مطالعات مدیریت راهبردی (Dec 2021)
Export decision making framwork in steel industry
Abstract
Aim and introduction: Exports at the macro and micro levels are of particular importance. At the macro level, it improves the economic situation and creates employment, and at the corporate level, it provides an opportunity for less dependence on the domestic market, gaining new customers, and reducing costs through economies of scale. Steel industry is mentioned as one of the main industries and stimulus of other industries, which can strengthen the country's economy. Due to some advantages, including cheap energy, Iran can have a good position in this industry and a good opportunity in this field to produce and export. Therefore, despite the fact that steel has the country's export priorities, as well as the domestic market recession and the role of exports in the profitability and growth of companies, steel exports are far from reaching the desired position. This doubles the necessity and importance of exports. Given the importance of exports, it is necessary to identify the components that affect the decision to export. In other words, achieving the goals, including export goals, requires the right decisions in this area. Therefore, the purpose of this study is to identify the components affecting export decision making and their relationship with each other in the form of a conceptual model. Methodology: The present study is applied and descriptive in terms of implementation strategy and survey. The statistical population in the first stage (qualitative approach, Delphi method) consisted of 10 people and then 30 people. In the second stage (quantitative approach) includes all the deputies and senior managers of Khuzestan Steel Company in the number of 280 people, which considering the reliability coefficient of 0.95, the number of samples according to Cochran's formula was 162 people. In order to ensure 170 distribution questionnaires, 168 of which were returned and analyzed. The face and initial content validity of the structure was evaluated and confirmed using experts' opinions in two stages (distribution of open and closed questionnaires). In order to analyze, the structural equation method of PLS software was used. In the measurement section, structural reliability was measured and confirmed by Cronbach's alpha and combined reliability, convergent validity by AVE criterion and divergent validity by Fornel and Locker methods. Findings: First, the conceptual model was fitted. In order to fit the model, the coefficient of determination was used. Since it was more than 0.7 for all variables, it indicates a strong structural fit of the model. In order to evaluate the predictive power of the model, Stone and Geyser criteria were used and values greater than 0.35 were calculated for all variables, which shows that the model has a high predictive power. Finally, by calculating 0.72 for the GOF index, a strong fit of the whole model was confirmed. The results reveal that distinction resource, Internal and External environment have direct and positive significant impact on market attractiveness. Moreover, market attractiveness with organization commitment to export and organization export commitment with Export decision making have positive and significant impact. Discussion and Conclusion: The present study has identified and modeled the factors influencing the decision to export in the steel industry. According to this model, strengthening the distinct benefits for the company enhances the attractiveness of exports. One of the distinctive advantages of companies is the characteristics of managers. In addition, poor domestic market conditions and government support for exports on the other hand as key components of the domestic environment enhance the attractiveness of exports. The better the understanding of the outside environment, the export will be more attractive. Managers' perception of external or internal motivations of the organization is one of the most important components of choosing to enter the market. In other words, managers' positive expectations of profit, market growth and development in international markets make them feel less market barriers. These expectations will also increase the organizational commitment to their exports. Organizational commitment will lead to more exports.The companies under study must pay special attention to the external environment in order to make exports attractive. Managers' perception of external or internal motivations of the organization is one of the most important components of the export decision. Managers need to believe that in the current context of domestic demand shortages, exports are the solution to survival. Therefore, organizational commitment to exports should be strengthened in these companies. When managers have a positive view of exports, exports become attractive to them and they show their commitment in practice. Managers who are committed to exports gather the necessary information, plan to enter the market, allocate sufficient financial and managerial resources to reduce uncertainty, and organize the structure for export activities. In our country, cumbersome laws in the export process are explained by the export perspective, which contradicts the realization of export goals. Upstream documents emphasize export as a national strategy and its impact on the country's economy and companies, but immediate regulations are communicated without the participation of key players in exports. It seems that integration in the formulation and implementation of export regulations requires a single trustee. In addition, strengthening political relations with target countries strengthens export performance.
