International Orientation as a Precondition for Export Success

Abstract. Every country, particularly if it depends on foreign trade to such a high degree as the Federal Republic of Germany, has a vital interest in exploiting all its export opportunities. The authors have developed a measurement concept focusing on the foreign orientation of business managers. Their empirical research suggests that as many as one-third of the small- and medium-sized firms with a primarily domestic focus in their country could be turned into successful exporters. The paper not only reveals obstacles to exporting as perceived by the managers of these companies, but also points to specific measures to improve the efficiency of existing export promotion programs. WHY AND HOW TO BOOST EXPORTS The leading industrial nations of the world differ to a great extent with regard to their export performance. Without delving into its causes and effects, it is certain that long-term trade deficits have a serious impact on each country's well-being and international reputation. In 1985 the United States experienced a huge imbalance of trade. Imports exceeded exports by $111.9 billion. By the end of 1986 the gap widened to $146.4 billion. In 1988 the deficit may well have reached the $170 billion mark [OECD 1987; IMF 1987]. The United States thereby turned from a creditor for years to a substantial debtor, outdistancing even Brazil. *Dr. Erwin Dichtl is Professor of Business Administration at the University o