Differences between Indian Exporters and Non-Exporters of Engineering Consultancy Services

Abstract

Export of engineering consultancy services represents a small but growing portion of India's services exports. This paper seeks to understand major impediments that must be overcome to encourage more Indian professional services firms to enter foreign markets. It develops research propositions that may differentiate between exporters and non-exporters and empirically examines them through a survey of 167 Indian engineering consulting firms. Export motivations among exporters and different external support systems to help firms market their services in the international arena are also examined. Two-thirds of the firms surveyed were not exporting. It is found that exporting firms invest greater time and resources to develop international business relations with an eye on future business potential. Senior managers of exporting firms provide unique network connections through their personal / social contacts enabling the firm to exploit foreign business opportunities. Exporting firms are on an average larger, i.e. employ more number of professionals. It is also found that senior managers of exporting firms are positively inclined towards international activity and perceive lower barriers to exporting as compared to their nonexporting counterparts. Findings enhance knowledge about the key differences between exporters and non-exporters of knowledge intensive professional services like engineering consultancy.