Export competitiveness of the Small and Medium Scale Enterprises in Sri Lanka: a case study based on the gem and jewellery sector

Abstract

The factors affecting the export competitiveness of Small and Medium scale Enterprises (SMEs) are very complex. From the firm’s point of view, the trading environment SMEs conducts their business play an important role. Thus, a trade-enabling environment, based on adequate trade policies, an efficient trade and customs administration and good infrastructure are critical for enterprises to compete effectively in the competitive global market. Today international competition became more innovative and knowledge based, understanding trade performance goes beyond the parameters of the traditional comparative advantage paradigm and stressed the role of technology and continuous innovation for international competitiveness. Therefore, this study aims to contribute to the assessment of export competitiveness by investigating the influence of firm and industry specific characteristics in the gem and jewellery products sub sector in Sri Lanka. Structured questionnaire survey followed by descriptive and inferential statistical analysis of data was performed to identify the key factors for the export competitiveness. This study revealed that the firms export orientation, human capital and technological capabilities have significant relations to the export competitiveness of the firms. Furthermore, the government policy, freight facilities and distribution, product variability, research and development, export market promotion attitudes at the industry and firm levels have significant impact for the export competitiveness.