Factors that contribute to the export propensity of Australian prawn farms

1. Factors that contribute to the export propensity of Australian prawn farms • Chelsey Parish • University of the Sunshine Coast • Australian Seafood CRC

2. Nice to meet you My background • University of the Sunshine Coast graduate • Bachelor of International Business • Bachelor of Communications (Japanese) • Ist class Honours • 2011 Seafood CRC supported • student • Seafood CRC Communications and Events Officer

3. Export propensity… What the? • Export propensity is defined by Estrin et al 2009 as, “the factors influencing whether or not firms are exporting.”

4. Background Why do this study? • External factors • Saturated domestic market • The bloody Aussie dollar • International competitors • Trade barriers • Internal factors • What factors can we improve within our company to increase export propensity? • Resources and capabilities

5. Methodology What did I do? • 3 phase study • Qualitative study = I spoke to people! • Interviews with industry experts, managers/owners of prawn farms and with prawn traders • The data was used to explore four propositions relating to the export propensity of Australian seafood firms • Resource Based View paradigm

6. Key Findings What factors influence export propensity?

7. Key finding 1 The level of experience of managerial staff has a positive influence on a firms export propensity • Strongest level of influence • Possess the necessary skills and capabilities to initiate and develop export business • More likely to engage • Industry light on ‘fresh’ export experienced managers • “ We are a fairly incestuous bunch.”

8. Key finding 2 The level of commitment of managerial staff has a positive influence on a firms export propensity • Commitment to development of an ‘export culture’ • Top down management approach • Both critical steps in the process of moving a business from a domestic to an internationally focused firm • “ Management must take their staff with them.”

9. Key finding 3 The level of relationship capability of the firms is an important contributor to export propensity • Relationships are the key • Patience and endurance • Relationships take time, money and effort • Relationships = Rewards (cost savings and information) • “Relationships are everything; It’s not just wanky bullshit.”

10. Key finding 4 The level of information capability of the firm is an important contributor to export propensity • Information is the key to effective planning • Willingness to share information to industry members • Proactive approach to information collection and utilisation • Value of information dependant on management and use (database) • “We can plan for growth and plan for profit, but without the right information, all that planning is meaningless.”

11. Recommendations What does this mean for your industry? • Managerial implications: • Attracting human resources: Develop and implement strategies to attract and retain new HR and to offer the right incentives to discourage attrition • Relationship development: internally and externally • Information management: work smarter, use it or lose it

12. Recommendations What does this mean for your industry? • Policy implications: • Your industry needs exports! • Focus on assisting seafood firms to identify appropriate government and industry assistance as well as international networks and association that can aid in the development of firm resources and capabilities

13. Limitations What could be done better in the future? • Exploratory study first of its kind • Small sample larger industry sample needed • Limited to prawn industry Expansion to include whole seafood industry

14. Question time………….. What do you think? Picture compliments of Pacific Reef Fisheries