GEPA's Export Agenda: Stages Theory vs Network Theory

Export Agenda Development for Local Firms

• The Ghana Export Promotion Authority (GEPA) has engaged an expert to create an export agenda for a local firm aiming to expand its enterprise globally.

The Stages Theory Approach

• The stages theory posits that firms go through a series of stages in their internationalization process.
• The stages include: no regular export activities, export via independent representatives, establishment of an overseas sales subsidiary, and finally, establishment of a global network.
• According to the stages theory, the local firm should start by developing an internal capacity for export, then progress to establishing a sales subsidiary abroad, and eventually build a global network.

The Network Theory Approach

• The network theory, on the other hand, views internationalization as a process of developing and maintaining relationships with other firms in the network.
• The local firm can increase its enterprise on the international market by establishing and leveraging relationships with key partners, such as suppliers, customers, and competitors.
• The network theory approach emphasizes the importance of social connections, trust, and cooperation in achieving internationalization goals.

Comparative Analysis

• Both the stages theory and the network theory can be useful in explaining how the local firm can increase its enterprise on the international market.
• The stages theory provides a more linear and gradual approach to internationalization, while the network theory offers a more dynamic and relational approach.
• The choice of theory depends on the firm's specific context, resources, and goals.