This study investigates the impact of market development supporting export promotion programs (EPPs) on export performance (EP). Marketing strategy-related EPPs and market selection-related EPPs are identified, and their impact on EPs is examined. In addition, the moderating effects of tax and financial (TF) incentives and education and training (ET) are examined.
The target respondents were active Ethiopian exporting firms that produce leather and leather products. Convenience and snowball sampling were used for data collection. In total, 170 valid responses were used in data analysis. Partial least squares-structured equation modeling (PLS-SEM) was used to analyze the data.
The study shows that the use of marketing strategy-related EPPs (MSTR) and market selection-related EPPs (MSER) has a significant impact on export performance. Tax and financial incentives significantly moderate the relationship between marketing strategy-related programs and firms’ EP. However, education and training moderate the relationship between market selection-related programs and firms’ EP.
The findings of this study provide useful insights for understanding the relationship between export promotion programs and export performance. This study uniquely proposes two underexplored dimensions of market development support within export promotion programs (marketing strategy and market selection-related EPPs). This advances our understanding of how external institutional support strengthens firms’ internal capabilities in developing economies.
