Organizational Capacity for Export Activities: How Important it is to Accomplish Positive Business Results?
Abstract
In a diversified global business, there is presence of international competition and many hidden risks. Still, internationalization of business represents the only sustainable long-term strategic choice for a company. Since the organizational capacities are recognized as the only irreplaceable resource in a company, their relevance emerges in modern economy. However, business praxis is such that only one person is responsible for most business decisions in a company, especially smaller ones. Therefore, export often represents a secondary activity because the management is limited to leading the businesses on the local market. Consequently, the goal of this paper is to test the consistency of organizational capacities involved around export activities, as well as their influence on the export result. Survey, researched on a sample of export companies in Croatia, showed that organizational capacities for export activities have a two sided effect on business. In fact, the support of management in bringing different, risky decisions have a negative effect, while controlling standard procedures and encouraging creativity and efficiency of employers have a positive effect.
Keywords: Organizational capacity for export activities, export, business result
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