Internal Capabilities and Export Performance of Smes in Ghanas Non-Traditional Agricultural Export Sector.

Abstract

The internal capabilities (e.g. innovation, entrepreneurship and value chain activities) of Non-Traditional Agricultural Export - Small and Medium Enterprises (NTAE-SMEs) which this study focuses on, are considered important to explain export performance. The study made use of cross-sectional data from a sample of 152 NTAE-SMEs located in the coastal, forest and savannah zones of Ghana and applied Partial Least Squares SEM analysis. The results showed that when competing internationally, the NTAESMEs gain higher performance levels if they combine an entrepreneurial strategy with high innovation capacity. Export knowledge and the organization of the upstream supply chains will help NTAE-SMEs gain better performance competing in international markets. The statistical significance of international experience and export knowledge shows that knowing how to get the goods into foreign markets is essential for NTAE-SMEs. SMEs were predominantly located in the coastal zone which statistically excluded possibility of analysis based on location. Future research could look at a longitudinal study to support our cross-sectional study.