Determinants of Trade with Sub-Saharan Africa: The Secret of German Companies’ Success

Abstract

This paper evaluates the degree to which internal, micro and macro-environmental variables explain why some small- and medium-sized enterprises (SMEs) based in Germany export more successfully to sub-Saharan Africa (SSA) than other firms in the same category. It derives explanatory factors specific to the region from experts. A bivariate correlation analysis identifies relations between (in)dependent export performance (EP) measurements. Stepwise multiple regression equations for firms' overall EP and overall export profitability in the last three years highlight factors with the most significant correlations. As evaluated in previous research and as mentioned by experts, it applies a multidimensional approach, investigating variables according to the resource-based view and the contingency paradigm. This study indicates that SSA has specific requirements for successful exports which differ from other regions. Knowledge about these particular characteristics of the market will enable managers and policymakers to improve trade relations. By focusing on the EP of German SMEs in SSA, this study fills a research gap since no previous study has concentrated on this specific aspect.