Investigating the successful strategies of marketing and the export of technical and engineering services

Author Name: Roya Ali hosseinzadeh, Seyed Yahya Alavidehkordi
Author Email: Roya.ahosseinzadeh@gmail.com

Abstract

The aim of this research is to investigate the successful strategies of marketing and export of technical and engineering services. The research method: for testing hypotheses and investigating the confirmatory factor analysis the structural equation modeling (model of measurement) will be used; among the correlation researches this one is a correlation matrix analysis or covariance. The active companies in the field of the engineering and technical services constitute the statistical population of this research the number of which amounts to 300 companies in Iran; also the least number of 7200 people are employed in this field. Therefore, 750 questionnaires were distributed as the total sample size and 750 questionnaires were collected. The results of research: for ranking each of the factors influencing export and marketing and the successful strategy with approach of international market including (12 cases) in the present status the Friedman test was used. Test of hypothesis in the present status: there is a significant difference between the present status of the twelve factors influencing export and marketing on the one hand and the successful strategy with the approach of the international market on the other. Therefore, we can formulate the following statistical hypotheses: there is not any significant difference between the present status of the twelve factors influencing export and marketing on the one hand and the successful strategy with the approach of the international market on the other. There is a significant difference between the present status of the twelve factors influencing export and marketing on the one hand and the successful strategy with the approach of the international market on the other.

Keywords

export, engineering and technical services, the successful strategies, marketing

Introduction

Paying special attention to the export of technical and engineering services requires a support for domestic manufacturers and the use of the funds that have been invested since the recent years in the country (Babai, 2009). During the last few decades, the increasing share of services trade represents, particularly in developing countries, the increasing importance of the international exchanges in this field, beside the product trade. Due to its effects on the process of production, employment and economic development, this section is of a special importance for many countries compared with other sections such as agriculture and industry. Based on the facts and information reported by UNCTAD, the world service exports have been increased from $ 391 billion in 1980 to $ 3765 billion in 2010. During these periods the service export has not only amounted to 9.5 as much, but its share from total export has been increased from 16.2% to 19.8%. Also, based on the World Bank 2 statistics in 2010, the share of the added value of the service section from the world’s GDP has been equal to 71 percent. At the same time, in this year the share of the industrial section has constituted 26% from the world’s GDP and the share of the agricultural section only 3% from it. In this regard, the export of technical and engineering services, as one of the services subsection can directly satisfied a part of the country’s foreign exchange needs, also may indirectly help through improving the goods export the country’s foreign exchange earnings improvement in line with improving the trade level, productive and sustainable employment and economic growth. On the other hand, it seems that one of the most important factors in constructive interaction with the international economy depends on the Iranian ability to export services, in particular technical and engineering services to the regional and global markets. Therefore, the identification of the region’s markets, according to the export performance and the relative benefits of export of technical and engineering services, along with factors affecting the development of the export of this section could be bright prospects for the development of the commercial policies with trading partners. In this study, also the members of the Organization of Islamic cooperation (OIC) have been considered as the major trading partners of Iran in the field of export of technical and engineering services. (Ahmadzadeh et al, 2012). The results of the studies conducted in this field, the results of the study of Sadeghi Foroushani (2006) show that, despite that the export of technical and engineering services in a diamond model of Porter has a capable condition in terms of four conditions of Porter model, the other establishing national factors, including government department expansiveness and low productivity have caused thereby to be not flourished the competition in this industry and finally its little share in the world. In line with ranking factors affecting the development of the export of technical and engineering services to CIS countries, the results of the study of Hosseini (2008) indicate that the role of the State in establishing the international interaction and as supplier of the political infrastructures in establishing multilateral relations in commercial diplomacy has the first priority. Other indicators, such as facilitating the project financing, advanced machinery etc. have the next priorities. Ahmadzadeh (2009) has investigated the background of the development of trade of technical and engineering services among Islamic countries in line with the country’s 20-year Outlook Document. It studies the capacities and performance of this field in the mentioned countries. Babaei, “Review of the Export of Iranian Technical and Engineering Services from 2001 to 2008”. Furthermore, the contribution of different activities to the export of technical and engineering services indicates the negligible contribution of software activities to such exports. The development of software-oriented activities plays a vital role in generating added value and boosting the export of technical and engineering services, and in turn, non-oil products. Therefore, necessary actions should be taken to promote the contribution of knowledge-based products to the export of non-oil products including: facilitating the relationships of institutes intermediating between state, industry and universities such as science parks and collegiate companies, establishing risk-taking financial and educational organizations and predicting mechanisms for converting a portion of oil incomes to knowledge-generating assets. In addition, it is necessary to predict required rules for supporting intellectual property right in order to promote the interaction of innovators in the framework of networks. Ramazanian et al (2012) “Prioritizing the Target Markets for the Export of Iranian Technical and Engineering services”; according to the result of studies conducted by screening method and market potential indicators, Ireland, the U.S., India, China and Germany are the top five countries in the world importing Iranian technical and engineering services. The numerical taxonomy method and market attractiveness indicators revealed that Singapore, Kazakhstan, India, Australia and Sweden are the best fit target markets for the export of Iranian technical and engineering services. Among countries currently importing Iranian technical and engineering services, Kazakhstan, Syria, India, Lebanon and Afghanistan are respectively the top five countries serving as the target markets for such services. Ahmadzade et al (2012), “Evaluation of the Influential Factors of Service Export, Case Study: Export of Technical and Engineering Services”; the estimations of export performance indicators as well as the comparative advantage of engineering and technical services reveals the rise of Iran rank among the studied countries in the time scope of 1994-2010. In addition, the variables of production per capita, actual effective exchange rate, entrance of foreign capitals, communicational infrastructures and the membership of the mentioned countries in the trade blocks of ECO and D8 have a positive and significant effect on total export of service as well as the export of technical and engineering services of the elected countries. Therefore, public and private sectors should pay considerable attention to the necessity of developing plans for further development of this field. Hoseini and Aliabadi (2013), “Investigation and Identification of Challenges Associated with Development and the Export of Technical and Engineering services in oil and gas field”; weakness in the export of technical and engineering services, associated with oil and gas field, wastes national development opportunity on the one hand and serves, in long-term, as a threat on the other hand. The reason is that if we rely only on the export of energy, as we do right now, and do not use related knowledge for the expansion of engineering and technical knowledge abroad, Iran will be changed, according to estimations,  from a pure exporter of energy to an importer of energy in near future. Development of export of technical and engineering services of oil and gas and creating income through it makes not only possible the maintenance of this energy in long term, but also it increases the power of employment, upgrading technology and technical knowledge, improving political relations and issuing the culture and civilization. But despite the many efforts for the development of technical knowledge, this path confronts with the innumerable obstructions. In this article, based on the library studies and qualitative semi-structured interviews with the elite and with the thematic analysis approach, it has been explained a conceptual model which has discussed the analysis of defiles of technical and engineering development of the oil industry. Also, we can refer to the identification of obstacles in three areas: background, behavior and structure as achievements of this article. In the World Bank Arnold et al (2007) embarked upon the test of some governmental policy makings, such as the existence of the relationship between reforms of service section, industrial productions and tendency to export. Based on the effects of such a policy, the existence of strong and positive relationship between the India Government’s reform in the transportation section, communication and banking on the one hand and the economic agencies’ productivity on the other is confirmed. Rostmaji’s research (2008) regarding the trade of technical and engineering services of the South Africa indicate that the infrastructures and their development for investment in this country are among its attractions for flourishing the export of construction and engineering services.

Conclusion

For ranking each of the factors influencing export and marketing and the successful strategy with approach of international market including (12 cases) in the present status the Friedman test was used.

Test of the hypothesis in the present status:

There is a significant difference between the present status of the twelve factors influencing export and marketing on the one hand and the successful strategy with the approach of the international market on the other.

Therefore, we can formulate the following statistical hypotheses:

There is not any significant difference between the present status of the twelve factors influencing export and marketing on the one hand and the successful strategy with the approach of the international market on the other.

There is a significant difference between the present status of the twelve factors influencing export and marketing on the one hand and the successful strategy with the approach of the international market on the other.

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