The role of firm resources, capabilities, and export promotion programs in enhancing export performance: the mediating effect of product adaptation in Ethiopia’s leather industry

Mohammed Hassen Yimam (), Aschalew Degoma Durie () and Gashaw Moges Yimer ()
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Mohammed Hassen Yimam: Bahir Dar University, Ethiopian Institute of Textile and Fashion Technology, P. O. Box 1037, Bahir Dar
Aschalew Degoma Durie: Bahir Dar University, College of Business and Economics, P. O. Box 79, Bahir Dar
Gashaw Moges Yimer: Bahir Dar University, College of Business and Economics, P. O. Box 79, Bahir Dar

Future Business Journal, 2025, vol. 11, issue 1, 1-15

Abstract: Abstract This study investigates the drivers of export performance in Ethiopia’s leather industry, focusing on firm resources, export promotion programs, and firm capabilities. Motivated by the need to improve Ethiopia's competitiveness in global leather markets, the study examines how these internal and external factors influence export success, with a particular emphasis on the mediating role of product adaptation strategies. Employing a quantitative approach, survey data were collected from 187 top-level managers across 97 medium and large leather-exporting firms. Partial Least Squares Structural Equation Modeling (PLS-SEM) was applied to test the hypothesized relationships. The findings reveal that firm resources and capabilities significantly enhance export performance both directly and indirectly through product adaptation strategies. While export promotion programs positively influence export performance, they do not significantly influence product adaptation. Furthermore, product adaptation mediates the relationships between firm resources, capabilities, and export performance, but not between export promotion programs and export performance. These results underscore the importance of aligning internal resources and capabilities with product adaptation strategies to enhance global competitiveness. The study offers valuable insights for policymakers and industry stakeholders, suggesting that targeted support for firm-level competencies and product adaptation can foster sustainable growth in international markets.

Keywords: Export performance; Export promotion programs; Firm capabilities; Firm resources; Product adaptation (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1186/s43093-025-00569-9

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