Factors Influencing Entry and Continued Success of Firms in the Export of Fresh Horticultural Products from Ghana

Abstract

This paper presents a study designed to establish the factors which influence the initial entry and continued success of Ghanaian export-based firms into overseas markets dealing with nontraditional fresh agricultural products. The analysis is based on the estimation of a Heckman selection model using data from 52 exporters of fresh horticultural commodities. Data are obtained using a semi-structured questionnaire and the model is estimated by maximum likelihood procedures. We show that the probability of success of initial entry into overseas markets by an exporter is positively influenced by the level of manager’s training in export management, his/her entrepreneurial capacity, export product diversification, and government and institutional support. Perceived export barrier conditions and difficulty in accessing working capital are found to reduce the likelihood of successful entry into overseas markets. For sustained and successful ability to export to overseas markets, the manager’s entrepreneurship capabilities, diversification of the export commodity base of the firm and degree of difficulty in accessing working capital determine the degree of success.