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Export promotion, sales and profits: a structural equation modelling

Ng, Kim Soon and Ahmad, Abd Rahman and Chua, Pei Shy (2016) Export promotion, sales and profits: a structural equation modelling. Journal of Southeast Asian Research, 2016.

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Official URL: DOI: 10.5171/2016.309540


Export promotion can be a differentiator for sales and profits. More research works are needed to explicitly delve into developing concrete models and multi-dimensional scales to strengthen the theoretical foundations for measuring export performance. This study uses SEM to model on export promotion, firm’s quality reputation, product and service quality for generating sales with profit. The respondents were the Johor State manufacturing exporters selected from the Federation of Malaysia Manufacturers Directory based on Krejcie and Morgan sampling plan. Respondents answered a self-administered survey questionnaire. Results indicated that the observable variable of export promotion comprises of management of sales promotion activities, selecting and participating in relevant trade fairs, preparation of product literature, and evaluating channel performance. The latent variables that have loaded highly into enhancing firm’s quality are improving products, providing better service quality and gaining reputation. The latent variables of sales performance that loaded in the observable measure of export sales are export sales efficiency and export sales growth. Profits measure was found to comprise of export profitability and profit margin. Structural equation modelling of good fitting has shown that export promotion enhances firm’s quality and will lead to higher sales with profits. Future research and practical implications are reported.

Item Type: Article
Uncontrolled Keywords: Export; export promotion; products; service quality; export performance
Subjects: H Social Sciences > HF Commerce > HF1351-1647 International economic relations
Divisions: Faculty of Technology Management and Business > Department of Technology Management
Depositing User: Mr. Mohammad Shaifulrip Ithnin
Date Deposited: 13 Aug 2018 03:25
Last Modified: 13 Aug 2018 03:25
URI: http://eprints.uthm.edu.my/id/eprint/8714
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