THE FACTORS CONDITIONING THE EXPORT BEHAVIOUR OF THE FOOTWEAR INDUSTRY IN FRANCA, SÃO PAULO, BRAZIL

Abstract

The aim of the present study is to investigate, in the light of the theories on company internationalisation, the method by which the footwear manufacturers based in Franca, São Paulo State have entered the international market, as well as examining the factors conditioning their export behaviour. The investigation sought to identify the characteristics of the firm, the management, production and marketing teams, or their products, in both the domestic and international market. Furthermore, the degree of product differentiation, the image of the manufacturing centre, the expectations regarding the advantages of international trade and the perception of the internal obstacles to exports were investigated.  Lastly, the method used to enter the international market was analysed together with the current stage of those firms in the process of internationalising their activities.  It can be stated that the firms in the footwear industry in Franca follow a strategy of gradual entry into the international market, in accordance with the literature on the process of internationalisation.  Some of the factors that condition the commitment to export, the strategies used and the actions implemented in order to penetrate the international market have also been identified and a model of the exporting firm within the footwear industry in Franca is suggested.  What is revealed is that the firms that do not export have internal problems related to the perception of a lack of production capacity to meet the international market, difficulty in dealing with language and cultural differences and a general lack of export know-how.  All this is allied to a somewhat distorted view of the benefits that internationalisation can bring to firms, from the point of view of the opportunities for  growth and of diversification of the manufactured products that the international market offers and of the profitability to be obtained with exports. The perception of the managers is that such firms also lack sufficient quality and technology in their manufacturing process, which is reflected in lower sales prices when compared to those practiced by exporting firms.