Non-Traditional Agricultural Export Performance in Ghana. Exporting SMEs’ Characteristics, Export Mode, and Institutions

Abstract

Increasing focus of African economies, including Ghana, on non-traditional agricultural exporting (NTAE) small and medium enterprises (SMEs) to counter declining earnings from traditional exports fall short to expectation. This study investigates this gap by looking at unstructured data, and the drivers of NTAE SMEs that can enhance performance and support sector policy initiatives. The research question to be answered is: Which SME characteristics, export mode and institutions (services and finance) are positively related to export performance in the NTAE sector in Ghana? This study applied PLS SEM analysis. The drivers of significance are export knowledge, corporate governance, product development, and professional and technical support. Although building social networks and export modes were found to be significant, they negatively affected the export performance. The cost implications limit the research to a cross-sectional study. Perceived export performance was used because the respondents did not provide export statistics. Most research on NTAEs in Ghana has focused on either subsectors or SMEs. This study adds value by focusing on SMEs in the NTAE sector, providing insights to policymakers and the government for intervention and policy formulation. Government policy implications include direct investments in shipping and air freight, tax rebates, concessions, and access to finance for NTAE SMEs. Managerial implications show that knowledge of export processes, export market regulations, and international consumer preferences is essential