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<p>While prior research in the exporting literature has examined how governments use export support programs (ESPs) to strengthen small and medium enterprises’ (SMEs’) learning and linkage mechanisms for export competitiveness, the role of a newly emerging type of ESP—focused on enhancing production capabilities—remains underexplored. Drawing on compositional logic and the Leverage–Linkage–Learning (LLL) internationalization framework, this study conceptualizes a newly emerging Common Facility Center (CFC)-based ESP that aims to enhance production capabilities as a leverage-oriented type, while classifying traditional programs as learning- and linkage-oriented ESPs. Given that ESPs are more salient in emerging markets, we examine both the direct effects of CFC-based ESPs and their synergistic impact when combined with traditional ESPs on SME export performance using a matched dataset of 150 Pakistani SMEs from 2019 to 2022. This study finds that participation in CFCs not only directly enhances firms’ exports but also amplifies the effectiveness of leverage- and learning-oriented programs particularly in the emerging market context. Moreover, the synergistic effects of combining CFC-based and traditional ESPs are further strengthened by an SME’s absorptive capacity, highlighting the role of internal capabilities in maximizing external support benefits. By pioneering the investigation of production capability-focused CFCs as leverage-oriented ESPs, this study extends the SME internationalization literature by offering practical insights for policymakers and managers in emerging markets on integrating government support with firm-level capabilities to achieve superior export outcomes.</p>

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Emerging government export support programs: synergistic interaction with traditional programs and export performance consequences

  • 期刊论文

  • 发表日期：

    2026年6月21日

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  • Khuram Shahzad,
  • Di Fan,
  • Carl F. Fey,
  • Daekwan Kim,
  • Wei Liu

摘要

While prior research in the exporting literature has examined how governments use export support programs (ESPs) to strengthen small and medium enterprises’ (SMEs’) learning and linkage mechanisms for export competitiveness, the role of a newly emerging type of ESP—focused on enhancing production capabilities—remains underexplored. Drawing on compositional logic and the Leverage–Linkage–Learning (LLL) internationalization framework, this study conceptualizes a newly emerging Common Facility Center (CFC)-based ESP that aims to enhance production capabilities as a leverage-oriented type, while classifying traditional programs as learning- and linkage-oriented ESPs. Given that ESPs are more salient in emerging markets, we examine both the direct effects of CFC-based ESPs and their synergistic impact when combined with traditional ESPs on SME export performance using a matched dataset of 150 Pakistani SMEs from 2019 to 2022. This study finds that participation in CFCs not only directly enhances firms’ exports but also amplifies the effectiveness of leverage- and learning-oriented programs particularly in the emerging market context. Moreover, the synergistic effects of combining CFC-based and traditional ESPs are further strengthened by an SME’s absorptive capacity, highlighting the role of internal capabilities in maximizing external support benefits. By pioneering the investigation of production capability-focused CFCs as leverage-oriented ESPs, this study extends the SME internationalization literature by offering practical insights for policymakers and managers in emerging markets on integrating government support with firm-level capabilities to achieve superior export outcomes.