Abstract

The article presents the export activity of the enterprise in the form of structural three components model. It is suggested to include to the model composition such components as pre-export, restructuring / adaptation and export operation. The nature of the given export activities components has been defined. A special role of adaptive changes in the conversion of pre-export to the export operation has been substantiated. The aim of the article. The article is aimed at forming an integrated model of enterprise’s exports, which is built within the legal framework and would be adequate to modern trade and financial conditions. The results of the analysis. Frequently the terms «export activity» and «export» have parallel using in regulatory legal acts and scientific studies. The article stated that «export» and «export activity» are similar concepts, because in both cases these terms are used to describe the relationships of the enterprise with foreign customers. But at the same time, «export» and «export activity» concepts are different, because «export» means sale and transportation of products to foreign business partner, and «export activities» provides a set of actions, economic activity organized in a sequence of stages and certain functions of the output on the external market. Enterprises usually starts export activity because of definite motives and positive effects to which it may lead. Among these reasons are creating a positive image on the domestic market (stereotype of European standards), expanding of markets, the possibility of the commercial risk redistribution. These prospects and the positive effects can be unfulfilled or can be accompanied by such undesirable consequences for the company, as additional international marketing expenses, certification costs and enterprise restructuring. At the same time, an enterprise restructuring is a process certainly constructive when it is caused by the desire to fulfill export activities and develop new markets. This restructuring involves structural changes in the organizational system of the company, leads the creation of new departments and the redistribution of existing assets, changes the vector of the company, shifts the focus to other doing business standards. The export activity of the company is represented as a three components model with such the structural elements as: basic resources of pre-export activity; restructuring and export operation. A fundamentally new is that export activity of the company is presented as a result of the conversion of pre-export (component 1) in the form of exports operation (component 3) by means of restructuring or adaptive changes (component 2). Conclusions and directions of further researches. Presentation of export activity in a form of three components structural model allowed, firstly, to establish subordination of such concepts as «export activity» and «export», secondly, to clarify the structure of the export activity stages and, thirdly, to emphasize the necessity of conducting adaptive policy during all stages and functions of export activity. The concept of restructuring in the proposed model of export activity is used in one of its common interpretations: restructuring as a process of adaptation. The scale and nature of the restructuring changes required the company to complete the conversion of pre-export to export depends on, firstly, environmental factors of external market, including stiffness and level consumer technical standards, effect of the entering to the market barriers, and secondly, it depends on the condition of the company functions. Diagnosis of this company condition, which can define the scale of the restructuring changes, sufficient for export activity is the subject of further investigations. 

Keywords: export activity model, pre-export activity, export operation, restructuring, adaptation

JEL Classification: F23, М20.

Cite as: Al-Osta, S.A.-A. (2015). Three components model of enterprise’s export activity. Marketing and Management of Innovations, 1, 213-220. https://doi.org/10.21272/mmi.2015.1-18

This work is licensed under a Creative Commons Attribution 4.0 International License

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