EXPORT PERFORMANCE THROUGH RELATIONAL CAPITAL; THE ROLES OF VALUE CREATION AND JOINT INNOVATION CAPABILITIES

Abstract

In modern economic system, no country can survive at its own. Countries are dependent on each other for one or another good. Countries producing more are exporting surplus goods to earn. Thus, countries having good export performance are economically strong. It is therefore essential to search different variables that can boost export performance of a country via improving export performance of different firms working in the country. There are limited studies that focused on this relationship. Furthermore, existing studies used single variable and does not capture extra details.

This study aimed to investigate the predicted causal link between RC and EP in manufacturing SMEs in developing economies like Pakistan. Specifically, it examined how joint innovation capabilities and VC mediate this relationship. This positivistic study is cross-sectional, and data was collected from the owners and senior management of manufacturing SMEs in Pakistan. Standardized scales were adapted from existing studies. Sample was calculated using power analysis. The results show that relational capital is a predictor of export performance of SMEs firms working in Pakistan. Furthermore, results also supported the hypothesis that value creation and joint innovation capabilities work as mediators in the relationship of relational capital and export performance.