Do contingencies matter between organizational capabilities and SME export performance?

Abstract

Purpose Drawing on the resource-based view and contingency theory, this study aims to investigate the effects of organizational capabilities – technology capability and marketing capability – on small- and medium-sized enterprises’ (SMEs’) export performance and the moderating roles of contingent factors in this relationship in the context of a highly competitive export-oriented economy. Design/methodology/approach The research framework was tested using a three-way stepwise hierarchical multiple regression analysis with data gathered from 531 Korean international SMEs. Findings In addition to the direct effects of two types of organizational capabilities on export performance, the results show that both capabilities were critical when the export market was competitive, and marketing capability was more important when exporting with a brand name and targeting a developing country. Originality/value This study further extends the literature on SMEs’ internationalization in the context of highly competitive export-driven markets and highlights the importance of strategically allocating SMEs’ capabilities to reap optimal export performance by considering dynamic contingencies.