Promotion Programs
Timothy J. Wilkinson
UNIVERSITY OFAKRONLance Eliot Brouthers
UNIVERSITY OFTEXAS ATSANANTONIO
In this analysis, we test hypotheses concerning the effectiveness of govern- tion organizations (EPOs) and export success. The purpose ment export promotion programs on firm export success by examining of this article is to build on previous efforts to see if a systematic the relationships between program offerings and state exports. We find relationship exists between specific export promotion pro-that: (1) trade shows are positively related to direct exports, (2) trade grams offered by state governments and actual levels of state missions are negatively associated with high-tech growth exports, (3) exports.
foreign offices are not associated with exports, and (4) objective market Building on the work of Seringhaus (1987), Seringhaus and information programs, such as computer-generated trade leads, are nega- Rosson (1989, 1991), Kotabe and Czinkota (1992), and others tively associated with direct exports. Implications for business are offered concerning EPO program effectiveness, we developed hypothe-as are directions for future research efforts.J BUSN RES2000. 47.229– ses pertaining to four specific EPO activities, trade shows, trade
236. 1999 Elsevier Science Inc. missions, foreign offices, and objective market information ac-tivities: (1) trade shows will be positively related to state exports; (2) trade missions will be positively related to state exports; (3) foreign offices will not be positively related to state exports;
C
an firms increase international sales by utilizing spe- and (4) objective market information programs, such as com-cific state government export promotion programs? puter-generated trade leads, will not be associated with higher Previous research indicates that certain state programs levels of state exports. We use regression analysis to test each appear to help firms become successful exporters (Cavusgil and of our four hypotheses for both direct exports and high-tech Naor, 1987; Coughlin and Cartwright, 1987; Pointon, 1978; growth exports.Seringhaus and Rosson, 1989, 1991). For example, trade The article proceeds as follows. First, the need for export shows are viewed positively by firms with little previous promotion programs is discussed. Second, hypotheses are involvement in exporting because they help firms rapidly developed regarding the effectiveness of EPO programs based acquire information about potential markets (Olson, 1975; on previous literature. Third, the methods used in the study Reid, 1984; Denis and Depelteau, 1985). Other programs, how- are described, and the empirical results are presented. The ever, such as trade lead matching of the identification of foreign implications of the findings for firms then are discussed. Fi-agents, are viewed with skepticism and are considered to be of nally, the limitations of the study and future research direc-little practical value (Walters, 1983; Lesch, Eshghi, and Eshghi, tions are explored.
1990; Kedia and Chhakar, 1986).
Previous studies by Seringhaus and Rosson (1989) and
Seringhaus and Rosson (1991) have empirically demonstrated
Why Export Promotion?
a link between certain export promotion activities and firmExporting firms are more likely to stay in business than are objectives. However, no previous study has ever attempted
nonexporting firms, pay 13–18% above average, achieve 20% to empirically demonstrate a systematic relationship between
faster employment growth, and exhibit greater productivity various programs offered by state government export
promo-than companies that are not marketing their products overseas (Daley, 1997, p. 7). Despite these potential benefits, relatively Address correspondence to Timothy J. Wilkinson, Department of Marketing, few companies are involved in export markets. In 1992, the Business Administration Building 306, University of Akron, Akron, OH
44325-4804. last year in which figures were available, out of 690,000
manu-Journal of Business Research 47, 229–236 (2000)
1999 Elsevier Science Inc. All rights reserved. ISSN 0148-2963/00/$–see front matter
facturing firms only 6% were involved in exporting (Daley, porting) to 25 firm and management characteristics. Among the top nine variables linked to export status are “whether or 1997, p. 7). Why might this be the case?
Because of the complexity of the international business not firms seek information from executives in other compa-nies, state agencies, and the U.S. Department of Commerce” environment and the comparative scarcity of resources, several
studies note that small- and medium-sized firms are at a (Cavusgil and Naor, 1987, p. 229). Of these, state agency information ranks third, and seeking help from the U.S. De-disadvantage if they decide to compete internationally
(Se-ringhaus and Botschen, 1991; Se(Se-ringhaus, 1986, 1987; Ra- partment of Commerce ranks seventh. An important limitation of this study is that specific EPO programs are not examined. maswami and Yang, 1990). The uncertainties of the exporting
enterprise, ignorance about foreign markets, and the daunting It would be wrong to assume that the absence of studies on the effectiveness of specific export promotion activities nature of exporting process all militate against such firms
becoming committed exporters (Goodnow and Hansz, 1972; means that the states have been inactive in this area. Over the past two decades, a wide variety of export promotion Weinrauch and Rao, 1974; Bilkey and Tesar, 1977; Czinkota
and Johnson, 1983; Kaynak and Kothari, 1984; Rabino, 1980; strategies have been used. The activities explored in this article are described below.
Reid, 1984; Seringhaus and Rosson, 1989). The difficulties that smaller firms encounter when they become involved in
exporting have been characterized by Seringhaus and Rosson
Trade Shows/Fairs
(1989) as “barriers” or “inhibitors.”Seringhaus and Rosson (1991, p. 55) suggest that state Trade shows take place at a fixed location overseas. Fairs consist of multiple booths in a convention hall in which firms EPOs can aid smaller firms in overcoming export barriers as
they enter and expand into foreign markets. Dominguez and exhibit their products anywhere from two days to two weeks (Tanner, 1995). Trade shows provide ready-to-export firms Cirigliano (1997, p. 35) argue that such assistance is vital
because “export-oriented policies have proven superior to in- potential customers and contracts (Seringhaus and Rosson, 1989), and are, as a consequence, viewed favorably by manag-ward-oriented policies in delivering both long-term economic
growth and quality of life indicators.” ers (Ramaswami and Yang, 1990, p. 202). Fairs allow potential exporters to (1) sell products; (2) gain access to decision State export promotion programs attempt to address the
problem of export barriers by offering a wide variety of activi- makers; (3) disseminate facts about services, products, and personnel; (4) identify prospects; (5) maintain image in the ties designed to help exporters and potential exporters become
involved in international marketing. In the 1980s, state gov- industry and with the media; (6) gather intelligence; and (7) enhance and maintain firm morale (Bonoma, 1983). ernments began to increase and expand their involvement in
export promotion (Kotabe, 1993). By 1994, the states operated Trade shows tend to be viewed positively, especially by those firms that already are prepared to export (Reid, 1984; 162 overseas offices in 25 countries and spent an average of
$1,676,702 for the purpose of promoting state exports Denis and Depelteau, 1985). Seringhaus and Rosson (1989, p. 235) found that, given similar levels of effort, participants (NASDA, 1994, p. 120).
in trade shows were more effective in terms of sales than were trade mission participants. In a subsequent study of 367 firms
Previous Studies
that exhibited at 48 international trade fairs between 1984 and 1986, Seringhaus and Rosson (1991) found that onlyon Export Promotion
18% of the firms were able to break even, whereas one exporter A large body of literature has examined the effectiveness of
had $30 million in sales. Thus, trade shows, despite great export promotion programs. Seringhaus (1986) in a review
individual firm variability, are expected to have an overall of 21 empirical studies found that most of the research that
positive impact on aggregate levels of state exports. This leads has been done measures the attitude or perception of managers
to our first hypothesis: toward government programs. The measures used in these
studies usually consist ofqualitativeresponses, producing ordi- H1A: Trade shows are positively associated with state ex-ports.
nal or nominal scale values rather thanquantitativeresponses, such as the number of orders or export sales (Seringhaus,
1986, p. 59). The author concluded that, based on previous
Trade Missions
studies, it was not possible to determine whether or notpro-motional programs actually have any impact on exporting Trade missions are considered to be most appropriate for non- and new exporters. They function as an on site tutorial, firms (Seringhaus, 1986, p. 62).
Despite the ambiguity in much of the literature, several providing a learning experience which allows firms to acquire information and expand their knowledge of the exporting studies have attempted to find an association between EPO
activities and export performance; none has used actual ex- process (Seringhaus, 1987, p. 57). Trade missions allow po-tential exporters to learn (1) how business is conducted over-ports as a dependent variable. For example, Cavusgil and
nonex-ment and resources necessary to sell in overseas markets, and are not viewed as being particularly effective (Simpson and (5) the answers to questions about foreign markets and the Kujawa, 1974; Walters, 1983). This is because firms (1) are process of exporting (Seringhaus and Rosson, 1989, p. 176). not provided with appropriate information (Lesch, Eshghi, In an examination of the actual impact of trade missions and Eshghi, 1990); (2) have trouble evaluating available infor-on firm objectives, Seringhaus and Rossinfor-on (1989) analyze mation (Walters, 1983, p. 42); (3) are unable or unwilling to export performance of 462 firms between 1984 and 1987. use the information obtained from these programs (Kedia The authors note that while sales are the ultimate goal of and Chhakar, 1986); (4) are uninterested in these types of promotional activities, other objectives also may be satisfied. activities; and (5) prefer other sources of information (Reid, They found that trade missions were somewhat more effective 1984). Thus, for all the above reasons, it appears that objective on average than trade fairs in fulfilling firm objectives. Of the knowledge based activities, such as trade lead matching pro-10 objectives examined, trade missions were more effective grams, are ineffective and therefore are unlikely to be positively in introducing new products to the market; maintaining a related to export growth.
market presence; meeting customers, agents, representatives, and distributors; and in making business contacts. For the
remaining objectives, the authors found no significant differ-
Foreign Offices
ences between trade missions and trade shows. The authorsOne of the most extensive export promotion activities of state found that trade mission participants “generated 2.7 times
governments is the maintenance of overseas offices. These the sales of fair participants—an average of $756,000 versus
offices serve as outposts, establishing contacts and providing $279,000, but that trade fairs generated more overall business
a continual flow of information for their home states. Although due to the larger number of participants” (Seringhaus and
the number of overseas offices declined from a high of 163 Rosson, 1989, p. 230). Thus, trade missions like trade shows
in 1990, a total of 137 outposts in foreign countries were appear to be positively related to export growth. This leads
operating in 1994 (NASDA, 1994, p. 13). Seventy-four of to our second hypothesis:
these offices are located in the Pacific Rim with approximately
H2: Trade missions are positively associated with state ex- half that number operating in Europe. Thus, the pattern of
ports. trade offices in many respects follows the world pattern of
trade, with the overwhelming majority of trade offices located in either developed nations or in the newly industrialized
Trade Shows/Missions and
nations of the Pacific Rim.
High-tech Exports
Few studies on the effectiveness of foreign offices have been undertaken. A study by Martin (1996) found no relationship There is some reason to suspect that trade shows and tradebetween exports and the existence of subnational foreign of-missions will work particularly well with high-tech growth
fices in Japan. Instead, the author found that passive forms exports. A study of 354 small- and medium-sized exporters
of international contact, such as sister city arrangements, were located in Florida, found that firm size, choice of market, and
more closely associated with exports. Similarly, a study by product mix were interrelated in affecting the ability of firms
Kotabe (1993) examining the effect of foreign offices on in-to export their products (Mahone, 1994). The author states
coming foreign direct investment found no association be-that “depending upon product mix, opportunities do exist for
tween overseas offices and FDI. small- and medium-sized firms in export markets. However
Having established, from the literature, a basis on which to these appear greater for firms which produce medium- and
predict which EPO activities will be effective, the methodology high-tech products” (Mahone, 1994, p. 145). Small- to
me-used in the current study is explained. dium-sized manufacturing firms are the targets of state export
promotion efforts. Therefore, it may be that the trade shows and trade missions will be more effective when they are
fo-Data and Methods
cused on high-tech growth exports of small firms.The data for the dependent variables used in this study are
H1B: Trade shows are positively associated with high-tech
drawn from the report,Exports from Manufacturing
Establish-growth exports.
ments, 1990 and 1991published by the Department of
Com-H2B: Trade missions are positively associated with
high-merce. This survey, the most recent of its type, is used because tech growth exports.
its data is more reliable than the other major survey produced by the Department of Commerce (theSummary of U.S. Export
and Import Merchandise Trade). Exports from Manufacturing
Objective Market
Establishments, 1990 and 1991includes “estimates of the value
Information Activities
of exports and export-related employment, both for directly exported goods and for the indirect requirements supporting In contrast to trade missions and trade shows, objective3).1Because EPOs generally limited their focus to manufactur- ages of all exports as measured in dollars are used. Although
a four-or-five-year average would be preferable, this will not ing enterprises, the models tested here do not examine services
be possible because in 1990, “the Census Bureau began using or agricultural products or services.
its own concordance to allocate the Harmonized System The first dependent variable, direct exports, consists of the
Schedule B export commodity codes to a Standard Industrial value of goods that have been shipped overseas. Estimates are
Classification commodity basis” (U.S. Department Of Com-provided by manufacturers on a state-by-state basis at the
merce, 1994, p. 8). Therefore, the validity of using prior two- and three-digit SIC code level. The data are based on
surveys in this manner is questionable. estimates of manufactured goods obtained using a probability
sample of 55,000 manufacturing establishments (U.S. Depart-ment Of Commerce, 1994, p. A-1).2This survey also was used
Findings
to construct the second dependent variable, high-tech growthexports. Table 1 reports the means, standard deviations, and
correla-tions of all of the variables in the regression equacorrela-tions. It Information regarding the independent variables comes
shows that with the exception of population and trade shows, from the State Export Promotion Data Base (NASDA, 1990).
there is no evidence of multicollinearity problems between The data were collected through an extensive survey
distrib-the independent variables. Trade show and population has a uted to EPOs in all 50 states in 1990. The following statement,
comparatively high correlation coefficient of 0.75. However, which is the only information provided regarding how the
collinearity diagnostics reveals a variance inflation factor (VIF) survey was conducted, appears under the section of the survey
of 2.87 for trade shows and 2.53 for population. Studenmund entitled methodology:
states, “a common rule of thumb is that if VIF(b) . 5, the NASDA surveyed the 50 United States and two territories
multicollinearity is severe” (Studenmund, 1992, p. 275). Both (the U.S. Virgin Islands and Puerto Rico, both members of these are well below this number.
of NASDA) in July 1990 on many aspects of their trade Table 2 displays the unstandardized coefficients, standard development programs. Responses were collected between errors, and significance of the two regression models in which July and December 1990. The results of that survey are the direct exports (model 1) and high-tech growth exports (model basis for the NASDA 1990 State Export Program Database. 2; both measured in dollars) are the dependent variables, (NASDA, 1990) and the four export promotion activities (trade shows, trade
missions, foreign offices, and number of objective market NASDA received a 100% response, presumably because it is
information activities) and state population are the indepen-a high profile indepen-agency thindepen-at works with EPOs on indepen-an ongoing
dent variables. Relatively high goodness-of-fit statistics for the basis. The data gathered cover almost all aspects of export
export models suggests that population is a good proxy for promotion activities. The independent variables consist of
the economic activity and export capacity of the states. the number of trade missions, trade shows, foreign offices,
objective market information activities and state population.
Details concerning the independent and dependent measures
Export Promotion Activities
are enumerated in Appendix A.and Direct Exports
In the regression equation for model 1, trade shows (t51.89,
Method of Analysis
p<0.05), objective market information activities (t51.83,
p<0.05), and population (t57.50,p<0.05) are significant, Pooling data into multiple year averages provides more reliable
whereas trade missions (t 5 1.36) and foreign offices (t 5 and valid measures and helps to stabilize the effects of
single-0.19) are not statistically significant. The last of these is consis-year variations and variance in the overall sample
(Gomez-tent with the prediction that foreign offices would not be Mejia, Tosi, and Hinkin, 1987; Zajac, 1990). Two-year
aver-positively associated with state exports.
An unstandardized coefficient of 308.78 indicates that each trade show is associated with an average increase of
1Alaska and Hawaii are not analyzed in this article because of the distortive
effects of comparatively high exports resulting from their geographical loca- $308,780,000 in direct exports. Or, given the limitations
tions. of cross-sectional analysis, it is more precise to say that
2The lack of more recent export data necessitates the use of continuous
$308,780,000 in direct exports is the difference in direct
data for the dependent and independent variables, thereby disallowing an exports per unit increase in trade shows (McClendon, 1994, examination of any lag structure that may be present. This is mitigated p. 40). In addition, with a beta of 0.20, trade shows account somewhat by including exports employment from 1991 in the model. In
for more variation in direct exports across states for the years
addition cross-sectional analyses of this type makes the realistic assumption
under consideration than do any of the other program
vari-that there is a fairly high level of consistency in public policies from year
ables. These findings support our first hypothesis, which states
to year. It also assumes that the change that does occur is incremental in
Table 1. Correlation Matrix of Exports and Independent Variables
Market
Direct Trade Trade Foreign Information
Exports Shows Missions Offices Activities Population
Mean 6284.12 6.23 2.60 3.25 6.38 5134.25
Standard deviation 7470.77 5.06 2.20 2.46 2.13 5506.11 Direct exports 1.00 0.71a 0.20 0.40a 0.07 0.88a
Trade shows 0.72a 1.00 0.35a 0.47a 0.25b 0.75a
Trade missions 0.02 0.35a 1.00 0.11 0.34a 0.12
Foreign offices 0.40a 0.47a 0.11 1.00 0.35a 0.46a
Market information activities 0.08 0.25b 0.34a 0.35a 1.00 0.26
Population 0.88a 0.75a 0.12 0.46 0.26 1.00
ap<0.05, two-tailed test. bp.0.05,p,0.10, two-tailed test.
contrast, the second hypothesis,trade missions are positively indicates that each trade show is associated with an average of $189,000,000 in high-tech growth exports. A standardized
associated with state exports, is not supported (t5 21.36).
An unstandardized coefficient of 2479.14 for objective regression coefficient of 0.30 indicates that the relationship between these two variables is stronger than any of the other market information activities indicates that $479,140,000 in
direct exports is the difference in direct exports per unit de- program variables. This confirms hypothesis 1B,trade shows
are positively associated with high-tech growth exports.For the
crease in objective market information activities. The beta
for this variable, at20.14, is smaller than the standardized trade mission variable, $306,850,000 in high-tech growth coefficient for trade shows. This finding is consistent with the exports is the difference in growth exports per unit decrease prediction that objective market information activities would in trade missions. The beta is 20.21. The findings do not not be positively associated with state exports. support hypothesis H2B, which states,trade missions are
posi-tively associated with high-tech growth exports.
Export Promotion Activities
Discussion and Implications
and High-Tech Exports
We began this article by hypothesizing empirical linkages In the regression equation for model 2, high-tech growth
between various programs offered by state government export exports, trade shows (t 5 2.84, p < 0.05), trade missions
promotion organizations and actual levels of state exports. (t 5 22.76, p < 0.05), and population (t 5 7.47, p <
Based on the previous literature on EPO program effectiveness, 0.05) are statistically significant. Objective market information
we developed hypotheses concerning four specific EPO activi-activities (t 5 0.29) and foreign offices (t 5 0.23) are not
statistically significant. An unstandardized coefficient of 189.00 ties, trade shows, trade missions, foreign offices, and objective
Table 2. The Effect of Export Promotion Activities on Direct Exports and High-Tech Growth Exports
Model 2
Model 1 High-Tech
Direct Exports Growth Exports
Variables Unstandardized regressions coefficients Unstandardized regressions coefficients (standard error) (standard error)
Shows 308.78a(163.00) 189.00a(66.45)
Missions 2353.12b(260.00) 2306.49a(110.73)
Foreign offices 228.21 (238.58) 2119.20 (99.63) Objective market information activities 2479.14a(261.48) 30.71 (106.19)
Population 1.06a(0.14) 0.429a(0.06)
Constant 3003.60 (1561.94) 2819.99 (646.42)
R2 0.82 0.86
Adjusted R2 0.79 0.84
F 38.56 43.00
N 47 41
market information activities: (1) trade shows will be posi- ters (Katcher, 1975; Cavusgil, 1983; Seringhaus, 1987; Elvey, 1990). The negative relationship between trade missions and tively related to state exports; (2) trade missions will be
posi-exports found in this study indicate that whereas this may be tively related to state exports; (3) foreign offices will not be
the case in an ideal or theoretical sense, in practice, trade positively related to state exports; and (4) objective
informa-missions are being used for different purposes. Kotabe (1993) tion programs, such as computer-generated trade leads, will
suggests that trade missions are not used to increase exports, not be associated with higher levels of state exports. We used
but rather are used by government officials to encourage for-regression analysis to test each of our hypotheses for both
eign business to relocate to their states. Future research could direct exports and high-tech growth exports.
examine the association between state sponsored trade mis-We found that trade shows were positively associated with
sions and foreign direct investment. direct exports and high-tech growth exports. In contrast,
ob-Second, the positive relationship between trade shows and jective market information activities were negatively related
exports suggests that participation in trade shows can be a to direct exports and trade missions were negatively associated
useful and profitable activity for firms. Businesses, particularly with high-tech growth exports. In particular, our results
con-those just becoming involved in international markets, can cerning trade missions appears to contradict hypothesis 2,
benefit not only from knowledge gained through hands on which was based on an earlier finding of Seringhaus and Rosson
experience but from actually selling their products. In general, (1989). They found a positive relationship between firms going
the findings suggest that domestic firms should attempt to on trade missions and increases in the firm’s exports. We
persuade state governments to increase the number of trade suggest that this apparent contradiction can be reconciled as
shows that they undertake. follows. Although Seringhaus and Rosson (1989) found a
positive relationship between trade missions and exports on
a per firm basis, they also found that trade shows yielded
Limitations and
substantially higher levels of total exports than trade missionsFuture Research Directions
due to the much larger number of firms that participate. Wesuggest that since our study deals with aggregate levels of There are a number of empirical limitations to this study. exports our results reflect the relatively greater effectiveness First, the study is a test of the aggregate effects of state govern-of trade shows at the aggregate level. ments’ EPO strategies on exports. As such it suffers from Does this mean that state investments in trade missions the usual shortcomings of aggregate tests and secondary data and/or objective market information activities actually reduce analysis. Future research efforts might focus more directly on state export levels? When attempting to understand what the the differing motives and behaviors of individual firms with negative relationships between trade missions, objective mar- respect to program offerings and the impacts of those on the ket information activities and exports actually mean it is im- specific firm’s exporting efforts. Second, because our study is portant to remember that our cross sectional analysis mea- cross-sectioned, the longitudinal effects of these programs sured variation across states rather than a casual relationship remain unexplored. It may turn out that our predictions do measured over time. Thus, it would be incorrect to conclude, not hold over the long run. Third, although we note an associa-for example, that each trade mission undertaken results in a tion at the industry level between selected EPO activities and loss of $306,490,000 in high-tech growth exports. What it high-tech industries, future efforts may wish to focus (1) on actually means is that states that had more trade missions had firms rather than on industries and (2) on a wide range of lower levels of exports than states that had more trade mis- industries.
sions. Why might this be the case? One possibility is that Exporting can be a profitable way for firms to expand their stage governments are constrained by resource limitations. markets. State-based export promotion offices exist to help firms in this effort. By using EPOs to create or expand interna-funds must be allocated among various EPO programs.
In-tional sales, firms can externalize some of their global market-vesting in a trade mission may not mean not inmarket-vesting in a
ing efforts at very little cost. Particularly for small- and medium-trade show, etc. Since our findings appear to indicate that
sized resource-constrained companies that wish to expand over-trade shows yield the best results, any diversion of state funds
seas, the information and services that EPOs provide can be away from trade shows may lead to suboptimal levels of state
valuable. The challenge for future research is to determine exports. Thus, the negative associations between exports and
under what conditions EPO programs provide the greatest trade missions and objective market information activities may
benefits to firms seeking to expand their exporting efforts. be interpreted as opportunity costs.
Our findings have two specific implications for firms. The
first, related to the statements above, suggests that trade mis-
Appendix A
sions may not be a productive activity for many businesses.Dependent Variables
Earlier literature suggests that trade missions are the most
appropriate activity for firms in the early stages of exporting Two categories of dependent variables were tested in this (Seringhaus, 1987; Seringhaus and Rosson, 1989) and that article—direct exports and high-tech growth exports. Both
expor-Dominguez, Luis V., and Cingliano, Mariana: Chocolates El Rey:
Direct exports includes only the value of manufactured
Industrial Modernization and Export Strategy.Journal of Business products exported by producing plants.
Research38 (1997): 35–45.
High-tech growth exportsare based on a classification scheme
EIvey, Lisa A.: Export Promotion and Assistance: A Comparative
developed by Markusen, Hall, and Glasmeier (1986).
High-Analysis, inInternational Perspectives on Trade Promotion and Assis-tech growth exports includes rapid and modest growth sectors. tance, S. Tamer Cavusgil and Michael R. Czinkota, eds., Green-These are (Rapid) electronic components and assembly, office wood Press, Inc., Westport, CT. 1990, pp. 133–146.
computing machines, communications equipment, and medi- Gomez-Mejia, Luis R., Tosi &, Henry, Hinkin, Timothy: Managerial cal and dental supplies; (Modest) photographic equipment, Control, Performance, and Executive Compensation.Academy of
Management Journal30 (1987): 51–70.
drugs, construction equipment, soap, general industrial
ma-chinery, industrial organic chemicals, and engines and tur- Goodnow, James D., and Hansz, James E.: Environmental Determi-nants of Overseas Market Entry Strategies.Journal of International bines.
Business Studies3 (1) (1972): 33–60.
Jaramillo, Carnilo: The Basic Functions of National Trade Promotion
Independent Variables
Organizations. International Trade FORUM July–September
Trade showsconsist of multiple booths in a convention hall (1992): 18–31.
in which firms exhibit their products anywhere for up to two Katcher, Max: An Analysis of the Effectiveness of the Overseas Trade weeks (Tanner, 1995). Fair Programme of the United States Department of Commerce as an Exporter Promotion. Ph.D. dissertation. The George
Wash-Trade missionsare led by high-level EPO officials who
ar-ington University, 1975.
range meetings between buyers and sellers at overseas
loca-Kaynak, Erdener, and Vinay Kothari: Export Behavior of Small- and
tions (Jaramillo,1992, p. 31). They allow participants to gain
Medium-Sized Manufacturers: Some Policy Guidelines for
Inter-first-hand knowledge of the potential market as well as an
national Marketers. Management International Review 24 (2)
opportunity to assess the commitment and resources that are (1984): 61–69. necessary to be successful in a particular market.
Kedia, Ben L., and Chhakar, Jagdeep S.: An Empirical Investigation
Objective Market Information Activities consist of the fol- of Export Promotion Programs.Columbia Journal of World Business
lowing dummy variables (yes51; no5 0): trade lead pro- 21 (Winter) (1986): 13–20.
gram1 matchmaker program1foreign buyers program1 Kotabe, Masaaki: The Promotional Roles of the State Government identify agents and distributors 1 publish product descrip- and Japanese Manufacturing Direct Investment in the United
States.Journal of Business Research27 (1993): 131–146.
tions abroad 1 market studies prepared by state staffs 1
market studies by overseas office staff1market studies out- Kotabe, Masaaki, and Czinkota, Michael R.: State Government Pro-motion of Manufacturing Exports: A Gap Analysis. Journal of sourced 1 electronic trade lead system 1 market studies/
Interrogational Business Studies23 (4) (1992): 637–658.
research done by industry sector.
Lesch, William C., Eshthi, Abdolreza, and Eshghi, Golpira S.: A
State population, the final independent variable, is included
Review of Export Promotion Programs in the Ten Largest
Indus-as a proxy for the economic variation that exists between states.
trial States, in International Perspectives on Trade Promotion and Assistance, S. Tamer Cavusgil and Michael R. Czinkota, eds., Greenwood Press, Inc., Westport, CT. 1990, pp. 25–37.
References
Lindblom, Charles E.: The Science of “Muddling Through.”Public
Bilkey, Warren J., and Tesar, George: The Export Behavior of
Smaller-Administration Review19 (Spring) (1959): 79–99. Sized Wisconsin Manufacturing Firms. Journal of International
Business Studies8 (1977): 93–98. Lindblom, Charles E.:Politics and Markets.Basic Books, New York. 1977.
Bonoma, Thomas V.: Get More Out of Your Trade Shows.Harvard
Business Review(January/February 1983): 75–83. Mahone, Charlie E. Jr.: Penetrating Export Markets: The Role of Firm Size.Journal of Global Marketing7 (3) (1994): 133–148. Cavusgil, S. Tamer: Public Policy Implications of Research on the
Export Behavior of Firms.Akron Business and Economic Review14 Markusen, Ann, Hall, Peter and Glassmeier, Amy:High Tech America:
(1983): 16–22. The What, How, Where, and Why of the Sunrise Industries, Allen & Unwin, Boston, MA. 1986.
Cavusgil, S. Tamer, and Naor, Jacob: Firm and Management
Charac-teristics as Discriminators of Export Marketing Activity.Journal Martin, Drew: Japan-Based U.S. State Promotional Offices as a Form
of Business Research15 (1987): 221–235. of International Contact. Paper presented at the Academy of Inter-national Business 1996 Annual Meeting, Banff, Canada. Coughlin, Cletus C., and Cartwright, Phillip A.: An Examination
of State Foreign Export Promotion and Manufacturing Exports. McClendon, McKee J.:Multiple Regression and Causal Analysis.F.E.
Journal of Regional Science27 (1987): 439–449. Peacock Publishers, Inc., Itasca, IL. 1994.
Czinkota, Michael R., and Johnson, W. J.: Exporting: Does Sales [NASDA] National Association of State Development Agencies:State
Volume Make a Difference?Journal of International Business Studies Export Program Database 1990.Washington.
14 (1) (1983): 147–153. [NASDA] National Association of State Development Agencies. 1994. Daley, William M.: Letter From Secretary Daley. Business America. State Export Program Database 1994.Washington.
118 (11) (1997): 6–14. Olson, Hans:Studies in Export Promotion: Attempts to Evaluate Export
Granulation Measures for the Swedish Textiles and Clothing Industries.
Denis, Jean E., and Depelteau, Daniel: Market Knowledge,
Diversifi-cation, and Export Expansion. Journal of International Business Acta Universitatis Upsaliensis, Studia Oeconomiae Negotorium 10, Uppsala, Sweden, 1975.
Pointon, Tom: Measuring the Gains from Government Export Promo- Promotion: A Global Perspective.Routledge, London and New York. 1989.
tion.European Journal of Marketing12 (6) (1978): 451–462.
Seringhaus, F. H. Rolf, and Rosson, Philip J.:Export Development
Rabino, S.: An Examination of garners to Exporting Encountered
and Promotion: The Role of Public Organizations.Kluwer Academic by Smaller Manufacturing Companies.Management International
Publishers, Boston, Dordecht, London. 1991.
Review20 (1) (1980): 67–73.
Simpson, Claude, and Kujawa, Duane: The Export Decision Process: Ramaswami, Sndhar N., and Yang, Yoo: Perceived Garners to
Ex-An Empirical Inquiry.Journal of International Business Studies 5 porting and Export Assistance Requirements, inInternational
Per-(1) (1974): 107–117.
spectives on Trade Promotion and Assistance, S. Tamer Cavusgil
Studenmund, A. H.:Using Econometrics. A Practical Guide, 2nd edi-and Michael R. Czinkota, eds., Greenwood Press, Inc., Westport,
tion. Harper Collins, New York. 1992. CT. 1990, pp. 187–206.
Tanner, Jeff:Curriculum Guide to Trade Show Marketing Waco, TX:
Reid, Stan: Formation Acquisition and Export Entry Decisions in
Center for Exhibition Industry Research, Baylor University, 1995. Small Firms.Journal of Business Research12 (2) (1984): 141–158.
U.S. Department of Commerce. Bureau of the Census.Exports From
Seringhaus, F. H. Rolf: The Role of Information Assistance in Small
Manufacturing Establishments: 1990 and 1991.Manufacturing Ana-Firm’s Export Involvement.International Small Business Journal5
lytical Report Series. Washington. 1994. (2) (1986): 26–36.
Walters, Peter G. P: Export Information Sources—A Study of Their Seringhaus, F. H. Rolf: The Use of Trade Missions in Foreign Market Usage and Utility.International Marketing Review(Winter) (1983):
Entry. Industrial Marketing and Purchasing 2 (Winter) (1987): 34–43. 43–60.
Weinrauch, J. D., and Rao, C. P.: The Export Marketing Mix: An Seringhaus, F. H. Rolf, and Botschen, Guenther: Cross-National Examination of Company Experiences and Perceptions.Journal
Comparison of Export Promotion Services: The Views of Canadian of Business Research2 (4) (1974): 447–452.
arid Austrian Companies.Journal of International Business Studies Zajac, Edward J.: CEO Selection, Succession, Compensation, and Fun
22 (1) (1991): 115–133. Performance: A Theoretical Integration and Empirical Analysis.
