Abstract
The study argues that the role of export promotion programs (EPPs) is indirectly exhibited by enhancing the influence of managerial and organizational resources on the internationalization of SMEs. This study proposes that the dimensions of international entrepreneurial orientation (innovativeness, pro-activeness and risk-taking) will show varied strengths as predictors of the internationalization of SMEs’ with the influence of EPPs. Using structural equation modeling, data collected from 266 exporting SMEs in Nigeria were analyzed and it is concluded that SMEs’ risk-taking in internationalization increases with participation in EPPs. Similarly, there was an increase in innovativeness among internationalizing SMEs with increased participation in EPPs. Finally, participation in EPPs did not show any impact in pro-activeness attribute towards internationalization of SMEs. This study demonstrates the supportive role of institutions in SMEs’ managerial capacity building in overcoming internationalization challenges by developing the culture of risk taking and innovativeness.
Highlights
Rapid growth of international SMEs symbolizes its importance and role in international trade transactions
The study tested for moderation effect of export promotion programs (EPPs) on the relationship between dimensions of international entrepreneurial orientation (IEO) (Innovativeness, Pro-activeness and Risk taking) and internationalization of SMEs
The latter is stretched by employing export support programs through integrating and configuring firms‘ managerial, innovative and relational resources to enhance the performance of SMEs‘ by promoting IEO to achieve international market competitiveness
Summary
Rapid growth of international SMEs symbolizes its importance and role in international trade transactions. This study focuses on the influence of export promotion programs (EPPs) in moderating international entrepreneurial orientation (IEO) dimensions as antecedents to the internationalization of SMEs. Previous literature reviews show that the discussion of entrepreneurship scholars on EPPs have mainly been drivers of organizational resources (Leonidou, Palihawadana, & Theodosiou, 2011) and their effects on export performance (Durmu, Apfelthaler, Zamantili, Alvarez, & Mughan, 2012: Gençtürk, & Kotabe, 2001: Sraha & Sraha, 2015). Previous literature reviews show that the discussion of entrepreneurship scholars on EPPs have mainly been drivers of organizational resources (Leonidou, Palihawadana, & Theodosiou, 2011) and their effects on export performance (Durmu, Apfelthaler, Zamantili, Alvarez, & Mughan, 2012: Gençtürk, & Kotabe, 2001: Sraha & Sraha, 2015) Such studies mostly focus on direct estimation of entrepreneurial orientation (EO) dimensions and performance of firms (Kuivalainen, Sundqvist, & Servais, 2007; Ajayi, 2016). Discussion of implications for theory, industry and policy were presented
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