This study aims to examine how government-led export promotion programs (EPPs) influence export performance (EP) by strengthening export commitment (EC) and enhancing perceived positional advantage (PPA) in resource-constrained economies. To advance understanding of how external institutional support triggers internal strategic export mechanisms that improve EP, this study draws upon the resource-based view (RBV) and institution-based view (IBV).
Data for this study were obtained from Ethiopia’s active exporters using purposive sampling. A total of 262 participants were included in the data analysis. The hypotheses were tested using structural equation modeling in SmartPLS software.
The results show that EPPs are important predictors of EC, which is a primary motivation for exporters. This, in turn, leads to EP and PPA of leather exporting firms.
Exporters and managers can utilize the findings of this study to strategize the export and international competitiveness. Policymakers can assess the effectiveness of EPPs to take remedial measures. Together, stakeholders’ efforts can be aligned as per the needs of the economy to boost the leather exports.
This study integrates RBVs, IBV and a strategic management approach to explain how external supports affect the development and deployment of internal resources for the firm’s EP. This has been examined in developing nations, with a particular focus on the Ethiopian context, where research in this area is limited.
