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Investigating Competition and Cooperation among Export Promotion Organizations
July 2002

Export promotion organizations (EPOs) encourage local business communities to market their goods more efficiently and effectively in the international marketplace through the services that they provide to existing and potential exporters.  EPOs strive to (1) generate awareness of export opportunities, (2) provide access to export expertise and know-how, (3) offer export planning and preparation assistance, and (4) support foreign market activity through organizational help and cost sharing (Seringhaus and Botschen 1991).  EPOs disseminate information (e.g., conducting foreign market research; providing information about export laws, financial assistance, paperwork, and processes; offering educational conferences and seminars; disseminating information about export opportunities and industry trends).  They also forge relationships (e.g., brokering relationships between buyers, suppliers, and other exporters through trade fairs, missions, and other networking activities).  Many EPOs play a lobbying role, representing exporter interests to the government and public (ITC 1986).  International marketing scholars have suggested that EPOs can be vehicles for export-led, national economic growth (e.g., Czinkota 1982, 2001; Seringhaus 1987, 1993). 

Investigations regarding EPO performance have examined how exporter awareness and use of EPO services impact firm-level export sales.  The majority of this research consists of case studies of single EPOs in a particular national context.  Perhaps reflecting the global predominance of the public-sector EPO organizational form,  the bulk of EPO case studies examines public-sector EPO efficacy (e.g., Olson 1975; Czinkota 1983; Keesing and Singer 1990a, 1990b; Seringhaus 1986, 1987, 1993; Seringhaus and Rosson 1990, 1991).  Fewer studies have explored the performance of private-sector EPOs (e.g., Seringhaus and Botschen 1990; Riddle 2001). 

Yet, the case study approach to EPO research fails to reflect the full EPO landscape reality faced by exporters.  Often there are multiple organizations that provide export-promotion assistance services to exporters within a particular country.  Export-promotion services can be provided by several distinct governmental agencies.  For example, in the United States, export-promtotion services are offered by the US Department of Commerce, Export-Import Bank, Foreign Agriculture Service, the Trade Development Agency, and OPIC—just to name a few.  Multiple private-sector organizations may provide export-promotion services.  Both the Turkish Clothing Manufacturers’ Association and the Istanbul Textile and Clothing Exporters Union offer export-promotion services to clothing producers in Istanbul, Turkey.  Export-promotion services also may be offered by a combination of public- and private-sector organizations, as they are in many newly industrialized countries (Keesing and Singer 1990a).

But, little is known about how EPOs coexist in the same national context.  Do they compete with one another for exporter attention and patronage?  How do they differentiate themselves from other EPOs, and how is this differentiation communicated to exporters?  For example, EPOs might differentiate themselves by strategically targeting their services to a specific subset(s) of exporters (e.g., SMEs, traditional or non-traditional export industries, exporters from particular geographic areas).  Similarly, they may develop core competencies in certain types of services (e.g., educational seminars, foreign market research, trade missions). 

Do EPOs cooperate with one another?  EPOs may coordinate activities and services, such as jointly sponsored research activities or training programs or providing information and links about other EPOs on their web pages.  Theory from the interorganizational relationship and strategic alliance literatures may prove useful in explaining how, why, and to what extent EPOs cooperate with one another. 

Future research should strive to explore the broader organizational field that exporters face in the export-promotion assistance environment.  EPO interorganizational activity may offer an untapped storehouse of potentially valuable data.  EPOs that compete and/or cooperate with one another may be more successful in generating exporter awareness of their services, inspiring exporters to utilize the services that they provide, and impacting firm-level export sales.  Investigations regarding EPO competition and cooperation may shed new light on the determinants of EPO success.

 
Liesl Riddle, The George Washington University
    
   
   
   
   
   
 
References

Czinkota, Michael. 1982. Export Development Strategies: US Promotion Policies. New York: Praeger.

_____. 1983.  Export Promotion. New York: Praeger Publishers.

_____. 2001. “A National Export Assistance Policy for New and Growing Businesses” in Best Practices in International Business, Michael R. Czinkota and Ilkka A. Ronkainen (eds.) Fort Worth, TX: Harcourt Publishers.

ITC. 1986. Trade Promotion Institutions: Monograph on the Role and Organization of Trade Promotion, International Trade Centre UNCTAD/GATT, Geneva.

Keesing, Donald B. and Andrew Singer. 1990a. “Development Assistance Gone Wrong: Why Support Services Have Failed to Expand Exports.” Policy, Research, External Affairs Working Paper WPS543, Country Economics Department, The World Bank, November 1990.

____________ and ____________. 1990b. “How Support Services Can Expand Manufactured Exports: New Methods of Assistance” Policy, Resarch, External Affairs Working Paper WPS544, Country Economics Department, The World Bank, November 1990.

Olson, H.C. 1975. Studies in Export Promotion. Acta Universitatis Upsaliensis studia Oeconomiae Negotiorum 10, Stockholm, Alqvist and Wiksell International.

Riddle, Liesl. 2001. The Social Embeddedness of Export Promotion Organization in the Turkish Clothing Industry.  Unpublished PhD Dissertation.  Austin, Texas: The University of Texas at Austin.

Seringhaus, F.H.R. 1986. “Impact of Government Export Marketing Assistance” International Marketing Review, Vol.3(2); pp. 55-66.

_____. 1987. “Export Promotion: The Role and Impact of Government Services” International Marketing Review, Vol.2: pp.106-116.

_____. 1993. “Export Promotion in Developing Countries: Status and Prospects.” Journal of Global Marketing 6(4): 7-29.

____________ and Guenther Botschen. 1991. “Cross-National Comparison of Export Promotion Services: The Views of Canadian and Austrian Companies” Journal of International Business 22(1):115-134.

____________ and Philip J. Rossen. 1990. Government Export Promotion: A Global Perspective. London: Routledge.

_____. 1991. Export Development and Promotion: The Role of Public Organizations.  Boston: Kluwer Academic Publishers.