Andrew McCarrol, B. Bus (USQ) This dissertation is submitted in part fulfilment of the requirements for the Master of Business

Transcription

1 ACCESSING THE JAPANESE FOOD GRAIN MARKET BY SUPPLYING AUSTRALIAN NON GMO GRAIN INPUTS: THE CASE OF AN AUSTRALIAN SMALL BUSINESS FOOD QUALITY CORN AND SOYBEANS EXPORTER Andrew McCarrol, B. Bus (USQ) This dissertation is submitted in part fulfilment of the requirements for the Master of Business Faculty of Business University of Southern Queensland January 2006

2 ABSTRACT This dissertation investigates how an independent Australian grain exporting SME has been able to access the Japanese market for food quality soybeans and corn. This firm has succeeded in entering this market despite entrenched competition from traditional suppliers in the USA and Canada and in the face of rigorous food safety and quality standards as required in this particular market. The research in this dissertation focuses on outlining the critical enabling competencies that the firm and its suppliers developed in order to enter the Japanese market. A single case methodology involving multiple in-depth interviews with key stakeholders was used to provide triangulated evidence concerning the necessary and sufficient conditions for SME exporters to compete successfully in such mature markets, particularly in the face of entrenched competition from large scale suppliers of similar products from the United States and Canada. From the data collected in this research, a model of SME internationalisation was proposed highlighting the driving forces which stimulated the development of a set of enabling competencies enabling successful entry into the Japanese market for food grains. This model has both practical and theoretical implications for the development of trade between Australia and Japan in the food grain sector. In conclusion this dissertation suggests that firms with the capacity to develop such competencies can succeed in entering enter such productmarkets. i

3 CERTIFICATION OF DISSERTATION I certify that the ideas, experimental work, results, analyses, software and conclusions reported in this dissertation are entirely my own effort, except where otherwise acknowledged. I also certify that the work is original and has not been previously submitted for any other award, except where otherwise acknowledged. Signature of Candidate... Date... ENDORSEMENT Signature of Supervisor... Date... ii

4 ACKNOWLEDGEMENTS I wish to particularly acknowledge the unstinting efforts of my supervisor, Mr Les Brown in assisting me with this dissertation. Without his encouragement, patience and persistence the finalisation of this work may have taken considerably longer. Additionally, I would like to acknowledge the support and persistent encouragement from Philp Brodie Grains, Roger and Jenny Foxton, Bronwyn Warfield, Noel Cheeseman, Peter Smith, Dave Jordan, Tracey Verschaeren, Ilona Eberle, Dr Hoda McClymont and Dr Kathy Hastings and all those involved throughout the data collection process. I especially thank Rae Jones for her tenacity and assistance in formatting drafts of this dissertation. iii

5 TABLE OF CONTENTS ABSTRACT... i CERTIFICATION OF DISSERTATION... ii ENDORSEMENT... ii ACKNOWLEDGEMENTS...iii List of Tables... vii List of Figures...viii List of Appendices... ix 1.0 INTRODUCTION Background to the research Research problem and issues Research problem Research issues Justification for the research Academic justification Research methodology Outline of the dissertation Delimitations of scope Definitions used in this research Conclusion LITERATURE REVIEW Introduction Definition of internationalisation: Definition of a SME in the context of this research Market entry Theories of internationalisation The Uppsala model of the internationalisation process: Dunnings OLI model of international production Born global SME exporter internationalisation Transaction cost based internationalisation theory Importance of relationships and networks in firm (SME) internationalisation...42 iv

6 2.6 Sterns and Peterson s SME globalization model Driving forces for internationalisation (necessary and sufficient conditions) Porters competitive strategy Amended preliminary model of internationalisation Decision rules for internationalisation Conclusions from the literature RESEARCH METHODOLOGY Introduction Justification for the adoption of the realism paradigm Qualitative and quantitative research methods Research method Justification for using case study research in this research Addressing reliability and validity in research design Criteria for case study selection and number of cases Justification for use of a single case study methodology Research outline Interview protocol (guide) Background to research issues Case study research procedures Sample selection Case study analysis procedures Limitations of case study research Ethical considerations Conclusion DATA ANALYSIS AND INTERPRETATION Introduction Data collection Data analysis Research issue Analysis of research issue Research issue Analysis of research issue Research issue v

7 4.6.1 Analysis of research issue Summary of the research issues Necessary and sufficient conditions Enabling competencies Conclusion CONCLUSIONS AND IMPLICATIONS Introduction Conclusions about the research issues Research issue Research issue Research issue Findings about the research problem Implications for theory Implications for practice Limitations of the research Further research opportunities vi

8 List of Tables Table 2.1 Benefits and limitations of theoretical models to SME exporter internationalisation Table 2.2 Stages of internationalisation Table 2.3 The development of buyer/seller relationships in industrial markets Table 2.4 Selected influences in the decision to export Table 2.5 Literature surrounding decision rules Table 3.1 Alternative research paradigms and basic questions that guide paradigm evaluation Table 3.2 Relevant situations for different research strategies Table 3.3 Case study tactics for four design tests Table 3.4 Supply chain network displaying stakeholders. roles and responsibilities Table 3.5 Summary of linkages between research issues, research questions and interview protocol Table 3.6 Limitations of Case Study Research Table 4.1 Respondents experiences and perceptions in developing opportunities in the Japanese market Table 4.2 Factors influencing the selection of buyers and suppliers Table 4.3 Important factors used in evaluating overseas market opportunities Table 4.4 Outcomes for all the major research issues Table 4.5 Interview data results highlighting the necessary and sufficient conditions Table 4.6 Interview data results highlighting the important enabling competencies vii

9 List of Figures Figure 1.1 Chapter 1 outline with section numbers Figure 2.1 Outline of Chapter 2 with section numbers Figure 2.2 Continuum of small firm internationalisation Figure 2.3 Sterns & Petersons SME firm level internationalization model Figure 2.4 Amended preliminary model of SME internationalisation as developed from the literature Figure 3.1 Outline of Chapter 3 with section numbers Figure 3.2 Diagrammatic representation of data triangulation including sources within a single case study Figure 3.3 Components of data analysis: interactive model Figure 4.1 Outline of Chapter 4 with section numbers Figure 4.2 Research model displaying research problem, research issues, literature, interview protocol, single case study, multiple interviews and enabling competencies Figure 5.1 Outline of Chapter 5 with section numbers Figure 5.2 Augmented model of Japanese market entry including enabling competencies viii

10 List of Appendices Appendix 1 Outline of critical issues involved in the export transaction Appendix 2 Overall comparison of in-depth interview findings about critical competencies for firms seeking to enter food grain markets in Japan Appendix 3 Interview protocol ix