Content area
Full Text
Introduction
Export promotion programmes (EPPs) complement managers’ information and knowledge capabilities; for example, they help to reduce perceived and in some cases actual barriers that can assist the performance of firms operating in overseas markets (Lages and Montgomery, 2005; Leonidou et al., 2011). Primarily this is achieved by providing managers with relevant export information and experience (depending on the particular assistance) making them aware about the opportunities and challenges in the foreign markets (Crick, 1995; Spence, 2003). Thus, a body of knowledge has existed for some time regarding the role of export promotion and typically from a firm or micro level rather than a macro perspective (Crick and Lindsay, 2015). However, promoting national exports is a high priority of many policy makers as export development provides mechanisms to generate foreign exchange to finance imports and assist resource allocations (Leonidou et al., 2011). Policy makers across various countries have created different types of programmes through public and private initiatives with the objective of assisting managers to stimulate international initiatives and overcome operational setbacks in exporting (Seringhaus, 1986; Freixanet, 2012).
Broadly, research suggests that EPPs which are designed to assist managers’ export activities contribute positively to their respective firm’s performance. However, there is less understanding about how such programmes enhance performance. The objective of this study is to explore one such mechanism that transforms EPPs to enhanced export performance, namely, perceived foreign market attractiveness. Understanding of the particular foreign market’s political, legal and cultural environment, plus market competition helps managers implement their marketing strategies accordingly (Katsikeas et al., 2006; Lages and Jap, 2002; Sousa et al., 2008). EPPs provide relevant understanding of the foreign markets’ attractiveness; consequently, that knowledge and potentially experience helps a management team to amend their firm’s practices to the requirements of those markets and thus perform better (Spence and Crick, 2001; Leonidou et al., 2011).
Studies addressing how EPPs influence performance are under-represented in the literature regarding developing countries (Alvarez, 2004; Shamsuddoha et al., 2009a, b). Even in studies undertaken in developed countries, relatively few have concentrated on the contributory role EPPs play in enhancing a firm’s performance (Leonidou et al., 2011). Additionally, as previously highlighted, the existing literature is under-represented in respect of studies investigating a...