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To clarify certain points, we have probed deeper into the relation between the export experience of the enterprises in the sample and their level of technology. It appears that the firms generally use modern technology and invest in new and more efficient equipment in order to increase production capacity, improve product quality and cut costs. At the oil refinery, recent purchases of equipment comprise a continuous refining plant (1988) and bottle blowing and filling equipment (1992). The firm now has on order a bleaching and filtration plant. The fertilizer firm has installed a modern nitric acid plant and an NPK plant. Its latest piece of equipment is a high-efficiency nitric acid absorption column acquired from Rhone Poulenc under a licence agreement. The knitwear firm has this year installed new equipment for knitting and dyeing. Its aim is to keep in step with technological improvements elsewhere in order to introduce more advanced production methods to fulfil export orders and cut costs. The firm endeavours to maintain its position on export markets through productivity increases with the use of modern technology. It also achieves cost reductions through better control of raw material, reduction of wastage and just-in-time stock procurement. The paint manufacturer also uses up-to-date technology. The last piece of equipment was acquired in 1992, with the aim of increasing production capacity. The firm uses up-to-date production methods to cut costs and remain competitive. It has secured a foothold in export markets owing to its reputation for quality and competitive prices.
In short, it appears that these enterprises are generally innovative and keep up with technological improvements. Better organization of production and the use of modern equipment for greater efficiency, quality improvement and cost reduction are the main aspects of their competitive strategies. These enterprises purchase their equipment directly from machinery suppliers who generally send their own technicians for the installation of the equipment. Routine servicing and maintenance are performed by the firms' own staff or are contracted out to local workshops.
The next question concerned the extent to which the firms acquired new skills and improved their organization as a result of their export experience. The oil refinery acquired new skills through regular contracts with leaders in the edible oil industry and professional institutions. It claims to have gained considerable experience in achieving customer satisfaction since it introduced a market-oriented strategy two years ago' after a 23-year monopoly of the local market and a production-oriented strategy. The fertilizer firm states that its export experience has been very beneficial in improving its marketing skills. It now has considerable experience and plans to start a free port trading company. The paint manufacturer has introduced new types of products to suit the requirements of export markets. For the knitwear firm, production is directly related to international market requirements and this has necessitated continuous improvements in skills, standards and organization.
How far have the firm's past industrialization histories helped in building skills for subsequent exporting? This question concerned only those ISE firms that have recently begun to export. According to the fertilizer firm, past industrialization experience helped a good deal but 'export is a game which [the firm] had to learn the hard way through extensive marketing missions'. The oil firm for its part attributes its recent performance on export markets to its new market-oriented strategy and its emphasis on consumer satisfaction. In the case of the paint manufacturer, local production enabled the firm to set up a research and development laboratory staffed with good technicians. As a result the firm can now supply 'tailor-made' products for the export market.
Generally it appears that the recent entry of ISE enterprises to export markets builds on experience gained over the years in producing for the local market. To that extent the export market may be seen as an outgrowth of the domestic market. Exporting forms part of a rational strategy for those firms' future expansion and development.
1 The final draft for this contribution was submitted in March 1993. There may well have been changes with respect to this and other companies in this rapidly evolving sector.
Meade, J.E., Report to the Government of Mauritius: The Economic and Social Structure of Mauritius, Port Louis, Government of Mauritius, 1961.
This questionnaire is prepared to guide the thinking, coverage and assessment/evaluation by the researcher. It should provide a guide of what to identify, assess and make judgement about.
A. Firm history
A1. Basic information
A1.1 Name of firm
A1.2 Year of establishment
A1.3 How and why it was established; conditions under which it was established
A2. Ownership structure
A2.1 Ownership structure and how it has been changing over time
A2.2 Role of various partners and how it has been changing over time
A3. Size of establishment over time (1970, 1980, 1985, 1990)
A3.1 Size of the firm in terms of employment
A3.2 Sales
A3.3 Total assets
A4. Production
A4. 1 Main products and activities and major changes over time
A4.2 Main inputs and changes over time
A5. Strategies followed in terms of
A5.1 Intentions
A5.2 Means of implementation
A5.3 How the relative strengths of various departments have been changing to reflect these strategies
A6. History of exporting and changes over time (1970, 1980, 1985, 1990)
A6.1 Items exported
A6.2 Market channels and destination
A6.3 Type of target markets
A6.4 Marketing strategies followed
A7. Technological processes (Identify and describe the process and make your assessment)
A7.1 Changes in process technologies introduced and adopted, and adaptations over time
A7.2 Changes in product technology (types and quality of products) introduced and adopted, and improvements made over time
A8. Productivity and quality changes over time (selected years e.g. 1970, 1980 and 1990)
A8.1 Cost per unit of main product
A8.2 Inputs per unit of main product
A8.3 Changes in quality
A8.4 Indicate any other available measures of productivity (e.g. output per unit of labour, domestic resource cost, total factor productivity)
A8.5 How does productivity compare with that of other local firms in the industry? How does it compare with that of firms in other countries?
A9. Human resource development and changes over time (1970, 1980, 1985, 1990) (Describe the status, changes and make own assessment)
A9.1 Types and quality of skills (levels of education, departments and activities in which they are engaged)
A9.2 How various critical skills have been acquired
A9.3 Forms of training employed (e.g. in-house training, training in other local institutions, training in other countries)
A9.4 Recruitment policies followed
A9.5 Assess extent and significance of labour turnover
A10. Identify and assess linkages with other industries and institutions and changes over time
A10.1 Subcontracting
A10.2 Demand conditions
A10.3 Types of markets served
A10.4 Relevant structure of industry and markets in which the firm has been operating
A10.5 Suppliers (inputs of equipment) and any changing relationships
A10.6 Providers of technical services
A10.7 Policies and regulations which have impinged on the firm's activities and decisions
B. Firm strategies (Identify and describe the various strategies followed)
B1. Investment strategies
B2. Production strategies
B3. Marketing strategies
B4. Innovation strategies
B4.1 Imitations
B4.2 Adaptations
B4.3 Technology search (locally and foreign)
B4.4 Product development
B4.5 Internal and external linkages
B4.6 Human resource development
B4.7 Management control processes (setting standards, measurement of performance, how decisions on corrective action and feedback are made)
C. Core capabilities (Identify and assess the status and changing conditions of the core capabilities!
C1. Investment capabilities
C1.1 Project identification
C1.2 Feasibility study (market study, technical study, management study, financial study)
C1.3 Project preparation, design, setting up and commissioning
C1.4 Mobilization and management of resources (short-term and long-term finance, managerial and technical skills, technology, foreign exchange)
C1.5 Human resource development:
1.5.1 Types and levels of skills
1.5.2 Recruitment policies
1.5.3 Approaches to upgrading of skills
1.5.4 Labour relations
1.5.5 Remuneration policies and practice
1.5.6 Quality of working conditions
C2. Production capabilities
C2.1 Production management (planning, scheduling, work procedures and execution of orders)
C2.2 Production engineering (raw material control, material use standards, standard production times, quality control)
C2.3 Repair and maintenance
C2.4 Access to critical resources (finance, skills, technology, foreign exchange)
C3. Organizational capabilities
C3.1 General management capabilities (sharing responsibilities, long-term direction, definition and clarity of policies and procedures, and whether these are adhered to and reviewed for effectiveness, measurement and analysis of performance, information flow and its utilization in decision-making, awareness of external factors, other linkages impinging on the firm)
C3.2 Management of technology
C3.3 Division of labour
C3.4 Mobilization of resources and capabilities to cope with new situations
C4. Marketing capabilities
C4.1 Ability to maintain market shares
C4.2 Collection and analysis of market information
C4.3 Product development policies
C4.4 Pricing
C4.5 Distribution
C4.6 Efficiency of the sales force and incentives
C5. Innovation capabilities
C5.1 Search for new ways and routines in respect of investment, production, marketing and organization
C5.2 Research and development activities
C5.3 Technology sourcing and adaptations
C5.4 Market research (study of market trends, potential markets and possibilities of introducing new products)
C5.5 Introduction of new technologies in production, marketing and administration and other firm activities
C6. Identify and describe factors which have accounted for success/failure in exporting; indicate how these factors have changed over time
C7. How is the firm dealing with deficiencies in capabilities in various areas which deemed important for the success of the firm? In what way can government and other institutions help?
D. Linkages and interactions with the socio-economic environment (Identify and describe the various linkages and make your own assessment of the relationship and changes over time)
D1. Consulting firms
D2. Licensing agreements and management agreements
D3. Joint ventures
D4. Providers of technical services
D5. Factor market conditions
D5.1 Labour market
D5.2 Capital market
D5.3 Land
D6. Product market conditions
D6.1 Aggregate demand trends
D6.2 Export demand conditions
D6.3 Structure of demand
D6.4 Links and relations with customers
D6.5 Interaction with local and foreign competition
D7. Interaction with government policies and regulations
(identify and assess)
D7.1 Macroeconomic policies (e.g. exchange rates, interest rates, import liberalization)
D7.2 Sectoral policies
D7.3 Regulations (supportive or obstructive)
D8. Linkages with various input suppliers
D8.1 Relations with equipment suppliers
D8.2 Relations with input suppliers
D8.3 Relations with service providers
D8.4 Interactions with financial institutions (local and foreign)