In the realm of export performance, a multitude of Key Performance Indicators (KPIs) plays a pivotal role in shaping a company’s success on the global stage. These KPIs, as identified by an export performance researcher, span internal and external categories, providing a comprehensive view of the intricate landscape.
Internal KPIs and Variables:
- Management Characteristics and Perceptions:
- Export commitment and support
- International experience
- International orientation
- Export motivation, proactive
- Perception of export motivation
- Age
- Education
- Organizational Capabilities:
- Advanced technology and Quality Product
- Organizational Capabilities – Export Strategy:
- General Export Strategy
- Export planning
- Export organization
- Proactiveness
- Service strategy
- Risk taking
- Control
- Process
- Organizational Capabilities – Marketing Mix:
- Product Strategy
- Price Strategy
- Distribution Strategy
- Promotion Strategy
- Knowledge-Based Factors – Export Expertise:
- International Experience
- Knowledge-Based Factors – Export Knowledge:
- Market research
- Customer Information
- Market Information
- Competitor Information
- Supply Chain channels information
- Relationship Factors:
- Business and Institutional relationships
- Distribution channel relationships
- Customer relationships
- Supplier relationships
- Partners relationships
- Formal and informal business network
- Government and other institutional relations
- Firm Characteristics:
- Firm size
- Degree of internationalization
- Firm age
- Industrial sector // product type
- Organizational structure
- Financial resources
- Ownership structure
External KPIs & variables:
- Export Market Characteristics:
- Legal and Political
- Cultural similarity
- Market competitiveness
- Environmental turbulence
- Economic similarity
- Channel accessibility
- Customer exposure
- Domestic Market Characteristics:
- Domestic market conditions
- Export assistance
- Environmental hostility
Considering the myriad of KPIs, the question arises: What method can be used to create a KPI or performance measurement system?
Picture #1: BSC model, source: https://balancedscorecard.org
A balanced scorecard (BSC) concept is proposed, allowing a comprehensive approach to manage KPIs from various perspectives, not solely financial. In the world of FMCG, cosmetics, pharmaceuticals, etc., qualitative targets like Weighted Distribution are highlighted as crucial KPIs, often overlooked but essential for success. In your experience, how have you tailored your KPI system to your unique industry and market challenges?
