Socio-Economic Determinants of Producing Tec-Value Added Products: A Study based on Internationally Oriented Sea Moss Exporting TSMEs in Sri Lanka

Abstract

Sri Lanka has recently contributed to the growing significance of tech-value-added sea moss production around the globe. In Sri Lanka’s coastline of approximately 1700km it is abundant with a wide variety of sea moss species where almost 98% of tech-value added sea moss is exported (NARA, 2018) under the ‘Ceylon Moss’ brand. This research study aimed to identify the materialistic socio-economic determinants of internationally oriented Moss exported TSME technopreneurs to produce to best fit with the foreign buyers. Duraratnam (2001) illustrated that the tech-value adding task for sea moss is totally undertaken by intermediary TSMEs where socio-economic factors matter in such a tech-sensitive product. A self-administered questionnaire-based survey was conducted in Kalpitiya, Puttalam and Negombo areas in Gampaha and Puttalam districts. Data were collected from a sample of 64 independent small and medium technopreneurs who export tec-value added sea moss in Kalpitiya, Puttalam and Negombo areas in Gampaha and Puttalam districts. A simple random sampling technique was used in sampling. The primary data were analyzed with the usage of binary logistic regression. The research results revealed demand for value-added products and preference for the type of payment in exporting more tech-value added sea moss. Results revealed demand for the tech-value added product (0.986), a higher degree of tech-value addition(0.884), and preference for the type of payment (ready cash) increase(-.954), internationally oriented TSMEs technopreneurs tend to export more tech-value added sea moss where Gender, Age of the technopreneur, years of experience in the business, business ownership and educational level are not shown a significant relationship with the dependent variable