Abstract
The area of export performance has been attracting both academic and managerial attention at an increasing pace. The purpose of this study is to examine the effect of Export Promotion Programs on Export Performance mediated by marketing implemenattion capbaility in the case of Exporting Companies in Ethiopia. The target repsondnets of this study were Exporting companies operating in Ethiopia. The total number of exporting companies operating in the country are 938. The number of questionnaires distributed were 280 and 218 (78%) of the collected questionnaires were used for anlaysis. The validity of the data was tested by measuring construct validity and discriminant validity. Data were analyses using partial least squares Structural Equation Modeling (PLS-SEM). The study findings showed that the use of export promotion programmes has a positive and significant effect on export Performance. Results of the total model also revealed that market implementation capability mediated the effect of Education, Training and Development-related EPPs, Legal-Related EPPs, Marketing Selection-Related EPPs on export performance positively and significantly. On the other hand, Market Implementation Capability didn’t mediate the effect of Information-Related EPPs, Financial Aid-Related EPPS, Marketing Strategy-Related EPPs and Miscellaneous EPPs on export performance. Marketing implementation capabilities was found to have a partial mediation role between EPPs and Performance. The findings of the study are expected to provide a source of information for policy makers, researchers and exporters and marketing professionals to understand link between Export Promotion Programs, with the immediate role marketing implementation capability in exporting companies operating in Ethiopia.
Highlights
The amount of financial, human, and other resource commitments in the export business is relatively lower as compared with other international market entry modes
The Research Model demonstrated the effect of export promotion programs (EPPs) on export performance of Ethiopian exporting Companies with the mediating role of marketing implementation capabilities
The findings of the study provided supporting evidence for the partial mediating role of Market Implementation capability between Government Epps and export performance. This investigation provided an empirical evidence to substantiate the rational use of Export Promotion Programs (EPPs) and marketing implementation capabilities contributing to the export literature in the developing countries
Summary
The amount of financial, human, and other resource commitments in the export business is relatively lower as compared with other international market entry modes. Exporting provides the firm a high level of flexibility and cost-effectiveness to penetrate into foreign markets quickly (Leonidou, 1995; Leonidou & Adams Florou, 1999). Despite the increased number of studies that have been concerned with export performance, there is no uniformly accepted conceptualization and operationalization of the construct (Cavusgil & Zou, 1994; Shoham, 1998). Many objective and subjective measures were used in various studies to measure export performance. This large number of different performance measures restricts the advance of the export marketing literature because it makes it hard to compare and contrast the findings obtained from different studies (Zou & Stan, 1998)
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