The Effects of Export Companies’ Competencies and Government Assistance Programs on Export Performance: Focusing on the Effectiveness of Government Assistance Programs

Purpose - This study empirically analyzes the determinant factors as cost leadership, marketing, technology, management, and responsive capabilities that influence SMEs’ export performance, and examines the efficacy and the effectiveness of policy support program of the government. Design/Methodology/Approach - A total of 438 observations of secondary data was collected from financial data sources, along with 138 responses of survey data from exporting companies which have participated in government support programs. Based on the research model, the main effects and interaction effects were tested, together with the participating effect of government assistant programs using effectiveness evaluation methods excluding selection effects. Findings - Both firm capabilities and government support appeared to influence export performance satisfaction. Depending on the exporting market and exported products, the significant competency and effective government assistance programs appeared differently. Using Heckman’s two stage model, participating firms were found to have significantly higher debt ratio, lower total capital and higher gross margin than non-participating firms. Research Implications - The results provide specific, practical guidelines to managers and policymakers for achieving sustainable performance through selecting and supporting SMEs.