THE MARKETING COMPETENCY-EXPORT PERFORMANCE RELATIONSHIP: EVIDENCE FROM INDONESIA

Abstract

Manufacturing sector plays a major role on Indonesia’s exports and contributes significantly to gross domestic product (GDP). Indonesian exporters in manufacturing sectors are encouraged by Indonesian government to upgrade their export marketing competency in order to export more. The study investigates the impact of export marketing competency on export performance in Indonesian manufacturing firms. Four dimensions of export marketing competency-export product competency, export pricing competency, export promotion competency, and export distribution competency were extracted from factor analyses and hypothesized to affect the variations in export performance. The results of multiple regression analysis revealed that only export product competency and export pricing competency are statistically significant predictors of the firms’ export performance. However, export promotion competency and export distribution competency is not so crucial in explaining the variations in export performance.