Assessing the Effects of Government Incentive Programs on Export Performance

Document Type : Research Paper

Authors

1 Assistant Professor in Sayyed Jamaleddin Asadabadi University (SJAU), Hamedan, Iran

2 Ms.c in Business Management, Islamic Azad University, Rasht, Iran

3 Research assistant, economic office of consumer and producer support organization, Tehran, Iran

Abstract

Iran, despite having a high potential for exports, holds a small share in international markets and, despite the upward trend since the third Development Plan, is still far from optimal conditions. Given the importance of developing non-oil exports, government stimulus programs for export and making them effective are considered as one of the main strategies in line with the policy of macro-economic growth. This study aims at evaluating the effect of government development programs on export performance as well as assessing the performance of construction materials exporters with an emphasis on stimulus programs. For this purpose, 38 top exporting companies in the field of construction materials in 2014 were chosen as the study population. The data were gathered by questionnaires and analysed by the structural equations method with SPSS and LISREL software programs. The result indicated that the managers' perceptions of the export market, export knowledge export strategies, and stimulus programs using variables determined about 71 percent of the export performance of these companies. According to the derived coefficients, export strategies variable had the greatest effect. Also, a one-percent increase in the government stimulus programs could increase the export commitment for 0.29%, the export strategies for 0.22%, the export performance for 0.29%, the managers' perceptions of the export market for 0.33%, and the export knowledge for0.51%.

Keywords

References

1-    Bamdad, N., and BikhBayondari, A. (2008). the relationship between export promotion and export promotion programs of Iran's stone companies, Msc Thesis, Management and Planning Institute for Higher Education and Research.
2-    Baron, R. M. and Kenny, D. A. (1986). The Moderator –mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations, Journal of Personality and Social Psychology, 51 (6),1173-1182.
3-    Durmuşoğlu, S.,  Gerhard, A.,  Dilek Zamantili, N., Alvarez, R., and Mughan, T. (2012). The effect of government-designed export promotion service use on small and medium-sized enterprise goal achievement: a multidimensional view of export performance, Industrial Marketing Management, 41 (4),680-692.
4-    Griffith, D., Czinkota, A., and Michael, R. (2012). Release The constraints: solving the problems of export financing in troublesome times, Business Horizen, 55, 251-260.
5-    Haghighi, M., Firoozian, M., and Najafi, M. S. (2008). Identification of the determining factors of the export performance in the food industries, Journal of Bussiness Management, 1 (1), 3-20.
6-    Hasangolipoo, T., Motavasel, M., Mohamad, Sh., HosseiniTooli, F. (2010). Impacts of export promotion programs on firm’s export performance: The case of Iranian electric industry, Journal of Bussiness Management, 2 (5), 21-40.
7-    Kalantari, K. (2009). Structural equation modeling in socioeconomic research, Tehran, Publishing of Farhang-e-Saba.
8-    Lages, L F. and Montgomery, D. B. (2005). The relationship between export assistance and performance improvement in portuguese export ventures, European Journal of Marketing, 39(7/8), 755-784.
9-    Leonidou, L., Constantine, C., Katsikeas, S., Palihawadana, D., Spyropoulou, S. (2007). An analytical review of the factors stimulating smaller firms to export, International Marketing Review, 24 (6),735-770.
10-   Leonidou, L., Palihawadana, D., and Theodosiou, M. (2011). National export-promotion programs as drivers of organizational resources and capabilities: effects on strategy, competitive advantage, and performance, Journal of International Marketing, 19(2),1-29.
11-   Mashbaki, A., and Khademi, A. A. (2012). The Role of export promotion programs in promoting exports of companies, Improvement of management, 6 (3), 98-135.
12-   Mofradi, S., and Sheikhzadeh, M. (2015), The Influence of Exporters' features on perceived obstacles to regional export development, Journal of Mangament System, 15(1), 165-184.
13-   Nategh, M., and Niakan, N. (2009). Development of exports with emphasis on constraints, stimuli and export performance, Business reviews, 37, 43-55.
14-   Pakdel M. R., Nayebzadeh, Sh., DehghanDehnavi, H. (2011). Investigation the effect of market orientation, innovation and customer loyalty on business performance (case study: Pol Clothing group), Journal of Marketing Management, 10, 1-25.
15-   RahmanSeresht, H., Karimi, GH. R. (2007). A Model for explaining the relationship between export market expansion strategy and export performance, Iranian Journal of Mangament Sciences, 2 (8),75-101.
16-   Rezaee, R. (2018). The Impact of International Marketing Strategies on Export Performance, Journal of Mangament System, 17(1), 55-80.
17-   Shamsuddoha, A. K., and YunusAli, M. (2006). Mediated effects of export promotion programs on firm export performance, Asia Pacific Journal of Marketing and Logistics, 18 (2), 93-110.
18-   Sobhanifard, Y., and AkhavanKharazian, M. (2012). Factor analysis, modeling of structural and multilevel equations, Tehran, Imam Sadeq University Press.
19-   Sousa, M P., and Bradley, F. (2009). Effects of export assistance and distributor support on the performance of SMEs: the case of portuguese export ventures, International Small Business Journal, 27 (6), 681-701.
20-   Toften, K. (2005). The influence of export information use on export knowledge and performance: some empirical evidence, Marketing Intelligence and Planning, 23 (2), 200 - 219.
21-   VazifeDoost, H., and Zarrindinhar, N. (2008). The Effects of export promotion (EPP) planning interventions on performance of exporting companies (FEP), Business reviews, 33, 3-13.
Journal of Business Administration Researches
Volume 10, Issue 19
August 2018
Pages 19-38

Files

Share

How to cite

Statistics