Modeling the Determinants of Export Performance of Medium Agro-Processing Firms in the Philippines

Date

2022

Abstract

Given the COVID-19 pandemic where developing countries need to keep economic activities going without relying on their domestic market, it was hypothesized that an export-led growth strategy is a good development alternative that the Philippines can take advantage of, which is consistent with what the East Asian countries are currently doing. In the field of strategic management and entrepreneurship, this study developed a model that explains the extent on how export performance of medium enterprises is influenced by factors that are resourced-based and contingent to the context of agro-processing where trade liberalization is enhanced and at the same time constrained and threatened by the pandemic.

A mixed-method, explanatory sequential research design was used to explain the influence of environmental hostility, environmental munificence, entrepreneurial orientation, and dynamic capabilities towards the export performance of medium agro-processing firms. Using partial least squares-structural equation modeling technique, quantitative data collected from 108 medium agro-processing firms yielded four significant direct effects and two main indirect paths of causality. The influence of environmental hostility on export performance was double mediated by entrepreneurial orientation and dynamic capabilities; while the influence of environmental munificence on export performance was mediated by dynamic capabilities alone. The convergence of the two main paths along the dynamic capabilities significantly positioned dynamic capabilities as the major antecedent to export performance regardless of the environment. Qualitative data analysis from one case study filled-in the gaps identified from quantitative data analysis: 1) entrepreneurial orientation is manifested as the variable responsible in converting the negative effects brought by environmental hostility into something positive that further influence above-average export performance, and 2) dynamic capabilities are manifested through the continuous exploration, execution, and exploitation of skills, information, knowledge, and resources to make the necessary innovative changes that further establish the expertise and competitiveness of an organization in the global value chain. Overall findings of this study provided the justification that the relationship of environmental hostility, environmental munificence, and entrepreneurial orientation with export performance is not straightforward, and an indirect influence is made through dynamic capabilities.

Implications to management, theory, and policies highlighted the following: 1) the role of education and research institutions in the development of dynamic capabilities of firms and in influencing the entrepreneurial culture and resilience in the community through technology and kitchen incubators, 2) protecting and developing the agriculture sector through policies and programs that promote technological infrastructure to enable efficient production and post-harvest activities, and 3) striving for quality agricultural inputs to maintain high domestic value added of exported products through extensive development of the cooperative sector in the country.

Document Type

Dissertation

College

College of Public Affairs and Development (CPAf)

Location

UPLB College of Public Affairs and Development (CPAf)

Notes

Doctor of Philosophy (Development Studies)

Award: Best PhD Dissertation Award

This document is currently not available here.

Share

COinS