Does relational capital mediate the effects of export knowledge on firm performance?

Chadee, Doren and Roxas, Banjo (2011) Does relational capital mediate the effects of export knowledge on firm performance? In: 10th International Research Conference on Quality, Innovation and Knowledge Management: Aligning Innovation in Developed and Emerging Economies (QIK 2011), 15-18 Feb 2011, Kuala Lumpur, Malaysia.

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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. Aims: 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. Method: 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). Results: 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. Conclusion: 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.


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Item Type: Conference or Workshop Item (Commonwealth Reporting Category E) (Paper)
Refereed: Yes
Item Status: Live Archive
Additional Information: No evidence of copyright restrictions preventing deposit.
Depositing User: epEditor USQ
Faculty / Department / School: Historic - Faculty of Business and Law - School of Management and Marketing
Date Deposited: 29 May 2012 04:47
Last Modified: 03 Jul 2013 01:12
Uncontrolled Keywords: export knowledge; relational capital; performance; Philippines
Fields of Research (FOR2008): 15 Commerce, Management, Tourism and Services > 1503 Business and Management > 150308 International Business
15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150205 Investment and Risk Management
14 Economics > 1402 Applied Economics > 140210 International Economics and International Finance
Socio-Economic Objective (SEO2008): B Economic Development > 91 Economic Framework > 9104 Management and Productivity > 910402 Management
URI: http://eprints.usq.edu.au/id/eprint/21314

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