- P-ISSN1738-3110
- E-ISSN2093-7717
- SCOPUS, ESCI
ISSN : 1738-3110
Environment, Competence, and Strategy Effects on the Export Performance of Regional SMEs
Huh, Moo-Yul
Abstract
Purpose - Exports have long been regarded as significant drivers of sustainable competitive advantage and growth among small and medium enterprises (SMEs). The export activities of SMEs are particularly important in the context of export-oriented economies such as Korea. Although many studies have examined the determinants of exports, it is difficult to find empirical studies about the determinants of the export performance of regional SMEs. This study investigates the determinants of export performance in the regional SME context based on an integrated approach that combines the environment factor of industrial organization theory, competitive strategy theory, and the competences of the resource-based view. Research design, data, and methodology - To empirically analyze the determinants of export performance in the regional SMEs, data were collected from firms in the Daegu metropolitan area. Data were collected directly through questionnaire surveys; in addition, secondary financial data were also taken from the KIS-VALUE database. Out of the 175 responses that were received, 143 were considered to be worth examining. After testing the reliability and validity of the variables through multiple items such as environmental turbulence and competitive strategy, hypotheses were verified by using five multi-regression models. These models were: a control model with organizational size and age, an environmental model with technology and market turbulence, a competency model with R&D and foreign distribution channels, a strategy model with product and market differentiation, and an integrated model including all of these variables. Results - First, as a control variable, the organization size has significant positive effects on export performance. Second, technology turbulence based on industrial organization theory has significant positive effects on export performance, but market turbulence does not affect export performance. Third, the foreign market distribution competency of the resource-based view has strong positive effects on export performance, but the R&D competency does not affect export performance. Fourth, the product differentiation strategy from competitive strategy theory positively impacts export performance, but market differentiation does not affect export performance. Finally, in the integrated model, only the foreign distribution competency of the resource-based view has a significant effect on export performance. Conclusions - The empirical results of this study verified the usefulness of the rationales behind the three theories to explain the export performance of the regional SMEs, especially the importance of the foreign market distribution competency from the resource-based view. With regard to practical considerations, this study's implications suggest that the use of technological environmental changes by industries is better than the use of market changes. Further, the use of the product differentiation strategy is more effective than the use of the market-driving strategy, and the distribution channel competency plays a stronger role than the technology-oriented competency with regard to the export performance position of regional SMEs. Future studies should examine relational perspectives, such as trust among channel partners. Therefore, the configuration approach is more useful in enhancing pragmatism by comparing high- and low-export companies.
- keywords
- Export Performance, Regional SMEs, Environment, Competence, Strategy
Reference
Barney, J. B.(1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120.
Cavusgil, S. T., and Zou, S.(1994). Marketing Strategy-Performance Relationship, An Investigation of the Empirical Link in Export Market Ventures. Journal of Marketing, 58(Jan), 1-21.
Cavusgil, S. T., Zou, S., and Naidu, G. M.(1993). Product and Promotion Adaptation in Export Ventures, An Empirical Investigation. Journal of International Business Studies, 24(3), 479-506.
Chinomona, R.(2012). The Role of Dealers’Non-Mediated Power in Fostering SME Manufacturers’ Cooperation, SME Manufacturers’ Perspective. The International Journal of Industrial Distribution and Business, 3(2), 5-16.
Cho, Y. S.(2012), In Relation to Entrepreneurship and Export Performance of Small and Medium Manufacturing Firm, the Mediating Effect of Product Differentiation Capabilities. International Commerce and Information Review, 14(3), 113-138.
Cho, Y. S., and Park, K. H.(2010). A Comparative Study on the Determinants of Export Performance of Export Venture Firms by Export Timing. Journal of Korean Academic Association of Business Administration, 23(2), 713-730.
Day, G. S., and Wensley, R.(1988). Assessing Advantage, A Framework for Diagnosing Competitive Superiority. Journal of Marketing, 52(April), 1-20.
Douglas, S. P., and Craig, C. S.(1989). Evolution of Global Marketing Strategy, Scale, Scope and Synergy. Columbia Journal of World Business, 24(1), 47-59.
Downs, G. W., and Mohr, L. B.(1976). Conceptual issues in the study of innovation. Administrative Science Quarterly, 21, 700-714.
Hang, G.(2012). Study on Changes and Development Trends of the Trade Structure between Korea and China. East Asian Journal of Business Management, 2(1), 19-23.
Hwang, K. Y.(2010). An Empirical Study on e-Business Competence and Export Performance of Small and Medium Sized Firms. International Commerce and Information Review, 12(3), 311-332.
Kalinic, I., and Forza, C.(2012). Rapid Internationalization of Traditional SMEs, Between Gradualist Models and Born Globals. International Business Review, 21, 694-707.
Kang, N., Seo, M. K., and Kim, T. H.(2009). The Concept, Antecedents of Export Planning Orientation and Its Relationship with Export Marketing Competencies Focusing on the Mediating Roles of EAPs. Journal of Korean Academic Association of Business Administration, 22(4), 2299-2317.
Kim, G. O.(2012). An Empirical Study on the Factors Influencing the Innovations of Korea's Exporting Companies and Export Performance. Journal of Korean International Commerce and Information, 14(2), 201-225.
Kim, M. H.(2009). A Study on the Influences that Entrepreneurship and Local Physical Distribution Networks Affect Corporate Capabilities and the Performances of Korean Exporting Ventures. Korea Logistics Review, 19(5), 103-131.
Kim, N. M., and Youn, M. K.(2014). Global Distribution Enterprises' Entry into the Chinese Market, Focus on the Three Northeastern Provinces. International Journal of Industrial Distribution and Business, 5(3), 25-34.
Kim, J. K.(2001). An Empirical Study on the Determinants of Export Performance by Korean Small and Medium Firms. Journal or Korea Trade, 9, 323-351.
Ko, K. S.(2002). Internet Marketing Strategy and Performance in the Korean Small Export Fims. International Commerce and Information Review, 4(1), 107-128.
Kohli. A. K., and Jaworski, B. J.(1990). Market Orientation, The Construct, Research Propositions, and Managerial Implications. Journal of Marketing, 54(2), 1-18.
Mago, G., Musasa., G., and Matunhu, J.(2013). The Impact of Globalization on Business and Economic Development in Zimbabwe. East Asian Journal of Business Management, 3(2), 31-37.
Miller, D., and Friesen, P. H.(1984). A longitudinal study of the corporate life cycle. Management Science, 30, 1161-1183.
Moon, H. C., and Bae, M. R.(2013). An Empirical Study on the Determinants of the Service Quality of the TSOs and Performance of the Exporting Firms. Journal of International Trade and Commerce, 9(1), 1-25.
Lee, H. Y., Yoon, J. H., and Yeo, T. D.(2011). The Impacts of Internationalization Determinants of Exporting SMEs in Deagu and Gyeongbuk on Internationalization Performance. International Commerce and Information Review, 13(3), 435-462.
Morgan, N. A., Kaleka, A., and Katsikeas, C. S.(2004). Antecedents of Export Venture Performance, A Theoretical Model and Empirical Assessment. Journal of Marketing, 68(1), 90-108.
Nam, Y. H., and Lee, C.(2013). Developing an Integrated Model of Determinants of Export Performance, International Business Studies, 24(1), 77-118.
Park, K. H.(2007). Supply Chain Characteristics, Foreign Market Knowledge and Export Performance. Journal of Korean Production and Operation Management Society, 18(4), 33-58.
Park, W. S., and Kim, D. H.(2007). A Study on the Factors affecting the Export Performance of Ventures. The Journal of Business and Venturing, 2(1), 11-36.
Peteraf, M. A.(1993). The Cornerstones of Competitive Advantage, A Resource- Based View. Strategic Management Journal, 14(3), 179-191.
Rao, C. P., Pearce, J. L. and Xin, K.(2005). Organizational Scholarship and the Eradication of Global Poverty. Academy of Management Journal, 48(6), 970- 972.
Spanos, Y. E., and Lioukas, S.(2001). An Examination into the Causal Logic of Rent Generation, Contrasting Porter's Competitive Strategy Framework and the Resource-Based Perspective. Strategic Management Journal, 22(10), 907-934.
Styles, C., Patterson, P. G., and Ahmed, F.(2008), A Relational Model of Export Performance. Journal of International Business Studies, 39, 880-900.
Viatkina, T.(2014), Strategic Resource Initiative of Enterprise. East Asian Journal of Business Management, 4(4), 5-11.
Yoon, B. S., and Jeon, B. M.(2012). A Study on Effects of Corporate Venture Capital on Building Up the Internal Corporate Venture’s Export Competency. Journal of Korean Academic Association of Business Administration, 25(5), 2391-2412.
Yoon, H. D., Kwak, K. Y., and Seo, R. B.(2012). The Effects of Global Entrepreneurship and Social Capital within Supply Chain on the Export Performance. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 7(3), 1-16.
- Downloaded
- Viewed
- 0KCI Citations
- 0WOS Citations