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Article
Publication date: 5 March 2018

Dafnis N. Coudounaris

This paper aims to shed light on how small- and medium-sized enterprises can use export promotion programmes (EPPs) to improve their performance. The proposed conceptual model…

Abstract

Purpose

This paper aims to shed light on how small- and medium-sized enterprises can use export promotion programmes (EPPs) to improve their performance. The proposed conceptual model focuses on the need that the mechanism of awareness and use of EPPs should play a more active strategic role in shaping the firm’s export performance.

Design/methodology/approach

A meta-analysis of the pertinent literature reveals 16 studies on EPPs.

Findings

This study reveals that there are 16 relationships which are important based on the meta-analytic correlations. The analysis of these relationships shows that EPPs, export performance, strategy, knowledge, commitment, capabilities, competitive advantage and experience are the mostly used constructs.

Originality/value

This investigation supports the view that the moderating effects of the improvement of trust relationship between partners, i.e. importers to exporter and public policymakers to exporter, and the mechanism of awareness and use of EPPs accelerate the firm’s export performance. EPPs explain 31.3 per cent of the variance in export performance indicating their catalytic role in the exports’ growth.

Details

Review of International Business and Strategy, vol. 28 no. 1
Type: Research Article
ISSN: 2059-6014

Keywords

Article
Publication date: 29 May 2019

Farhad Uddin Ahmed and Louis Brennan

The purpose of this paper is to examine the differential effects of national export promotion policies (EPPs) on firms’ early internationalization using the institution-based view…

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Abstract

Purpose

The purpose of this paper is to examine the differential effects of national export promotion policies (EPPs) on firms’ early internationalization using the institution-based view (IBV) as our theoretical foundation. Early or speedy internationalization is an important topic for academics, executives and policy makers. However, the effect of the regulatory dimension of institutions incorporating governmental policies on firms’ early internationalization remains unexplored in the literature.

Design/methodology/approach

The study was survey-based and the authors engaged in quantitative analysis using data drawn from the apparel industry in a least-developed country (LDC), i.e. Bangladesh. The authors employed 174 valid questionnaires in the analysis. To test the proposed hypotheses, an ordered-logistic regression modeling technique was used.

Findings

The findings reveal a positive effect of those national policies focusing on market development, guarantee-related and technical support schemes. Two individual elements of direct finance-related assistance, namely, bank loans and cash subsidy are also found to be influential.

Originality/value

The study contributes to the literature and extends the IBV by establishing that the industry-specific regulatory policies designed by home country governments can play a critical role in international expansion of new ventures from an LDC. In particular, the study established the critical role of national EPPs in driving firms’ early internationalization and thereby, contributing to the international marketing and international entrepreneurship (IE) literature. Least-developed countries provide different institutional environments for entrepreneurship. They thus provide an atypical context within the field of IE. By incorporating sample firms from an LDC, the authors address the knowledge gap related to those countries. The implications of the authors’ findings for national and enterprise development policies are also considered.

Book part
Publication date: 28 September 2015

Md Shah Azam

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and…

Abstract

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and non-economic activities. Researchers have increasingly focused on the adoption and use of ICT by small and medium enterprises (SMEs) as the economic development of a country is largely dependent on them. Following the success of ICT utilisation in SMEs in developed countries, many developing countries are looking to utilise the potential of the technology to develop SMEs. Past studies have shown that the contribution of ICT to the performance of SMEs is not clear and certain. Thus, it is crucial to determine the effectiveness of ICT in generating firm performance since this has implications for SMEs’ expenditure on the technology. This research examines the diffusion of ICT among SMEs with respect to the typical stages from innovation adoption to post-adoption, by analysing the actual usage of ICT and value creation. The mediating effects of integration and utilisation on SME performance are also studied. Grounded in the innovation diffusion literature, institutional theory and resource-based theory, this study has developed a comprehensive integrated research model focused on the research objectives. Following a positivist research paradigm, this study employs a mixed-method research approach. A preliminary conceptual framework is developed through an extensive literature review and is refined by results from an in-depth field study. During the field study, a total of 11 SME owners or decision-makers were interviewed. The recorded interviews were transcribed and analysed using NVivo 10 to refine the model to develop the research hypotheses. The final research model is composed of 30 first-order and five higher-order constructs which involve both reflective and formative measures. Partial least squares-based structural equation modelling (PLS-SEM) is employed to test the theoretical model with a cross-sectional data set of 282 SMEs in Bangladesh. Survey data were collected using a structured questionnaire issued to SMEs selected by applying a stratified random sampling technique. The structural equation modelling utilises a two-step procedure of data analysis. Prior to estimating the structural model, the measurement model is examined for construct validity of the study variables (i.e. convergent and discriminant validity).

The estimates show cognitive evaluation as an important antecedent for expectation which is shaped primarily by the entrepreneurs’ beliefs (perception) and also influenced by the owners’ innovativeness and culture. Culture further influences expectation. The study finds that facilitating condition, environmental pressure and country readiness are important antecedents of expectation and ICT use. The results also reveal that integration and the degree of ICT utilisation significantly affect SMEs’ performance. Surprisingly, the findings do not reveal any significant impact of ICT usage on performance which apparently suggests the possibility of the ICT productivity paradox. However, the analysis finally proves the non-existence of the paradox by demonstrating the mediating role of ICT integration and degree of utilisation explain the influence of information technology (IT) usage on firm performance which is consistent with the resource-based theory. The results suggest that the use of ICT can enhance SMEs’ performance if the technology is integrated and properly utilised. SME owners or managers, interested stakeholders and policy makers may follow the study’s outcomes and focus on ICT integration and degree of utilisation with a view to attaining superior organisational performance.

This study urges concerned business enterprises and government to look at the environmental and cultural factors with a view to achieving ICT usage success in terms of enhanced firm performance. In particular, improving organisational practices and procedures by eliminating the traditional power distance inside organisations and implementing necessary rules and regulations are important actions for managing environmental and cultural uncertainties. The application of a Bengali user interface may help to ensure the productivity of ICT use by SMEs in Bangladesh. Establishing a favourable national technology infrastructure and legal environment may contribute positively to improving the overall situation. This study also suggests some changes and modifications in the country’s existing policies and strategies. The government and policy makers should undertake mass promotional programs to disseminate information about the various uses of computers and their contribution in developing better organisational performance. Organising specialised training programs for SME capacity building may succeed in attaining the motivation for SMEs to use ICT. Ensuring easy access to the technology by providing loans, grants and subsidies is important. Various stakeholders, partners and related organisations should come forward to support government policies and priorities in order to ensure the productive use of ICT among SMEs which finally will help to foster Bangladesh’s economic development.

Details

E-Services Adoption: Processes by Firms in Developing Nations
Type: Book
ISBN: 978-1-78560-325-9

Keywords

Article
Publication date: 10 July 2020

Katarina Njegić, Jelena Damnjanović and Biserka Komnenić

The purpose of this paper was to examine the intervening role of export-related resources in the relationship between export assistance (EA) and export performance (EP) as well as…

Abstract

Purpose

The purpose of this paper was to examine the intervening role of export-related resources in the relationship between export assistance (EA) and export performance (EP) as well as the role of competitive intensity as a driver for the adoption of EA programmes by small and medium-sized enterprises (SMEs).

Design/methodology/approach

The proposed model was tested on the sample of 119 SMEs that export from the Republic of Serbia. The data were gathered through an online survey. In order to test the hypotheses, partial least squares structural equation modelling (PLS-SEM) was used.

Findings

The results revealed that export-related resources (intellectual, relational and managerial resources) fully mediate the relationship between EA and EP. It was shown that competitive intensity in export markets had a positive effect on the amount of EA that SMEs receive from the government, EU and other organisations.

Research limitations/implications

The number of firms that participated in the survey is small. Furthermore, the responses may be biased due to the auto-selection of SMEs. The research included only SMEs from different manufacturing industries. Thus, the implications of the research cannot be applied to the service sector.

Practical implications

The findings of the conducted research are relevant for the managers of SMEs since they show the importance of using EA as an external resource. The use of EA improves EP through the enhancement of intellectual, relational and managerial resources. The results of this study also support further government investment in EA as it was found that EA is an effective tool for the improvement of EP of SMEs.

Originality/value

The effect of EA on EP was tested in Serbia, the research context in which this effect was not tested before. Besides, the proposed model gives insights into the factors that affect engagement in EA programmes, which is a topic rarely examined in the literature.

Details

Baltic Journal of Management, vol. 15 no. 5
Type: Research Article
ISSN: 1746-5265

Keywords

Book part
Publication date: 18 November 2019

Paul Agu Igwe and Frederick Kanyembo

Firms are affected by resources access, capability and unfavourable business environment, but there is little research on how institutions affect small and medium enterprises…

Abstract

Firms are affected by resources access, capability and unfavourable business environment, but there is little research on how institutions affect small and medium enterprises (SMEs) internationalisation process in developing countries. Drawing on institutional theory, this chapter reviews the variety of institutions (internal and external barriers) and how it affects SMEs’ internationalisation process in the developing world. First, it explores the stages of internationalisation, modes of entry and benefits of internationalisation. Second, it explains the Cultural, Administrative, Geographic and Economic (CAGE framework) distances and theories of internationalisation. Third, it examines the evidence on the role of government in promoting SMEs and drivers of internationalisation. These have significant practical and policy implications, especially for policymakers that are concerned with business reforms and ease of doing business.

Details

International Entrepreneurship in Emerging Markets: Nature, Drivers, Barriers and Determinants
Type: Book
ISBN: 978-1-78769-564-1

Keywords

Article
Publication date: 13 January 2021

Md Imtiaz Mostafiz, Murali Sambasivan and See Kwong Goh

The significance of market orientation (MO) in industrial marketing literature is immense. Separately, the role of dynamic managerial capability (DMC) as an individual-level…

Abstract

Purpose

The significance of market orientation (MO) in industrial marketing literature is immense. Separately, the role of dynamic managerial capability (DMC) as an individual-level capability has been found to be beneficial to business-to-business (B2B) transactions. However, the assessments of DMC as the antecedent to complement MO in achieving firm performance are rare. To address this knowledge gap, this study builds upon a research framework on the DMC theory and MO literature. Additionally, this study aims to investigate how export assistance avails MO-firm performance relationship and assists entrepreneurs to thrive in the international market.

Design/methodology/approach

The research was conducted among the entrepreneurial export manufacturing firms in the apparel industry in Bangladesh. Structural equation modelling was used to investigate the hypothesized relationship among 329 firms.

Findings

Two attributes of DMC, namely, managerial social capital and managerial cognition of entrepreneurs improve the MO process of export manufacturing firms. MO mediates the relationship between DMC and firm performance. Additionally, export assistance positively moderates the relationship between MO and the financial performance of the firm.

Originality/value

MO requires complementary capabilities to realize the value of it efficiently. This study strongly advocates entrepreneurs to nurture DMC to leverage MO and capitalize on emerging opportunities by productively using export assistance. Firms in the emerging economies often suffer from resource-scarcity and export assistance mitigates barriers to expand international operations and yield financial liberty to the firms operating in the international B2B market.

Details

Journal of Business & Industrial Marketing, vol. 36 no. 6
Type: Research Article
ISSN: 0885-8624

Keywords

Book part
Publication date: 18 November 2019

Anthony Ayakwah, Ellis L.C. Osabutey and Isaac Sakyi Damoah

A few decades ago, most research works on internationalisation were aligned to studies in developed economies. In recent times, business entrepreneurs in developing and emerging…

Abstract

A few decades ago, most research works on internationalisation were aligned to studies in developed economies. In recent times, business entrepreneurs in developing and emerging economies have shown their potential to permeate international markets. The current capability of business entrepreneurs in developing and emerging economies, which drives their ability to overcome the numerous barriers to internationalisation, particularly within clusters, requires a critical examination. As a result, the study situates the discussion on internationalisation within the theory of agglomeration in developing and emerging economies and argues that the gains enjoyed by business entrepreneurs from operating in close proximity in clusters are critical for overcoming the barriers of internationalisation. This research adopts a systematic review of secondary data to tease out the unique attributes of clusters in developing and emerging economies, which supports the internationalisation drive. The findings show that most emerging economy clusters are engaged in exports but there is minimal work on international entrepreneurs operating within clusters. The unique features that drive exporting clusters are the presence of multinational companies, public agencies and collaborative relationships. These unique features have the capacity to minimise the constraints to internationalisation and determine the export performance of businesses in the cluster.

Details

International Entrepreneurship in Emerging Markets: Nature, Drivers, Barriers and Determinants
Type: Book
ISBN: 978-1-78769-564-1

Keywords

Article
Publication date: 24 July 2009

A.K. Shamsuddoha, M. Yunus Ali and Nelson Oly Ndubisi

The purpose of this paper is to examine the effects of government assistance programmes on internationalization of SMEs from an Asian developing nation.

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Abstract

Purpose

The purpose of this paper is to examine the effects of government assistance programmes on internationalization of SMEs from an Asian developing nation.

Design/methodology/approach

Primary data from a sample of 203 SMEs in three export‐oriented industries in Bangladesh were analyzed using structural equations model to examine both direct and indirect causal effects of government assistance on their internationalization.

Findings

Results suggest that the usage of market development‐related government assistance significantly influence internationalization directly as well as indirectly via other determinants, whereas finance‐ and guarantee‐related assistance has only indirect effect.

Practical implications

Government export assistance programmes play an important role in the SMEs' internationalization process by contributing to a number of firm‐ and management‐related factors that determine international marketing performance of a firm. The study provides a guideline for SME managers as to how they can benefit from both categories of export assistance programmes in improving their positive attitudes towards the export market environment, building their knowledge and enhancing commitment to exporting for better success in their international operations.

Originality/value

The importance of export assistance programmes is well recognized in the literature but its causal effect on internationalization of small and medium‐sized enterprises (SMEs) is low. The paper tries to fill this gap by reporting the results of an empirical study examining effects of government assistance programmes on internationalization of SMEs from an Asian developing nation, where there is a gross dearth of research.

Details

Journal of Enterprise Information Management, vol. 22 no. 4
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 8 June 2015

Anisur R. Faroque and Yoshi Takahashi

The purpose of this paper is to investigate the contingent relationship between government marketing assistance for export and the performance of early internationalizing firms in…

1304

Abstract

Purpose

The purpose of this paper is to investigate the contingent relationship between government marketing assistance for export and the performance of early internationalizing firms in a developing country’s low-tech industry.

Design/methodology/approach

The authors employ hierarchical multiple regression based on the data obtained from Bangladesh, a south Asian developing country and a leading exporter of apparel products worldwide. The authors used a sample of 224 early internationalizing apparel firms to test the hypotheses.

Findings

Research describes the relationship between export assistance and performance as direct. Recently, some researchers have suggested moderators between them. The authors argue that the relationship between the two is contingent on the level of export commitment. The authors find that neither informational nor experiential marketing assistance is directly related to export performance. The relationship between informational assistance and export performance is significantly, but (unexpectedly) negatively, moderated by export commitment. The effect of experiential assistance is positively, but only marginally, moderated by export commitment.

Originality/value

Contrary to researchers’ overarching focus on a direct relationship, the authors investigate the moderation on the relationship between export informational and experiential marketing assistance, and early internationalizing firms’ performance in a developing country’s low-tech industry setting. The authors use export commitment as the moderator; it is one of the most important internal determinants of export performance and extremely relevant in early internationalizing firms. The differential impact of informational and experiential assistance provides additional insights.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 27 no. 3
Type: Research Article
ISSN: 1355-5855

Keywords

Book part
Publication date: 10 September 2018

Noémie Dominguez and Ulrike Mayrhofer

This chapter focuses on the international development of Société Lyonnaise d’Appareillage Téléphonique, an independent small- and medium-sized enterprise (SME) which develops…

Abstract

This chapter focuses on the international development of Société Lyonnaise d’Appareillage Téléphonique, an independent small- and medium-sized enterprise (SME) which develops, produces and markets solutions of secured alimentations. Located in France, the company has more than 70 employees. The SME has mainly developed in international markets through export activities: in 2016, it realised 21.2% of its total sales abroad and its products were marketed in 37 countries. In 2011, the company decided to implement a sales subsidiary in Germany to strengthen its presence in international markets. In this process, the company was accompanied by a promotion agency which helps companies from the Auvergne-Rhône-Alpes region to expand into foreign markets. The authors of this chapter explain the role played by the agency in the establishment of the foreign subsidiary and the influence of a successful accompaniment experience on the internationalisation process.

Details

Key Success Factors of SME Internationalisation: A Cross-Country Perspective
Type: Book
ISBN: 978-1-78754-277-8

Keywords

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