Relationships Between the Capabilities and Export Performance of Korean Clothing and Textiles SMEs and the Moderating Effects of Export Mode on These Relationships

Abstract

The authors proposed hierarchical (stepwise) regression models to test the hypothesized relationships between capabilities and the export performance of Korean clothing and textiles small- and medium-sized enterprises (SMEs), along with the moderating effects of export mode (exporting own-brand products versus exporting products under original equipment manufacturing [OEM] contracts) on these relationships. The authors show that both technological capability (TC) and the ability to leverage foreign-distributor capabilities (ALFDCs) are positively related to strategic export performance; marketing capability (MC) is positively related to financial export performance; TC and the ALFDCs are related more strongly to strategic export performance for SMEs exporting own-brand products than those exporting under OEM contracts; and MC is related more strongly to financial export performance for SMEs exporting own-brand products than those exporting under OEM contracts. In addition, strategic export performance is positively related to financial export performance. From these results, the authors offer implications for managers and future researchers.