson & Lashley; Paul et al.; Williams). With SMEs accounting for over 95% of firms and
80% of all employment in Jamaica (Small Business Association of Jamaica, 2017), the survival
and growth of SMEs are of great significance to the Jamaican economy. Finding out more
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information regarding the types of challenges experienced by those currently exporting or the
barriers faced by those SMEs who chose not to export has been called out as a pivotal need by
export experts and the Jamaican government.
Research Questions
The following research questions (RQs) guided the study. In Chapters 3, 4, and 5,
additional subquestions probed potential ranking differences between SME owners with
exporting experience and those without exporting experience.
RQ1. What are the rankings of the perceived barriers to export facing SME owners in the
manufacturing industry in Jamaica?
RQ2. Which perceived export barrier factor facing SME owners in the manufacturing
industry is most important?
RQ3. Which of the four export barrier groups (exogenous, procedure, knowledge, and
resources) is most important to Jamaican SMEs in the manufacturing industry?
RQ4. Which of the two export barrier types (internal/external) is more critical to
Jamaican SMEs in the manufacturing industry?
Rationale
While growth by international diversification has been an increasing trend among SMEs,
managers' perceptions of export barriers and activities continue to be among the most critical
factors influencing a firm's export performance (Narayanan et al., 2007; Nicholson & Lashley,
2016). Paul et al. (2017) highlighted that differences in the cultural and sociopolitical
environment lend themselves to various weighting and effects. This study can respond to the
appeal by Narayanan for scholars to demonstrate (with statistical evidence and models) an
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improved understanding of export barriers with the ultimate aim of tackling them in a structured
way. Not only does Jamaica qualify as a developing country and, therefore, of scholarly interest
(NES, 2015; PIOJ, 2017; United Nations, 2012), but the country needs increased exports into the
global marketplace (International Monetary Fund, 2022).
Theoretical Framework
The export barrier theory (Paul et al., 2017) guided this study. For developing countries
such as Jamaica, barriers to exports can create financial and economic hardships, as described by
Paul et al. (2017). This study extended the work of two fundamental research studies. Kahiya et
al. (2014) tested the influence of export barriers across time (longitudinally). Arteaga-Ortiz and
Fernández-Ortiz (2010) and Kahiya et al. (2014) proposed and extended the idea that they could
simplify all barriers faced by SMEs to a four-dimensional barrier typology—exogenous,
procedure, knowledge, and resource barriers. They aimed to standardize the measurement of
export barriers based on a comprehensive review of the extant literature. This study’s goal was to
compile data from Jamaican SMEs to allow export researchers to compare Jamaica’s results with
other countries using similar instruments.
Kahiya et al. (2014) noted that an export barrier matrix aligns barriers to perspectives. In
this case, exogenous resource, procedure, and knowledge barriers align to the locus of origin,
managerial control, and effect. Figure 1 depicts this concept. Further, Kahiya (2013) identified
factors that could map individual barriers (See Table 1). Whether a barrier specific to SMEs or
an individual organization or country is controllable depends on many factors. The collection of
the varying countries’ data regarding export barriers will assist researchers in understanding
which barriers could be removed or reduced by SME leaders or policymakers. Kahiya and Dean
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(2015) noted other potential barriers not yet mapped to factors and called out for more research
to assist their mapping process.
Figure 1. Export Barrier Matrix and Study Framework
Note. The matrix for the framework was adapted with permission from “Export barriers in a changing institutional
environment: A quasi-longitudinal study of New Zealand’s manufacturing exporters,” by E. T. Kahiya, D. L. Dean, &
J. Hey, 2014, Journal of International Entrepreneurship, 12(4), 337, ( https://doi.org/10.1007/s10843-014-01317).
Copyright 2014 Springer Science Business Media New York. Representative instrument items pertinent to the study
are bullet points, but these do not represent the full complement of barriers.
Table 1. Mapping of Individual Barriers and Their Factors, Groups, and Types
Logistical and
Distribution Factors
Handling export documentation
Knowing export procedures
Shipping and distribution overseas
Types
Groups
External
Procedure
Barriers
Adaptation Factors
Adapting products to overseas markets Product
usage differences
Pricing and promotion
Factors
Individual Barriers
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Locating distributors overseas
Currency & Payment Foreign exchange rate risk/fluctuations Risks
Collecting and transferring payments
Exogenous
Barriers
Government Policy
&
Home Market
Factors
Lack of JA government
support/assistance
Inconsistent JA government
Export Policy
Interest rates and inflation
Internal
Trade-Related
Factors
Foreign non-tariff barriers
Foreign government
restrictions/regulations Foreign
tariff barriers
Knowledge
Barriers
Resource
Barriers
Export Market
Knowledge
Inability to identify market
opportunities
Knowing foreign business practices
Lack of overseas marketing
experience
Unfamiliarity with foreign laws
Managerial Focus
Management focused on the
domestic market
Low perceived profitability in
exporting
Lack of management time
Lack of management’s effort in
export marketing
Internal Resource
Constraints
Insufficient productive capacity
High cost of labour*
Lack of skilled/flexible labour
Financing exports (working capital)
Quality assurance requirements
Note. Transformed with permission by C. Miller (2022) from Kahiya et al. (2014) and Kahiya (2015). JA = Jamaica.
*This dissertation uses British/Jamaican English variants (versus United States [U.S.]) when applicable to the study
process. Jamaicans speak and write using the British/Jamaican English variants and received survey items in that
form. Words such as “Acknowledgments” (see section) appear using the U.S. variants.
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Significance
The existing literature inadequately examines the influence of export challenges SMEs
face in developing countries (Nicholson & Lashley, 2016; Paul et al., 2017; Williams, 2015).
This study can contribute to the body of knowledge on export barriers and their effect on
financial factors that ultimately impact the growth and survival of small and medium-sized
enterprises. With numerous SMEs, Jamaica's firm owners and policymakers stand to benefit from
any studies that enhance the understanding of export barriers most affecting SMEs in the
manufacturing industry in Jamaica. This quantitative descriptive research may provide helpful
information for the manufacturing industry in the developing country of Jamaica, increasing the
opportunity for future longitudinal or industry-specific comparisons.
Definition of Terms
Anemic Economy. An anemic economy is an economy that has slow or no growth
(Silaski & Kilyeni, 2014; United Nations, 2012).
Degree of Internationalization. The enterprise's export diversity and intensity measure
export progression and strategy in a firm (Bilkey & Tesar, 1977; Dhanaraj & Beamish, 2003;
Wernerfelt, 1984).
Developing Country. It is defined as per the United Nations Economic and Social
Council. In most studies, a developing country has a gross national product per capita of $14,000
or less (United Nations, 2012).
Exogenous Export Barriers. Barriers to exporting include unpredictable circumstances,
such as exchange rate fluctuations, governments, the action of competitors, and other
uncertainties in international markets (Narayanan, 2015). Exogenous export barriers are in the
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research questions. They are barriers to export facing SME owners in the manufacturing industry
in Jamaica. Exogenous export barriers are the four export barrier types (exogenous, procedure,
knowledge, resource) that are most important to Jamaican SMEs in the manufacturing industry.
Export Barriers. Constraints hinder a firm from sustaining business operations in overseas
markets (Leonidou, 2004). The research questions include export barriers that are barriers to
export facing SME owners in the manufacturing industry in Jamaica.
Export Factors. Barrier factors represent the most granular theoretical grouping of
individual barriers and provide an initial theme or similarity between barrier items. Between 7
and 10 factors typically emerge in studies that employ multi-item barrier scales (Kahiya, 2013).
This study assumed an eight-factor structure using the following mapping to barrier items.
Export Diversity. A measure of the internationalization level in a firm, variety is
categorized by the number of country markets an organization serves (Dhanaraj & Beamish,
2003).
Export Intensity. Intensity shows the degree of internationalization and the extent of
internationalization in a firm (Dhanaraj & Beamish, 2003).
Export Performance. Reflective of the sales growth, foreign market share, and
profitability of a firm's export strategy (Dhanaraj & Beamish, 2003).
Gross Domestic Product. The total market value of goods and services produced by a
country's economy during a specific period. It is a nation's total economic activity and measures
a country's economy (Murry & Nan, 1994).
Internationalization. Also termed international expansion, globalization, or international
diversification (Leonidou, 1995; Sharkey et al., 1989). For this study, the term
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internationalization was defined, as in Calof and Beamish (1995), to mean "the process of
adapting a firm's operations to international environments" (p. 116).
Knowledge Export Barriers. Barriers to exporting occur due to a lack of information on
shipping in the target region or established support, such as export assistance programs
(Narayanan, 2015). The research questions include knowledge export barriers. They are barriers
to export facing SME owners in the manufacturing industry in Jamaica. Knowledge export
barriers are the four export barrier types (exogenous, procedure, knowledge, resource) most
important to Jamaican SMEs in the manufacturing industry.
Pandemic. The classic definition of a pandemic is “an epidemic occurring worldwide, or
over a very wide area, crossing international boundaries and usually affecting a large number of
people” (Kelly, 2011, p. 540). Kelly noted that “true” pandemics occur “when almost
simultaneous transmission takes place worldwide” (p. 540). Singer et al. (2021) noted that the
term pandemic was not well defined, and no widely accepted definition existed. The U.S. Center
for Disease Control and Prevention (2022) defines a pandemic as “when new (novel)...viruses
emerge which are able to infect people easily and spread from person to person in an efficient
and sustained way” (para. 1). This study defined the COVID-19 pandemic as beginning on
March 11, 2020, when WHO officially declared its existence (WHO, 2020b).
Procedural Export Barriers. Barriers include logistical, bureaucracy, or cultural and
linguistic obstacles that impede exporting (Narayanan, 2015). Procedural export barriers are in
the research questions. They are barriers to export facing SME owners in the manufacturing
industry in Jamaica. Procedural export barriers are the four export barrier types (exogenous,
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procedure, knowledge, resource) that are most important to Jamaican SMEs in the manufacturing
industry.
Resource Export Barriers. Barriers to exporting result from a lack of financial (and
other) resources within the firm (Narayanan, 2015). These include insufficient staffing,
specialists, financing, banks, and production capacity (Narayanan). Resource export barriers are
in the research questions. They are barriers to export facing SME owners in the manufacturing
industry in Jamaica. Resource export barriers are one of the four export barrier types (exogenous,
procedure, knowledge, resource) that are most important to Jamaican SMEs in the manufacturing
industry.
Small and Medium-Sized Enterprises (SMEs). The size of a firm is an ordinal
categorization determined by measures of its total sales or number of employees (Dhanaraj &
Beamish, 2003). The definition differs from country to country and ranges from firms with no
more than 50 employees to those with no more than 500 employees (Corporate Finance Institute,
2022).
Assumptions and Limitations
The assumptions and limitations of this study are detailed below.
Assumptions
The study plan included a few assumptions. First, the study findings assume that
participants answered the survey questions truthfully (Simon, 2011). Next, it was assumed that
the instrument used in the study applied to the Jamaican business environment, despite it not
having been used in Jamaica previously. Kahiya et al. (2014) constructed the instrument using
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numerous studies across compiled literature. It was also tested and verified for validity in
different contexts (Kahiya & Dean, 2014).
Limitations
The research faced limitations. First, there was a limitation in that only privately-owned
manufacturing SMEs in Jamaica were surveyed. Paul et al. (2017) emphasized that SME
internationalization factors, barriers, and hence the extent of their influence differ depending on
the industry to which they belong. The second limitation, by design, was the financial data that
the study used. Williams (2015) found, as did many who have researched Jamaican SMEs, that
owners do not readily give information related to their business (especially of a financial nature).
The third limitation is that the researcher did not have direct access to the participants, reducing
the ability to clarify responses to survey questions. Market Research Services Limited, a
thirdparty company in Jamaica, distributed the survey to a pre-defined/agreed group. Hence, the
research is limited to the comprehensiveness of the eligibility criteria and compliance of Market
Research Services Limited to the required guidelines set by the study’s proposal. This sampling
method—non-random selection of participants—represents an additional limitation.
Delimitations
Delimitations affect the transferability of the study's results due to intentional exclusions
by the researcher (Creswell, 2009). The first delimitation of the study was about the eligibility
criteria. The definition of SMEs used, for example, has potential implications on the applicability
of results to international populations that utilize different SME definitions. The same applies to
criteria surrounding the designation of manufacturing SMEs.
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Organization of the Remainder of Study
This study includes five chapters. Chapter 1 presented the introduction. Chapter 2
contains a literature review covering export barrier measurement, history, constructs, financial
performance, and pertinent controversies in scholarship. Chapter 3 presents the research
methodology and design, while Chapter 4 describes the analysis and results. The final chapter
presents a summary of results and recommendations for future research.
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CHAPTER 2. LITERATURE REVIEW
Introduction
Previous studies have shown a significant correlation between export barriers and firm
performance and internationalization. Anil et al. (2016), Jalali (2012), and Nee et al. (2018)
found that export barriers significantly affected performance, while Kahiya (2013) found that
export barriers significantly predicted internationalization. However, a gap exists in the literature
that examines the impact of export barriers on SMEs' export performance and
internationalization in specific developing countries. This quantitative study aimed to fill this gap
in the context of SMEs in Jamaica's manufacturing industry. The study aimed to contribute
meaningfully to the literature by ranking and categorizing the export barriers that most affect
SMEs in the manufacturing industry in Jamaica.
This chapter examines the theory and literature guiding this study. In addition, this
chapter presents previous literature relevant to the relationship between export barriers and
export performance and the relationship between export barriers and internationalization. Finally,
this chapter describes methods for assessing the export barrier.
Search Strategy
The researcher used Google Scholar online and the journals and databases in Capella’s
library to select the most relevant literature. Search keywords included export barriers,
internationalization, exporting, challenges, and SMEs. Search keywords also included
combinations of terms—the relationship between export barriers and performance, the
relationship between export barriers and internationalization, the relationship between export
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barriers and export intensity, and the relationship between export intensity and export
performance—seeking peer-reviewed articles and seminal literature.
Theoretical Framework
This quantitative descriptive study relied on the export barrier theory as its basis. For
developing countries such as Jamaica, barriers to exports can create financial and economic
hardships, as described by Paul et al. (2017). Arteaga-Ortiz and Fernández-Ortiz (2010) and
Kahiya et al. (2014) proposed and extended the idea that all barriers faced by SMEs could
include a four-dimensional barrier typology—exogenous, procedure, knowledge, and resource
barriers. Kahiya et al. (2014) examined the impact of export barriers. Their findings suggested
that the effect of export barriers can vary across time. According to Kahiya et al., export barriers
impede firms from engaging in internationalization. The authors standardized the measurement
of export barriers based on a comprehensive review of the extant literature. It may facilitate
making comparisons between Jamaica and other regions previously surveyed and enable
conducting a financial analysis of the impact of each dimension.
Kahiya et al. (2014) noted that an export barrier matrix aligns barriers to classifications.
The barriers Kahiya et al. found important to SMEs included exogenous, resource, procedure,
and knowledge barriers; some of these barriers are controllable by SMEs, but others are not (i.e.,
those under the control of policymakers, the environment, the economy, and similar).
Kahiya et al. (2014) also differentiated barriers as those which are locus of origin
(comprised of internal and external dimensions), managerial control (can be controllable or
noncontrollable), and effect (are either dynamic or static). Exogenous barriers comprise factors
external to the company, fixed, and uncontrollable. Resource barriers are static and consist of
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factors that are internal to the company and uncontrollable. Procedure barriers are dynamic and
include factors external to the company but are controllable. Knowledge and experience barriers
are active, consist of factors that are internal to the company, and controllable. (p. 379). These
factors contribute to the export barrier matrix and the study framework (See Figure 1).
Kahiya et al. (2014) developed the export barrier theory, which supports the research
questions and fits the study because it examines export barriers. The approach developed by
Arteaga-Ortiz and Fernández-Ortiz (2010) aligns with the research and the research questions
because it also includes export barriers.
Using Kahiya et al.’s export barrier theory, the constructs from the study's theoretical
framework guided the study (Table 1). The theoretical framework constructs included individual
perceived barriers and the eight export barrier factors (i.e., managerial focus, internal resource
constraints, export market knowledge, currency risk and payment obstacles, trade-related
barriers, government policy/home market factors, adaptation factors, logistical and distribution
factors), the four export barrier groups (exogenous, procedure, knowledge, and resources), and
the two export barrier types (internal and external). The theoretical framework led to research
questions aligned among individual, factor, group, and type of barriers.
Review of the Literature
The literature review follows the historical perspective of SME growth strategies, the
variables included within the export theory matrix and framework, and the business problem. The
review focused on the methodologies used with the instruments for export research and provides
support for this study’s methodology (a descriptive quantitative technique).
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Growth Strategies for SMEs
The academic history of studies on growth strategies for SMEs has yielded varying and
mixed results. Many owners of businesses of all sizes have turned to export as a strategy to
increase their profits. Therefore, several scholars have investigated the level and direction of
influence that exporting has had on SME growth. Racic et al. (2008) found that exporting could
benefit SMEs. The authors surveyed 535 exporters in Croatia, whose 262 responses, and
analyzed them using chi-square tests. They found that high-growth SMEs in Croatia were most
active in exporting and providing new, innovative products, using new technologies, and
investing in research and development (p = 0.013). Their study helped show a connection
between exports and SME growth.
Cantele et al.'s (2016) findings differed from Racic et al. (2008). After surveying and
analyzing data from 1,235 firms in Italy, using correlation and regression analyses, they
concluded that exporting can be detrimental to SMEs if internationalization is not achievable due
to barriers to exporting. Cantele et al.’s findings showed that three stages exist – stage one, where
exporting is too expensive and unknown (thus detrimental); stage two, where exporting becomes
profitable; and stage three, where increased costs reduce the value of exportation. Although
these two perspectives on export and growth of SMEs are contradictory, their ultimate conclusion
was that exporting can benefit SMEs if internationalization is present. The two studies
highlighted the differences between and among various countries, which helps explain why
export experts made calls for more country-focused research.
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Export Barriers and Profitability/Performance Research
Export barriers correlate significantly with profitability/performance. Anil et al. (2016)
surveyed 135 exporters in Turkey, and subsequent analysis of their data found that perceptions of
external barriers significantly affected performance.
Regression analysis, the most appropriate approach for measuring the impact of an
independent variable on a continuous dependent variable, was conducted. Although Anil et al.
(2016) confirmed that they met some assumptions, they did not verify others within the
information provided in the article.
• First, the authors should have shown results by checking the independence of
observations using the Durbin-Watson statistic (Cooper & Schindler, 2014).
• Second, the authors should have provided results of testing a linear relationship
between the dependent and independent variables using a scatterplot (Vaishnavi &
Kuechler, 2015).
• Third, the authors should have provided the results of testing the assumption of
normality using skewness and kurtosis and a Normal P-P Plot (Cooper & Schindler,
2014).
• Fourth, homoscedasticity should have been shown by plotting residual values against
predicted values (Vaishnavi & Kuechler, 2015).
• Fifth, multicollinearity needed to be verified using Tolerance/VIF values (Cooper &
Schindler, 2014).
• Finally, the authors should have explained how they checked for outliers (Vaishnavi
& Kuechler, 2015).
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The reported Cronbach’s alpha values (α = 0.79–0.91) were acceptable under usual social
science research standards (Nunnally, 1978). Thus, the scale showed internal reliability.
However, the authors did not report examining its discriminant or convergent validity.
Anil et al.'s (2016) findings were similar to Jalali's (2012) findings. Jalali agreed with
Anil et al.; Jalali’s perspectives were positive, concluding that export barriers significantly
affected performance. In surveying and analyzing 141 firms in Greek, a structural equation
model, which is the most appropriate for analyzing a complicated path model, was successfully
performed. Jalali developed the complex path model.
Six dimensions explained about 85.12% of the total variance. Jalali (2012) used the total
variance as the validity measure of the model. However, Jalali did not examine the reliability of
the scale.
Jalali's (2012) findings were similar to those of Nee et al. (2018). Jalali and Anil et al.
examined the relationship between export barriers and profitability/performance. Their
perspectives on that relationship were negative. Nee et al. agreed with Jalali; their views were
also negative.
Nee et al. (2018) found that export barriers significantly affected performance.
Ninetyseven exporters in Malaysia were surveyed and analyzed. The authors successfully
conducted the most appropriate structural equation model for studying a complicated path model.
Nee et al. developed the complex path model. Average variance extracted (AVE) values were
acceptable (0.56–0.70, > 0.50), as were composite reliability values (0.88–0.91, >0.70). Thus, the
scale showed high convergent validity. However, the authors did not examine the scale's
reliability and discriminant validity.
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Altintas et al.'s (2007) findings were similar to those of Jalali (2012) and Anil et al.
(2016). Like Jalali (2012) and Anil et al. (2016), their perspectives were also negative. After
surveying 2,000 companies and analyzing their data, Altintas et al. found that export barriers
significantly affected performance. The authors successfully performed exploratory factor
analysis and a structural equation model. Altintas et al. developed the complicated path model.
Jaeger (2008) disagreed with Nee et al. (2018), Jalali (2012), Altintas et al. (2007), and
Anil et al. (2016). Jaeger's findings differed from those of the above studies. Based on a survey
and analysis of 50 export firms in New Zealand, Jaeger found that export barriers did not
significantly affect performance.
Jaeger (2008) performed case studies, the most appropriate approach for examining a
complicated issue in its real-life context. However, regression analyses are appropriate for
examining the impact of the independent variables on continuous dependent variables. Jaeger
examined the effects of export barriers on performance.
Anil et al. (2016), Jalali (2012), Jaeger (2008), Altintas et al. (2007), and Nee et al.
(2018) examined the relationship between export barriers and profitability or performance.
Except for Jaeger, all these researchers found that export barriers significantly affected
performance; Jaeger found no significant relationship. Nevertheless, the critical recommendation
was a meaningful relationship between export barriers and profitability or performance. Because
they examined that relationship, the above studies fit with the research questions, the problem,
and the study's significance.
23
Export Barriers and the Degree of Internationalization Research
A significant relationship has appeared between export barriers and the degree of
internationalization (Kahiya, 2013). This conclusion came after surveying and analyzing the data
from 129 companies. Kahiya found that export barriers significantly and positively predicted
internationalization. Kahiya performed logistic regression, the most appropriate approach to
examining an independent variable's impact on a categorical dependent variable. Cronbach’s
alpha values were acceptable (α = 0.70 – 0.82), indicating internal reliability. Ten dimensions had
eigenvalues greater than one.
Similarly, Wąsowska (2016) also examined the effects of export barriers on the
company's internationalization process. Consistent with other studies, Wąsowska found that
export barriers significantly affected the perception of internationalization barriers. Wąsowska
surveyed 7,515 European SMEs using the Flash Eurobarometer survey.
Wąsowska successfully utilized a one-way ANOVA to examine the hypothesis.
Cronbach’s alpha values were acceptable (α = 0.78 – 0.86) (Nunnally, 1978). Thus, the scale
showed sufficient internal reliability. However, Wąsowska did not examine the discriminant and
convergent validity of the scale.
In line with other studies, Diem (2020) also investigated the effects of export barriers on
the internationalization of SMEs. Diem surveyed SMEs in Vietnam using the SMEs survey
questionnaire. Diem also found that SME managers'/owners' perceptions of export barriers
significantly affected their internationalization. Diem conducted a binary logistic regression
analysis to examine the research question.
24
Similarly, Akter (2018) also examined the effects of export barriers on
internationalization. Akter also found that perception of export barriers in SMEs'' significantly
affected their internationalization. Akter surveyed 107 SME exporters in Bangladesh using a
structured questionnaire.
Akter (2018) utilized factor analysis and Pearson Product-Moment Correlation.
Cronbach’s alpha values were acceptable (α = 0.84 – 0.91), showing internal reliability. Factor
analysis extracted five factors influencing international export barriers of SMEs' exporters. These
factors show 81.268 percent of the variance of the variables. However, the author did not
examine the discriminant and convergent validity of the scale.
Similarly, Köhr et al. (2018) also investigated the effects of export barriers on the
internationalization process of Italian wine SMEs. The authors found that export barriers
significantly affected the difficulties perceived in the internationalization process. The
researchers surveyed and analyzed 57 exporting wineries in Italy. The researchers used Mann–
Whitney U tests and Spearman correlations to analyze the data and answer the research
questions. Mann–Whitney U tests and Spearman correlations are most appropriate when the data
are nonparametric. Explorative factor analysis yielded one factor with an Eigenvalue larger
than1. Cronbach's alpha value was .73, indicating it is acceptable (Nunnally, 1978).
Köhr et al.’s (2018) viewpoints on the relationship between export barriers and
internationalization were positive, while Kennedy and Nicholas's (2009) findings differed and
were negative. Kennedy and Nicholas found that perceived export barriers were significantly and
negatively associated with internationalization, based on a survey of 100 export firms in Ghana
and an analysis of its results. Kennedy and Nicholas developed their instrument for the study.
25
Kennedy and Nicholas performed a structural equation model using the complicated path model
to determine whether factors of export barriers negatively or positively affected export
performance. Variables reviewed included firm size, internal management forces,
internationalization, perceived export barriers, and export performance. The authors tested the
assumption of normality using skewness and kurtosis. Cronbach’s alpha values ranged between
.59–.79; the authors removed from their scale those items which did not score above .70. The
barriers that most influenced export performance included the following:
• human resource barrier ([34.8% of the total variance], i.e., too few export experts);
• the financial barrier ([15% of the total variance], i.e., overseas payment slowness);
and
• market barriers ([11.2% of the total variance, but with low Cronbach’s], i.e.,
bureaucracy of overseas markets and requirements).
A commitment to exporting by management was correlated and significantly related to
the increase in export performance (p < .05); the authors noted this was consistent with previous
findings of other researchers.
Audretsch et al. (2021) examined the effects of export barriers on two types of
internationalization (i.e., direct exporting activities and outward foreign direct investment).
Audretsch et al. found that export regulations partially affected direct exporting activities but did
not affect outward foreign direct investment. The authors used data from 96 countries between
2000 and 2018 and 1,433 observations to examine the hypotheses.
Audretsch et al. successfully utilized a regression analysis. The authors tested the
multicollinearity assumption using the variance inflation factor (2 – 5). However, the researchers
26
did not test the other regression analysis assumptions. In addition, the authors did not test the
internal reliability of the scale. Finally, the authors did not examine the discriminant and
convergent validity of the scale.
Kahiya (2013), Kennedy and Nicholas (2009), Wąsowska (2016), Akter (2018), and
Köhr et al. (2018) examined the relationship between export barriers and internationalization.
Most of these researchers found that export barriers significantly and positively predicted
internationalization. However, Kennedy and Nicholas found that perceived export barriers were
significantly and negatively associated with internationalization. Although these viewpoints are
contradictory, the essential conclusion was that a significant relationship exists between export
barriers and internationalization. However, the levels of and specific barrier relationships seem to
vary based on location, firm size, and other exogenous and internal variables. Thus, a continued
examination of multiple industries’ and countries’ export practices is warranted.
Internationalization and Performance Research
Correlations between internationalization and performance have been found. In a study by
Cho and Lee (2018), 232 firms in Korea were surveyed and analyzed. Regression analyses
showed that the degree of internationalization was significantly and positively associated with
performance. Although Cho and Lee confirmed that they met some regression analysis
assumptions, they did not verify the scale's reliability and discriminant and convergent validity.
The participants were in Korea; while the findings cannot be generalized to other countries, their
work did add to the overall body of knowledge desired by export experts. Adding other countries,
such as Jamaica, to the body of knowledge could better understand how different variables might
relate to export performance and overcoming export barriers.
27
Cho and Lee's (2018) findings were similar to Lu and Beamish's (2001) findings from
Japan (17 years earlier). In analyzing data from a survey of 164 export companies in Japan, Lu
and Beamish found that internationalization was significantly and positively associated with
performance. The views of Lu and Beamish and Cho and Lee on the relationship between
internationalization and performance were positive. Cantele et al. (2016) agreed with Lu and
Beamish; their regression findings were also positive for a significant relationship. Surveying
231 firms and analyzing the data collected concluded that internationalization was significantly
and positively associated with performance.
In examining the relationship between internationalization and performance, Lu and
Beamish (2001), Cho and Lee (2018), and Cantele et al. (2016) agreed that the relationship is
positive. Like Borda et al.'s (2017) findings, Sun et al.'s (2019) perspectives were also positive,
based on their survey analysis of 1,220 companies. They concluded that internationalization
significantly affected firm performance among those having considerable marketing ability.
Lu and Beamish (2001), Cho and Lee (2018), Cantele et al. (2016), and Sun et al. (2019)
examined the relationship between internationalization and performance. Their views regarding
the relationship between export barriers and profitability or performance were positive, as were
those of Bobillo et al. (2012), but differed from the findings of Buigues et al. (2018).
Bobillo et al. (2012) found a stronger relationship between internationalization and
performance in service companies than industrial companies in their study of 1,721 companies in
Europe. Still, they also failed to verify their results by running additional tests as described above
and examining the scale's reliability and discriminant and convergent validity.
28
Lu and Beamish (2001), Cho and Lee (2018), Cantele et al. (2016), Bobillo et al. (2012),
and Sun et al. (2019) had positive views about the relationship between export barriers and
profitability or performance. Borda et al.'s (2017) findings were similarly positive. Still, they
observed that business group diversification had a more significant impact on the relationship
between export barriers and profitability or performance for service companies than
manufacturing companies. Their study comprised 103 companies in Latin America. Multilevel
models were successfully applied, most appropriate for examining grouped or clustered data.
However, the authors did not discuss the scale's reliability and discriminant and convergent
validity.
In examining the relationship between internationalization and performance, Buigues et
al.'s (2018) perspectives were negative, unlike those of Lu and Beamish (2001), Cho and Lee
(2018), Cantele et al. (2016), Bobillo et al. (2012), and Borda et al. (2017). Buigues et al. found
that internationalization affected performance positively at first but later negatively. Their data
included the results of a survey of the largest transnational companies. They failed to perform the
recommended verification procedures, but they checked multicollinearity using the correlation
matrix and multicollinearity diagnostic. The correlation matrix implied multicollinearity. They
further examined it using the multicollinearity diagnostic. VIF values were less than three,
confirming no multicollinearity. However, the authors did not discuss the scale's reliability and
discriminant and convergent validity.
Like Buigues et al. (2018), Hitt et al.'s (1997) perspectives and views were also negative
on the relationship between internationalization and performance. Their investigation of 1,721
companies demonstrated that internationalization was negatively associated with performance in
29
non-diversified companies and positively associated with performance in highly
productdiversified companies. However, the authors did not examine the scale's reliability and
discriminant and convergent validity.
Garcia-Garcia et al.'s (2017) findings were similar to those of Hitt et al. (1997) and
Buigues et al. (2018). The study conducted by Garcia-Garcia et al. with 103 companies in Spain
indicated a significant and negative correlation between internationalization and profitability. The
authors successfully performed a Heckman analysis; this is the most appropriate instrument for
estimating regression models suffering from sample selection bias. However, the authors did not
examine the scale's reliability and discriminant and convergent validity. The participants were in
Spain.
Export Barriers and Export Intensity Research
Previous researchers have found a significant correlation between export barriers and
export intensity. Martinovic and Matana (2017) found a significant correlation between perceived
export barriers and export intensity in the survey results from 100 firms in Croatia. The
relationship was negative. The authors performed regression analyses. Martinovic and Matana
checked that they met some regression analysis assumptions. However, according to the
previously-mentioned recommended procedures, the authors had not verified others. Most
Cronbach’s alpha values were acceptable (α = 0.63–0.87). Thus, the scale showed internal
reliability. The external environment factor explained about 38.22% of the total variance.
Martinovic and Matana's (2017) findings were similar to Jalali's (2012) findings and
Milanzi’s (2012) findings. Milanzi found that export barriers significantly affected export
intensity in a study of 122 companies in Tanzania. The Tobit regression model, which is most
30
appropriate for measuring the impact of the independent variable on the dependent variable when
there is censoring in the dependent variable, was successfully applied. Most Cronbach's alpha
values were acceptable (α = 0.60–0.83), showing internal reliability. The first group, including
internal barriers, accounted for 68.9% of the variance. The second group accounted for 66.2%.
Martinovic and Matana (2017) found a significant correlation between perceived export
barriers and export intensity. Milanzi (2012) also concluded that export barriers significantly
affected export intensity. The important conclusion was that a significant relationship exists
between export barriers and export intensity.
Export Intensity and Export Performance Research
Significant correlations between export intensity and export performance were found in
previous research. In a survey and analysis of the data of 249 employees at firms in Spain, Stoian
(2010) found a significant correlation between export intensity and export performance. The
author successfully performed univariate and multivariate analyses and a structural equation
model. Cronbach's alpha values were acceptable (α >0.70) (Nunnally, 1978). Thus, the scale
showed high internal reliability. Composite reliability values were good (>0.70). Thus, the scale
showed a high degree of convergent validity. However, the author did not examine the reliability
of the scale. In addition, the author did not discuss the discriminant validity of the scale.
Stoian's (2010) findings were similar to Kahiya and Dean's (2014) findings. Kahiya and
Dean's perspectives were positive. A survey of 118 exporters in New Zealand found that export
intensity significantly predicted export performance. The authors successfully performed
regression analysis. Although Kahiya and Dean checked that they met some regression analysis
assumptions, they had not verified others by the previously recommended procedures. Kahiya
31
and Dean’s, and Stoian’s research studies provided findings regarding the relationship between
export intensity and export performance; both studies found that export intensity significantly
predicted export performance.
The Drivers of Internationalization
There are various drivers of internalization. Kahiya and Dean (2015) found that export
barriers drove internalization. The authors surveyed 95 SME exporters in New Zealand in 1995.
The authors analyzed 129 SME exporters in New Zealand in 2010 using the same survey
instrument.
Kahiya and Dean (2015) utilized exploratory factor analysis and confirmatory factor
analysis. In addition, the authors successfully used binary logistic regression to examine the
research question. Exploratory factor analysis identified an eight-factor solution, showing 60.4
percent variability in the scale. Cronbach's alpha values were acceptable (α = 0.70–0.83),
indicating internal reliability.
Similarly, Kraus et al. (2017) also examined the drivers of internalization. Kraus et al.'s
findings are different from Kahiya and Dean's (2015) findings. Inconsistent with Kahiya and
Dean's studies, the authors found that a suitable market selection, proactive motives, and a
longterm scope could drive SMEs' internalization. In addition, the authors found that strategic
factors were more likely to drive internationalization than structural factors.
Kraus et al. (2017) utilized 187 German SME managers and 2244 internationalization
decisions. The authors successfully used a hierarchical Bayes procedure to develop the
multinomial logit model. However, the authors did not examine the scale's reliability and
discriminant and convergent validity.
32
Amos et al. (2020) investigated the drivers of the internationalization of SMEs in Nigeria.
Consistent with Kraus et al.'s (2017) studies, the authors also found that strategic factors
significantly affected the internationalization of companies. The authors surveyed and analyzed
200 employees of 10 SMEs in Nigeria. Amos et al. successfully conducted multiple regression to
examine the research question. The authors tested and met the assumptions of multiple regression
(e.g., normality, multicollinearity, homoscedasticity). However, the authors did not examine the
scale's reliability and discriminant and convergent validity.
Fernandes et al. (2019) also examined the drivers of internalization. However, Fernandes
et al.'s findings are different from Kraus et al.'s (2017) findings. The authors found that market
orientations significantly and positively affected internationalization. The authors emailed a
questionnaire to 8,103 exporting companies interested in exporting and received 320 responses.
Fernandes et al. used three multiple linear regression models to examine the research question.
Exploratory factor analysis showed that the first factor represented 10.7 % of the total variation.
Cronbach's alpha values were between 0.84 and 0.95, indicating internal reliability.
Lobo et al. (2020) examined the drivers of the internationalization of 320 SMEs in
Portugal. The authors' findings are different from other researchers' findings. The authors found
that external pressures in the home country were significant drivers of SEMs'
internationalization. Exploratory factor analysis identified the significant factors. In addition, the
authors used six items to measure the market characteristics construct. Three factors explained
73.8% of the variability. The authors used 11 items to measure the predictor construct of
inhibitors. In addition, exploratory factor analysis delivered four factors explaining 68% of the
33
variability. The strategic approach to internationalization construct consisted of four items. The
exploratory factor analysis yielded two factors explaining more than 68.0% of the variability.
Lobo et al. (2020) conducted multiple linear regression models to test the research
question. Multiple linear regression is most appropriate for testing the effects of several
independent variables on the dependent variable. However, the authors did not examine the
reliability and validity of the scale.
Kim (2017) examined the drivers of the internationalization of SMEs in South Korea. The
author found that entrepreneurial orientation and investment in employee human capital drove
the internationalization of SMEs in South Korea. 150 SMEs in South Korea were surveyed and
analyzed. Kim successfully performed correlation and logistic regression analyses to examine the
research questions. The author examined construct validity using principal component factor
analysis to present factor loadings. The factor loadings of the scales indicated convergent and
discriminant validity of the constructs. Cronbach's alpha values were higher than
0.70, showing internal validity.
Falahat et al. (2020) examined if four essential export capabilities (market intelligence,
product innovation, pricing, and marketing communication) drove SMEs' internationalization.
The authors found that three of the mentioned capabilities lead to competitive advantages after
surveying 119 exporting Malaysian SMEs. The authors utilized partial least squares structural
equation modeling. The authors tested the reliability of measures using the composite reliability
(CR) index and the average variance extracted (AVE) index. Both indices were higher than the
evaluation criteria, 0.7 for the CR index and 0.5 for the AVE index. All values were within the
recommended threshold, indicating internal consistency reliability and convergent validity. To
34
assess the discriminant validity, the square root of AVE should be higher than the absolute value
of inter-construct correlations. All constructs met this criterion. In addition, all
heterotraitmonotrait ratio of correlations values of the constructs were less than 0.85, indicating
no discriminant validity issue.
Vătămănescu et al. (2017) examined the effects of openness, context exploitation,
credibility, and specialized networks on SMEs' internationalization. The authors found that the
considered factors explained over 55% of the variance in internationalization. The authors
surveyed and analyzed 107 managers from European metal wholesalers SMEs. The authors
tested convergent validity using factor loadings and cross-loadings, AVE and composite
reliability, individual item reliability, composite reliability, and discriminant validity of the
measurement model. The reflective item factor loadings were higher than 0.65. Composite
reliability (CR) values were between 0.8 and 0.91 (i.e., > 0.70), and AVE was from 0.67 to 0.84,
meeting all criteria. The authors tested the discriminant validity of constructs by comparing the
square roots of the AVEs with other correlation scores. The construct correlations did not exceed
the corresponding square root of AVE.
The authors used PLS structural model to answer the research question. The authors
evaluated the extent of multicollinearity among constructs using the variance inflation factor
(VIF). As VIF scores ranged from 1.16 to 2.15 (< 3.3), multicollinearity did not alter the data.
In summary, Amos et al. (2020), Falahat et al. (2020), Fernandes et al. (2019), Kahiya and
Dean (2015), Kim (2017), Kraus et al. (2017), Lobo et al. (2020), and Vătămănescu et al. (2017)
examined the drivers of internalization. They found that many country SMEs exhibited multiple
drivers.
35
Internal/External Factors and Internationalization Research
Significant correlations between internal/external factors and internalization were found
in research conducted in 2021. Miorini et al. (2021) found a significant correlation between
external factors (i.e., the governmental and socio-cultural barriers) and internalization. The
authors also found that internal factors such as market barriers and managers' dimensions
significantly affected internalization. The authors collected 71 responses and analyzed them.
The authors used confirmatory factor analysis to test the validity and reliability of the instrument.
The authors successfully conducted a structural equation modeling (SEM) to examine the
research question.
Zaki et al. (2020) also examined the relationship between internal/external factors and
internationalization. The authors found that management characteristics (e.g., entrepreneurial
orientation, foreign market knowledge, attitudes towards risks) were significantly associated with
internalization. In addition, the authors found that internal factors (products' quality and
uniqueness, reputation and trust, technology) were significantly associated with internalization.
Finally, the authors found that external factors (e.g., industry networking/ association,
globalization phenomena, financial funding opportunities, ethics) were significantly associated
with internalization.
Zaki et al. (2020) used descriptive statistics to answer the research question. However, a
correlation analysis is most appropriate for examining the relationship between variables.
Therefore, using a correlation analysis would lead to more accurate results.
Santhosh (2019) also examined the impact of internal and external factors on the
internalization of SMEs. The author found that internal and external factors (i.e., the
36
characteristics of SMEs, CEO's age, international experience, and export barriers) significantly
affected the internalization of SMEs. The author's study was rooted in a model created by
Leonidou (2004). Leonidou analyzed the impact of barriers delaying the export activities of small
businesses. Leonidou classified export barriers as internal and external barriers.
Santhosh (2019) analyzed 1,271 exporting SMEs in Karnataka. The author successfully
utilized exploratory factor analysis. The final model extracted a six-factor solution explaining
63.4 % of the total variance concerning internal barriers and 49 % of the total variance relating to
external obstacles. Cronbach's alpha values were between 0.63 and 0.99. The author conducted a
binary logistic regression analysis to examine the research question.
Talebi et al. (2017) also examined the relationship between internal factors and the
internalization of SMEs. Talebi et al.'s findings were rooted in Leonidou's (2004) study. Talebi et
al. found that internal factors such as firm-level variables (i.e., company characteristics,
resources, top management team characteristics) significantly affected the internationalization of
SMEs. The authors surveyed 250 top managers of international SMEs in Iran's ICT sector and
collected 120 valid responses. The authors used path analysis to answer the research question.
The authors utilized confirmatory factor analysis to examine the validity of the scale.
Levels above 0.90 for NFI showed a good fit. Results indicated that variables are valid.
Miorini et al. (2021), Santhosh (2019), Talebi et al. (2017), and Zaki et al. (2020)
examined the relationship between internal/external factors and internalization. They found a
significant correlation between Internal/external factors and internalization. Therefore, their
studies fit the research questions, the problem, and the study's significance in the relationship
between Internal/external factors and internalization.
37
Critique of Previous Research Methods
Anil et al. (2016), Jalali (2012), Jaeger (2008), Altintas et al. (2007), and Nee et al. (2018)
used quantitative methods to measure the relationship between export barriers and performance.
Quantitative methods are appropriate for measuring the relationship between export barriers and
performance. They also provide descriptive and exploratory data for emerging markets, initial
forays into a market, and contributing data toward future research. Multiple researchers have
used differing export barrier instruments and methods to analyze their data. While many of them
were adequate for the country and period, initial data analyses described processes to ensure a
base understanding of the type of export environment.
Differences among studies existed – many due to the studies being focused on varying
industries and locations. For example, out of five studies examining the relationship between
export barriers and firm performance, four concluded that export barriers significantly affected
performance. In contrast, Jaeger (2008) came to the opposite conclusion.
Kahiya (2013) and Kennedy and Nicholas (2009) used quantitative methods to measure
the relationship between export barriers and internationalization. Quantitative methods are
appropriate for measuring the relationship between export barriers and internationalization.
Kahiya found that export barriers significantly and positively predicted internationalization.
However, Kennedy and Nicholas found that perceived export barriers were significantly and
negatively associated with internationalization in Ghana. There are differing viewpoints
concerning the relationship between export barriers and internationalization. However, the main
conclusions were that a significant relationship exists between export barriers and
internationalization.
38
Cho and Lee (2018), Lu and Beamish (2001), Cantele et al. (2016), Sun et al. (2019),
Bobillo et al. (2012), Buigues et al. (2018), Hitt et al. (1997), Garcia-Garcia et al. (2017), and
Borda et al. (2017) used quantitative methods to examine the relationship between
internationalization and performance. Quantitative methods are appropriate for measuring the
relationship between internationalization and performance.
Cho and Lee (2018) found that the degree of internationalization was significantly and
positively associated with performance. Lu and Beamish (2001) found that internationalization
was significantly and positively associated with performance. Cantele et al. (2016) also
concluded that internationalization was significantly and positively associated with performance.
Sun et al. (2019) found that internationalization affected firm performance for those firms with
high marketing ability. In addition, Bobillo et al. (2012) found a stronger relationship between
them in service companies than in industrial companies. Borda et al.'s (2017) findings were
similar to Bobillo et al.’s findings. They also found that business group diversification has a more
substantial impact on the relationship between internationalization and performance for service
companies than for manufacturing companies. However, Buigues et al.'s (2018) findings differed
from those of the above studies. They found that internationalization affected performance
positively at first but then negatively. Hitt et al. (1997) found that internationalization was
negatively associated with performance in non-diversified companies and positively associated
with performance in highly product-diversified companies. GarciaGarcia et al. (2017) found a
significant and negative correlation between internationalization and profitability.
39
There were different points of view on the relationship between internationalization and
performance. The important conclusion is that a significant relationship exists between
internationalization and performance.
Synthesis of the Research Findings
Cantele et al. (2016) and Racic et al. (2008) examined exporting as a growth strategy for
SMEs. Racic et al. suggested that exports can benefit SMEs, but Cantele et al. indicated that
exporting can be detrimental when internationalization is not achievable. There were different
standpoints concerning export and SMEs. The main recommendation was that exports could be
beneficial to SMEs.
Anil et al. (2016), Jalali (2012), Jaeger (2008), Altintas et al. (2007), and Nee et al. (2018)
examined the relationship between export barriers and profitability or performance. Four of them
found that export barriers significantly affected performance, while Jaeger found that they did
not significantly affect performance. While viewpoints differed concerning the relationship
between export barriers and profitability or performance, the main recommendations were a
significant relationship between export barriers and profitability or performance. The above
studies fit with the research questions, the problem, and the study's significance by examining the
relationship between export barriers and profitability or performance.
Kahiya (2013) and Kennedy and Nicholas (2009) examined the relationship between
export barriers and internationalization. Kahiya found that export barriers significantly and
positively predicted internationalization. However, Kennedy and Nicholas concluded that
perceived export barriers were significantly and negatively associated with internationalization.
40
Despite these differing findings, the main recommendations were a significant relationship
between export barriers and internationalization.
Lu and Beamish (2001), Cho and Lee (2018), Cantele et al. (2016), Buigues et al. (2018),
Bobillo et al. (2012), Borda et al. (2017), Garcia-Garcia et al. (2017), and Hitt et al. (1997)
examined the relationship between internationalization and performance. Lu and Beamish, Cho
and Lee, and Cantele et al. found that internationalization was significantly and positively
associated with performance. Buigues et al. found that internationalization positively affected
performance initially and negatively affected it. Bobillo et al. found a stronger relationship
between internationalization and performance in service companies than in industrial companies.
Borda et al. found that business group diversification had a more substantial impact on the
relationship between internationalization and performance for service companies than
manufacturing companies. Hitt et al. found that internationalization was negatively associated
with performance in non-diversified companies and positively associated with performance in
highly product-diversified companies. Garcia-Garcia et al. found a significant and negative
correlation between internationalization and profitability. Despite these differing standpoints, the
vital recommendation was a meaningful relationship between internationalization and
performance.
Martinovic and Matana (2017) and Milanzi (2012) examined the relationship between
export barriers and export intensity. Martinovic and Matana found a significant correlation
between perceived export barriers and export intensity, and Milanzi found that export barriers
significantly affected export intensity. Thus, the conclusion was that a significant relationship
exists between export barriers and export intensity.
41
Kahiya and Dean (2014) and Stoian (2010) examined the relationship between export
intensity and export performance. Both studies reported that export intensity significantly
predicted export performance, confirming a significant relationship between export intensity and
export performance.
Researchers examined relationships between internationalization and performance, export
intensity and performance, and export barriers and internationalization. However, there is a gap
in the literature concerning ranking and categorizing export barriers most affecting
manufacturing SMEs in developing countries. This study aimed to fill this gap by an initial
quantitative exploration of SME owners in the manufacturing industry in Jamaica. In this study,
export barriers most affecting SMEs in the manufacturing industry in Jamaica were ranked and
categorized using a quantitative method.
The theory developed by Kahiya et al. (2014) supports the research questions and fits the
study because it examines the impact of export barriers. The approach developed by ArteagaOrtiz
and Fernández-Ortiz (2010) aligns with the research and supports the research questions because
it looks at export barriers. The researcher examined the research questions using the theories
developed by Kahiya et al. and Arteaga-Ortiz and Fernández-Ortiz.
Instruments and Measures
Export Barriers
The researcher used the modified version of the export barrier scale developed by Kahiya
et al. (2014) to categorize export barriers (i.e., exogenous, procedure, knowledge, or resource
export barriers). The export barrier scale is appropriate for this study because it is suitable for
measuring export barriers. Participants rated 42 export barriers using a five-point Likert scale.
42
In Kahiya and Dean's (2014) initial study using the instrument, Cronbach alphas were
acceptable (0.71–0.88). They surveyed 118 exporters in New Zealand and found that strategic
factors significantly predicted export intensity and export intensity growth. The authors
successfully performed linear regression analysis.
Kahiya et al.’s (2014) study was similar to Kahiya and Dean’s (2014) study. Kahiya has
done multiple studies throughout the world using the instrument used in this study. Kahiya et al.
also found that internal reliability existed, reporting Cronbach's alphas (0.70–0.82), coefficients
(> 0.50), and acceptable eigenvalues ( > 1). They reported that the impact of export barriers was
different across the periods reviewed (1995, n = 94 exporters; 2010, n = 129 exporters). The
authors successfully performed discriminant analysis. Kahiya et al. (2014) found the similarity
with Kahiya and Dean's study, which utilized the scale and found good Cronbach's alphas
(0.745–0.795).
Summary and Conclusion
Previous research has found correlations between export barriers and profitability or
performance. Anil et al. (2016), Jalali (2012), Altintas et al. (2007), and Nee et al. (2018) found
that export barriers significantly affected performance. However, Jaeger (2008) disagreed,
reporting that export barriers did not significantly affect performance. Although these studies
reflect differing standpoints, the critical conclusion was that a significant relationship exists
between export barriers and profitability or performance. Therefore, determining the extent to
which SME owners face barriers is essential to their business performance and chances of
success.
There was a significant correlation between export barriers and internationalization.
43
Kahiya (2013) found that export barriers significantly predicted internationalization. However,
Kennedy and Nicholas (2009) found that internationalization was significantly and negatively
associated with perceived export barriers. Although the results differ, the critical observation was
that a significant relationship exists between export barriers and internationalization.
Researchers examined the relationship between export barriers, performance, and
internationalization. However, a gap exists in the literature that ranks and categorizes export
barriers most affecting SMEs within the manufacturing industry in Jamaica. This study can
contribute to the literature by exploring the manufacturing industry in Jamaica.
For the remaining of this project and dissertation, Chapter 3 examines the planned
methodology, Chapter 4 presents the data collection and analyses results as aligned with the
study’s propositions and subpropositions, and Chapter 5 discusses the findings, answers to the
research questions and subquestions, implications, future research ideas, and conclusions.
CHAPTER 3. METHODOLOGY
Introduction
This quantitative descriptive study aimed to rank and categorize the export barriers that
most affected SMEs in the manufacturing industry in Jamaica during the initial part of 2022. The
purpose of Chapter 3 is to detail the research instruments related to export barriers faced by
SMEs and discuss the planned sampling procedures, data collection, reliability and validity, and
data analysis.
Design and Methodology
The quantitative research method is most appropriate for collecting and analyzing
numerical data and is the fairest method for examining independent variables’ impact on
44
dependent variables (Cooper & Schindler, 2014). Conversely, a qualitative approach is suitable
for finding information hidden in participants’ responses (Leedy & Ormrod, 2016). Thus, the
quantitative research method was most appropriate for this study.
A descriptive design aligns with the research questions. It can be used to measure the
components and is appropriate for ranking and categorizing export barriers most affecting SMEs
in the manufacturing industry in Jamaica (Leedy & Ormrod, 2016; Bernard, 2013; Cooper &
Schindler, 2014). Racic et al.’s (2008) methods supported this selection for the study’s
methodology. The researcher used a quantitative descriptive design to examine the research
questions. This study followed the method and design of Racic et al.’s study. While this is not a
replication study, due to different locations, instruments, and industries, it mirrors Racic et al.’s
initial movement into a location to begin cataloging and categorizing the defining factors within
that sample.
Population and Sampling
The target population was SME business owners in the manufacturing industry in
Jamaica. As of 2017, the total of such a population was 1,100 manufacturing SME businesses
(PIOJ). In 2022, this number was much lower (as low as 400, according to the Jamaican
Manufacturing and Export Association), and statistics have become much more difficult to
determine because of the pandemic’s impact on government and private sector reporting.
Due to the large area of geography (an entire country) from which to select the sample,
the choice was made to use a cluster sampling method, as explained and supported by sampling
recommendations by Sekaran and Bougie (2006). The number of SMEs in Jamaica is dispersed
45
across an enormous geographic area. The samples of manufacturing SMEs were randomly pulled
from four geographical regions within Jamaica.
The researcher performed a power analysis with the Epic Info program to derive the
sample size. The expected frequency (10%), the acceptable margin of error (6%), the design
effect (1), and the value of cluster (1) were applied to determine the sample size for descriptive
studies (Erdfelder et al., 2005) and reported that a sample size of 94 was appropriate to create
significant power within the established sample of manufacturing SMEs. Thus, the a priori
sample size planned for the study was N = 94 total SME owner participants.
Setting
The Jamaican culture and environment contributed to a more personalized and hands-on
approach to collecting quantitative data than most scholarly research. While the same
quantitative instrument collected Likert-styled answers from each participant, some participants
used the technology input method to answer the questions. In contrast, others received personal
attention, had the questions read to them, and the research firm representatives marked the
answers for them. As the a priori determined sample size required, the plan was to send surveys
until 94 surveys were fully completed.
Data Collection
The initial plan included requesting and receiving IRB approval from the Capella
University IRB. After receiving IRB approval, data collection using the validated survey
instrument created by Kahiya et al. (2014) was planned to measure the perceptions of Jamaican
manufacturing SMEs regarding how significant/impactful specific export barriers were upon
their decision to export goods from Jamaica.
46
Initial screening ensured that all participants would meet the eligibility criteria.
Recruitment information was provided to the hired survey company using approved documents
from the Capella IRB. Only SME manufacturing company owners or leaders were eligible to
contribute to the study. No incentives or compensation for participation were to be provided to
the participants. A negotiated payment to Market Research Services Limited was made after
signing appropriate nondisclosure agreements. The market research firm used Survey-to-Go
software for data capture but did not provide compensation or incentives to the participants.
At the beginning of each survey meeting, the market team provided participants with an
Informed Consent Agreement form, including the right to privacy and confidentiality and the
right to drop out of the study. The participants read the Informed Consent Agreement form; only
those participants who accepted the terms of the Agreement were to be surveyed using the
previously approved, validated, and applicable instrument designed and previously used by
Kahiya et al. (2014).
Instrumentation
Kahiya et al. (2014) developed the export barrier scale appropriate for the study because
it fits the research questions by measuring four export barrier groups (i.e., exogenous, procedure,
knowledge, and resource export barriers). Two demographic questions were planned: Have you
exported or been interested in exporting in the past? If yes, how many countries have you been
able to export to? These demographic questions were planned to elicit data that could be aligned
with SME owners who tried exporting. Those who were interested in but had not exported
would also provide insightful information about their desire to export and barriers to their
ultimately exporting.
47
Export Barriers
The researcher used a modified version of the export barrier scale developed by Kahiya et
al. (2014) to measure export barriers (i.e., exogenous, procedure, knowledge, and resource export
barriers). Table 1 shows how the barriers align with factors, groups, and types. Participants rated
42 export barriers using a 5-point Likert scale. Sample questions on the survey included asking
participants to rate the importance/impact of a specific barrier on exporting decisions (where 1 =
not important and 5 = very important) to questions such as “Rate the impact of high
transportation costs on exporting,” or “Rate the lack of skilled/flexible labour on exporting.”
Neutral (as in no impact) was a 1, whereas the 3 (center) was a gradation of importance, as
opposed to a neutral item, and was presented to participants like this:
Rate each potential barrier in terms of the level of importance it has on your ability to
export. For example, if the barrier is very important to your ability to export, you may
select "5", but if you believe it is somewhat important to your ability to export you may
select "4", "3" or "2". You would select "1" if the barrier has not affected your ability to
export.
Research Questions and Propositions
Four propositions were provided, aligned with the research questions, to guide the data
analysis of this quantitative, exploratory study. Four subquestions and subpropositions probed the
potential for groups emerging with varying export experience. The descriptive study planned to
explore the what and which questions rather than relationships regarding how, when, or why. The
research questions and subquestions, aligned with propositions and subpropositions, were as
follows:
RQ1. What are the rankings of the perceived barriers to export facing SME owners in the
manufacturing industry in Jamaica?
48
Proposition 1: The export barrier rankings would show that the barriers had varying
importance levels to the SME manufacturers.
Subquestion 1. Would the export barrier rankings change between SME owners with or
without export experience?
Subproposition 1: The export barrier rankings would not differ based on export
experience.
RQ2. Which perceived export barrier factor facing SME owners in the manufacturing
industry is most important?
Proposition 2. One of the eight established export barrier factors would be most important
to the Jamaican manufacturing industry.
Subquestion 2. How would the barrier factor rankings differ between SME owners with
or without export experience?
Subproposition 2: The barrier factor ranking would not differ based on export experience.
RQ3. Which of the four export barrier groups (exogenous, procedure, knowledge, and
resources) is most important to Jamaican SMEs in the manufacturing industry?
Proposition 3: The four export barrier groups (exogenous, procedure, knowledge, and
resources) would clearly show a rank of export importance.
Subquestion 3. Would the barrier group rankings differ between SME owners with or
without export experience?
Subproposition 3: The barrier group ranking would not differ based on export experience.
RQ4. Which of the two export barrier types (internal/external) is more critical to
Jamaican SMEs in the manufacturing industry?
49
Proposition 4: One of the two export barrier types (internal/external) would be more
important to the Jamaican manufacturing industry.
Subquestion 4. Would experience contribute to the importance ranking of export barrier
type?
Subproposition 4: The export barrier type determined as most important would not differ
based on export experience.
Data Analysis
Data analyses were planned to review, clean, and describe the data collected. Cleaning
was planned to ensure that all data was accurate and provided solid evidence of the descriptions
they purported to represent; a manual review of all data was part of the proposed plan. Further,
no missing data was expected since the research company hired was to ensure only fully
completed surveys were provided as part of the package. A missing data analysis using SPSS was
planned. Both Excel and SPSS files were to be provided by the research vendor. The data
analysis plan included describing and reporting the following items:
• Descriptive statistics measuring the percent, frequency, and mean of the answers to each
survey question;
• Demographic descriptive statistics based on the limited demographic questions,
purposely limited to ensure confidentiality and anonymity;
• Identifying in a table form the export barriers ranked by mean for all experienced and
inexperienced exporters, if applicable;
• Identifying in a table form the export barrier factors ranked by mean for all experienced
and inexperienced exporters, if applicable;
50
• Identifying in a table form the export barrier groups ranked by mean for all experienced
and inexperienced exporters, if applicable;
• Identifying in a table form the export barrier type ranked by mean for all experienced and
inexperienced exporters, if applicable;
• Identifying in a table form the noncategorized barriers on the scale by mean for all
experienced and inexperienced exporters, if applicable.
Validity and Reliability
In Kahiya and Dean's (2014) initial study using the instrument, Cronbach alphas were
acceptable (0.71–0.88). Kahiya et al. (2014) found that internal reliability existed, reporting
Cronbach's alphas (0.70–0.82), coefficients ( > 0.50), and acceptable eigenvalues ( > 1).
The construct alphas for this study appear in the Appendix, discussed in Chapter 4.
Ethical Considerations
The study conformed to the ethical conduct of research norms by IRB requirements and
received IRB approval. Participants were assured of the voluntary nature of the research and the
confidentiality of their data, that there were minimal risks associated with participation, and that
they could withdraw from the study with no consequences. By signing an Informed Consent
Agreement form, they affirmed their willingness to participate.
A random code was assigned to identify each participant. No personally identifying data
was collected or connectable to the survey responses. All data collected will be stored for seven
years and then destroyed using proper technology to ensure participant confidentiality. All data
was to be kept on protected external hard drives and locked within cabinets or protected by
passwords.
51
Minimal Risk Study
There were minimal risks to participants of this study—loss of time was one of the only
stated risks, similar to normal daily activities for most individuals. The proposed study followed
the Protection of Human Subjects guidelines set forth by law (45CFR, Part 46.102; 46.103[c]).
The informed consent form provided details about the study's risk, time, and effort, and all
participants were to be required to agree and consent prior to moving forward with the study
questions. Data were to be collected using the Survey-to-Go technology, and therefore only
technological protections were necessary.
All sensitive data transported on a laptop, USB drive, CD, DVD, or over a network were
password protected and encrypted. The data protection plan included creating appropriate and
protected identifiers, securing any paper forms (e.g., consent forms) in locked cabinets, and
ensuring participant names were not stored with the collected data. The researcher connected
Computers and removable drives with data during storage.
All sites, participants, and other identifying information were to be kept separate from the
data collected. All collected data and information regarding participants will be destroyed after 7
years.
Research Protocols in Jamaica
The protocols that apply to research conducted in Jamaica include the same standards as
those conducted in the United States, except for studies regarding specific participants'
management or treatment. Treatment study plans must be submitted to the Ministry of Health for
evaluation. This study did not include the treatment of participants and, therefore, did not require
52
submission to the Ministry of Health. The standard Capella University IRB and ethical
requirements sufficed for the Jamaican requirements for quantitative minimal risk studies.
Summary
Chapter 3 provided the proposed steps for sample size, collecting data, analyzing data,
and reporting the analysis for this descriptive, quantitative study. Chapters 4 and 5 will provide
details regarding the process used to collect and analyze data, the actual findings and description
of the data collected, and any implications and discussion. Answers to the research questions and
discussion of the propositions and subpropositions appear in Chapters 4 and 5.
CHAPTER 4. RESULTS
Introduction
The purpose of the study was to explore the perceptions of SME manufacturers in
Jamaica regarding which export barriers impact their decisions to export goods from Jamaica
overseas. A study goal included ranking, identifying, describing, and categorizing impactful
export barriers and contributing to the export experts’ global body of knowledge. Chapter 3
described the research data collection and analyses proposed plan. Chapter 4 presents the data
collection, analysis, sampling, descriptive statistics, proposition resolutions, results, and findings.
Data Collection Results
Upon obtaining IRB approval, Market Research Services Limited screened and recruited
participants that met the study’s inclusion criteria. A priori sample size was set at 94 surveys.
The research team began surveying participants on April 25, 2022 and ended surveying on May
6, 2022. A total of 102 individual responses were tallied and included in the results. One survey
included answers which were “all 5’s” but remained in the final results because that participant
53
responded accurately to the demographic questions with pertinent information. Market Research
Service Limited provided the data in two files: an excel file and an SPSS-ready file. The data
within the files provided the content for the analyses following the initial plan described in
Chapter 3. The data was examined, reviewed for missing data (none found), and analyzed. Two
groups emerged – experienced and inexperienced exporters, leading to the addition of
subquestions and subpropositions in the study plan.
Descriptive Analysis
The final sample size was 102. Of those, all but five participants were owners or CEOs of
their organizations; the remaining five were sales and marketing managers or directors. Over
two-thirds of the participants had exported manufactured goods from Jamaica to another country
(n = 71, 69.6%); the remaining participants (n = 31, 30.4%) had no experience in exporting. All
SME participants reported their interest in exporting. Therefore, the responses from the
nonexporters were relevant to this study. The two groups provided comparison options within the
descriptive statistics. Table 2 provides initial descriptive exporting information from the sample.
Table 2. Participant Export Experience by Countries Exported
Number of Countries Exported
Participants
Percentage
0
1 or more
1
2
3
4 to 8
9 to 13
14 or more
31
71
10
10
12
26
7
6
30.4
69.6
9.8
9.8
11.7
25.5
6.8
5.8
Note. N = 102. More than half of the exporters (n = 71) exported to 4 or more overseas countries (n = 38).
54
Total employees employed by the participants ranged from 10 to 169. The sample
represented five specific manufacturing sectors, with the most significant sector coming from the
food manufacturing sector (n = 49, 48%), representing nearly half of the participants. “Other”
contributed to a third of the total. See Table 3, including Note.
Table 3. Manufacturing Industries’ Representation
Industries
Participants
Percentage
Food
Beverage
Furniture
Metal
Paper
Other
49
5
6
5
3
34
48%
4.7% 5.8%
4.7%
2.9%
33%
Note. The other option provided participants with the ability to write in their sector; representative groupings
included chemicals, cosmetics, clothing, paints, and various building materials.
Validity and Reliability
A Cronbach’s alpha was run on the factors within the scaled items of the instrument. The
results (see Appendix) show that the alpha coefficients for each scaled factor were between 0.60
and 0.86, except for currency. Thus, but for the currency factor, all factors were acceptable for
scale reliability (Ursachi et al., 2015). Currency’s alpha at .370 indicated something anomalous
with that factor’s scaled items, possibly having to do with the unusual situation occurring with
the currency exchange rates in Jamaica. (See Chapter 4, Research Question 3 and Subquestion 3,
discussion on Jamaican exchange rates).
55
Analysis of Propositions
The study planned to address four propositions and four subpropositions, each aligned
with a corresponding research question. This section analyzes the propositions and
subpropositions. Because this was a descriptive rather than predictive study, propositions were
more appropriately part of the study content than hypotheses. Chapter 5 provides the research
question answers and discussions.
The scale used for the instrument was a Likert scale with five levels, where 1 = not
important and 5 = very important. The scale's 2s, 3s, and 4s were gradations towards both polar
ends. Thus, a Likert score of 4 would mean the barrier was considered more important by a
manager in deciding whether to export a product or not than an item that scored 3. A mean Likert
score from a group of participants of 4.2 would mean that barrier was considered more important
by the group of participants than one which scored a 3.9. Table 4 provides the data and means
consolidated from all participants, with the appropriate framework focused on barriers, factors,
groups, and types.
Proposition and Subproposition 1
The first research question and proposition pairing relied on reviewing the mean scores of
the barriers from all participants and organizing them based on those considered the most
important to those considered the least important. See Table 4.
RQ1. What are the rankings of the perceived barriers to export facing SME owners in the
manufacturing industry in Jamaica?
Proposition 1: The export barrier rankings would show that the barriers had varying
importance levels to the SME manufacturers.
56
Proposition 1 was supported; the rankings show that the mean scores varied, and a “most”
to “least” set of rankings was achieved. Using the mean scores of all participants, high
transportation costs, interest rates & inflation, and unfavorable exchange rates were the
topranked barriers. The highest-ranking barrier was an uncategorized barrier, which is a
significant finding.
Table 4. Ranked Barriers by all Participants
Barriers
Mean Score
Factors
Groups
Type
57
High transportation costs
Interest rates and inflation
Unfavourable exchange rate movements
Minimizing foreign exchange rate risk/fluctuations
Cost of market development
Shipping and Distribution Overseas
Knowing Export Procedures
Strong foreign competition in the market
Financing exports (working capital)
Lack of Ja Government support/assistance
Pricing and promotion
Quality assurance requirements
Unfamiliarity with Foreign Laws
High cost of labour
Locating Distributors Overseas
Knowing How to Market Overseas
Foreign government restrictions and regulations
Handling Export Documentation
Lack of skilled/flexible labour
Providing after sales service and support
Knowing foreign Business Practices
Inconsistent JA Government Export Policy
Lack of Overseas Marketing Experience
Adapting products to overseas markets
Inability to identify market opportunities
Foreign tariff barriers
Collecting and Transferring Payments
Insufficient productive capacity
High costs of overseas travel
High perceived risk in selling abroad
Lack of mgmt’s effort in export marketing
Foreign non-tariff barriers
Low cost-to-benefit expectations
Lack of mgmt time
Language and cultural barriers
Mgmt. focused on domestic market
Competition from other Jamaican firms
Lack of mgmt commitment to export development
Low perceived profitability in exporting
Product usage differences
Technically inferior products
Low aspirations for export development
4.16
4.04 4.03
4.00 3.90
3.88 3.85
3.80 3.80
3.75 3.74
3.73 3.71
3.71 3.71
3.69 3.68
3.62
3.60 3.60
3.51 3.50
3.50 3.46
3.43 3.42
3.39 3.38
3.38 3.32
3.32 3.31
3.30 3.30
3.24
3.20 3.14
3.13 3.08
2.98 2.97
2.94
NC
GP
C
C
NC
L
L
NC
IC
GP
AF
IC
EMK
IC
L
NC
TR
L
IC
NC
EMK GP
EMK AF
EMK
TR
NC
IC
NC
NC
MF
TR
NC
MF
NC
MF
NC
NC
MF
AF
NC
NC
NC
E
E
E
NC
P
P
NC
R
E
P
R
K
R
P
NC
E
P
R
NC
K
E
K
P
K
E
NC
R
NC
NC
R
E
NC
R
NC
R
NC
NC
R
P
NC
NC
NC
E
E
E
NC
E
E
NC
I
E
E
I
I
I
E
NC
E
E
I
NC
I
E
I
E
I
E
NC
I
NC
NC
I
E
NC
I
NC
I
NC
NC
I
E
NC
NC
Note. The matrixed items included the categorized barriers by Kahiya and Dean (2014) and the additional items on
the scale (NC) that researchers have not yet categorized. The applied framework for the project included the scaled
items (barriers), the factors (C = currency, GP = Government policies and regulations, L = logistics, EMK = export
market knowledge, IC = internal constraints, MF = managerial focus, TR = trade-related, and AF = adaptation
factors), the groups (E = exogenous, P = procedural, K = knowledge, R = resource), and the internal (I) or external
(E) items. Ja = Jamaica; Mgmt. = management.
58
Regarding all individual barriers, RQ 1 and Proposition 1 included a subquestion and
subproposition. These relied on considering whether inexperienced or experienced Jamaican
manufacturing exporters ranked the individual barriers differently.
Subquestion 1. Would the export barrier rankings change between SME owners with or
without export experience?
Subproposition 1: The export barrier rankings would not differ based on export
experience.
Tables 5 and 6 rank the individual barriers from the perspectives of experienced and
inexperienced exporters (respectively). Those with exporting experience (Table 5) ranked the
high cost of transportation, interest rates and inflation, and unfavorable exchange rates as the
most critical barriers to export they faced.
59
Table 5. Barrier Rankings of Participants With Export Experience
Barriers
Mean
High transportation costs
Interest rates and inflation
Unfavourable exchange rate movements
Minimizing foreign exchange rate risk/exchange rate fluctuations
Shipping and Distribution Overseas
Strong foreign competition in the market
Lack of Ja Government support/assistance
Financing exports (working capital)
Cost of market development
Knowing Export Procedures
Handling Export Documentation
Lack of skilled/flexible labour
Locating Distributors Overseas
Quality assurance requirements
Pricing and promotion
Providing after-sales service and support
Foreign government restrictions and regulations
High cost of labour
Unfamiliarity with Foreign Laws
Knowing Foreign Business Practices
Lack of Overseas Marketing Experience
Knowing How to Market Overseas
Inconsistent JA Government Export Policy
High costs of overseas travel
Adapting products to overseas markets
Foreign tariff barriers
Foreign non-tariff barriers
Inability to identify Market Opportunities
Insufficient productive capacity
High perceived risk in selling abroad
Lack of management time
Lack of management’s effort in export marketing
Low cost-to-benefit expectations
Collecting and Transferring Payments
Language and cultural barriers
Management focused on the domestic market
Lack of management’s commitment to export development
Competition from other Jamaican firms
Low perceived profitability in exporting
Technically inferior products
Low aspirations for export development
Product usage differences
4.30 4.11
4.10 4.06
3.96 3.90
3.87 3.86
3.86 3.82
3.76 3.73
3.70 3.69
3.68 3.66
3.65 3.65
3.62
3.58 3.56
3.56 3.52
3.52 3.46
3.44 3.42
3.42 3.38
3.38 3.35
3.31 3.31
3.31 3.23
3.13
3.13 3.11
3.11 3.04
2.99
2.93
60
The two groups provided different rankings. The inexperienced exporters (Table 6)
mainly cared about market development costs, knowing how to market overseas, and knowing
export procedures.
Table 6. Barrier Rankings of Participants Without Export Experience
Barriers
Mean
61
Cost of market development
Knowing How to Market Overseas
Knowing Export Procedures
Unfamiliarity with Foreign Laws
Unfavourable exchange rate movements
Minimizing foreign exchange rate risk/exchange rate fluctuations
Pricing and promotion
Interest rates and inflation
High transportation costs
High cost of labour
Quality assurance requirements
Foreign government restrictions and regulations
Shipping and Distribution Overseas
Locating Distributors Overseas
Financing exports (working capital)
Strong foreign competition in the market
Collecting and Transferring Payments
Lack of Ja Government support/assistance
Providing after sales service and support
Adapting products to overseas markets
Inability to identify Market Opportunities
Inconsistent JA Government Export Policy
Foreign tariff barriers
Insufficient productive capacity
Lack of Overseas Marketing Experience
Lack of management’s effort in export marketing
Management focused on domestic market
Knowing Foreign Business Practices
Lack of skilled/flexible labour
Handling Export Documentation
Low cost-to-benefit expectations
Language and cultural barriers
Lack of management time
Competition from other Jamaican firms
High perceived risk in selling abroad
Lack of management’s commitment to export development
Product usage differences
Foreign non-tariff barriers
High costs of overseas travel
Low perceived profitability in exporting
Low aspirations for export development
Technically inferior products
4.00 3.97
3.94 3.90
3.87 3.87
3.87
3.87 3.84
3.84 3.81
3.74 3.71
3.71 3.68
3.58 3.58
3.48 3.45
3.45 3.45
3.45 3.39
3.39 3.35
3.35 3.35
3.35 3.29
3.29
3.29 3.26
3.19 3.19
3.19 3.13
3.10 3.06
3.06 3.00
2.84
2.81
With transportation costs falling to the 9th most important for those with no export
experience, it does appear that the barriers keeping Jamaican manufacturers from exporting at all
are different from those causing experienced exporters concerns. Conversely, knowing how to
62
market overseas was ranked 2nd for SMEs without export experience but 22nd for SMEs with
export experience. Subproposition 1 was not supported; experience did seem to influence how
the barriers were ranked by manufacturing SMEs in Jamaica.
Proposition and Subproposition 2
The second research pairing considered which barrier factors would emerge as more or
less important from the perceptions of SME firms seeking to internationalize using the barrier
factors shown in Table 1.
RQ2. Which perceived export barrier factor facing SME owners in the manufacturing
industry is most important?
Proposition 2: One of the eight established export barrier factors would be most important
to the Jamaican manufacturing industry.
Table 7 provides the ranking of export factors as perceived by all participants.
Uncategorized export barriers were labeled “Not Categorized.”
Table 7. Ranked Export Barrier Factors by All Participants
Groups
Means
Logistical and Distribution Factors
Government Policy/Home Market Factors
Currency Risk and Payment Obstacles
Internal Resource Constraints
Export Market Knowledge
3.76
3.76
3.70
3.64
3.54
Trade-Related Barriers
3.47
Not Categorized
Adaptation Factors
3.47 3.39
Managerial Focus
3.23
63
The mean scores provided a ranked order of “most” to “least” important for barrier
factors. Two factors’ means tied for the most important factor: logistical and distribution factors
and government policy/home market factors ranked as “top” factors by all participants, and
currency risk and payment obstacles were the next highest-ranked factor. Thus, Proposition 2
was not supported because there was no definitive top ranked barrier factor.
Subquestion 2 and Subproposition 2 considered whether those with or without export
experience might rank different barrier factors as most or least important to their decisions to
export.
Subquestion 2. Would the barrier factor ranking change between SME owners with or
without export experience?
Subproposition 2: The barrier factor ranking would not differ based on export experience.
Table 8 shows the results of ranking by the inexperienced exporters.
Table 8. Ranked Export Barrier Factors by SMEs Lacking Export Experience
Means
Currency Risk and Payment Obstacles
Logistical and Distribution Factors
Government Policy/Home Market Factors
Internal Resource Constraints
Export Market Knowledge
3.73
3.66
3.60
3.60
3.52
Adaptation Factors
3.47
Trade Related Barriers
3.40
Not Categorized
Managerial Focus
3.39
3.23
Factor
s
64
Table 9 shows the rankings by the experienced exporters.
Table 9. Ranked Export Barrier Factors by Participants with Export Experience
Factors
Means
Government Policy/Home Market Factors
Logistical and Distribution Factors
Currency Risk and Payment Obstacles
Internal Resource Constraints Export
Market Knowledge
Not Categorized
3.84
3.81
3.68
3.66
3.55
3.51
Trade Related Barriers
3.50
Adaptation Factors
3.36
Managerial Focus
3.23
Subproposition 2 presumed that experience in exporting would not affect the factor
ranking decisions. While the rankings were similar, the highest-ranked factor for inexperienced
exporters was currency risk and payment obstacles (which was ranked third among the
experienced exporters). In contrast, experienced exporters ranked government policy/home
market factors (ranked third to inexperienced exporters) as the most important. Both groups cited
logistics as second, internal as fourth, and export knowledge as fifth. Therefore, Subproposition
2 was not supported, but distinct similarities existed.
Proposition 3
The third pairing of research question and proposition included the following:
RQ3. Which of the four export barrier groups (exogenous, procedure, knowledge, and
resources) is most important to Jamaican SMEs in the manufacturing industry?
Proposition 3: The four export barrier groups (exogenous, procedure, knowledge, and
resources) would clearly show a rank of importance.
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Table 10 translates the ranking of export barriers by all participants into export barrier
groups. Uncategorized export barriers were labeled “Not categorized.”
Table 10. Ranked Groups by all Participants
Groups
Means
Exogenous
Procedure
Knowledge
Not Categorized
Resources
3.64
3.58
3.54
3.47
3.43
The exogenous barriers were most important to the participants, with resources being the
least important. The 102 SME firms also called out the procedure group as more instrumental of
a barrier group impacting their decision to export than knowledge, the uncategorized items, or
resources. Proposition 3 was supported.
Proposition 3 also included a subproposition paired with a subquestion to discern whether
experience impacted rankings.
Subquestion 3. Would the barrier group rankings change between SME owners with or
without export experience?
Subproposition 3: The barrier group ranking would not differ based on export experience.
Table 11 shows the inexperienced exporters’ data results.
Table 11. Ranked Groups by Participants Without Export Experience
Groups
Means
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Exogenous
Procedure
Knowledge
Resource
Not Categorized
3.58
3.57
3.52
3.41
3.39
Table 12 shows the experienced exporters’ data results.
Table 12. Ranked Groups by Participants With Export Experience
Groups
Means
Exogenous
Procedure
Knowledge
Not Categorized
Resources
3.67
3.58
3.55
3.51
3.44
The rankings for both exporter groups were nearly identical. The exogenous barrier group
was most important among both exporter groups, with resources being the least important.
Inexperienced and experienced exporters ranked the procedure group higher than the knowledge
group; knowledge ranked higher than the resource group. The uncategorized group of barriers
was ranked higher than the resource group by the experienced exporters but lower by the
inexperienced exporters. In this case, the data supported Subproposition 3, showing the
importance of the grouped export barrier rankings was virtually the same, regardless of
experience in exporting.
Proposition 4
The next pairing of research question and proposition included the following:
RQ4. Which of the two export barrier types (internal/external) is more critical to
Jamaican SMEs in the manufacturing industry?
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Proposition 4: One of the two export barrier types (internal/external) would be more
important to the Jamaican manufacturing industry.
Table 13 shows the results of all of the participants by barrier types.
Table 13. All Participants’ Ranks as Barrier Types
Barrier Type
Mean
External Internal
Not Categorized
3.61
3.49
3.47
For all participants, the external barrier types ranked as most important in deciding
whether to export. Proposition 4 was supported. Subquestion 4 and Subproposition 4 reviewed
the data between the inexperienced and experienced exporters.
Subquestion 4. Would the export barrier type ranked as most important change between
SME owners with or without export experience?
Subproposition 4: The export barrier type ranked as most important would not differ
based on export experience.
Table 14 shows the inexperienced participants’ results.
Table 14. Export Barrier Type Rankings for Participants Without Experience
Barrier Type
Mean
External Internal
Not Categorized
3.63 3.49
3.51
Table 15 shows the experienced participants’ results.
Table 15. Export Barrier Type Rankings for Participants With Experience
Barrier Type
Mean
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External Internal
Not Categorized
3.57 3.46
3.39
The export barrier type rankings are the same for each group, with the external barrier
types being most important, supporting Subproposition 4.
Summary
A quantitative, descriptive study with four paired research questions, subquestions,
propositions, and subpropositions occurred to explore the perceptions of 102 Jamaican SME
manufacturing leaders. Data collection occurred in April and May 2022 in Jamaica. SME
manufacturers in Jamaica received a survey containing the list of export barriers compiled by
Kahiya and Dean (2014). The participants provided their perceptions of the relative importance
of the barriers to their decisions made regarding exporting. About a third of the participants
reported that they had not exported their products, although they expressed a plan to export.
About two-thirds had exported their products. Data showed some differences between which
individual barriers and barrier factors the exporters with and without experience found most and
least important. Minimal differences existed when looking at the less granular export barrier
groups and types. Chapter 5 will include further discussion of the results and answers to the
research questions, implications, and ideas for future research.
CHAPTER 5. CONCLUSIONS
Introduction
The objective of the quantitative descriptive study was to rank export barriers, factors,
groups, and types most affecting SMEs in the manufacturing industry in Jamaica. The data from
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this may contribute to business practices regarding export barriers most affecting SMEs in the
manufacturing industry in Jamaica. The study findings may provide the manufacturing industry
in the developing country of Jamaica with ideas about how to overcome some of the barriers
existing in Jamaica.
The theory guiding this study was the export barrier theory. Data findings fit in with the
theoretical framework presented in Chapter 2. Chapter 2 identified the factors of the export
barrier theory used to examine the highest-ranked perceived barriers to export facing SME
owners in the manufacturing industry in Jamaica. The export barrier theory aligned with the
survey instrument previously validated and used by researchers. For developing countries such as
Jamaica, barriers to exports can create financial and economic hardships, as described by Paul et
al. (2017).
The researcher used a quantitative method and descriptive design in this study. Chapter 5
addresses the research questions, explains how the study fulfilled the research purpose to
business practice, ties any pertinent findings to the literature, and provides recommendations for
future researchers. In addition, Chapter 5 presents the implications of the study's findings.
Evaluation of the Research Questions
The data results provided answers to the research questions while also adding to the
literature and understanding of how the export theory works within Jamaica. Each research
question is discussed separately.
Research Question 1
RQ1. What are the rankings of the perceived barriers to export facing SME owners in the
manufacturing industry in Jamaica?
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The data from this study suggested that high transportation costs are the highest-ranked
perceived barriers to export facing SME manufacturing leaders in Jamaica. The analysis findings
aligned with a World Trade Report (2016), which showed that high transportation costs were the
most significant barrier to export facing SME owners. In addition, the findings of the study data
aligned with Tamar et al.'s (2016) study that also demonstrated that high transportation costs
were the most significant barrier to export facing SME owners. The data findings of the study
aligned with previous literature.
Subquestion 1
The data from this study showed that SME owners who had exported previously, agreed
with the 2016 World Trade Report that high transportation costs were their most significant
concern regarding exporting their products. However, SME owners in Jamaica who wanted to
export but had not yet done so noted their most significant barriers were the cost of market
development. For inexperienced exporters, transportation costs ranked ninth. These findings
conflicted with the 2016 World Trade Report’s findings.
The results of this study also conflicted with the findings from Staden’s (2022) study in
Africa. In Africa, management experience was the most significant factor (Staden). For Jamaican
inexperienced exporting SME owners, management experiences were ranked 25, 26, 27, and 33
on the importance level, and experienced exporting SME owners ranked management
experiences at levels 31, 32, 36, and 37. Thus, for Jamaica, the management factor was less
impactful than that noted on the African continent.
It is possible that being an island nation could have contributed to these differences.
Transportation costs, labour costs, and marketing development costs on an island tend to be
significant. In Africa, exporting is a much different event. Moving a product within the African
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continent is defined as exporting, whereas in Jamaica, every export situation requires moving a
product overseas, which is much more complicated and costly.
Research Question 2
RQ2. Which perceived export barrier factor facing SME owners in the manufacturing
industry is most important?
The participants determined that logistical factors, government policy and home market
factors, and currency risks and payments were the most important (see Table 7).
Subquestion 2
Subquestion 2. How would the barrier factor rankings differ between SME owners with
or without export experience?
As described in Subproposition 2 results, the factor rankings were very similar. However,
inexperienced exporters listed currency as the top barrier factor, whereas experienced exporters
ranked government policy and home market factors as their top concern. The top three factors
were the same for both groups, ordered slightly differently. Interestingly, the lowest-ranked
barrier factor for Cronbach’s alpha (currency) was also in the top three items for all study
participants.
Research Question 3 and Subquestion 3
RQ3. Which of the four export barrier groups (exogenous, procedure, knowledge, and
resources) is most important to Jamaican SMEs in the manufacturing industry?
Subquestion 3. Would the barrier group rankings change between SME owners with or
without export experience?
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As the barrier concepts became less granular, the differences seen with experience
became less pronounced. The data from this study suggested that the exogenous barrier group is
most important to Jamaican SMEs in the manufacturing industry, regardless of experience. The
answers to both Research Question 3 and its subquestion are the same. The findings of the study
data aligned with Mikilian and Hoelscher's (2021) study that showed that the exogenous barrier
group was the most significant factor affecting SME owners.
Exogenous barriers included foreign exchange rates, interest rates, government
regulations, support, and tariffs. These items create uncontrollable barriers that previous research
showed were highly impactful to decisions to export. In Jamaica, specifically, the currency
exchange rates have become a significant hurdle for working with buyers in other countries. For
example, the Bank of Jamaica publishes the daily exchange rates of United States dollars to
Jamaican Dollars. In January 2015, the exchange rate was $1USD to $115.32JD; in January
2018, the rate increased to $124.93JD. In January 2022, the rate had become even more
disadvantageous to Jamaican exporters ($1USD = $156.01JD). The devaluation of the Jamaican
dollar was potentially a compelling reason for the exchange rates and fluctuations being an
essential barrier to Jamaican SME manufacturing owners.
The exogenous finding fits into the export theory created by Kahiya et al. (2014). Kahiya
et al. explained that the uncontrollable aspect of exogenous barriers does contribute to their
influence on exporting decisions.
Research Question and Subquestion 4
RQ4. Which of the two export barrier types (internal/external) is more critical to
Jamaican SMEs in the manufacturing industry?
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Subquestion 4. Would experience contribute to the importance ranking of export barrier
type?
The data from this study suggested that external barriers are more critical to Jamaican
SMEs in the manufacturing industry. Both inexperienced and experienced exporters ranked them
the most important. The study data findings agree with Al-Maskari et al.'s (2019) study that
showed that external barriers were the most significant factors affecting SME owners. This
finding also aligns with the concept that uncontrollable factors will be more influential than those
in the control of the organizations and leaders (Kahiya et al., 2014).
Additional Comments
The “uncategorized” factor group fell near the bottom of the importance rankings for the
groups and types, but some important exceptions emerged for individual barriers. Both
inexperienced and experienced exporters rated the group of uncategorized factors below the
internal and external types and the other groups. However, the top item on the list of individual
barriers for experienced exporters was high transportation costs, which was not categorized;
number five on their list was the cost of market development, also not categorized. For
inexperienced exporters, the top-ranked and 2nd ranked barriers, market development cost and
knowing how to market overseas, were uncategorized items. The findings of this study could
contribute toward an expansion of existing categories to include more barrier items or the
addition of new categories such as “costs of exporting” or similar. Doing so could increase
knowledge about exporting barriers from other country-focused research.
Overall, the summary results aligned between all SME participants, inexperienced SMEs,
and experienced SMEs are provided in Table 16.
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Table 16. Overall Participant Rankings by Barrier Classifications
Participants
Individual Barrier
Barrier Factor
Barrier
Group
Barrier
Type
All SMEs
Inexperienced
SMEs
Experienced SMES
High Transport Costs
Cost of Market
Development
High Transportation
Costs
Logistics,
Govt. Policy
Currency
Govt. Policy
Exogenous
Exogenous
Exogenous
External
External
External
Note. Govt. = Government.
Fulfillment of Research Purpose
This quantitative descriptive study aimed to explore the perceptions of SMEs in the
manufacturing industry in Jamaica regarding their decisions about exporting products overseas.
The findings of this study add to the existing body of knowledge regarding the highest-ranked
perceived barriers, factors, types, and groups to export facing SME owners in the manufacturing
industry in Jamaica. Previously, no researchers had studied Jamaican SME manufacturers to
determine their most impactful barriers to exporting.
The data suggest that high transportation costs are the highest-ranked perceived barriers
to export facing SME owners in the manufacturing industry in Jamaica who have exported
products from Jamaica. However, for those planning or desiring to export but who have not yet
done so, the barriers of the high cost of market development, knowledge of foreign laws, export
procedures, and marketing overseas are their more prominent concerns.
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Government policy/home market and logistical factors are most important for all
Jamaican manufacturing SMEs. In addition, the data indicate that the exogenous barrier group
and the external barrier type are the most important to Jamaican SMEs in the manufacturing
industry (regardless of experience), which aligns with other countries in previous research.
This study is significant with implications for practitioners and scholars because
practitioners might benefit from understanding business practices regarding the highest-ranked
perceived barriers to export facing SME owners in the manufacturing industry in Jamaica. The
findings from this study can expand and inform practitioners on how the exogenous barrier
groups and the external barrier types are most critical to Jamaican SMEs in the manufacturing
industry. Jamaican policymakers should also review and consider it since the perceptions of SME
owners called out government policy/home market factors and logistical factors as the main
barrier factors affecting SMEs interested in exporting. Policymakers should consider the
concerns of Jamaican business owners. Working toward reducing the currency fluctuations and
disparities with other currencies is a critical need toward helping realign exporting of goods from
Jamaica. Further, education about exporting is a critical need since knowledge was called out as a
specific barrier to exporting, especially by the inexperienced exporters.
Contribution to Business Problem
The ability of small companies, especially those based in developing countries, to
compete internationally is a significant challenge faced by business practitioners (Williams,
2015). Despite their importance to the economy, the general problem is that small firms tend to
be more challenged than larger firms when exporting. However, a large proportion of the extant
literature is dedicated to large firms and is not applicable or relevant to the strategies needed by
SMEs (Paul et al., 2017). There is a significant gap in the literature on understanding how export
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barriers affect Jamaican manufacturing SMEs (Arteaga-Ortiz & Fernández-Ortiz, 2010;
Nicholson & Lashley, 2016; Paul et al., 2017; Tybout, 2000). This problem inhibits the
effectiveness of interventions by owners and policymakers, as the challenges faced by exporters
in each specific context (economy, industry, and culture) direct the type of aid needed to
effectively "increase exporting from microeconomic and macroeconomic perspectives" (Arteaga-
Ortiz & Fernández-Ortiz, p. 415).
Recommendations for Further Research
Future researchers might measure which of the four export barriers most affect the export
profitability of manufacturing SMEs in Jamaica, controlling for potential confounders by using
hierarchical regression analysis. Researchers may also examine which of the four export barriers
most affect the degree of internationalization of manufacturing SMEs in Jamaica, controlling for
potential confounders by using hierarchical regression analysis.
Qualitative research might be a follow-up to this study. Delving more into what some of
the more successful exporters have done to overcome these barriers would be a good case study
or qualitative inquiry project in the future. Further, more research is warranted to understand the
internal barrier group difference from previous studies, pertinent to Jamaica.
This study polled participants from privately-owned manufacturing companies.
Researchers could include public manufacturing companies in future studies.
Conclusions
Jamaican SMEs in manufacturing may use the study's findings as the data demonstrated
the highest-ranked perceived barriers to export facing SME owners in the manufacturing industry
in Jamaica. The study's findings add to the body of knowledge since small firms tend to be more
challenged than larger firms when exporting. Some Jamaican SMEs in manufacturing do not
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know the highest-ranked perceived barriers to export facing SME owners in the manufacturing
industry in Jamaica.
The findings from the study suggested that high transportation costs, logistics &
government policy/home market factors, the exogenous barrier group, and external barrier types
are more critical to Jamaican SMEs in the manufacturing industry. They also show that different
barriers block new entries into the Jamaican export business than those impacting experienced
exporters. The study identified several areas that add to the expert knowledge regarding
exporting, especially for Jamaican SMEs in the manufacturing industry. It also provided ideas
for future research studies.