Export promotion programs, export capabilities, and risk management practices of internationalized SMEs

Abstract

The purpose of the study is to analyze the effectiveness of public policies on the international performance of the small and medium-sized enterprises (SMEs). Specifically, we investigate the effect of public export promotion programs (EPPs) on two types of organizational capabilities, i.e. export capabilities which have been already used in previous modelization, and international risk management practices as an original variable intended to better explain the effectiveness of public policies on the SME's international performance. We use a quantitative methodology based on a structural equation modeling approach applied to a sample of 147 internationalized French SME that used EPPs. Our results add value to theoretical and empirical knowledge on the effectiveness of public support programs on the international performance of SMEs, since we demonstrate an indirect effect between EPPs and international performance, through export capabilities and risk management practices. We also show that by strengthening the risk management practices, EPPs stimulate the SME in implementing foreign direct investment strategies.

Impact of Export Trade Promotion Organizations on Export Development in Latvia in the Context of Globalization

“…The importance of TPO contributions and activities is being studied by a large number of researchers at many universities around the world: researchers have concluded that government export promotion programs are an important export driver that stimulates and helps exporting companies to increase export sales. Catanzaro and Teyssier have found that promoting high-quality exports has a positive effect on international performance [7]. However, there are also studies which conclude that national government export promotion does not have a significant impact on exports; such a finding, as the researchers note, may stem from an unsuccessful choice of group of respondents.…”

Critical success factors for the internationalisation of small–medium enterprises in indonesia

“…Studies on the impact of an export promotion programme run by a French government institution (Catanzaro & Teyssier, 2020) and an Italian government institution (Comi & Resmini, 2020) reported conclusive results. SMEs that engage with government institutions through an export promotion programme tend to have better export performance than non-assisted SMEs.…”

Structural Relation of Export Assistance Programme and Export Performance Determinants: A Study of Handloom Industry

“…The direct export assistance programme categorized into four groups, namely financial support, informational support, export facilitating support and educational support (Hollensen, 2007;Leonidou et al, 2011). Financial support consists of various tax-related benefits and subsidies, insurance cover to overcome losses and related financial incentives (Catanzaro & Teyssier, 2020;Gencturk, 2010). The institutional information support reveals the requirement of foreign firms, prospect foreign market for export opportunities, foreign government regulations and their credit policies for smooth export related operations (Albaum et al, 2008).…”

“…The institutional information support reveals the requirement of foreign firms, prospect foreign market for export opportunities, foreign government regulations and their credit policies for smooth export related operations (Albaum et al, 2008). Facilitating activities are crucial for export-related activities as they include trade offices abroad; the government encouraged trade fairs and exhibitions, and sponsoring of others traderelated operations and missions (Albaum et al, 2008;Catanzaro & Teyssier, 2020). The education and training related component of export assistance programme includes the training programme for export activities and insights of export documentation.…”

“…Some researchers categorized the dimension of study for the export assistance programme, and that could be financial and marketing (Diamantopoulos et al, 1993;Gençtürk & Kotabe, 2001;Shamsuddoha et al, 2009). Financial category of export assistance consists of various financial incentives like loans, duty-free export-import and other cash incentives (Catanzaro & Teyssier, 2020). In contrast, marketing assistance has the responsibility for the relationship established between firms and their markets (Seringhaus, 1986).…”