Impact of export promotion programs on firm competencies, strategies and performance

Abstract

Export promotion programs are provided by governments to help firms, especially small and medium‐sized ones, overcome real or perceived obstacles to exporting. To date, there has been limited empirical evidence of the effectiveness of these efforts. This study clarifies the ways in which export promotion programs bolster the export competence and export activities of firms by drawing on the results of a survey of small and medium‐sized Canadian high‐technology firms. The results suggest that using a greater number of government programs influences the achievement of export objectives and export expansion strategies, and enhances export marketing competencies. By segmenting firms by level of export involvement, a clearer picture of the benefits and limitations of export promotion programs emerges. These results suggest that sporadic and active exporters gain the most from export promotion programs, while there is little impact in the short term for more experienced international firms who derive most of their incomes from exporting.