IDEAS home Printed from https://ideas.repec.org/a/ers/journl/vxxiy2018i4p69-91.html
   My bibliography  Save this article

Financial Assistance, Marketing Assistance and Export Commitment to Improve Export Performance

Author

Listed:
  • S. Purwanto
  • M. Setiawan
  • F. Rohman
  • N.K. Indrawati

Abstract

The purpose of this paper is to investigate the contingent relationship between government marketing assistance for export and the performance of early internationalizing firms in a developing country's low-tech industry.The authors employ hierarchical multiple regression based on the data obtained from Indonesia, a developing country and a leading exporter of apparel products worldwide. The authors used a sample of 100 early internationalizing apparel firms to test the hypotheses.Research describes the relationship between export assistance (financial and marketing assistance) and performance as direct. Recently, some researchers have suggested moderators between them. The authors argue that the relationship between the two is contingent on the level of competitive advantage. The authors find that financial assistance and marketing assistance are directly related to export performance. The relationship between financial assistance and export commitment to export performance are significantly. The effect of marketing assistance is positively, but only marginally, moderated by competitive advantage.Contrary to researchers overarching focus on a direct relationship, the authors investigate the moderation on the relationship between financial assistance and marketing assistance, and early internationalizing firm's performance in a developing country's low-tech industry setting. The authors use competitive advantage as the moderator; it is one of the most important internal determinants of export performance and extremely relevant in early internationalizing firms. The differential impact of financial and marketing assistance provides additional insights.

Suggested Citation

  • S. Purwanto & M. Setiawan & F. Rohman & N.K. Indrawati, 2018. "Financial Assistance, Marketing Assistance and Export Commitment to Improve Export Performance," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 69-91.
    • Handle: RePEc:ers:journl:v:xxi:y:2018:i:4:p:69-91
    as

    Download full text from publisher

    File URL: https://www.ersj.eu/dmdocuments/2018_XXI_4_06.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Freeman, Susan & Hutchings, Kate & Lazaris, Miria & Zyngier, Suzanne, 2010. "A model of rapid knowledge development: The smaller born-global firm," International Business Review, Elsevier, vol. 19(1), pages 70-84, February.
    2. Bruce Kogut & Udo Zander, 1992. "Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology," Organization Science, INFORMS, vol. 3(3), pages 383-397, August.
    3. Indujeeva Peiris & Michèle Akoorie & Paresha Sinha, 2012. "International entrepreneurship: A critical analysis of studies in the past two decades and future directions for research," Journal of International Entrepreneurship, Springer, vol. 10(4), pages 279-324, December.
    4. Carl H Christensen & Angela da Rocha & Rosane Kerbel Gertner, 1987. "An Empirical Investigation of Factors Influencing Exporting Success of Brazilian Firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 18(3), pages 61-77, September.
    5. Svetlana V. Bogdanova & Irina V. Kozel & Lilia V. Ermolina & Tatiana N. Litvinova, 2016. "Management of Small Innovational Enterprise under the Conditions of Global Competition: Possibilities and Threats," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 268-275.
    6. Jones, Marian V. & Coviello, Nicole & Tang, Yee Kwan, 2011. "International Entrepreneurship research (1989–2009): A domain ontology and thematic analysis," Journal of Business Venturing, Elsevier, vol. 26(6), pages 632-659.
    7. Gassmann, Oliver & Keupp, Marcus Matthias, 2007. "The competitive advantage of early and rapidly internationalising SMEs in the biotechnology industry: A knowledge-based view," Journal of World Business, Elsevier, vol. 42(3), pages 350-366, September.
    8. Sleuwaegen, Leo & Onkelinx, Jonas, 2014. "International commitment, post-entry growth and survival of international new ventures," Journal of Business Venturing, Elsevier, vol. 29(1), pages 106-120.
    9. Lianxi Zhou & Wei-ping Wu & Xueming Luo, 2007. "Internationalization and the performance of born-global SMEs: the mediating role of social networks," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 673-690, July.
    10. Harry M. Kaiser & Donald J. Liu & Ted Consignado, 2003. "An economic analysis of California raisin export promotion," Agribusiness, John Wiley & Sons, Ltd., vol. 19(2), pages 189-201.
    11. Pavla Breckova, 2016. "SMEs Export Activities in the Czech Republic and Export Risk Insuring," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 84-92.
    12. Weerawardena, Jay & Mort, Gillian Sullivan & Liesch, Peter W. & Knight, Gary, 2007. "Conceptualizing accelerated internationalization in the born global firm: A dynamic capabilities perspective," Journal of World Business, Elsevier, vol. 42(3), pages 294-306, September.
    13. Sharma, D. Deo & Blomstermo, Anders, 2003. "The internationalization process of Born Globals: a network view," International Business Review, Elsevier, vol. 12(6), pages 739-753, December.
    14. David Mares & Gabriela Dlaskova, 2016. "Small and Medium-Sized Enterprizes – Opportunities and Challenges," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 78-87.
    15. Freixanet, Joan, 2012. "Export promotion programs: Their impact on companies’ internationalization performance and competitiveness," International Business Review, Elsevier, vol. 21(6), pages 1065-1086.
    16. Ercan Özen & Özdemir Letife & Simon Grima & Frank Bezzina, 2014. "Investigating Causality Effects in Return Volatility among Five Major Futures Markets in European Countries with a Mediterranean Connection," Journal of Financial Management, Markets and Institutions, Società editrice il Mulino, issue 2, pages 207-220, December.
    17. Lederman, Daniel & Olarreaga, Marcelo & Payton, Lucy, 2010. "Export promotion agencies: Do they work?," Journal of Development Economics, Elsevier, vol. 91(2), pages 257-265, March.
    18. Alex Rialp & Josep Rialp & David Urbano & Yancy Vaillant, 2005. "The Born-Global Phenomenon: A Comparative Case Study Research," Journal of International Entrepreneurship, Springer, vol. 3(2), pages 133-171, June.
    19. Brodrechtova, Yvonne, 2008. "Determinants of export marketing strategies of forest products companies in the context of transition -- The case of Slovakia," Forest Policy and Economics, Elsevier, vol. 10(7-8), pages 450-459, October.
    20. Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 8(1), pages 23-32, March.
    21. Westhead, Paul & Wright, Mike & Ucbasaran, Deniz, 2001. "The internationalization of new and small firms: A resource-based view," Journal of Business Venturing, Elsevier, vol. 16(4), pages 333-358, July.
    22. Cavusgil, S. Tamer & Naor, Jacob, 1987. "Firm and management characteristics as discriminators of export marketing activity," Journal of Business Research, Elsevier, vol. 15(3), pages 221-235, June.
    23. Sucheta Nadkarni & Pedro David Perez, 2007. "Prior conditions and early international commitment: the mediating role of domestic mindset," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(1), pages 160-176, January.
    24. Egan, Mary Lou & Mody, Ashoka, 1992. "Buyer-seller links in export development," World Development, Elsevier, vol. 20(3), pages 321-334, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mário Nuno Mata & Mohammad Falahat & Anabela Batista Correia & João Xavier Rita, 2021. "Impact of Institutional Support on Export Performance," Economies, MDPI, vol. 9(3), pages 1-13, July.
    2. Abebe Negeri Shonte & Quan Ji, 2022. "Management Commitment and Sustainable Coffee Export Performance, Evidence from Ethiopian Companies: The Mediating Role of Corporate Social Responsibility," Sustainability, MDPI, vol. 14(19), pages 1-19, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:ers:journl:v:volumexxi:y:2018:i:issue4:p:69-91 is not listed on IDEAS
    2. Joan Freixanet & Ryan Federo, 2022. "When Born Globals Grow Up: A Review and Agenda for Research on the Performance of Maturing Early Internationalizers," Management International Review, Springer, vol. 62(6), pages 817-857, December.
    3. Rubina Romanello & Maria Chiarvesio, 2019. "Early internationalizing firms: 2004–2018," Journal of International Entrepreneurship, Springer, vol. 17(2), pages 172-219, June.
    4. Knight, Gary A. & Liesch, Peter W., 2016. "Internationalization: From incremental to born global," Journal of World Business, Elsevier, vol. 51(1), pages 93-102.
    5. Dzikowski, Piotr, 2018. "A bibliometric analysis of born global firms," Journal of Business Research, Elsevier, vol. 85(C), pages 281-294.
    6. Indujeeva Peiris & Michèle Akoorie & Paresha Sinha, 2012. "International entrepreneurship: A critical analysis of studies in the past two decades and future directions for research," Journal of International Entrepreneurship, Springer, vol. 10(4), pages 279-324, December.
    7. Daniele Cerrato & Mariacristina Piva, 2015. "The Effect of Global Orientation on the Performance of International New Ventures: Evidence from Italy," Management International Review, Springer, vol. 55(6), pages 857-883, December.
    8. Jiang, Guohua & Kotabe, Masaaki & Zhang, Feng & Hao, Andy W. & Paul, Justin & Wang, Cheng Lu, 2020. "The determinants and performance of early internationalizing firms: A literature review and research agenda," International Business Review, Elsevier, vol. 29(4).
    9. Anika Laperrière & Martine Spence, 2015. "Enacting international opportunities: The role of organizational learning in knowledge-intensive business services," Journal of International Entrepreneurship, Springer, vol. 13(3), pages 212-241, September.
    10. Farhad Uddin Ahmed & Louis Brennan, 2021. "A review of methodological diversity within the domain of international entrepreneurship," Journal of International Entrepreneurship, Springer, vol. 19(2), pages 256-299, June.
    11. Nowinski, Witold & Rialp, Alex, 2013. "Drivers and strategies of international new ventures from a Central European transition economy," Journal of East European Management Studies, Rainer Hampp Verlag, vol. 18(2), pages 191-231.
    12. Olga Mikhailova & Per Ingvar Olsen, 2016. "Internationalization of an academic invention through successive science-business networks: The case of TAVI," Journal of International Entrepreneurship, Springer, vol. 14(3), pages 441-471, September.
    13. Gerschewski, Stephan & Rose, Elizabeth L. & Lindsay, Valerie J., 2015. "Understanding the drivers of international performance for born global firms: An integrated perspective," Journal of World Business, Elsevier, vol. 50(3), pages 558-575.
    14. Christian Schwens & Florian B. Zapkau & Michael Bierwerth & Rodrigo Isidor & Gary Knight & Rüdiger Kabst, 2018. "International Entrepreneurship: A Meta–Analysis on the Internationalization and Performance Relationship," Entrepreneurship Theory and Practice, , vol. 42(5), pages 734-768, September.
    15. Jones, Marian V. & Coviello, Nicole & Tang, Yee Kwan, 2011. "International Entrepreneurship research (1989–2009): A domain ontology and thematic analysis," Journal of Business Venturing, Elsevier, vol. 26(6), pages 632-659.
    16. Farhad Uddin Ahmed & Louis Brennan, 2019. "Performance determinants of early internationalizing firms: The role of international entrepreneurial orientation," Journal of International Entrepreneurship, Springer, vol. 17(3), pages 389-424, September.
    17. Morais, Flávio & Ferreira, João J., 2020. "SME internationalisation process: Key issues and contributions, existing gaps and the future research agenda," European Management Journal, Elsevier, vol. 38(1), pages 62-77.
    18. Bunz, Thorsten & Casulli, Lucrezia & Jones, Marian V & Bausch, Andreas, 2017. "The dynamics of experiential learning: Microprocesses and adaptation in a professional service INV," International Business Review, Elsevier, vol. 26(2), pages 225-238.
    19. Quan Anh Nguyen & Gillian Sullivan Mort, 0. "Conceptualising organisational-level and microfoundational capabilities: an integrated view of born-globals’ internationalisation," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-23.
    20. Sascha Kraus & Alexander Brem & Miriam Schuessler & Felix Schuessler & Thomas Niemand, 2019. "Innovative Born Globals: Investigating the Influence of Their Business Models on International Performance," World Scientific Book Chapters, in: Alexander Brem & Joe Tidd & Tugrul Daim (ed.), Managing Innovation Internationalization of Innovation, chapter 11, pages 275-328, World Scientific Publishing Co. Pte. Ltd..
    21. Wu, Aiqi & Voss, Hinrich, 2015. "When does absorptive capacity matter for international performance of firms? Evidence from China," International Business Review, Elsevier, vol. 24(2), pages 344-351.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:journl:v:xxi:y:2018:i:4:p:69-91. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ersj.eu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.