Do quality management impacts export performance?
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Impact of Quality Management on Export Performance
Introduction to Quality Management and Export Performance
Quality management plays a crucial role in determining the export performance of firms. This article synthesizes findings from multiple research studies to understand how quality management practices influence export outcomes.
Better Management Practices and Export Success
Research indicates that firms with superior management practices are more likely to excel in export markets. These firms tend to export more products to a wider range of destinations and achieve higher export revenues and profits. They also export higher-quality products at higher prices, while maintaining lower quality-adjusted prices. Additionally, these firms import a broader range of higher-quality inputs from more advanced countries, which further enhances their production efficiency and quality capacity.
Capabilities and Export Performance
A resource-based view perspective highlights that organizational learning, relationship, and quality capabilities significantly influence product strategy and export performance. Investing in relationship management capabilities can improve product innovation and quality, which in turn enhances export performance. While product quality is critical in international markets, product innovation and relationship performance play an even greater role in boosting economic performance.
Strategic Export Model and Empirical Evidence
A review of empirical literature from 1978 to 1988 on export performance underscores the importance of strategic management practices. The synthesis of these studies suggests that effective management strategies are pivotal for successful export performance, providing a foundation for future research and practical applications in export management.
Marketing Strategy and Export Performance
A meta-analysis of empirical studies on the relationship between marketing strategy and export performance reveals that various marketing strategy elements positively impact export performance. However, the significance of these effects varies. Notably, the proportion of sales attributed to exports shows stronger effects, while factors such as the time of study, geographic focus, and product type have limited impact on the effectiveness of marketing strategies.
Conclusion
In conclusion, quality management significantly impacts export performance. Firms that adopt better management practices, invest in relationship and quality capabilities, and implement effective marketing strategies are more likely to succeed in international markets. These findings underscore the importance of strategic management in enhancing export outcomes and provide valuable insights for firms aiming to improve their export performance.
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