Year: 2011
Type: article
Abstract: Background: Small exporting firms from a developing economy like the Philippines need to build and nurture their relation capital as well as gain adequate knowledge about exporting in order to succeed in their export ventures. Given the institutional voids in developing economies, relational capital and export knowledge have become critical sources of competitive advantage that enable these small firms to successfully exploit business opportunities overseas. It is not clear however, how relational capital and export knowledge relate to each other such that they synergistically and positively contribute to firm performance in the context of small exporters in the Philippines. \nAims: This paper challenges the conventional view that relational capital is an antecedent to knowledge within the firm. Rather, we argue that relational capital is the mechanism through which knowledge is able to influence firm performance, particularly for exporting SMEs in developing countries. The main purpose is to test the direct, indirect and mediating effects of relational capital on the relationship between export knowledge and firm performance. \nMethod: The study uses survey data from a sample of 175 SMEs engaged in exporting from the Philippines. SEM is used to estimate the direct, indirect and mediating effects similar to the approach used by Kelloway (1998) and James & Brett (1984). \nResults: The results confirm that both export knowledge and relational capital are positively related to firm performance and that the latter has partial mediating effects on the relationship between export knowledge and firm performance. \nConclusion: The findings challenge the conventional wisdom that export knowledge is an antecedent to relational capital. The findings in this study suggest that relational capital allows firms to exploit existing export knowledge and they are able to improve their performance despite the institutional void often present in developing countries.
Authors: Doren Chadee, Banjo Roxas
Institution: University of Southern Queensland
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W178248159