Examining the Role of Government Support in the International Performance of Small and Medium-Sized Enterprises

Sedigheh Mousavi, Mohammad Reza Salmani Beshak, Mohammad Faryabi and Behzad Salmani
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Sedigheh Mousavi: Ph.D. Candidate in Economics, Faculty of Economics and Management, University of Tabriz, Tabriz, Iran
Mohammad Reza Salmani Beshak: Associate Professor, Faculty of Economics and Management, University of Tabriz, Tabriz, Iran
Mohammad Faryabi: Associate Professor, Department of Management, Faculty of Economics and Management, University of Tabriz, Tabriz, Iran
Behzad Salmani: Professor, Department of Management, Faculty of Economics and Management, University of Tabriz, Tabriz, Iran

Quarterly Journal of Applied Theories of Economics, 2025, vol. 12, issue 2, 29-54

Abstract: Today, the complex and evolving changes in economic activities, coupled with the rapid pace of globalization, have established international trade as a key driver of economic growth and development across all nations. The significance of trade liberalization is particularly pronounced in developing countries, where unfavorable economic conditions necessitate a greater focus on promoting and expanding economic activities. Moreover, small and medium-sized enterprises (SMEs) play a crucial role in shaping a country's economic landscape. As a result, policymakers and economists have consistently sought to implement measures that enhance the international performance of these enterprises. In line with this, the primary objective of this study is to assess the impact of government support, in the form of export promotion programs, on the international performance of small and medium-sized enterprises (SMEs) in the northern provinces of Iran. To achieve this goal, data was collected and analyzed through a questionnaire completed by 340 managers of small and medium-sized companies in the aforementioned provinces. Applying a structural equation modeling approach, the findings of this study reveal that the government's export promotion programs have a positive and significant influence on the international performance of companies, primarily through two channels: risk management methods (with a coefficient of 0.59) and the promotion of export capabilities (with a coefficient of 0.73).

Keywords: Export Promotion Programs; Government Support; Small and Medium Enterprises; International Performance (search for similar items in EconPapers)
JEL-codes: M16 (search for similar items in EconPapers)
Date: 2025
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