is

Sousa and Bradley: Effects of ExportSmall

International Assistance
Businessand Distributor Support
Journal
Copyright © 2009 SAGE Publications

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http://isb.sagepub.com
[DOI:10.1177/0266242609344253]
Vol 27(6): 681–701

Effects of Export Assistance and Distributor

Support on the Performance of SMEs
The Case of Portuguese Export Ventures

C A R L O S M . P. S O U S A A N D F R A N K B R A D L E Y
University College Dublin, Ireland

The presumed effect of export assistance programmes and distributor support on

the export performance of SMEs, though intuitively rational, has not been tested
or validated in any systematic fashion in the export literature. To address this issue
the authors develop a new model, which integrates these two constructs as critical
variables affecting export performance. Confirmatory factor analysis and structural
equation modeling were used to test hypotheses. The research findings, which are
based on a survey of 287 senior managers responsible for international markets,
suggest that export assistance programmes and distributor support are significant
determinants of export performance. Implications of these findings along with the
limitations of the study are discussed.

KEYWORDS: distributor support; export assistance; export performance

Introduction
The trend toward globalization of markets has made exports increasingly important
for nations and for firms. Exporting activity is important for governments because
it contributes to the economic development of nations, helps national industries to
develop, improve productivity and create new jobs (Czinkota, 1994). At the firm
level, exporting allows firms to expand into new markets that serve as catalysts for
significant growth opportunities as well as to safeguard firms’ market position and
ensure survival in the long term (Leonidou, Katsikeas and Samiee, 2002). Exporting
is a particularly appropriate mode of entry for small and medium-sized firms (SMEs)
to enter a foreign market as it offers a greater degree of flexibility, minimal resource
commitment, and limits the firms’ risk exposure (Young et al., 1989).
SMEs play a major role in the economic development of most countries. While
many large firms engage in exporting, smaller firms have shown little inclination to
do business abroad (Dean et al., 2000). Research on factors that explain the SME’s
lack of involvement and success in exporting, published in the last two decades,
blames the limited ability of these businesses to acquire information and knowledge

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about foreign markets (Julien and Ramangalahy, 2003). As a result, many SMEs do
not make an effort or are afraid to enter international markets. To overcome this
difficulty, policy makers have established export assistance programmes. Export
assistance refers to information services provided by external bodies, such as
government agencies and trade associations, for the purpose of enhancing the export
activity of the firm. These export assistance programmes are typically aimed at small
and medium-sized companies (Diamantopoulos et al., 1993). The basic objective of
these programmes is to act as an external resource for firms to gain knowledge and
experience that will enhance their performance in the international arena. While
some studies indicate that export assistance contributes positively to the export per-
formance of the firm (Gençtürk and Kotabe, 2001; Lages and Montgomery, 2005),
other studies argue that they have little or no effect (Gray, 1997; Dean et al., 2000)
since private market forces and not public assistance programmes determine the
export performance of the firm. As a consequence little can be said conclusively
about the effect of export assistance usage on the export performance of the firm
(Gençtürk and Kotabe, 2001; Seringhaus and Rosson, 1990).
The greater difficulty that SMEs face in acquiring information and knowledge
about foreign markets also emphasizes the importance for these firms of establishing
a close relationship with distributors in the foreign market. The support given to a
distributor, therefore, could be seen as a key determinant of export performance.
In this article, distributor support refers to the level of assistance given to the foreign
distributor as well as the level of interaction and cooperation that exists between
the firm and the distributor. While some studies (Ling-yee and Ogunmokun, 2001;
O’Cass and Julian, 2003) report a positive relationship between distributor support
and export performance, some researchers, Koh (1991) among them, argue that
the level of export performance is not affected by variations in the frequency of
personal contacts with the firm’s overseas distributors or in the level of dealer support
provided. These findings suggest that there is a need for more research to understand
the importance of distributor support on the firm’s export performance.
Thus, the presumed effect of export assistance and support of distributors on
the export performance of SMEs, though intuitively rational, has not been tested
or validated in any systematic fashion in the export literature. This article seeks to
fill this gap in the literature by empirically examining the key variables, including
export assistance and distributor support, that influence the export performance
of SMEs.
Finally, an important distinguishing feature of this study is the unit of analysis. The
export literature highlights the issue of the unit of analysis as a major problem that
limits existing research and future development in the area (Morgan et al., 2004).
Most studies adopt a firm-level unit of analysis and aggregate firms’ various
product-market export ventures (Katsikeas et al., 2000; Sousa, 2004), which makes
it difficult to identify and isolate specific antecedents of export performance
(Morgan et al., 2004). This is further compounded by the fact that it is likely that
different export ventures of the same firm will exhibit different characteristics and
levels of success (Sousa et al., 2008). To overcome this difficulty this study uses the
export venture as the primary unit of analysis in understanding export performance
(Ambler et al., 1999; Cavusgil and Zou, 1994; Myers, 1999). Managers were asked,

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therefore, to respond according to the most important product or product line in
their most important export market. We believe this to be the most appropriate
approach as we expect the key factors addressed in this study, such as export
assistance, support of distributors, and export performance, to vary from one export
venture to another.
In the next section, the theoretical background to the research is presented,
along with the development of specific research hypotheses. This is followed by a
description of the research methodology and test results. After presenting the dis-
cussion and implications of the results, the article concludes with limitations and
suggestions for further research.

Conceptual Framework and Hypotheses Development

The conceptual model guiding our study is presented in Figure 1. The model draws
on the resource-based view (RBV) of the firm. The RBV emphasizes resources
as central to understanding firm performance. The term ‘resource’ was conceived
broadly as ‘anything that can be thought of as a strength or a weakness’ of the
firm (Wernerfelt, 1984: 172). It is the unique bundle of tangible and intangible
resources that lie at the heart of the RBV perspective and that leads to com-
petitive advantage (Zou et al., 2003). According to the RBV, the firm’s assets,
management skills, organizational processes, information and knowledge are all
considered resources and capabilities that contribute to enhance the competitive
advantage and strengthen the performance of the firm (Barney et al., 2001). In
the export venture context, resources are the firm’s controlled asset stocks while
capabilities are the organizational processes by which available resources are
developed, combined, and transformed into value offerings for the export market
(Morgan et al., 2004). The RBV posits that superior performance is determined
by acquiring and exploiting unique resources of the firm; that is, heterogeneity in
the resources and capabilities is what explains the variations in firm performance
(Makadok, 2001). As such, export managers deploy available firm-specific re-
sources and capabilities that result in positional advantage in the export market
(Barney, 1991; Morgan et al., 2004).

Figure 1. The Conceptual Model

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Following Penrose (1959), we identify three sets of resources that encompass
the resource domain of the firm, namely managerial or organizational resources,
entrepreneurial resources, and technological resources. Although the RBV theory
recognizes that a firm’s physical resources, such as the size of the firm, are important,
it places more emphasis on the intangible skills, such as experience (Barney,
1991; Zou and Cavusgil, 2002). We, therefore, decided to include in our study
the experience of the manager as a ‘managerial resource’. The RBV theory also
allows us to recognize export assistance programmes to be an important resource
to the firm. It has been indicated that export market knowledge accumulated
from various sources constitutes a valuable ‘entrepreneurial resource’ (Dhanaraj
and Beamish, 2003; Haahti et al., 2005). In relation to technological resources,
while technological intensity has been largely ignored in the export literature
(Dhanaraj and Beamish, 2003) it has been considered a key variable in explaining
the internationalization of the firm (Buckley and Casson, 1991). As a result, the
degree of technology orientation of the product was incorporated in our study as a
potentially significant variable to explain the export activities of the firm. Finally,
the RBV framework also allows us to recognize that the firm–foreign distributor
relationship can be a value-creating entity (Wu et al., 2007). As a result, we expect
that the support given to the foreign distributor exerts a significant influence on the
export performance of the firm.
Specifically, we propose that support to the distributor is determined by the
technology orientation of the product and by the experience of managers. The export
performance of the firm, in turn, is affected by the experience, export assistance, and
the support given to the distributor. The hypothesized relationships are described
subsequently on the basis of the theoretical and empirical support available in the
literature.

Determinants of Distributor Support

The presence of distributors in the international channel is essential for many firms
that are involved in the international arena. Distributors are especially important for
SMEs, since most of them do not have the necessary scale of operations, financial
resources, export market knowledge or confidence to operate more directly in
foreign markets (Katsikeas et al., 1996; Rosson and Ford, 1982). Because distributors
have access to customers in foreign markets and possess important local-market
knowledge, and in some cases sophisticated marketing services (Bello et al., 2003;
Clasen, 1991) they offer a relatively easy and low-cost way of entering a foreign
market for the SME exporter. For SMEs, distributors are, therefore, considered to
be an important link between the firm and the customer (Wilkinson and Brouthers,
2006). This suggests that the cooperation and support given to the overseas
distributor is an important export success factor.
The amount of support given to a foreign distributor is influenced by the
manager’s international experience. Because the foreign distributor is the vital link
between manufacturer and foreign customers (Rosson and Ford, 1982; Wilkinson
and Brouthers, 2006), the manager’s export experience is likely to have a positive
influence on the level of support for the distributor. These meetings and contacts

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with the distributor are critical to ensure that distributors are able and willing to
implement a strategy in accordance with the firm’s objectives. The intensity of inter-
action and cooperation tend to foster successful relationships between the firm and
their overseas distributors (Ling-yee and Ogunmokun, 2001). On the other hand,
SME export activities can be severely hampered when the relationship with the
distributor is improperly managed (Wilkinson and Brouthers, 2006). Managers, by
becoming more familiar with the exporting process, will be more capable of providing
the support and collaboration needed to manage the relationship successfully. As
expected, conflict between a distributor and the firm is less frequent and joint decision
making more common when overall experience is greater (Rosson and Ford, 1982).
Thus, the following hypothesis will be tested in this study:
H1: The international experience of the manager affects positively the level of support
given to the foreign distributor

The support given to a distributor appears to be more likely in technology-intensive

products. Marketing a product with a high degree of technological complexity in a
foreign market creates a greater need for in-depth information regarding that mar-
ket in terms of end-user needs and competitor marketing practices (Bradley, 2002).
As firms, particularly in the case of SMEs, often lack the resources and the capability
to carry out marketing research abroad, they rely on the distributor for such market
intelligence. Customers of technology-intensive products place demands on manu-
facturers and distributors that require them to collaborate intensively as well as
exchange information frequently (Bello et al., 2003). The manufacturer and the
foreign distributor, for instance, must coordinate a variety of pre-sale and post-sale
activities that become increasingly important as the level of technology orientation
of the product increases (Celly and Frazier, 1996). Thus, when the product is tech-
nological complex, the manufacturer must engage in more training and technical
support activities to prepare the foreign distributor to manage, market, and service
the product properly in the export market (Cavusgil and Zou, 1994; McGuinness
and Little, 1981). This leads us to the second hypothesis:
H2: The degree of technology orientation of the product affects positively the level of
support given to the foreign distributor

Determinants of Export Performance

A number of empirical studies have found a positive relationship between dis-
tributor support and the firm’s export performance. Madsen (1987) found that
distributor support uniformly turns out to be positively associated with export
performance. This finding is consistent with a recent meta-analysis in which it
was revealed that there is a strong positive link between distributor support and
export performance (Leonidou, Katsikeas and Samiee, 2002). The support given
to the distributor is critical to the export performance of SMEs since they suffer
from a relatively restricted resource base, which creates additional difficulties to be
competitive in the export market. Intense interactions and cooperation between the
firm and the foreign distributor in the form of two-way communication and frequent
information exchange tend to lead to strategic gains and have a positive effect

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on export performance (Ling-yee and Ogunmokun, 2001; Madsen, 1989; Rosson
and Ford, 1982). Not surprisingly, it is argued that successful exporters meet their
foreign representatives on a frequent basis (Beamish et al., 1993). Consequently,
the following hypothesis is proposed:
H3: The level of support given to the foreign distributor affects positively the export
performance of the firm (Wheeler et al., 2008)

Management’s international experience has a positive effect on the export

performance of the firm. Leonidou et al. (1998) report a strong and positive
relationship between the manager’s experience and export performance. Firms
employing staff with little or no training in international business tend to exhibit
a lower performance because these managers are less aware of environmental
opportunities and threats and make costly mistakes (Nakos et al., 1998). More
experienced managers are better able to help a firm to identify and leverage on inter-
national opportunities while avoiding international threats (Zou and Stan, 1998).
Moreover, managers with greater experience are expected to perform better be-
cause of their international networks and better understanding of foreign markets
(Axinn, 1988). Based on the above discussion the following hypothesis is proposed:
H4: The international experience of the manager affects positively the export performance
of the firm

Export assistance has received an increasing amount of research attention in the

literature. From a government perspective, exporting activity is important because
it affects fiscal and monetary policies and contributes to the economic develop-
ment of nations. As a result, most governments have created export assistance
programmes or increased their budget for those programmes, to help small and
medium-sized firms in their export activities. The use of such programmes has led
to the rapid expansion of exports in different sectors (Brezzo and Perkal, 1983).
Export assistance programmes can help firms improve their export performance
by providing information on the market potential abroad, offering low-cost credit
and by passing on knowledge from foreign markets and their customers thereby enab-
ling firms to adjust to that market (Czinkota, 1994). Export assistance programmes
provide the firm with extra resources for successful foreign market involvement; and
managers that commit greater resources to export activities are usually rewarded
with greater export success. Not surprisingly, therefore, strong evidence of a positive
association between export assistance and export performance has been reported
in the literature (Gençtürk and Kotabe, 2001; Lages and Montgomery, 2005; Singer
and Czinkota, 1994). This leads us to propose the following hypothesis:
H5: Export assistance affects positively the export performance of the firm

Research Methodology
Sample and Data Collection Procedure
The study was conducted using a sample of export firms in Portugal, a member
country of the European Union. In common with many other countries, Portugal

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has long depended on international trade because of the small size of its domestic
market, leading to a strong export orientation among its firms. We used a multi-
industry sample to increase observed variance and to strengthen the generalizability
of the results (Morgan et al., 2004). The sample was comprised of SMEs from all the
regions in Portugal. In line with the OECD’s 1994 definition, we use 500 employees
as the dividing line between an SME and a large firm.
A sample of 830 small and medium-sized exporters was randomly generated
based on a government agency database (Investment, 2001). As the researchers
were located in Ireland, questionnaires were sent with international postage-paid
business reply envelopes to the managers of the firms sampled. These were followed
by reminder letters that included reply envelopes. The effective response rate after
two mail-waves was 34.5% (287 usable questionnaires). This result constitutes a
high response rate, considering that the average top management survey response
rates are in the range of 15% to 20% (Menon et al., 1996), and that collecting
data from respondents located in a foreign country is more difficult than from a
domestic population due to the numerous obstacles encountered (Douglas and
Craig, 1983).
The structured questionnaire used was developed through a comprehensive
review of the relevant literature and was written originally in English and translated
into Portuguese by a bilingual expert. Four academic experts who were familiar
with the topic under investigation assessed the content validity of the items. The
questionnaire was then given to a pre-test sample of 15 managers. Based on their
feedback the questionnaire was revised, back-translated into English and checked for
consistency with the original translated version to enhance ‘translation equivalence’
(Van de Vijver and Leung, 1997).
In the data collection process, particular attention was paid to the identification
and selection of the person most appropriate in the firm to participate in the study.
To guarantee the reliability of the information provided, senior managers who had
responsibility for foreign operations, initiating, developing and sustaining the firm’s
international activities were chosen (Miesenböck, 1988). In order to ensure that
the most appropriate person would receive the questionnaire each firm was first
contacted by telephone.
The high response rate obtained provides confidence that non-response was not
an issue (Weiss and Heide, 1993). To further explore the issue of non-response
bias we also tested for differences between early and late respondents (Armstrong
and Overton, 1977; Menon et al., 1999; Theodosiou and Katsikeas, 2001; Zou
et al., 1997). The extrapolation procedure proposed by Armstrong and Overton
(1977) was based on the contention that, unlike early respondents, late respondents
are more likely to be similar to non-respondents. According to Weiss and Heide
(1993) early responses were defined as the first 75% cent of returned questionnaires.
The last 25% were considered late responses and representative of firms that did
not respond to the survey.
Using a t-test, early and late respondents were compared on all the variables
but no significant differences were found (at the conventional 0.05 level). Based
on these results and considering that the response rate was relatively high, it was

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concluded that non-response bias did not appear to be a significant problem in this
study. Moreover, since anonymity was guaranteed, bias associated with those who
did not wish to respond for confidentiality reasons was also reduced (Bialaszewski
and Giallourakis, 1985).

Development of Measures
The items used to operationalize each construct were developed on the basis
of existing literature. The experience of the manager was measured by asking
respondents to indicate their level of overseas experience in terms of living and
working abroad and their degree of professional exporting experience (Das, 1994;
Sousa and Bradley, 2006). Export assistance was measured by asking respondents
to indicate the level of support and assistance provided by trade associations, the
European Union, and the government (Lages and Montgomery, 2005). Following
previous studies, support to the distributor was measured by asking respondents
to indicate the level of interaction between the firm and the distributor, the level
of cooperation between the firm and the distributor on the marketing strategy
development, and the overall support to the foreign distributor (Cavusgil and
Zou, 1994; Ling-yee and Ogunmokun, 2001; O’Cass and Julian, 2003; Rosson and
Ford, 1982). To measure these three constructs we used a five-point scale from 1
(none) to 5 (substantial). Technology orientation of the product was assessed by
asking respondents to indicate the degree of technology orientation of the pro-
duct on a five-point scale ranging from ‘not technology intensive’ to ‘highly tech-
nology intensive’.
The difficulty in measuring export performance has been discussed in previous
studies (Katsikeas et al., 2000; Sousa, 2004). Measuring the export performance of
small businesses is particularly difficult since most small firms are privately held and
are generally very reluctant to disclose sensitive financial information (Brouthers
and Nakos, 2005). Following previous studies, we operationalized export perfor-
mance using three items: market share, overall satisfaction, and how competitors
rate the firm’s export performance. The first two items have been used frequently
(Cadogan et al., 2002; Dhanaraj and Beamish, 2003; Robertson and Chetty, 2000;
Shoham, 1999). We measured these two performance items on a five-point scale
that ranged from 1 (very unsatisfied) to 5 (very satisfied). The third item was based
on Cavusgil and Zou (1994) and Styles (1998); we asked managers for their per-
ceptions of how their competitors would rate the venture’s performance. This item
was assessed on a ten-point unsuccessful/successful scale.

Control Variables
In addition to the variables specified in our theoretical model, we included the size
and age of the firm, and the firm’s foreign market coverage, as control variables to
allow for a better delineation of the relationships proposed in our study. Follow-
ing previous studies, firm size was measured by using the number of employees
(Brouthers and Nakos, 2005). The age of the firm was calculated by asking man-
agers to indicate the date that their firm was established. Each respondent also
provided information regarding the firm’s foreign market coverage by indicating
the number of foreign countries to which their firms had sold products (Cavusgil
and Zou, 1994).

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Previous research suggests that firm size can potentially influence the support
given to the distributors and the export performance of the firm. Large firms have
advantages that enable them to more effectively engage in exporting activities.
The rationale for this argument is that larger firms have more resources in order to
compete in the international markets (Aaby and Slater, 1989). The firm’s age may
also have an influence on the export behavior of the company (Axinn et al., 1995;
Dean et al., 2000). The cumulative experience of operating in domestic markets,
and the experience of domestic selling (Cavusgil and Naor, 1987), may have an
impact on the export activities of the firm. The firm’s foreign market coverage was
also included as a control variable since previous studies suggest that it may have
an influence on the export behavior of the firm (Brouthers and Nakos, 2005; Con-
tractor et al., 2005). For instance, Cooper and Kleinschmidt (1985) find that firms
that have a broader world market coverage and therefore pursue higher levels of
involvement in exporting, realize a more rapid growth rate in export sales. These
firms are also more likely to have developed more sophisticated internal capabilities
to cope with the complexities of exporting because of their higher involvement
with export markets and are therefore better equipped to provide support to the
distributors.

Reliability and Validity

Content validity was established through a literature review and by consulting
experienced researchers and managers. On the basis of these procedures, it was
concluded that the measures have content validity. Discriminant validity, convergent
validity and scale reliability were assessed by confirmatory factor analysis in line with
the paradigm advocated by Gerbing and Anderson (1988). Tables 1 and 2 display
the results obtained from the estimation of the CFA model. An inspection of these
results shows that the items employed to measure the constructs were both valid
(convergent validity and discriminant validity) and reliable (composite reliability
and variance extracted).
More specifically, convergent validity is evidenced by the large and significant
standardized loadings (t > 1.96, p < 0.05) of the items on the respective constructs
(Shoham, 1999). Discriminant validity, on the other hand, was assessed by the fact
that all of the construct intercorrelations were significantly different from 1, and
the shared variance between any two constructs (i.e. the square of their inter-
correlation) was less than the average variance extracted in the items by the construct
(Fornell and Larcker, 1981). Table 2 shows the correlations among the constructs.
Adequate discriminant validity is evident for all constructs because their diagonal
elements are greater than the off-diagonal elements in their corresponding rows
and columns.
As far as the reliability of the constructs is concerned, Table 1 presents the results
of composite reliability and variance extracted. The values for composite reliability
ranged from 0.73 for experience to 0.77 for export assistance, which exceed the
suggested level of 0.70. In terms of variance extracted all constructs also exceed
the recommended minimum level of 0.50. We conclude, therefore, that for all
constructs, the indicators are considered sufficient and adequate in terms of how
the measurement model is specified.

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Table 1. Confirmatory Factor Analysis and Constructs Reliability
Constructs and Items Standardized t-value
Loadings
Export Performance (CR* = .76;VE** = .52)
How competitors rate firm’s export performance 0.645 8.895
Market share 0.813 9.708
Overall satisfaction with firm’s export performance 0.693
Export Assistance (CR* = .77;VE** = .54)
Support from European Union 0.785 8.459
Support from government 0.824 8.323
Support from trade associations 0.567
Distributor Support (CR* = .76;VE** = .51)
Level of cooperation with the distributor 0.766 8.831
Level of interaction with the distributor 0.737 8.768
Overall support to the distributor 0.630
Experience (CR* = .73;VE** = .58)
Export experience 0.819 4.844
Overseas experience 0.696
Model fit indexes are as follows: chi-square = 53.354; d.f. = 48 (p = 0.050); RMSEA = 0.038;
CFI = 0.982; TLI = 0.968; IFI = 0.982
Notes: *Composite reliability (CR) (Bagozzi, 1980); **Variance extracted (VE) (Fornell and
Larcker, 1981)

Table 2. Correlation between Constructs

Construct 1 2 3 4
1 Export Performance 0.721
2 Export Assistance 0.204 0.735
3 Distributor Support 0.560 0.162 0.714
4 Experience 0.344 0.025 0.342 0.762
Note: Diagonal is the square root of the average variance extracted.

Results
The Testing of Hypotheses
Because of the complexity of the model and the need to test the relationships
between the constructs simultaneously, structural equations were used by apply-
ing the maximum likelihood (ML) method (Amos version 5.0). The overall
chi-square for the model exhibited in Figure 2 was non-significant (chi-square =
87.358, d.f. = 68, p > 0.05). This finding suggests that the fit of the data to the
hypothesized model is adequate. Corroborating evidence is provided by the root
mean square error of approximation (RMSEA) fit statistic – the obtained value
of 0.032 is well below the desired 0.08 cutoff-point (see Hair et al., 1998). Similarly,
the results for the comparative fit index (CFI = 0.981), incremental fit index

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Figure 2. Final Model

Note: Standardized parameter estimate above the lines and t-values below the lines.

(IFI = 0.982), and the Tucker-Lewis fit index (TLI = 0.966) are considerably
above the 0.95 threshold (see Hu and Bentler, 1999) denoting good model fit. The
relationships proposed in the model are examined next (Figure 2).
Consistent with hypothesis H1, the results indicate that the greater the experience
of the manager, the higher the level of support given to the distributor as indicated
by a parameter estimated of 0.232 (p < 0.01). Similarly, as predicted by H2, the
degree of technology orientation of the product has a significant positive impact
on the support given to the distributor (0.087; p < 0.10). Supportive findings for H3
(0.420; p < 0.01) indicate that export performance is positively influenced by the
level of support given to the distributor. The results for H4 (0.112; p < 0.10) support
the notion that manager’s international experience is positively related with export
performance. Finally, in relation to H5, the results suggest that export assistance
has a positive effect on the export performance of the firm (0.169; p < 0.10). In sum,
the findings indicate that all five hypotheses tested were supported. In relation to
the control variables, the only significant effect was found between foreign market
coverage and the support given to the distributor (0.021; p < 0.01).

Discussion and Implications

Although an increased number of studies in recent years have been concerned
with export performance and its determinants, little empirical attention has been

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paid to the effects of export assistance and distributor support on the export per-
formance of SMEs. As such, the literature provides little insight into the contribu-
tion these variables make to the performance of the firm. The objective of this study
and, therefore, its contribution to the literature is to provide a better insight into
the impact, if any, these variables have on the performance of small and medium-
sized firms.
Our results indicate that the support given to the distributor has a strong positive
effect on the export performance of SMEs. This highlights the crucial role that the
distributor can play in the development of successful export activities. This finding
supports those studies that emphasize the importance of cooperation between the
firm and the distributor because it can lead to strategic gains and have a positive
effect on export performance (Ling-yee, 2004; Madsen, 1987; Leonidou, Katsikeas
and Samiee, 2002). Consistent with this finding are the results that strongly sup-
port the notion that the greater the experience of the manager the higher is the level
of support provided to the distributor. Indeed a manager with more experience is
more likely to be aware of the importance of the foreign distributor in the success
of the firm in the export market. The relationship with overseas distributors tends to
be more fragile than those with local distributors because of the exposure to higher
uncertainties, such as information asymmetry and consequent monitoring diffi-
culties (Root, 1998). Managers, by becoming more experienced, are more capable
of providing the support and collaboration needed to manage the relationship
successfully. Intensity of interaction tends to foster successful relationships (Ling-yee
and Ogunmokun, 2001) and joint decision-making when the experience is greater
(Rosson and Ford, 1982). Finally, support to the distributor appears to be more
necessary when the product is technically highly complex, which confirms previous
findings (Cavusgil and Zou, 1994; McGuinness and Little, 1981).
The results also indicate that managers’ international experience is positively
associated with export performance. This finding is consistent with previous studies
(Lages and Montgomery, 2005; Leonidou et al., 1998; Wheeler et al., 2008; Zou and
Stan, 1998) and confirms the view that firms benefit from having internationally
experienced managers on their staff. Furthermore, the results provide support for
a positive linkage between export assistance and export performance. This finding
emphasizes that export assistance programmes can make an important contribution to
the export performance of SMEs and supports the call for more of such programmes.
To further support a strong policy argument in favor of such programmes, Coughlin
and Cartwright (1987) found that every increase of $1 in state export assistance
claimed resulted in approximately a $432 increase in exports.
Regarding the control variables, the results show that foreign market coverage
positively influences the support given to the distributor. As discussed in this
article, the link between the firm and its overseas distributor is considered crucial
in the export literature (e.g. Ling-yee and Ogunmokun, 2001). Firms with broader
world market coverage may be more aware of the difficulties and problems in
exporting and therefore emphasize more the importance of providing support to the
distributor. This result is also consistent with the hypothesis that proposed a positive
relationship between manager export experience and distributor support.

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This study also presents certain practical suggestions for managers and policy
makers. First, the research clearly indicates that the support given to the distributor
has a strong effect on the export performance of the firm. Managers responsible
for export operations must therefore be aware of the importance of managing the
relationship with the foreign distributor. Intensity of interaction and cooperation
tend to foster successful relationships as distributors tend to devote more time, effort,
and attention to manufacturers with whom they share strong ties (Nevin, 1995). In
order to develop and sustain international business relationships it may often require
the recruitment of capable and specialized personnel (Leonidou, Katsikeas and
Hadjimarcou, 2002) that demonstrate adequate skills in relationship management,
cross-cultural sensitivity and language proficiency (Cullen et al., 2000).
Our results further indicate that the manager’s international experience is im-
portant in explaining the support given to the distributor and export performance.
In both cases it has a positive effect, which shows that firms should make an effort
in increasing the international experience of their managers. Moreover, the fact
that managers’ skills and knowledge are resources that are difficult to imitate can
create a competitive advantage for the firm (Sousa and Bradley, 2008). Finally, the
results suggest that the use of export assistance programmes can make an important
contribution to the export performance of the firm. For managers, the results show
that by availing themselves of a greater level of export assistance they can expect
increased levels of export performance. For public policy makers, the findings
indicate that they should continue to invest in such programmes and encourage the
firms to use these programmes as much as possible. However, public policy makers
should be aware that export assistance programmes are likely to have the greatest
impact only when they serve the needs of the firms. Typical SME requirements
would include: (1) the provision of information about foreign markets and how
to access them; (2) the provision of advice or consultancy services regarding pro-
duct and marketing programme adaptation; and (3) the provision of finance to
participate in trade missions abroad and finance to attend and participate at trade
fairs where it may be possible to find a distributor.

Limitations and Avenues of Future Research

As with any research there are limitations in our study that offer opportunities
for future research. First, in the present study common method variance bias was
minimized following Jap's (2001) recommendation of not alerting respondents to the
purpose of the study and by separating and mixing all construct items. Respondent
anonymity was also used to protect against possible method biases (Podsakoff
et al., 2003). Nevertheless, two statistical tests were conducted to determine
the extent of possible method variance in the data: the Harman one-factor test
(Podsakoff and Organ, 1986) and the procedure recommended by Podsakoff
et al. (2003). The Harman one-factor test showed that the risk of common method
variance was unlikely to be significant because the exploratory factor analytic results
indicated that a single general factor did not account for most of the variance. In the
procedure recommended by Podsakoff et al. (2003), we re-estimated the model with
all the indicator variables loading on a general method factor. The goodness-of-fit

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International Small Business Journal 27(6)
indices (CFI = 0.501; TLI = 0.279; IFI = 0.514; RMSEA = 0.169) indicate a poor fit,
suggesting that bias arising from common method variance was unlikely. Lastly,
further supporting evidence that the constructs were distinct was provided when
testing for discriminant validity in the confirmatory factor analysis.
Second, we did not consider the role of the stage of export development in this
study. The export literature suggests that export assistance programmes should
differ across the export stages (Leonidou and Katsikeas, 1996). For instance, it has
been found that at the export awareness level, firms worry mainly about information
on foreign markets and customers while at the export interest stage firms become
more concerned about the mechanics of exporting (Czinkota, 1994). Generally,
during the initial export stages firms have a strong need for experiential and gen-eral
information but as they move to more advanced stages, more objective and specific
information is required (Seringhaus, 1986). Hence, public policy makers need not
just to offer sound export assistance programmes but also to tailor them to meet
the different requirements and aspirations of non-exporters, early exporters, and
advanced exporters (Leonidou, 2004; Leonidou and Katsikeas, 1996). Considering
that involvement in export operations is a dynamic process and not static, it is
important that future research should extend this framework by considering the
stage of export development in the firm.
It has been indicated that export performance is a multidimensional construct
and that the use of multidimensional conceptualizations and operationalizations
is necessary for a reliable assessment of the construct (Sousa, 2004). Although we
used three items to operationalize export performance, export market share, overall
satisfaction, and how competitors rate the firm’s export performance, questions
could be raised about capturing the complete construct domain. While some pro-
gress has been made in understanding export performance measurement, there is
still work to be done and future research efforts should aim to clearly delineate the
multidimensional conceptualization and operationalization of the construct.
Another possible limitation of the study is that the generalizability of the findings
may be threatened. To test the general validity of our findings would necessitate
replication of the study in other countries. Generalizations of the findings may
be applicable to countries that are in a similar stage of development and experi-
ence structural characteristics and export conditions comparable to those facing
Portuguese firms. Additionally, the study employed a cross-sectional research
design, an approach that cannot capture the dynamic aspects of the constructs
incorporated in the model. Though difficult to do, future work should consider
adopting a longitudinal design to shed light on these relationships over time. Even
allowing for these possible limitations it is hoped that this study will contribute
toward a better understanding of the effects of export assistance and distributor
support on the export performance of SMEs and encourage fellow researchers to
continue to investigate this important topic.

Acknowledgement
We gratefully acknowledge the financial support to this research by the Business Research
Programme at University College Dublin. We would also like to thank the editor and the
reviewers for their valuable comments and suggestions.

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 Sousa and Bradley: Effects of Export Assistance and Distributor Support

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CARLOS M. P. SOUSA is Lecturer (Assistant Professor) of Marketing at the UCD

Michael Smurfit School of Business at University College Dublin. He received his doctoral
degree from University College Dublin in 2003. His areas of interest include culture and
international marketing, international marketing strategies, and export marketing. He has
published in Journal of International Marketing, Journal of World Business, European Journal of
Marketing, International Journal of Management Reviews, Academy of Marketing Science Review,
Journal of Strategic Marketing, Journal of Marketing Management, among others. Please
address correspondence to: Carlos M. P. Sousa, Marketing Group, UCD Michael Smurfit
School of Business, University College Dublin, Blackrock, Co. Dublin, Ireland.
[email: carlos.sousa@ucd.ie]

FRANK BRADLEY is R & A Bailey Professor of Marketing at the UCD Michael Smurfit
School of Business at University College Dublin. His research addresses international
marketing strategies with special reference to foreign market entry and the impact of
culture and values on the competitive positioning of the firm. The results of this research
may be found in his books International Marketing Strategy, Marketing Management, and
Strategic Marketing and in journals such as: Industrial Marketing Management, Journal of
International Marketing, Journal of World Business, Journal of Business Research, Journal of
Strategic Marketing, Irish Marketing Review, and the Irish Journal of Management. Please
address correspondence to: Frank Bradley, Marketing Group, UCD Michael Smurfit
School of Business, University College Dublin, Blackrock, Co. Dublin, Ireland.
[email: frank.bradley@ucd.ie]

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International Small Business Journal 27(6)

Conséquences de l’aide à l’exportation et du soutien accordé aux

distributeurs sur la performance des PME
L’exemple des entreprises exportatrices portugaises
Carlos M. P. Sousa et Frank Bradley
University College Dublin, Irlande
Les conséquences présumées qu’ont les programmes d’aide à l’exportation et de soutien
accordé aux distributeurs sur les résultats des exportations des PME – bien que intuitivement
rationnelles – n’ont été ni éprouvées ni validées de façon systématique dans les documentations
portant sur les exportations. Pour résoudre ce problème, les auteurs mettent au point un
nouveau modèle, qui intègre ces deux concepts comme variables critiques affectant les résultats
des exportations. Pour vérifier les hypothèses avancées, on a eu recours à une analyse factorielle
confirmatoire et à une modélisation par équation structurelle. Les résultats de la recherche,
s’appuyant sur une enquête réalisée auprès de 287 de cadres supérieurs responsables des
marchés internationaux, indiquent que les programmes d’aide aux exportations et de soutien
aux distributeurs sont des facteurs déterminants des résultats des importations. On procède
à une analyse des implications de ces constatations ainsi que des limites de l’étude.
Mots clés: Soutien aux distributeurs – Aide aux exportations – Résultats des exportations

Los efectos de la ayuda a la exportación y apoyo a los distribuidores sobre

la actuación de las PYME
El caso de las empresas exportadoras portuguesas
Carlos M. P. Sousa y Frank Bradley
University College Dublin, Irlanda
El supuesto efecto de los programas de ayuda a la exportación y apoyo a los distribuidores
en los resultados de las exportaciones de las PYME, aunque racional por intuición, no ha
sido probado ni validado en forma sistemática en la documentación sobre exportaciones.
Para solventar este problema, los autores desarrollan un nuevo modelo el cual integra estos
dos constructos. como variables críticas que afectan los resultados de las exportaciones. Para
comprobar las hipótesis se utilizó un análisis de factores confirmatorios y una modelización
de ecuaciones estructurales. Las conclusiones de la investigación, basadas en una encuesta
de 287 altos funcionarios responsables de los mercados internacionales, indican que los
programas de ayuda a la exportación y apoyo a los distribuidores son importantes factores
determinantes de los resultados de las importaciones. Se analizan las consecuencias de estos
resultados junto con las limitaciones del estudio.
Palabras clave: Apoyo a los distribuidores; ayuda a la exportación; resultados de las
exportaciones.

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 Sousa and Bradley: Effects of Export Assistance and Distributor Support

Auswirkungen von Exporthilfe und Vertriebsunterstützung auf den Erfolg

von KMUs
Im Fall von portugiesischen Exportunternehmen
Carlos M. P. Sousa and Frank Bradley
Universitätskolleg Dublin, Irland
Die mutmaßlichen Auswirkungen von Exporthilfeprogrammen und Vertriebsunterstützung
auf die Exportleistung von KMUs, obwohl augenscheinlich vernünftig, wurde bisher noch nicht
in der Exportliteratur systematisch geprüft oder bestätigt. Um sich dieses Themas anzunehmen
entwickelten die Autoren ein neues Modell, das diese zwei Konstrukte als kritische Variable
mit Auswirkungen auf die Exportleistung vereint. Konfirmatorische Faktorenanalyse und
Strukturangleichungsmodelle wurden verwendet um Hypothesen zu testen. Es wurde
eine Umfrage unter 287 für internationale Märkte verantwortlichen Führungskräften
durchgeführt. Die Umfrageergebnisse weisen darauf hin, dass Exporthilfeprogramme
und Vertriebsunterstützung wichtige Bestimmungsfaktoren der Exportleistung sind. Die
Implikationen dieser Ergebnisse sowie die Grenzen dieser Studie werden diskutiert.
Schlüsselwörter: Vertriebsunterstützung; Exporthilfe; Exportleistung

出口援助与经销商支持对中小企业业绩的影响
葡萄牙出口风险案例
爱尔兰国立都柏林大学：Carlos M. P. Sousa and Frank Bradley

依靠直觉推理假设出口援助项目和经销商支持对中小企业出口业绩的影响到目前为止还没
有得到任何出口文献的系统性模式的检测或证实。为解决这个问题， 本文作者提出了一种
新的模式，融合了这两种对出口业绩重要的可变量影响，运用验证性因素分析和结构性方
程模型对这一假设进行了检测。以对287名负责国际市场高级管理者的调查为依据的研究
结果表明，出口援助与经销商支持是出口业绩的重要决定性因素。本文探讨了这些研究结
果以及研究的局限性。
关键词：distributor support; export assistance; export performance

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