The Impact of Export Promotion Programs on Export Competitiveness and Export Performance of Craft Products

Abstract

International trade is defined as economic transactions between countries worldwide. Promoting the export of craft products, which are valued products, is critical for international business as the sales growth increases worldwide. Moreover, the export of craft products has increased international trade and maximized economic value in the highly competitive global market. Therefore, businesses need to be promoted to increase their competitiveness. This study explores the impact of export promotion programs on export competitiveness and the performance of craft products. A self-administered questionnaire was used to correct the data. There were 400 respondents completing the questionnaires, who were working in craft product export companies using marine transport. The data analysis is conducted by using Structure Equation Modelling (SEM). The findings show that the export promotion program has a significant positive relationship with export competitiveness. A positive relationship between export competitiveness and export performance is also found. The results indicate that export competitiveness fully mediates the relationship between export promotion programs and export performance. The findings from this study contribute to craft product export businesses and provide a practical exporting approach. Marine transport is one of the critical international entry modes many companies use to expand businesses. It should be noted that shipping cost savings are related to export efficiency.