Abstract
The objective of this paper is to examine how a firm’s participation in government export promotion programs (epps) may lead to a better export performance. Based on dynamic capabilities perspective, a mediated moderation model of epps on export performance was proposed and tested in Chinese manufacturing smes. The results show marketing implementation capabilities mediate the effect of information-related programs on export performance, and the financial aid-related epps moderate the process. The results contribute to the studies relating epps and export performance, as the results confirm the instrumental role of epps in enhancing export performance and examine the interplay between different types of epps. This study provides a guideline for managers as to how they can benefit from government epps. The findings also imply that policy makers should develop epps with a specific emphasis rather than a general goal of export performance. This study develops new insights on how export ventures exploit epps to develop useful capabilities. Also, the study expands current thinking on exporting by recognizing that different types of epps affect exporting.
Highlights
There has been a growing interest in the internationalization and the export literature concerning the effects of export promotion programs (EPPs) in helping export ventures achieve superior performance in international markets (Francis, Collins-Dodd 2004)
Based on dynamic capabilities perspectives (Teece et al 1997), we argue that marketing implementation capabilities may play an instrumental role in mediating the impacts of EPPs on export performance
To address the key issues outlined above, we provide an overview of the relevant literature, which is followed by a mediated moderation model of EPPs on export performance and theoretical development of hypotheses
Summary
There has been a growing interest in the internationalization and the export literature concerning the effects of EPPs in helping export ventures achieve superior performance in international markets (Francis, Collins-Dodd 2004). Previous research has shown mixed evidence about the relationships between EPPs and export performance. While some studies show a positive effect of EPPs on export outcome (Lages, Montgomery 2005; Shamsuddoha et al 2009), others demonstrate non-significant impact or the impact is rather small (Ayob, Freixanet 2014). X. Wang et al Effect of export promotion programs on export performance: evidence from manufacturing SMEs of EPPs. previous research has paid little attention to a potential interplay between different types of EPPs in helping ventures achieve better performance
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