Symptoms Versus Problems (SVP) Framework on Export Barriers to SME’S Led Electronic Products in Taiwan

Graduate School of Business, Universiti Sains Malaysia 11800 Penang, Malaysia

nnasir@usm.my Author
me_indra89@yahoo.com

Abstract

Export barriers are a common constraints to SMEs when exporting goods. In 2013, Taiwan’s export sales dropped by 18.5% due to SMEs’ difficulty to explore the overseas market, thus, redirect their sales locally. The objective of this case study is to identify the internal and external barriers, and the export model practiced by one export case in Taipei, Taiwan. Findings via semi-structured interviews, field observation and analysis of unpublished company data are summarized using a new root-cause analysis tool called Symptoms versus Problems (SVP) framework for SME LED Exports. The new SVP framework discovers many symptoms leading to recognition of six major problems, namely, high operational cost, poor marketing strategy, lack of cash flow funds, talent and skill sets, government support, and too many foreign bureaucracy regulations. These problems are categorized into three groups, namely, operation, marketing and government bureaucracies. The recommendations for each problem are structured to improve product costs, branding and advertisement strategies, cash flow management, technical know-how of foreign market behaviour, sources of information and network, and managing the foreign bureaucracies. Interestingly, this study discovers another new framework that overcome LED export barriers called “House of Pillars for LED Exports” in Taiwan.