IDEAS home Printed from https://ideas.repec.org/a/ers/ijfirm/v11y2021i4p3-23.html
   My bibliography  Save this article

Evaluating Export Incentive Programs' Performance of Trade Promotion Organization of Iran on Export Performance: The Mediating Role of Exporting Companies' Marketing Implementation Capabilities and the Perceived Environment of International Markets

Author

Listed:
  • Ebadullah Akbari
  • Samad Aali
  • Yaghoub Alavi Matin
  • Morteza Mahmoudzadeh

Abstract

Purpose: The globalization of the economy and formation of the unions such as the European Union and URASIA, as well as the treaties such as the NAFTA, etc., or organizations such as the World Trade Organization (WTO) have led to the increase in the flow of goods and services. The current study aimed to determine the direct and indirect impacts of the export incentives on the merchants’ export performance and export-based producers through the mediatory role of the marketing implementation capabilities and the perceived environment of the international markets. Methodology: By the use of the random sampling method, 235 questionnaires were collected from the active manufacturing and commercial companies in Iran, and the data obtained from them were analyzed through the Structural Equations Modelling (SEM). Findings: The statistical data and SEM results indicated that, besides the effectiveness of the export promotion programs on the export performance of the company through the perceived environment of the international markets, the marketing implementation capabilities of the company can be also developed and strengthened. Also, the analysis of the results indicates that the export promotion programs variable explains the highest percentage of the export performance directly, which is indicative of the importance of the export promotion programs in the achievement of the superior export performance. Originality/Value: Based on the results of the current study, it is suggested that in the export promotion programs for the exporting companies, the transfer of the information of the international markets and strengthening the marketing implementation capabilities of these companies by the government be taken into consideration more than ever.

Suggested Citation

  • Ebadullah Akbari & Samad Aali & Yaghoub Alavi Matin & Morteza Mahmoudzadeh, 2021. "Evaluating Export Incentive Programs' Performance of Trade Promotion Organization of Iran on Export Performance: The Mediating Role of Exporting Companies' Marketing Implementation Capabilities and th," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 11(4), pages 3-23.
  • Handle: RePEc:ers:ijfirm:v:11:y:2021:i:4:p:3-23
    as

    Download full text from publisher

    File URL: https://journalfirm.com/journal/266/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Keith Head & John Ries, 2010. "Do trade missions increase trade?," Canadian Journal of Economics, Canadian Economics Association, vol. 43(3), pages 754-775, August.
    2. Volpe Martincus, Christian & Carballo, Jerónimo, 2008. "Is export promotion effective in developing countries? Firm-level evidence on the intensive and the extensive margins of exports," Journal of International Economics, Elsevier, vol. 76(1), pages 89-106, September.
    3. Cadot, Olivier & Fernandes, Ana M. & Gourdon, Julien & Mattoo, Aaditya, 2015. "Are the benefits of export support durable? Evidence from Tunisia," Journal of International Economics, Elsevier, vol. 97(2), pages 310-324.
    4. Melitz, Marc J. & Redding, Stephen J., 2014. "Heterogeneous Firms and Trade," Handbook of International Economics, in: Gopinath, G. & Helpman, . & Rogoff, K. (ed.), Handbook of International Economics, edition 1, volume 4, chapter 0, pages 1-54, Elsevier.
    5. Andrew J. Cassey, 2014. "The Location of US States' Overseas Offices," Review of International Economics, Wiley Blackwell, vol. 22(2), pages 310-325, May.
    6. Johannes Van Biesebroeck & Jozef Konings & Christian Volpe Martincus, 2016. "Did export promotion help firms weather the crisis?," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 31(88), pages 653-702.
    7. Andrew K. Rose, 2007. "The Foreign Service and Foreign Trade: Embassies as Export Promotion," The World Economy, Wiley Blackwell, vol. 30(1), pages 22-38, January.
    8. Kaleka, Anna & Berthon, Pierre, 2006. "Learning and locale: The role of information, memory and environment in determining export differentiation advantage," Journal of Business Research, Elsevier, vol. 59(9), pages 1016-1024, September.
    9. Luis Filipe Lages & Sandy D. Jap, 2002. "A contingency approach to marketing mix adaptation and performance in international marketing relationships," Nova SBE Working Paper Series wp411, Universidade Nova de Lisboa, Nova School of Business and Economics.
    10. Christian Volpe Martincus & Jerónimo Carballo, 2010. "Export Promotion: Bundled Services Work Better," The World Economy, Wiley Blackwell, vol. 33(12), pages 1718-1756, December.
    11. Robert G Cooper & Elko J Kleinschmidt, 1985. "The Impact of Export Strategy on Export Sales Performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 16(1), pages 37-55, March.
    12. Valeska V. Geldres-Weiss & Javier A. Carrasco-Roa, 2016. "Impact evaluation of national export promotion programs on export firms using contrast groups," International Journal of Export Marketing, Inderscience Enterprises Ltd, vol. 1(1), pages 77-95.
    13. David Atkin & Amit K. Khandelwal & Adam Osman, 2017. "Exporting and Firm Performance: Evidence from a Randomized Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(2), pages 551-615.
    14. Andrew B. Bernard & J. Bradford Jensen & Peter K. Schott, 2009. "Importers, Exporters and Multinationals: A Portrait of Firms in the U.S. that Trade Goods," NBER Chapters, in: Producer Dynamics: New Evidence from Micro Data, pages 513-552, National Bureau of Economic Research, Inc.
    15. Salvatore Esposito De Falco & Michele Simoni, 2014. "The Effect of Public Export Incentives on Italian Textile and Fashion SMEs," International Studies of Management & Organization, Taylor & Francis Journals, vol. 44(1), pages 70-83, January.
    16. Freixanet, Joan, 2012. "Export promotion programs: Their impact on companies’ internationalization performance and competitiveness," International Business Review, Elsevier, vol. 21(6), pages 1065-1086.
    17. Leonidou, Leonidas C. & Theodosiou, Marios, 2004. "The export marketing information system: an integration of the extant knowledge," Journal of World Business, Elsevier, vol. 39(1), pages 12-36, February.
    18. Lederman, Daniel & Olarreaga, Marcelo & Payton, Lucy, 2010. "Export promotion agencies: Do they work?," Journal of Development Economics, Elsevier, vol. 91(2), pages 257-265, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Broocks, Annette & Van Biesebroeck, Johannes, 2017. "The impact of export promotion on export market entry," Journal of International Economics, Elsevier, vol. 107(C), pages 19-33.
    2. Johannes Van Biesebroeck & Jozef Konings & Christian Volpe Martincus, 2016. "Did export promotion help firms weather the crisis?," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 31(88), pages 653-702.
    3. Ahmed Boutorat & Loe Franssen, 2023. "Economic missions and firm internationalization: evidence from the Netherlands," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 159(3), pages 787-826, August.
    4. Stjepan Srhoj & Vanja Vitezic & Joachim Wagner, 2020. "Export boosting policies and firm behaviour: Review of empirical evidence around the world," Working Paper Series in Economics 395, University of Lüneburg, Institute of Economics.
    5. (ed.), 0. "Research Handbook on Economic Diplomacy," Books, Edward Elgar Publishing, number 16053.
    6. Kahiya, Eldrede T., 2024. "A problematization review of export assistance: Debates and future directions," International Business Review, Elsevier, vol. 33(1).
    7. Aalto, Eero & Gustafsson, Robin, 2020. "Export Promotion Rationales and Impacts – A Review," ETLA Reports 100, The Research Institute of the Finnish Economy.
    8. Freixanet, Joan, 2022. "Export promotion programs: A system-based systematic review and agenda for future research," Journal of World Business, Elsevier, vol. 57(4).
    9. Simona Comi & Laura Resmini, 2020. "Are export promotion programs effective in promoting the internalization of SMEs?," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(2), pages 547-581, July.
    10. Johannes Van Biesebroeck & Emily Yu & Shenjie Chen, 2015. "The impact of trade promotion services on Canadian exporter performance," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 48(4), pages 1481-1512, November.
    11. Vargas Da Cruz,Marcio Jose, 2014. "Do export promotion agencies promote new exporters ?," Policy Research Working Paper Series 7004, The World Bank.
    12. Shon Ferguson & Rikard Forslid, 2019. "Sizing Up the Impact of Embassies on Exports," Scandinavian Journal of Economics, Wiley Blackwell, vol. 121(1), pages 278-297, January.
    13. Carballo, Jerónimo & Rodriguez Chatruc, Marisol & Salas Santa, Catalina & Volpe Martincus, Christian, 2022. "Online business platforms and international trade," Journal of International Economics, Elsevier, vol. 137(C).
    14. Defever, Fabrice & Reyes, José-Daniel & Riaño, Alejandro & Varela, Gonzalo, 2020. "All these worlds are yours, except india: The effectiveness of cash subsidies to export in nepal," European Economic Review, Elsevier, vol. 128(C).
    15. Olarreaga, Marcelo & Sperlich, Stefan & Trachsel, Virginie, 2016. "Export Promotion: what works?," CEPR Discussion Papers 11270, C.E.P.R. Discussion Papers.
    16. Salvador Gil-Pareja & Rafael Llorca-Vivero & José Martínez-Serrano & Francisco Requena-Silvente, 2015. "Regional export promotion offices and trade margins," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(1), pages 145-167, February.
    17. Maria Inês Veloso Ferreira & Aurora A.C. Teixeira, 2011. "Organizational Characteristics and Performance of Export Promotion Agencies: Portugal and Ireland compared," FEP Working Papers 424, Universidade do Porto, Faculdade de Economia do Porto.
    18. Allan Sørensen, 2020. "Export promotion and intra‐industry reallocations," Review of International Economics, Wiley Blackwell, vol. 28(2), pages 303-319, May.
    19. Ryo Makioka, 2021. "The impact of export promotion with matchmaking on exports and service outsourcing," Review of International Economics, Wiley Blackwell, vol. 29(5), pages 1418-1450, November.
    20. Priit Tinits & Carl F. Fey, 2022. "The Effects of Timing and Order of Government Support Mechanisms for SME Exports," Management International Review, Springer, vol. 62(2), pages 285-323, April.

    More about this item

    Keywords

    Evaluating export incentive programs' performance; trade promotion organization of Iran; export performance; the perceived environment of international markets; marketing implementation capabilities.;
    All these keywords.

    JEL classification:

    • F0 - International Economics - - General
    • F2 - International Economics - - International Factor Movements and International Business
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:ijfirm:v:11:y:2021:i:4:p:3-23. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://journalfirm.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.