Relationship between Export Support, Export Barriers and Performance for 4 Canadian SMEs

Abstract

This paper examines the relationship between barriers to export and firm performance, as well as the indirect impact of export support programs on firm performance. Four major constructs of export barriers and export support functions are discussed. A structural equation model using the barriers and the export support functions as exogenous variables, and export performance as endogenous variable, show that the most important barrier in impacting export performance is the lack of firm competence, followed by fear of not receiving payment from foreign customers, procedural barriers, and lack of government support. Analyses also show that firm size impacts the perception of barriers to export and export performance. Furthermore, the export support activities construct has an indirect impact on export performance.