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Those who stayed loyal: An empirical examination of New Zealand manufacturers surviving in a global market

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  • Kylie Rochford

Abstract

Purpose - Despite the ability of small and medium enterprise (SME) to successfully outsource production to low-cost labour markets, some SMEs continue to produce in the domestic market. A sharp decline in the number of New Zealand manufacturers of consumer goods has been observed in the last five years. This raises questions regarding the viability of a domestic manufacturing strategy in a global marketplace. The purpose of this paper is to explore the performance of New Zealand manufacturers who continue to pursue a domestic manufacturing strategy. Design/methodology/approach - The contextual background for the research is discussed first followed by the development of seven hypotheses. An overview of the methodology is presented before the results of statistical tests. A discussion of findings and implications precede concluding remarks. Practical implications - This reasearch suggests that SMEs need not succumb to pressures to shift manufacturing offshore in order to remain competitive in the local market. Findings - Findings suggest that company size, export strategy, and importance placed on non-financial goals influence the viability of a domestic manufacturing strategy. Originality/value - This paper is unique in that it does not argue domestic manufacturing as an optimal strategy, rather it considers the viability of a domestic manufacturing strategy in the consumer goods market. Furthermore, the paper adds insight on manufacturing strategy when faced with a small domestic market.

Suggested Citation

  • Kylie Rochford, 2010. "Those who stayed loyal: An empirical examination of New Zealand manufacturers surviving in a global market," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing, vol. 4(4), pages 346-371, October.
  • Handle: RePEc:eme:jecpps:v:4:y:2010:i:4:p:346-371
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    References listed on IDEAS

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