Effect of Export Promotion Programs on Export Performance: Evidence From Manufacturing Smes

Abstract

The objective of this paper is to examine how a firm’s participation in government export promotion programs (epps) may lead to a better export performance. Based on dynamic capabilities perspective, a mediated moderation model of epps on export performance was proposed and tested in Chinese manufacturing smes. The results show marketing implementation capabilities mediate the effect of information-related programs on export performance, and the financial aid-related epps moderate the process. The results contribute to the studies relating epps and export performance, as the results confirm the instrumental role of epps in enhancing export performance and examine the interplay between different types of epps. This study provides a guideline for managers as to how they can benefit from government epps. The findings also imply that policy makers should develop epps with a specific emphasis rather than a general goal of export performance. This study develops new insights on how export ventures exploit epps to develop useful capabilities. Also, the study expands current thinking on exporting by recognizing that different types of epps affect exporting.

Verification of PUM’s intervention logic: Insights from the PRIME toolbox

“…2 As a result, providing business training and consultancy to small and medium-sized enterprises imparts valuable knowledge to firms in developing countries, which in turn helps them to improve their business practices and subsequently generate gains in productivity. 3,4,5,6 The academic literature supports PUM's theory of change. Overall, the literature suggests that PUM's activities have the potential to improve a firm's performance, provided the expert missions actually result in knowledge transfer in those domains where SMEs are lagging behind.…”

Firms’ Export Performance: A Fractional Econometric Approach

“…Regarding applied research on export performance, most papers focus on two main moments of export strategic decision, specifically export propensity (usually measured with a binary variable) and export intensity (fractional variable) as dependent or explained variables (Antonietti & Marzucchi, 2014;Anwar & Nguyen, 2011;Behmiri et al, 2019;Fernández & Nieto, 2006;Ganotakis & Love, 2012;Lee et al, 2009;Lu et al, 2009;Singh, 2009;Wang et al, 2017Wang et al, , 2013Yi et al, 2013). Table A1 in Appendix includes an overview of these studies, including authors, theoretical perspective (RBV or IBV), explanatory variables, econometric method and main results.…”

Discourses on Institutions “Intentions of Umbrella Organizations for Internationalization”

“…In China, in order to strengthen the cognitive institution a catalogue is used for guidance including the rules in the countries and industries to be invested (Luo et al, 2010). In many countries, export promotion programs provided by governments or trade associations are valuable resources for export-related information, especially for small and medium-sized firms (Francis and Collins-Dodd, 2004;Freixanet, 2012;Wang et al, 2017). Leonidou (2004) emphasizes that special programs should be prepared for small exporting firms.…”