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

Abstract

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.

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

“…With respect to the mediating role of marketing implementation capability, the study's findings provided evidence that market implementation capability has a mediating role between government EPPs and EP. This result is consistent with previous research studies (Catanzaro, and Teyssier, 2021;Imiru, 2021). Trade fairs, trade shows, foreign offices, financial incentives, education, and training are mediated by MIC.…”

“…Each item utilized in this study was adapted from the exiting literature, translated, and modified for this study's needs. The items to measure trade fair (Quaye et al, 2017), trade show (Quaye et al, 2017), trade mission (Quaye et al, 2017), foreign office (Quaye et al, 2017), tax and financial incentives (Purwanto et al, 2018;Hollensen, 2007;Leonidou et al, 2011), education and trading (Naidu et al, 1997;Hollensen, 2007;Leonidou et al, 2011), and marketing implementation capabilities (Imiru, 2021;Morgan et al, 2003;Vorhies and Morgan, 2005) were adapted. Naman and Slevin, (1993) and Quate et al ( 2017) utilized the subjective measure for evaluating firm performance.…”