The Indian Textile Smes Exporters Commerce Essay

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Textile Industry plays a major role in Indian Economy. This sector has generated a huge employment, nearly 35 million among skilled and unskilled labour in India. The sector accounts for around 4% of GDP, 14%  of  industrial  production,  9%  of  excise collections,  18%  of  employment  in  the  industrial  sector,  and  30%  of  the  country's  total exports earnings (Ray, 2011). Most of the population in India depend directly or indirectly on this sector for their income. The analysis of SMEs in textile sector reveals that exporters have reported OPMs, which are marginally better in comparison to their peers, serving local customers (Dixit, n.d.). Small and Medium Enterprises (SMEs) in India alone contributes 45% of Industrial output and 7% of its total GDP and also plays an important sector of Indian Economy (Saini, 2009). SME's are normally said to be a backbone for the nation's economy. The Indian SME's has a dominant role in exporting and an increased prospect to develop their business activities in some of the major sectors namely Textiles and Garments, Leather products, Sports goods, Gems and jewellery, Handicrafts among others (Sastry, n.d.). Even though, exporting is significantly improving in the marketplace, small firms are lagging behind due to lack of knowledge in exporting.

2. Rationale of research:

This research will consider the issues some of the small scale industries are facing in respect to exporting. Indian textile Industry has expanded in both domestically and internationally. Manufacturing textile is one of the largest industries in India. There are many small scale industries compared to large scale industries in India. Small firms have some common advantages like low cost and flexibility but lacks in many aspects. Some of the disadvantages are difference in product price, low quality, adequate technology, weak infrastructure, poor regulations, global practices, global value chain and lack of consistency. SME's also suffer from the drawback of being in a remote location. Due to these problems SSI could not compete with the larger firms. All these difficulties have raised numerous problems for relatively small scale firms in export marketing for not only textile sector but also in other sector mention before. These firms are finding hard to trace ample buyers and produce their product in the market place successfully. However, the strategy of marketing the products and service is different between the SME's and MNC's. As a result, to research and studying on the SME's export marketing problems is essential as it adds more value to the exports and increase the economy of the country.

3 Aim of the research:

This proposal attempts to study and analyse the problems and issues faced by the SME's export marketing textile in India and evaluate the opportunities that can be applied to overcome the drawback on this sector in order to grow stronger and compete with other nations like China.

3.1 Objective of the research:

The objective of this research is to focus on the problem some of the Indian SME's are currently facing in the textile export marketing. The Key objectives are:

Analysing the textile export marketing efforts and issue in relation to market orientation.

Evaluating the Indian SME's performance and identifying the problems in relation to textile Industry.

Inspecting the experience of the firms with varying problems in the export marketing.

Finally, by analysing and findings: suggesting some of the suitable solutions for the above.

3.2 Research question:

The above following Key objectives represent the research question:

"What are the observations by the Indian Textile SME's Exporters about the marketing problems in the exporting sector, by their experience in this industry and how do they react and solve their problem in order to survive in this industry?"

3.3 Limitations:

To achieve the answer to the above research question and the key objectives, some of the exporting SME's in Indian will be considered in the Textile sector. About 5 firms will be investigated to access the information about the exporting problems.

4 Research methodologies:

A planned systematic process of collecting data for the purpose of research projects is called research methodology. To execute this research topic, both qualitative and quantitative methods will be used i.e. a mixed approach for collecting data and analysis.

3.1 Methodology:

Methodology of a research is defined as the overall structure, plan and methods of investigation to provide answer to the research (Brown, 2006). (Saunders, et al., 2012) defines research as something that people undertake in order to find out things in a systematic way, thereby increasing their knowledge. Two Phrases are important in this definition: 'systematic way' and 'to find out things'. According to Saunders, Systematic approach defines an explanation of the data collection method and give the reason of the result obtained is meaningful and to find out things there are multiplicity of possible purpose for the research. Therefore, research methodology is a tool designed to support our perceptive of the world (Onwuegbuzie & Leech, 2005)

3.2 Research Design:

"A research design is the plan of actions or structure which links the philosophical foundations and the methodological assumptions of a research approach to its research methods, in order to provide credible, accountable and legitimate answers to the research questions" (Gelo, et al., 2008) (Dunnion, May 20th, 2012). Research process includes Research philosophy, approach, strategy, data collection. Experimental research, action research, survey, ground research and mixed research etc can be used for the research. To attain the objective of this project, mixed method can be used to collect data and analyse (i.e. both qualitative and quantitative methods) (Johnson, et al., 2007). In other words the research project can be conducted in two stages: The firms managers can be asked to fill the questionnaire and conduct interviews to discuss the problems and ways they are opting to solve the issues through their experience.

3.2.1 Quantitative and Qualitative Research Methods:

The methodological traditions of qualitative and quantitative research, 'mixed methods' represents nowadays a rapidly developing field of Business methodology (Kelle, 2006). However, they believe that certain research questions lend themselves more to quantitative approaches, whereas other research questions are more suitable for qualitative methods (Onwuegbuzie & Leech, 2005).

Qualitative Research: "Qualitative research is of specific relevance to the study of social relation, due to the fact of the pluralisation of life worlds" ( (Flick, 2009).

Quantitative Research: "Quantitative research is a formal, objective, systematic process in which numerical data are used to obtain information about the world" (Burns N, 2005).

Difference between Qualitative and Quantitative approach:

Qual_Vs_Quant.png (Mora, 2010)

This project is concerned with the justification theory in relation to the Indian marketing of textile in exports. The valid theory should be discovered in order to develop a legal solution to the firms in respect to their problems in marketing their products abroad. Therefore, a mixed approach of methodology to this research should be adopted. Also, qualitative research can add new meanings to quantitative research (Bartunek & Seo, 2002).

3.2.2 Mixed-Methods Research:

Mixed research Methodology: As a methodology, it involves philosophical assumptions that guide the direction of the collection and analysis of data and the mixture of qualitative and quantitative approaches in many phases in the research process (Creswell, 2006). A major advantage of mixed research method is that it enables the researcher to simultaneously generate and verify theory in the same study (Molina-Azorin1, 2012). Therefore, considering the definitions of mixed research methods from Appendix A the basic principle of using this approach is to obtain better understanding of research problems. Regarding criticisms: Mixed method approach has defined as "It should be stressed that mixed method analyses are not always possible or even appropriate". (Onwuegbuzie & Leech, 2005) Some researchers have also mentioned it is time consuming and in general costly approach. Besides, the researcher has to consider strength and weakness of both the methods in respect to this project in order to get the best results. On the other hand, this method will be appropriate concerning on this project. Baring the above, this approach will provide advantage on this project. Thus, mixed methodology can be a quite good option.

4 Data collection Techniques:

To gather the accurate data for this project interviews and questionnaire should be used. The information collected by these two techniques can be both qualitative and quantitative should be relevant since this research will be based on the mixed research approach. Secondary research should be used by collecting some of the case study in order to conduct and analyse the primary research.

4.1 Questionnaire survey:

In this technique people will be asked to answer the same set of question in the same order in a wide range. This approach can be used to gather data relation to the marketing problems in textile industry. The questionnaire should be carefully framed in relating to the literature of export problems to identify the exact questions for the survey. The information should be collected through the secondary research on Indian textile exports through various data source like OECD, WTO, export promotion council etc and also from pervious study through case studies. Samples of 20 questions are shown in the Appendix B which can be distributed by an email to a wide range of textile exporting SME's. This approach is useful in order to collect the different problems firms are facing regarding exports of their product. On the other hand, this approach is relatively cheap to conduct and also relatively high response can be expected.

4.2 Interviews survey:

One of the techniques to approach qualitative research is by interviews. There are many ways in conducting interviews: classification by medium, structure and question type. On this research, classification by medium (face to face, telephone, screen) approach will be relevant. An equal phase of experience (more than 10 years) and less experienced (less than10 years) firms will be more appropriate to collect the information on this project. Interviews should be conducted in order to acquire the current information, opinions and background information about the problems which is important for further recommendation to solve their issues. Therefore, a comprehensive data should be collected on how the exporting firms exceed the difficulties from the export barriers and how they intend to solve them. This technique should be conducted baring the thoughts of Indian SME's manager's experience in textile exports. The design of interview could be semi-structured by a pre-determined structure. Thus, a catalogue of questions should be arranged and discuss among SME's executive managers and therefore, the result should be analyzed qualitatively. Sample interview questions are shown in Appendix C. The interview process can be recorded upon request. Further questions should also be asked from their response to the asked questions.

4.3 Case study:

Case studies are normally defined as a research strategy. Any descriptive or explanatory cases on the textile exports should give some idea and knowledge of the Indian textile exports. The country based case study should be widely used in order to analyse the information about the Indian SME's. An in-depth analysis of an event or case will be broadly covered in a case study. A systematic and appropriate methods are used to gather data, analysing and producing a report (which may contain both qualitative and quantitative or either of them) can be developed by the help of case study and also gain knowledge about the study and also the value of the case study will depend on the validity claims that researchers should place while on their study (Flyvbjerg, 2006). A case study does not test about an issue but it gives a brief idea. Therefore, this shows case study should also be appropriate on this project.

5. Data collection:

5.1 Primary data:

Primary research involves collecting data about a given subject directly from the real world (Driscoll & Brizee, 2010). Wolfe argued that structural variables are the primary determinants (Wolfe, 1994). The research addressing on Indian export SME's problems before is limited, with some relating source are considered to carry on with. Primary resource can also be used to confirm the arguments or global clash with the local drift. A part of the research is to know the people's opinion on the trade barriers; researcher should conduct a local survey (Driscoll & Brizee, 2010) to compare with effects with the trading system.

To conduct primary research, huge case studies should be considered and as mentioned above in research technique Interviews and questionnaire should also be appropriate for this research. About 20 questionnaires can be provided to a set of textile SME's (about 30 firms) in India. The details of these firms will be collected from the SME business service limited, Federation of Indian Micro and Small & Medium Enterprises (FISME) and many more. By dividing the above selected firms as experienced and low experienced SME's, a minimum of 6 interviews each by 3 can be conducted.

5.2 Secondary data:

Secondary data research provides a base to any research. Information database is limited on Indian SME's as many of the institutions are recently beginning to setup by the government to help SME's. Although a large amount of counter research should be estimated within the sources like journals, articles, internet and other digital sources of information. Most of the secondary data can be articles; market research resources, government and industry reports, textile sector reports in relation to government bodies report should be considered in other to get most appropriate and trustful data or information for this research project. In order to get prescribed data primary source like original reports, records and diaries by authors or authorized bodies etc can also be used as a secondary data. Also it should be easy to find the marketing text books to know the drawbacks of trading. Some of the internet data can also be used e.g WTO, OECD, SME institution of India, SME Export Promotion Council, and SME times etc. Data collection from these databases can be trusted since they are likely related to the government institutions. Therefore, using the secondary data as mentioned will be appropriate to for research purpose.

6. Interpretation: (300)

Data analysis and interpretation is a key exercise in driving an accurate meaning, recommendation and significance from the collected data and survey. In completion of this process significant facts on the objectives of this project can be produced. Also, interpreting the data can lead to better understanding of the issue and provide better decisions on recommendations. The mean difference between the experienced (> 10 years) and less experienced (< 10 years) Indian textile exporting SME's can be calculated by the independent sample t- test. The result should describe the firms exporting outcome to explain this research topic effectively. Hence this method of analysing the findings should be suitable and appropriate on this research topic. Usually the value of alpha is (α=0.05) for calculating the independent sample t- test. Sample size of the two groups can be n=20 and if the response rate is different than 20 between the experienced and less experienced SME's , degree of the freedom varies which is calculated by i.e. df = (n1-1) + (n2 - 1). The next step will be decision rule which decide the range of t-value should be. The result depends on the values of degree of freedom and alpha with 2-tailed calculated. Formula for calculating the test statistics - formula:

To calculate: = and

To calculate:

From the above formula, will be the average of the response and s12 will be the deviation of the response and df1 will be the degree of the freedom.(Rule of the hypothesis) If the calculated t-value is less than 0.05, it will be concluded as the firms are facing relatively less exporting problems whereas, if the t-value is greater than 0.05 it will be concluded as the other way.

Interpretation of the qualitative data collected from interviews can be produced either in the transcription form or as a summary. Concluding as a summary can be appropriate on this project. Analysis should be made as and when the data is collected in other worlds at the end of each interview.