An Analysis of Competencies and Moderating Influence of Demographic Profiles - Evidence from Exporting Organizations

The increasing numbers of organizations involved in exporting intensifies the competition level. Therefore, to manage the competition effectively, organizations need the necessary competencies. The objective of the study is to determine the relationship between competencies and export performance. The competencies tested are in the area of personal traits, management, production and marketing. The results showed that except for personal traits, all the competencies have an influence on export performance. Demographic characteristics (key decision makers’ demographics and organizational demographics) are also tested to identify whether they have moderating effects on the relationship between competencies and export performance. These include key decision makers’ demographics (age, education, overseas exposure and employment experience) and organizational demographics (age, size of organization and export experience). The result showed age and education (key decision maker’s demographics) have an effect in the relationship between competencies and export performance. However, all the organizational demographics tested have a moderating effect. Introduction Globalization and liberalization of market contributes to the accelerating number of exporting firms in the world. The value of international trade has increased over the years, $1.9 trillion in 1980, $5.5 trillion in 2000 to $7.6 trillion [73]. Firms get involved in international trade to enjoy the economic benefits, through expanding of market, sales, profit and spreading of risks [4]. Supporting role by governments too encourages internationalization of the domestic firms. This is done through having various trade agreements and policies which provide an easier route for internationalization of firms and it is likely to continue in the future years. Exporting is the most common and basic form of getting involved in international trade. Leonidou et al. [51] informs exporting has been a very popular approach as it needs less commitment of resources; the effect on the ordinary operations of the firm is minimal and furthermore, only involves low investment and financial risks. Thus, it is understandable why most firms in developing countries have used this method to internationalize their business. Background of the Study and Purpose Malaysia total trade in 2007 was at RM1.1097 trillion compared to RM1.069 trillion in 2006, an increase of 3.7%. Export grew at 2.7% in 2007 compared to 2006.The growth of trade has increased steadily over the years. Export level has also been increasing due to the constant efforts by the government and favourable policies. Table 1 shows the statistics of external trade for the past ten years from 1997 – 2007. Table 1 Statistics of External Trade (Malaysia) 1997 – 2007 (RM millions) Year Export Import Balance of Trade 1997 220,890 220,935 -45.