Export initiation by indigenous manufacturers ina small developing economy

Abstract

The article examines the factors that influence indigenous manufacturers in
a developing country to initiate exporting. Export stimuli were classified into
proactive and reactive, representing a deliberate or opportunistic attitude towards
exporting respectively. Thirty-four Cypriot firms belonging to five industry
groups provided the research sample. The results showed that their export
decision was motivated, overall, more by proactive rather than reactive factors
exemplifying a rational approach to exporting. However, a further examination
of the results in conjuction with the small size of the domestic market and
certain geopolitical events occured in the region questioned this rational export
behaviour and, instead, concluded that their actual approach to exporting was
casual, unsystematic, unplanned and non - organized.