Title : Performance implications of export assistance: The mediating role of export entrepreneurship

Authors : Anisur Rahman Faroque, O. Kuivalainen, Jashim Uddin Ahmed, H. Roy, Y. Ali

Abstract : Although both institutional export assistance and entrepreneurial orientation (EO) have been documented to contribute separately and positively to export performance, the interplay between them has not received much attention. The purpose of this study is to examine the role of international EO in achieving performance benefits in governmental and nongovernmental export assistance. This study is longitudinal in that two surveys were administered at two different timepoints. A survey of 705 Bangladeshi apparel exporting firms is undertaken in 2011 and the other survey of 198 firms drawn from multiple industries is conducted in 2019 and the relationships between governmental and nongovernmental assistance, EO, and export performance are assessed. The results of the first survey show that, while nongovernmental assistance influences performance directly and via EO, governmental assistance only has direct effects. Further, the negative influence of government assistance on EO reduces and makes the total effects nonsignificant. The results of the second survey demonstrate that government EPPs have both direct and indirect positive significant effects on market performance, indicating a partial mediation, whereas quasi-government assistance has positive significant direct effects and negative but nonsignificant indirect effects. Nongovernment EPPs has both direct and indirect significant effects on international performance, indicating a partial mediation. The study has implications for researchers studying export assistance and its impact on firm performance. Instead of adopting a parochial view of assistance by government, this study categorizes such assistance into three types— government, quasi-government, and nongovernment. Furthermore, this study bridges the export assistance and international entrepreneurship literature by including EO. Practical implications: Entrepreneurs need to emphasize using government assistance if their focus is on export performance. However, to promote both entrepreneurship and performance, they need to emphasize nongovernment assistance. Also, export firms should also capitalize on the assistance extended by various quasi-governmental agencies to bolster export performance. Given the performance advantage of export assistance, this study highlights the contribution of the private sector in promoting export entrepreneurship while shedding light on the pernicious role of (quasi-)government assistance in export entreprenership.

Journal : International Marketing Review Volume : Year : 2021 Issue :
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