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Book part
Publication date: 3 October 2012

Gorazd Justinek

Export support is one of the measures countries prefer to use to boost export activities and, consequently, economic growth. However, because the direct outputs are unclear, export

Abstract

Export support is one of the measures countries prefer to use to boost export activities and, consequently, economic growth. However, because the direct outputs are unclear, export support results are often questioned. The current economic crisis raises these questions again. The effects of export support are very difficult to measure, since numerous factors can distort them. We therefore suggest focussing on the performance of this kind of support; in the following chapter, the methodology (export support performance [ESP]) for its measurement is presented.

Details

Commercial Diplomacy and International Business: A Conceptual and Empirical Exploration
Type: Book
ISBN: 978-1-78052-674-4

Keywords

Article
Publication date: 26 September 2008

Goitom Tesfom and Clemens Lutz

The lack of detailed statistics in many developing countries makes it very difficult to assess the effect of export support services on the firm's export performance. Moreover, a…

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Abstract

Purpose

The lack of detailed statistics in many developing countries makes it very difficult to assess the effect of export support services on the firm's export performance. Moreover, a fundamental factor that creates confusion is the lack of a straightforward causal relationship between a specific export support activity and changes in actual trade patterns. Despite these difficulties, the purpose of this paper is to show that an assessment of the effectiveness of export promotion and support services can be made on the basis of the perceptions of the manufacturers involved. The method is simple and informative.

Design/methodology/approach

This research is based on a survey of 88 footwear and textile manufactures from a small new African country, Eritrea. The sample size accounts for 90 percent of the overall population.

Findings

On average, the quality of the export support services is rated as satisfactory. This can be considered as rather low, as the export promotion policy of the government is much more ambitious. The results of the discriminant analysis are in line with the literature and show that small enterprises in Eritrea have less access to export support services than larger firms. This can be considered as a major failure of the policy as in the modern entrepreneurial export economy small firms play a crucial role.

Research limitations/implications

Although the sample size accounts for 90 percent of the population, it is relatively small. To verify the results it would be interesting to conduct a comprehensive survey that includes all export manufacturing industries in Eritrea.

Practical implications

The findings of this study are useful for export policy makers in developing countries. The presented method shows that it is possible to measure the perception of the manufacturers with regard to the effectiveness of export promotion and support services. It also allows to compare the performance of those services and to identify priorities for the policy agenda.

Originality/value

The study develops a simple evaluation tool for the effectiveness of export support services in developing countries.

Details

International Journal of Emerging Markets, vol. 3 no. 4
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 28 August 2021

Anisur R. Faroque, Hafiza Sultana, Jashim Uddin Ahmed, Farhad Uddin Ahmed and Mahabubur Rahman

This study aims to analyze the individual and joint effects of institutional support by government and nongovernment institutions on early internationalizing firms’ (EIFs…

Abstract

Purpose

This study aims to analyze the individual and joint effects of institutional support by government and nongovernment institutions on early internationalizing firms’ (EIFs) performance. It also investigated the moderating impact of firm age and size on the institutional support-firms’ export performance relationships.

Design/methodology/approach

Data were collected from 705 EIFs in the apparel industry of Bangladesh and analyzed with hierarchical regression.

Findings

The positive influence of institutional support on exporting firms’ financial performance is stronger for the joint effect of government and nongovernment assistance than the individual impact. Firms’ size positively moderates the impact of individual government and nongovernment assistance, while age positively moderates their resource-bundling effect.

Research limitations/implications

The findings suggest the necessity of integrating resources from diverse but complementary sources of institutional support for superior export performance. The findings also show the presence of the liability of smallness and liability of newness in the standalone and joint influence of institutional support, respectively.

Practical implications

Firms need to bundle resources obtained from the government (unrequited) and nongovernment (reciprocal) institutional support to overcome the liability of smallness they might encounter while availing of support from only one source.

Originality/value

Distinguishing between government and nongovernment institutional support, this paper sheds light on exporting firms’ resource-bundling mechanism for these two sources of support in the backdrop of an emerging economy. It also offers fresh insights into the critical role of the liabilities of newness and smallness in early internationalization, especially with regard to the home-country institutional environment.

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critical perspectives on international business, vol. 18 no. 3
Type: Research Article
ISSN: 1742-2043

Keywords

Article
Publication date: 8 December 2022

Bob Jennekens and Andreas Klasen

This paper aims to draw attention to an urgent need for reform of the regulatory framework of the broader export credit system to ensure a new and comprehensive “safe haven” for…

Abstract

Purpose

This paper aims to draw attention to an urgent need for reform of the regulatory framework of the broader export credit system to ensure a new and comprehensive “safe haven” for officially supported export credits. The purpose is to analyse the complex debate on disciplines of the World Trade Organization (WTO) and the Organisation for Economic Co-operation and Development (OECD), creating a point of reference for future analysis of and debates around the “carve-out clause” of the Agreement on Subsidies and Countervailing Measures (ASCM) and a “safe haven” in a broader sense.

Design/methodology/approach

This paper takes inspiration from legal, economic and political science literature on subsidies and officially supported export credits, as well as on legal documents related to the WTO and the OECD. It examines the WTO subsidy and the OECD export credits framework, focusing on main legal and economic governance aspects. Then, it gives a critical analysis how “safe” a “safe haven” in a broader sense might be, assessing frictions of and solutions for the fundamentally different set of disciplines, limitations, financial instruments not covered by OECD regulations, as well as new challenges related to climate finance.

Findings

After assessing the challenges regarding the “carve-out clause” of the WTO subsidy framework and two tracks aiming to create a new “safe haven”, requirements for comprehensive disciplines for officially supported export credits are pointed out. Furthermore, several misunderstandings and mistakes appearing in the debate are clarified.

Research limitations/implications

Desktop research rather than empirical field work.

Practical implications

This paper creates awareness for governments and exporters how to deal with a complex system of interrelated disciplines. The question, how “safe” a “safe haven” in a broader sense can be, has not been resolved yet. Some authors focus on the WTO disciplines not taking into account the need for an effective matching procedure of the Arrangement on Officially Supported Export Credits (the Arrangement). Furthermore, the introduction of several new pre-export financing programmes and the growing significance of climate finance-related instruments for export credit agencies creates both opportunities and challenges. This paper can serve as a reference point for the academic debate and further research. This paper also offers newcomers to the topic a comprehensive overview.

Originality/value

Although the “carve-out clause” and the Arrangement have been much discussed, there is limited literature review structuring both existing and new aspects of the debate, assessing (dis)advantages of arguments and interpretations. This paper both adds to the corpus of literature about the ASCM, as well as the Arrangement, and takes this corpus as the object of its analysis.

Details

Journal of International Trade Law and Policy, vol. 22 no. 1
Type: Research Article
ISSN: 1477-0024

Keywords

Book part
Publication date: 7 October 2015

Md Nuruzzaman

The objective of this study is to investigate how country risk, different political actions from the government and bureaucratic behavior influence the activities in industry…

Abstract

The objective of this study is to investigate how country risk, different political actions from the government and bureaucratic behavior influence the activities in industry supply chains (SCs) in emerging markets. The main objective of this study is to investigate the influence of these external stakeholders’ elements to the demand-side and supply-side drivers and barriers for improving competitiveness of Ready-Made Garment (RMG) industry in the way of analyzing supply chain. Considering the phenomenon of recent change in the RMG business environment and the competitiveness issues this study uses the principles of stakeholder and resource dependence theory and aims to find out some factors which influence to make an efficient supply chain for improving competitiveness. The RMG industry of Bangladesh is the case application of this study. Following a positivist paradigm, this study adopts a two phase sequential mixed-method research design consisting of qualitative and quantitative approaches. A tentative research model is developed first based on extensive literature review. Qualitative field study is then carried out to fine tune the initial research model. Findings from the qualitative method are also used to develop measures and instruments for the next phase of quantitative method. A survey is carried out with sample of top and middle level executives of different garment companies of Dhaka city in Bangladesh and the collected quantitative data are analyzed by partial least square-based structural equation modeling. The findings support eight hypotheses. From the analysis the external stakeholders’ elements like bureaucratic behavior and country risk have significant influence to the barriers. From the internal stakeholders’ point of view the manufacturers’ and buyers’ drivers have significant influence on the competitiveness. Therefore, stakeholders need to take proper action to reduce the barriers and increase the drivers, as the drivers have positive influence to improve competitiveness.

This study has both theoretical and practical contributions. This study represents an important contribution to the theory by integrating two theoretical perceptions to identify factors of the RMG industry’s SC that affect the competitiveness of the RMG industry. This research study contributes to the understanding of both external and internal stakeholders of national and international perspectives in the RMG (textile and clothing) business. It combines the insights of stakeholder and resource dependence theories along with the concept of the SC in improving effectiveness. In a practical sense, this study certainly contributes to the Bangladeshi RMG industry. In accordance with the desire of the RMG manufacturers, the research has shown that some influential constructs of the RMG industry’s SC affect the competitiveness of the RMG industry. The outcome of the study is useful for various stakeholders of the Bangladeshi RMG industry sector ranging from the government to various private organizations. The applications of this study are extendable through further adaptation in other industries and various geographic contexts.

Details

Sustaining Competitive Advantage Via Business Intelligence, Knowledge Management, and System Dynamics
Type: Book
ISBN: 978-1-78441-764-2

Keywords

Book part
Publication date: 10 September 2018

Olli Kuivalainen, Jani Lindqvist, Mika Ruokonen and Sami Saarenketo

Many national and regional governments and various trade associations have created and are currently developing services that aim to provide support for firms that have just begun…

Abstract

Many national and regional governments and various trade associations have created and are currently developing services that aim to provide support for firms that have just begun to or which plan to operate in international markets. Consequently, the purpose of this chapter is to illustrate the role of various support services especially in the case of software small and medium-sized enterprises (SMEs) aiming to expand internationally and accelerate their international growth. In the empirical part of the chapter, the authors review the key support organisations Finland has for its software industry. Through a descriptive empirical survey (n = 25) of the industry, we illustrate the role of various support services that are especially targeted at firms aiming to accelerate their international growth, irrespective of the phase of internationalisation. Furthermore, the authors study the use, quality and effectiveness of the internationalisation of support services from the viewpoint of managers of Finnish software SMEs. Based on our results, it is easy and logical to argue that better targeted programmes should be developed for rapidly internationalising firms in the turbulent software market. However, there are already a few innovative and better targeted programmes being offered to Finnish software firms. According to our study, in the later phases of internationalisation, the key to success is more closely linked to the availability of external funding as well as knowledge and contacts provided by international consultants.

Details

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

Keywords

Article
Publication date: 14 October 2022

Lydia Nyankom Takyi, Vannie Naidoo, Courage Simon Kofi Dogbe and Edward Akoto

This study aims to assess the potential mediating effects of formal and informal networks in the relationship between government support and Ghanaian indigenous firms’ degree of…

Abstract

Purpose

This study aims to assess the potential mediating effects of formal and informal networks in the relationship between government support and Ghanaian indigenous firms’ degree of internationalisation.

Design/methodology/approach

This study was a cross-sectional design, where the structured questionnaire was used in gathering data from 301 indigenous Ghanaian firms. The path estimation was conducted by running structural equation modelling in AMOS v.23.

Findings

It was concluded that government support had a significant positive effect on Ghanaian indigenous firms’ degree of internationalisation. Formal network was found to partially mediate the relationship between government support and indigenous firms’ degree of internationalisation. Finally, it was concluded that informal networks had no mediating effect.

Research limitations/implications

One limitation is that the effect of the government support and network strategy was only explored on indigenous exporters, meaning that exporters which did not fall within the definition of indigenous firms were excluded from the study. Future studies could conduct a comparative study on the same variables, using indigenous and non-indigenous firms.

Practical implications

It is recommended that Ghanaian exporters should participate in government training and workshop programmes focussing on building export business strategies and networking to improve export activities.

Originality/value

This study’s unique contribution is its investigation of how networking portfolio, including formal and informal ties, helps explain the nexus between government support and the internationalisation of local firms in the developing market, such as Ghanaians.

Details

Review of International Business and Strategy, vol. 33 no. 3
Type: Research Article
ISSN: 2059-6014

Keywords

Article
Publication date: 1 August 2019

Kenneth Appiah, Collins Osei, Habte Selassie and Ellis Osabutey

The nature of international markets and the challenges with respect to the competitiveness of small- and medium-sized enterprises (SMEs) makes it imperative to examine government…

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Abstract

Purpose

The nature of international markets and the challenges with respect to the competitiveness of small- and medium-sized enterprises (SMEs) makes it imperative to examine government support. This study aims to assess the role and effectiveness of government and the export promotion agencies in supporting exports by non-traditional horticultural SMEs in Ghana.

Design/methodology/approach

The study used a qualitative research design, which involved semi-structured interviews with senior managers of six export facilitating institutions to gain an understanding of the services offered to SMEs with respect to exports of non-traditional horticultural products.

Findings

The findings reveal inadequate cost-efficient sources of non-traditional horticultural export financing for SMEs. This is a hindrance to the international competitiveness of exporting SMEs in developing countries such as Ghana. In addition, effective and coordinated support from export promotion agencies was found to be critical.

Originality/value

The study highlights the importance of government’s role in policymaking and implementation of export-led programmes for horticultural exporting firms in Ghana. Despite their strategic importance, this area of research has not attracted the attention of researchers, with little or no information on the horticultural international competitiveness of non-traditional horticultural products.

Details

critical perspectives on international business, vol. 15 no. 4
Type: Research Article
ISSN: 1742-2043

Keywords

Open Access
Article
Publication date: 12 October 2021

Mara Mataveli, Juan Carlos Ayala and Alfonso J. Gil

Banks play a crucial role in the sustainable development of exports as they finance much of the trade. Additionally, in Brazil's case, banks provide exporting companies with…

Abstract

Purpose

Banks play a crucial role in the sustainable development of exports as they finance much of the trade. Additionally, in Brazil's case, banks provide exporting companies with advisory and training services, which facilitate the internationalization process. This work aims to analyze the role of public and private banks in the export process of companies in Brazil.

Design/methodology/approach

Interviews are conducted with a sample of 318 Brazilian exporting companies. Two research questions are posed: What type of export services do companies use from public and private banks in Brazil? Is exporting companies' access to credit, as a type of banking service, related to their size or export experience? A descriptive study of the functions of public and private banks in helping Brazilian exports is presented. Hypotheses are proposed regarding companies' access to credit and its relationship with their size and export experience.

Findings

It is found that public and private banks in Brazil provide exporting companies with banking services, other services related to technical aspects, and export consulting. There are significant differences in access to credit in both public and private banks, depending on the exporting company's size.

Originality/value

This work contributes to the internationalization literature on the role of banks in supporting exports in an emerging country like Brazil.

Details

European Journal of Management Studies, vol. 26 no. 2/3
Type: Research Article
ISSN: 2183-4172

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…

1975

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.

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