The effect of export promotion programmes on export performance: evidence from Iranian food manufacturers

Abstract

This study empirically examines the direct relationship between export promotion programmes and export performance; as well as indirect effects which have been conceptualised through export strategy, export knowledge and export commitment. The questionnaire of the study was applied to 200 decision makers in charge of exports during July-August 2011 and the response rate was 71%. Data were analysed using structural equation modelling techniques to test the hypothesised relationships. Results clearly show that export promotion programmes do not only have a significant direct effect on export performance, but also a significant indirect effect via three different paths. The most influential indirect path is delineated through export strategy with coefficient of 0.40; other path depicted through export knowledge, then export strategy (0.31) and also, export commitment, then export strategy (0.20). These results confirm the pivotal role of export strategy in the process of export performance development and stress the mediation effect of export strategy on the effects of export promotion programmes on the path to export performance.