Factors Affecting Export Performance in Sri Lanka: with Especial Reference to Value-Added Rubber Products Industry

Abstract

The study was conducted to identify the determinants of the export performance of the value-added rubber products industry in Sri Lanka. This research has identified the impact of several selected factors on the export performance and the strength of those factors’ impact on the industry. The research study was carried out by performing a comprehensive survey by focusing exclusively on Sri Lankan value-added rubber products exporters. Online questionnaire and interviews were used as research instruments to get the feedback from a randomly selected sample which comprises more than fifty percent of Sri Lankan value-added rubber products exporters. For the purpose of analysis, descriptive statistics were comprehensively used. Determinants of export performance have been identified by reviewing literature as firm characteristics, marketing strategies, market characteristics, technical capabilities and the investment portfolio. These variables’ relationships were analyzed and positive correlation was identified with export performance. They are firm characteristics and technical capabilities. Thus, Sri Lankan value-added rubber products industry can improve their market performance by focusing the enhancement of those two factors. Further, the technical capability was identified as the most significant factor for the value-added rubber products’ export performance. Therefore it was recommended the manufacturers &exporters to focus on their technical capabilities to gain more industry performance.