Exploring critical internal enablers to SMEs export performance: evidence from Qatar

The paper investigates which internal, firm-level enablers support exporting performance among non-hydrocarbon manufacturing SMEs in Qatar, an under-researched emerging market. While exporting is the predominant internationalization mode for SMEs, determinants and challenges are context-specific and particularly complex in emerging markets and in manufacturing. Prior work emphasizes both internal (managerially controllable) and external (environmental) determinants of export performance, yet the literature has focused more on barriers than on facilitators, with limited evidence from Gulf Cooperation Council countries. Given Qatar’s heavy reliance on hydrocarbons and government efforts to diversify and promote SME exports, the study aims to identify critical internal enablers SMEs can cultivate to sustain and enhance export performance. The authors propose that such enablers include employees with networking skills, effective supply chain management, product diversification, digitalization, and market intelligence capabilities.

The review outlines theoretical lenses relevant to SME internationalization: (1) Resource-Based View (RBV), which links sustainable, hard-to-imitate resources and capabilities to internationalization success, while noting heterogeneity in needed resources; (2) Network approach, emphasizing network positions and access to network resources (information, reputation, political influence) to offset liabilities of outsidership; (3) Uppsala model, positing incremental internationalization driven by accumulated knowledge and business networks; and (4) Innovation-related models (I-models), treating export development stages as firm-level innovations, highlighting learning and top management support. Empirical literature identifies internal enablers such as managerial skills and experience, human and social capital, innovation and R&D, technological and marketing capabilities, market knowledge, and networking. In emerging markets, SMEs face constraints including finance, managerial and technological limitations, brand and product weaknesses, and knowledge gaps. Prior studies in comparable contexts (e.g., Jordan, Fiji, India, Tajikistan/Kyrgyzstan) point to institutional and resource deficits affecting export prospects. This motivates a context-specific examination of internal enablers in Qatar’s non-hydrocarbon manufacturing SMEs.

Given the exploratory aim and limited prior research in GCC manufacturing SMEs, a qualitative design was used. The population comprised non-hydrocarbon manufacturing SMEs in Qatar; selection criteria followed Qatar Development Bank definitions (≤250 employees, turnover < QAR 100 million), and active engagement in exporting. Purposive sampling yielded 20 in-depth, semi-structured interviews with managers from 11 sub-sectors (plastics, electrical materials, construction materials, food, paper, furniture, medical devices, health, personal care, laundry detergent, air distribution). Seventeen firms were in the New Industrial Area, two in Mesaieed Industrial City, and one at Doha Port. Interviews were conducted over five months in 2021, lasting 45–120 minutes (average ~72 minutes). The interview guide covered firm background, export development, channels, learning from export activities, and perceived internal enablers. Transcripts were thematically analyzed through: (1) removal of irrelevant content; (2) iterative coding; (3) clustering codes into labeled categories; and (4) iterative interpretation, comparing themes for overlaps and differences across narratives. The approach emphasized constant comparison and iterative refinement of themes.

Thematic analysis identified five internal enablers of export performance in Qatari manufacturing SMEs: 1) Employees with networking skills: Hiring export personnel with established networks and international experience accelerates market access and reduces search costs. Example: after the 2017 blockade, a plastics firm hired a dedicated export sales manager with existing contacts, contributing to a 5% increase in export value with a 15% long-term target. Another firm reported export value initially at ~5% of revenue, then a 7% increase after building an internal export team, and planned to recruit talent from competitors for their connections. 2) Effective supply chain management: Shorter, reliable order cycles and resilient logistics improve customer satisfaction and repeat business, critical in time-sensitive sectors like construction and food. Examples include collaborating with specialized logistics to standardize lead-time SOPs; optimizing shipment sizes (e.g., six containers) to reduce logistics/warehousing costs and ensure product quality and safety in food exports. 3) Product diversification: Diversifying product lines mitigates risk, supports market penetration, and stabilizes revenue amid shocks (e.g., blockade) and competition (e.g., low-cost imports). Examples: a medical devices SME moved into 3D plastic medical products; a plastics SME expanded from irrigation/high-pressure pipes to pipes, plastic film, and bags, opening new markets (Belgium, Germany, Iran, Italy, Turkey, Uzbekistan) and targeting exports of 25–40% of total revenue. 4) Digitalization: Enhanced digital presence (websites, B2B platforms like Alibaba), virtual communications, and online exhibitions increased visibility, leads, and market learning during COVID-19. A paper firm reported a 14% growth in export value over four years after improving its website and presence on e-marketplaces; a plastics firm leveraged virtual channels to offset travel restrictions and sustain lead generation. 5) Market intelligence capabilities: Using tools like the ITC Trade Map and collaborating with QDB enabled identification of tenders, tariffs, NTMs, and high-potential markets, informing Market Access Maps and product-market fit. Cases include targeting Hong Kong for insulated cables and identifying gaps for cost-effective 3D plastic medical devices, leveraging local access to quality polyethylene. Together, these enablers reduce liabilities of outsidership, improve responsiveness to shocks (blockade, pandemic), and enhance export performance in diverse sub-sectors.

The findings directly address the research objective by specifying firm-internal enablers that SMEs can cultivate to improve export performance in an emerging market context. Theoretically, the results reinforce RBV arguments that unique capabilities—networked employees, digital and intelligence capabilities, and supply chain competence—drive internationalization. They align with the network approach by showing how employees’ networks substitute for scarce external resources and accelerate opportunity discovery. Digitalization’s role suggests a partial re-interpretation of the Uppsala model, as knowledge can be acquired digitally rather than solely through incremental, experiential learning in foreign markets. Product diversification emerges as a double-edged enabler: valuable for risk mitigation and growth if carefully aligned with scarce SME resources. Practically, the five enablers indicate actionable levers for managers and policy makers: invest in networked export talent; strengthen supply chains (including IT-enabled logistics); support product diversification with institutional backing and incentives; advance SME digital capabilities and platforms; and develop market intelligence through tools and training. These enablers collectively help SMEs overcome common emerging market constraints (knowledge gaps, outsidership, logistical disruptions), thereby improving competitiveness and export outcomes.

The study contributes a contextualized framework of five internal enablers—employees with networking skills, effective supply chain management, product diversification, digitalization, and market intelligence capabilities—that underpin export performance among non-hydrocarbon manufacturing SMEs in Qatar. By highlighting how these capabilities operate in practice, the paper advances understanding of SME internationalization in an underexplored GCC context and offers a roadmap for firms and policy makers seeking export-led diversification. Future research should quantitatively test and generalize these enablers across sectors and countries, examine their interactions and performance effects over time, and probe sector-specific dynamics, supply chain vulnerabilities, geographic diversification strategies, and the role of digital finance and digital ecosystems in accelerating SME internationalization.

The study focuses on five enablers and does not claim exhaustiveness; additional enablers may exist at individual (managerial capabilities), firm (organizational slack), country (governmental support), and international (trade agreements, culture) levels. The qualitative sample, though diverse across 11 sub-sectors, is modest and country-specific, limiting generalizability. The cross-sectional design precludes assessment of temporal evolution of enablers and causality; a longitudinal design is recommended. Broader, multi-country samples and deeper qualitative inquiries could unpack dynamics among enablers. Sector-specific investigations, detailed analyses of supply chain weaknesses, network contact typologies, and the impacts of geographic diversification and digital finance are warranted.