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

Abstract

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.