Obstacles to export initiation and expansion

The increasing globalization of markets witnessed in recent years has been paralleled by growing research attention upon the internationalization of small and medium sized firms. In industrialized nations, a significant degree of dormant export potential has been identified in this firm size sector. The proliferation of extant literature can explain structural, behavioural and process-based aspects of export expansion. However, it remains that limited conceptual and empirical insights exist that explain the phenomena underlying pre-export decision making and behaviour. The present inquiry addresses this issue and investigates those obstacles that act upon domestic firms' intentions to enter overseas markets via the export channel. Specifically, the empirical study documented here establishes significant differences in the extent to which exporting obstacles discourage export engagement amongst varied groups of domestic firms considered in terms of their export intention. It also draws a similar comparison between such groups of non-exporting firms and those already engaged in export operations. The findings are interpreted and discussed in the light of current knowledge and attention is paid towards pertinent implications for export management and future research.