The effect of market information on export performance: The mediating role of notional export support and encouragement

Abstract

Global competition and economic globalization are forcing countries' governments to devise encouragement support programs and formulate exporting policies to help SMEs export, compete, and survive in foreign markets. This study examines the mediating role of national export support and encouragement programs (NESEPs) in clarifying the impact of determinants of market environment information on the SMEs' export financial performance (EXFP) and SMEs' export strategic performance (EXSP) based on a resource-based view, which helps understand novel holistic relationships between them. Data from 106 exporting SME firms working in the Kingdom of Saudi Arabia were collected using an online questionnaire survey. Regression path analysis from structural equation modeling was used to test the study's model relationships. The most important positive findings that emerged from this study are: Determinants of market information acquisition (DMIA) will positively influence SMEs' EXFP and NESEP. Determinants of market information dissemination (DMID) will positively influence SMEs' EXSP. Determinants of market information responsiveness (DMIR) will positively influence NESEP. NESEP will positively mediate the effect of DMIA and DMIR on SMEs' EXSP. The study’s theoretical and social implications and limitations are discussed in the concluding sections. Furthermore, directions for future research are provided.