Export Promotion Programs Research Articles

Does export promotion enhance firm-level intensive margin of exports? Evidence from a meta-regression analysis

PurposeThe impact of export promotion programs (EPPs) on the intensive margin of exports remains somewhat uncertain. This study tackles a crucial question: does export promotion enhance firm-level intensive margin of exports?Design/methodology/approachWe draw upon comprehensive empirical research conducted up to 2023. We collected 951 estimates, constructed 22 variables, captured diverse contexts and employed a meta-analytical approach to scrutinize the considerable variation in findings.FindingsThe overall meta-effect, after filtering out publication bias, is positive and statistically significant. Firms receiving EPP support exhibit an export intensity that is 1–9% higher than firms not participating in such programs. Assessing the mechanisms through which EPPs bolster this, we observe that support in the form of various services plays a more substantial role compared to assistance in the form of financial resources.Research limitations/implicationsEvaluating EPPs and their activities in terms of social welfare falls beyond the scope of this paper, which specifically focuses on the benefits of EPPs to export intensity. Subsequent research should undertake a comprehensive evaluation, considering both economic impacts and costs for accurate assessments of welfare. We also suggest that future meta-analyses explore other dimensions of firm-level performance linked to EPPs.Practical implicationsPublication bias distorts the impacts of EPPs, leading to an overstatement of their actual effects. Adjusting for publication bias, the practical significance of EPPs for a country’s trade intensity appears to be limited. Additionally, the provision of diverse activities and services primarily contributes to the amplification of export margins as compared to subsidies and grants. While larger firms initially benefit more from EPPs, these effects are found to be transitory.Originality/valueThis is the first meta-analysis scrutinizing the impact of EPPs, specifically concentrating on the firm-level intensive margin of exports.

The Impact of the National Export Strategy on the Plastics and Packaging Industry in Malawi

ABSTRACT: Export-led industrialization is crucial for economic growth, emphasizing the shift from primary production to manufacturing. Malawi aims for industrialization through its National Export Strategy (NES), focusing on oilseed and sugarcane products and manufacturing. However, research gaps exist on export promotion programs’ impact, especially in less developed countries like Malawi and specific sectors like plastics and packaging. A mixed-method approach was employed, combining qualitative and quantitative methods for robust analysis. All 13 firms in Malawi’s plastics and packaging industry were surveyed in Blantyre and Lilongwe to assess the impact of the National Export Strategy (NES). A questionnaire with 37 questions across six sections, adapted from prior research, was used to gather comprehensive data on various aspects such as employment, production, and investment. Ethical clearance was obtained, and completed questionnaires underwent thorough review before data analysis. Results are presented in subsequent sections. The impact of Malawi’s National Export Strategy (NES) on its plastics and packaging industry highlights vital challenges. Employment suffers from a lack of skilled labor, stemming from a mismatch with training institutions. Firms struggle with limited access to finance and high borrowing costs, hindering investment. High taxes and duties hamper export competitiveness, while unreliable energy supply increases operational costs. Additionally, transportation expenses impede raw material imports, exports, and local distribution. These findings underscore the need to address skill mismatches, enhance financial access, reduce trade barriers, and improve infrastructure to bolster the industry’s resilience and competitiveness under the NES. Policy implications include collaborating with financial institutions to enhance access to grants and affordable credit, imposing higher import taxes on finished products to protect local producers, improving energy supply, enhancing transportation infrastructure, introducing incentives for investment in support services, raising awareness of NES benefits, and establishing industry-specific meetings to address sector-specific issues. These measures aim to bolster the plastics and packaging industry’s competitiveness and support its growth under the NES.

Enhancing Export Performance through Marketing Capability: An Empirical Study of Ethiopian Leather Industry

This study aimed to gain insight into export promotion programs (EPPs) and their effects on export performance (EP). Also, the mediating role of marketing implementation capability is examined. The target respondents were leather and leather product export manufacturing firms in Ethiopia. Convenience and snowball sampling techniques were used. Owners and managers responsible for exporting leather and leather products were identified and selected to participate in the survey. A total of 178 valid responses were analyzed using the Smart PLS Software (version 4.0). The results show that the use of export promotion programs has a significant impact on export performance. Trade fairs, trade missions, foreign offices, and education and training have significant impacts on export performance. Also, marketing implementation capability mediates between government offered EPPs and export performance. However, ownership and experience doesn’t have moderation impact. This study contributes to the literature on export performance in emerging nations, where search is scant. In addition, we focused on debate on export promotion programs, marketing implementation capability, and export performance.

THE EFFECT OF EXPORT PROMOTION PROGRAM TOWARDS SMALL-MEDIUM ENTERPRISES’ EXPORT PERFORMANCE: A GOVERNANCE PERSPECTIVE

This paper investigates the effectiveness of export promotion programs (i.e., information, experiential, and financial supports) towards small-medium enterprises (SMEs) export performance. The research framework is guided by the Research-Based View. A sample of 116 Malaysian small and medium size exporter firms was tested by using the model. The data were analyzed through a partial least square structural equation modelling approach. Study results show that all three supports in the export promotion program improve SMEs’ export performance with the mediating effect of network role. The findings show that the implication of the impact of export promotion programs on export performance is justified. Besides, it also validates the importance of networking in using support from government agencies. The findings can also help SMEs engage with foreign buyers or trade organizations to profit from trade fairs and trade exhibits, promoting promotion programs on a global scale. Last but not least, government agencies can also strengthen international trade relations and foreign diplomacy for exporters to boost their trade competitiveness.

Home Peers, Business Owners’ Gender, and the Export Intensity of SMEs

Small and medium-sized enterprises (SMEs) can improve their export performance by co-locating with export firms from the same industry and country. However, the export implications are yet to be addressed systematically. This study investigates when and how women-owned SMEs convert their geographic proximity to home peers through social proximity and cognitive proximity into high export intensity. We develop a nuanced knowledge spillover perspective incorporating gender mechanisms to clarify the relationship between home peers and SMEs’ export intensity at the regional and national levels. To test our hypotheses, we designed quantitative research using a survey database from Statistics Canada, Survey on Financing and Growth of Small and Medium Enterprises (SFGSME), with a sample of 9,977 Canadian SMEs. Our study shows that, among other things, home peers’ positive impact on SMEs’ export intensity is more significant when their owners are exposed to a larger number of relatively close same-gender home peers (i.e., same-gender regional home peers). Moreover, we show that such positive home-peer effects on SMEs’ export intensity are even stronger for women business owners than men business owners. We clarify our contributions by discussing the theoretical and practical implications of our findings. By demonstrating the significance of same-gender regional home peers for women owners, we contribute to the knowledge spillover perspective on exporting, emerging research streams on home peers, and women entrepreneurship research in the international entrepreneurship field. Our findings also suggest that women entrepreneurs can particularly benefit from government-funded export promotion programs when the programs are appropriately designed and promoted to women entrepreneurs.

Policy approaches to stimulate exports: The case of Georgia

AbstractThis report examines exporters’ challenges and possible solutions for public intervention to promote foreign trade. Based on fieldwork conducted in Georgia, we explore which policy approaches can help to stimulate Georgian exports further. Our outcomes show that exporters face substantial barriers such as navigating complex trade regulations, lack of knowledge about target markets, trade finance gaps, as well as new export promotion programs (EPPs) in competitor countries. Other upper‐middle‐income countries can learn from our results that exporters can significantly benefit from a comprehensive export promotion strategy combined with an ecosystem‐based “team” approach. EPPs related to awareness and capacity building in Georgia should be part of this strategy, focusing on challenges such as a lack of knowledge about trade practices and international business skills. Other EPPs must help to mitigate related market failures, as information gathering is costly, and firms have no incentive to share this information with competitors. Furthermore, targeted marketing support and customer matchmaking can answer Georgian exporters’ challenges, such as lack of market access and low sector visibility. Our results also show that public intervention through financial support and risk mitigation is essential for firms with an international orientation. The high‐quality, rich outcomes provide significant value for other upper‐middle‐income countries by exploring the example of Georgia’s contemporary circumstances in an in‐depth manner based on extensive interviews and document analysis. Limitations include that our work primarily relies on qualitative data and further research could involve a quantitative study with a diverse range of sectors.

Publication bias in export promotion impact on export market entry: evidence from a meta-regression analysis

ABSTRACT Export promotion policies and programmes (EPPs) serve as crucial governmental trade instruments, encouraging firms to explore the realm of exporting. These policies encompass various activities designed to assist firms in overcoming obstacles in foreign markets, facilitating their entry into the export domain. To substantiate the justification for such publicly funded measures, the body of firm-level econometric evidence on EPPs’ impact on the probability of export market entry has expanded considerably. Our extensive review of empirical studies conducted up to and including 2020, has identified 479 reported estimates, enabling us to examine the presence and extent of publication bias. Employing meta-regression analyses, our results reveal a sobering reality. We consistently uncover significant and severe positive evidence of publication bias across various specifications, ranging from 3.133 to 5.673. This suggests that the empirical EPPs effect size on the probability of export market entry appears significantly larger than its actual limited effect. Importantly, our findings indicate that in this research field, publication bias is predominantly a consequence of self-censorship rather than interference by journal reviewers and editors. The evidence in the primary studies has, therefore, exaggerated the actual export market entry effect, influencing both with respect to scientific conclusions and policymakers’ decisions.

Demystifying the Impact of Export Promotion Programme on Export Performance of SMEs: A SEM Approach

Governments often fund export promotion programmes (EPP) to aid businesses, particularly small and medium-sized enterprises (SMEs), in getting past any barriers they may face when trying to expand internationally. However, there is scant empirical evidence showing that these initiatives are successful. Drawing on the findings of a survey of SMEs in Uttar Pradesh, India, this study clarifies how EPP strengthen firms’ export competence and activities. Based on 449 responses from registered exporters and Smart PLS-SEM, results show that perceived usefulness (PU), perceived market competencies (PM), and support mechanisms (SM) favour programme adequacy (PA) and directly affect the performance of the export. Furthermore, by elaborating on how EPPs can affect a company’s export performance (EP), this research fills a void in the current literature by examining the results of EPPs in Uttar Pradesh from the vantage point of the firm as the unit of analysis.

Do National Export Promotion Programs in Indonesia support export competitiveness?

This study examines the influence of export promotion programs (EPPs) in Indonesia on companies' resources, capabilities, strategies, and competitiveness, and whether such programs positively impact export performance and finances. Using data from 204 exporting companies in Indonesia and the structural equation model for analysis, this study finds that participation in EPPs reinforces the organizational resources and exporting capabilities needed for developing successful export strategies. This allows for the creation of competitive advantages in export costs, product superiority, and effective distribution, which in turn increases performance in terms of market share and finance. The results also indicate that the effect of EPPs is relatively more significant on small companies and those with more export experience. They confirm that EPPs have the most significant impact on firms’ resources and capabilities, and that assistance programs that aim to improve organizational capabilities are needed to enhance marketing strategies. While innovative capabilities and business intelligence offer great potential to support export performance, EPP-type assistance programs have not been adequately developed in Indonesia.

Effects of intimate partner violence against women in international micro and small enterprises relationships: The mediator role of capabilities.

While previous studies have explored multiple constraints affecting women exporters, the effects of intimate partner violence against women (IPVAW) are still unexplored in the literature. Thus, this study aims to probe first whether women owners of micro and small enterprises (MSEs) in export markets experience IPVAW. Secondly, it aims to explore the effect of IPVAW on their relationship quality with business partners, mediated by the performance of export capabilities. Using a structured questionnaire applied through personal interviews, we surveyed 57 female owners of exporting MSEs in Peru. Partial least squares structural equation modeling was used to analyze the data and test the model. The preliminary findings indicate that women exporters who experience IPVAW are more likely to face problems performing export capabilities. In turn, these performance problems seem to affect the quality of their relationships with importers and suppliers. Moreover, there is a direct relationship between IPVAW and problems in performing export capabilities and between issues performing capabilities and the relationship quality. Our theoretical contribution is a conceptual model that proposes the variable “Problems Performing Capabilities” as a mediator to measure the effects of IPVAW on exporting MSEs owned by women. Our findings urge policymakers and trade organizations boosting women-owned export enterprises to include initiatives that address and prevent IPVAW in their export promotion programs.

Analyses of the Effects of Government Export Promotion Programs on Export Performance: Empirical Evidence for Small and Medium-Sized Enterprises in Korea

Purpose - This study empirically examines the effect of the Korean government export promotion program (EPP) on small and medium-sized enterprise (SMEs) export performance using firm-level data. Unlike most previous studies that investigated some specific samples of firms, this study analyzes a vast amount of SME data of the Korean Small and Medium Business Administration over the period 2005 to 2008.
 Design/methodology - An endogeneity problem arises when a firm’s probability of being selected is correlated with the likelihood of successfully implementing EPPs. To control for the endogeneity of the EPPs in a relatively short-period sample, we employ 2-Stage Residual Inclusion (2SRI) RE-Tobit and bivariate Tobit procedure.
 Findings - Analyses show that Korean government EPPs have positive significant effects on SME exports. Empirical results also show that SME export activities are significantly encouraged by R&D investment and capital intensity, but not obviously by labor productivity.
 Originality/value - This study provides evidence that SME capital intensity, R&D investment, and the number of workers are significant determinants to SME exporting activities, whereas per worker labor cost and employee education are not. These results imply that even for SMEs, firm size is a major factor in promoting exporting activities.

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

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.

COMPARATIVE ANALYSIS OF THE SYSTEM AND MECHANISMS TO SUPPORT THE DEVELOPMENT OF AGRI-FOOD EXPORTS IN UKRAINE AND THE EU

The role of government programs and measures to stimulate exports is becoming increasingly important in the development strategies of countries, especially developing countries, which seek to make exports the engine of economic growth. At the same time, coordinated institutional work to stimulate exports is considered to be the most important factor to ensure comprehensive diversification of foreign trade activities. For the agricultural sector of Ukraine, the matter of systematic work to support and promote exports is currently extremely relevant. The main research methods within the study are surveys, SWOT-analysis, GAP-analysis, consolidation of information, comparison of export support activities in Ukraine and the EU. The results of the study demonstrate Institutions and Tools of State Export Support in Ukraine and the EU, export-oriented services by of support institutions, export support activities carried out by various institutions, practices on national export promotion activities – comparison of Ukraine with the countries of the European Union (Republic of Ireland, Kingdom of the Netherlands, Federal Republic of Germany). The main conclusions of the study are formed by areas – on the one hand Public Authorities, and on the other for Business Support Institutions, Unions and Associations. The recommendations cover areas such as the general coordination of export promotion programs, building a global network of local offices, access to finance, online services and informational Internet portals, presenting the organization on the Internet, marketing and communication strategies, improving the quality of export support services, providing financial support to enterprises entering new markets.

Effect of International Entrepreneurial Orientation on the Internationalization of SMEs: The Contingent Effect of Export Promotion Programs

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.

Effect of International Entrepreneurial Orientation on the Internationalization of SMEs: The Contingent Effect of Export Promotion Programs

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.

The use and knowledge of export promotion programs in the early internationalization of Brazilian SMEs

PurposeThis paper aimed to evaluate the differences in the use and knowledge of export promotion programs (EPPs) between Brazilian SMEs that internationalized early and SMEs that internationalized in a gradual, traditional fashion. Additionally, it tested hypotheses that distinguish these two types of SME internationalization processes in an emerging market context.Design/methodology/approachThe authors tested four hypotheses in a sample of 540 SME Brazilian exporters. The sample was divided into two groups according to the born global (BG) criteria: 379 SMEs with gradual or traditional internationalization (TI) and 161 SMEs with early internationalization (EI).FindingsThe results indicate that Brazilian EI SMEs operate in more countries and continents than TI SMEs. In emerging countries such as Brazil, the domestic market continues to play an important role both for SMEs that internationalize early and those whose process is slower. Even though logistic regression could not classify the sample of TI and EI SMEs according to their knowledge about EPPs, the results led to the idea that EI SMEs currently use more specific EPPs than do TI SMEs.Practical implicationsManagers of successful SMEs from emerging markets need to incorporate EPPs into their internationalization strategy. In emerging markets with large domestic markets, SME managers can meet their growth needs by exploiting opportunities in both domestic and international markets.Originality/valueResearch on the early internationalization of SMEs has long focused on SMEs from developed markets and on internal factors. Moreover, the effects of EPPs on the firm' performance of large and SME firms has also been the subject of study. The value of this paper relies on the intersection of EPPs and the early internationalization of SMEs, even for firms in developed markets.

Impact of Export Promotion Programs on Export Performance

This research examines the relationship of Export Promotion Programs (EPPs), sponsored by a Portuguese Regional Association for Development on Trade and Industry, with firms’ export performance. To investigate this, two models were applied using panel data analyses that relate export performance to variables such as participation in EPPs, age and size of firms. Data on 198 firms for the sampling period 2010 and 2018 was drawn from a Portuguese Regional Development Association and SABI (Iberian Balance sheet Analysis System) database. The results show that participation in EPPs does have a positive influence on the export performance of firms, especially for those firms with previous export experience, demonstrating the importance of using these programs. Findings also document that firm size relates positively export performance, whereas firms age show a negative effect on export performance, suggesting that larger firms with more resources positively influence exports and an increase in firms’ age may increase their cultural inertia, inability to change strategies, decreasing their export performance, respectively. Finally, the participation in EPPs seems not to influence export performance for firms without previous export experience. The research contributes to the literature providing evidence on the role of EPP on firms’ export performance behavior promoted by regional development associations.

The Effect of Export Promotion Programs on Export Performance with the Mediating Role of Marketing Implementation Capability: An Empirical Study on Exporting Companies in Ethiopia

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.

Entrepreneurial orientation and international performance of born global firms: the mediating role of entrepreneurial competencies

PurposeThis study aims to extend the understanding of entrepreneurial orientation (EO) by investigating the international EO (IEO) from the perspective of the international performance of born global firms. The born global firm's EOs toward global firms led to innovation and dynamic organizational capabilities and to improve the firms' international performance and development.Design/methodology/approachIt is a hypothesis that IEO predicted that utilization of export promotion programs (EPPs) would be positively associated with international performance. The samples of 405 respondents were collected from born global firms to acquire higher international performance of firms in China. Structural equation modeling (SEM) and mediation analysis are processed to test the proposed hypotheses empirically.FindingsThe results from the SEM test revealed that the network relationships and utilization of EPPs fully mediate the effect of IEO on international performance. These results indicate that not only IEO is an important factor of network relationships but also the utilization of EPPs and international performance for born global firms. IEO can motivate managers to find the right network relationships and ultimately improve company performance. The IEO of the initiative has strong impact on the performance of international firms.Originality/valueThere is a comprehensive view among the relationships of IEO, entrepreneurial competencies and the network utilization of government EPPs, international performance in the context of born global firms. Theoretical and practical implications are discussed in detail.

Survival in the agri-food industry: internationalisation and manager gender in Spanish SMEs

An analysis is presented of the survival patterns of both small and medium-sized firms in Spain, as well as the effects of the internationalisation of the firm and manager gender on firm survival. The study aims to shed some light from a gender perspective on the field of SME internationalisation and SME performance, examining the role of manager gender as a key determinant of business survival. The data comprise a sample of 5,095 agri-food SMEs. The Kaplan-Meier method is employed for a univariate analysis of survival, applying a linear regression for multivariate analysis. The results revealed that the SMEs were more likely to survive if internationalised and/or if their managers were women. The findings of this research may help provide a better understanding of the influence of manager gender on the internationalisation process of SMEs, which would assist policymakers in developing relevant and targeted export promotion policies and programmes.