Export promotion programs and the export performance of cocoa exporting companies in Uganda

Abstract

The cocoa industry in Uganda plays a pivotal role in contributing to Uganda's foreign exchange earnings and income generation. However, recent trends reveal a noteworthy shift in the industry's performance posing a potential concern for Uganda's economic stability and foreign exchange earnings. The purpose of this study was to establish the relationship between export promotion programs and export performance of cocoa exporting companies in Uganda and assess the moderating role of management capabilities in the relationship between export promotion programs and export performance. Based on a literature review, a conceptual model was constructed to link the variables. A quantitative and correlational research design was adopted for this study, and purposive sampling technique employed to select participants with specialized managerial experience and knowledge in the cocoa exports sector. The study's findings showed a significant and positive correlation between export Promotion Programs and the Export Performance of cocoa exporting firms. Notably, Export Promotion Programs emerged as strong predictors of export performance, indicating their potential to substantially enhance sales, profits and market for cocoa exporters. A positive and significant relationship was noted between Export promotion programs and management capabilities. Export promotion programs like capacity building, training and market information lead to improvement in the management skills, knowledge, competencies and attributes of the managers. Conversely, the study revealed that Management capabilities did not exert a significant influence on export performance and did not significantly moderate the relationship between export promotion programs and cocoa export performance. Based on these findings, the study recommends that both the Government and Industry stakeholders should invest in strengthening and expanding Export Promotion Programs within Uganda's cocoa industry. These programs should prioritize initiatives aimed at increasing market awareness, providing comprehensive support, and enhancing the overall competitiveness of cocoa exporters in the region.