Paper info: Effect of Export Market Knowledge Acquisition Through Business Relationships on Export Performance of UK SMEs
Title
Effect of Export Market Knowledge Acquisition Through Business Relationships on Export Performance of UK SMEs
Authors
Colin Wheeler, Stephen Tagg and Thandiwe Mtetwa
Place of Publication
The paper was published at the 27th IMP-conference in Glasgow, Scotland in 2011.
Download
 | Download paper (476.9 kb) |
Abstract
ABSTRACT
This study focuses on the role of business relationships as a means of acquiring export market knowledge and its impact on export performance. The study mainly draws from the Resource Based View (RBV), the Relational View (RV) and the classical internationalisation theories to develop a model that explores the link between an exporter‟s acquisition of market knowledge through business relationships and export performance.
Data was collected from 139 UK small and medium enterprises (SMEs) to test a structural model. Firstly, the model assessed if the experiential market knowledge collected through a key business contact had a positive impact on the export performance of the venture. Secondly, the model assessed if the market knowledge shared in the relationship was exclusive enough to explain the export venture‟s performance.
Findings revealed that both experiential knowledge and relationship exclusiveness of knowledge were significant contributors to export venture performance. Results also showed that an export manager‟s current level of foreign market knowledge influenced his ability to acquire experiential market knowledge. In addition, the quality of the relationship influenced the degree to which the knowledge acquired through a business relationship remained exclusive (relationship embeddedness of knowledge).
The study concludes with a discussion on the implications for export performance theory, implications for SME exporters and suggestions for future research.
Key words: business relationships, experiential knowledge, SMEs, export performance
This study focuses on the role of business relationships as a means of acquiring export market knowledge and its impact on export performance. The study mainly draws from the Resource Based View (RBV), the Relational View (RV) and the classical internationalisation theories to develop a model that explores the link between an exporter‟s acquisition of market knowledge through business relationships and export performance.
Data was collected from 139 UK small and medium enterprises (SMEs) to test a structural model. Firstly, the model assessed if the experiential market knowledge collected through a key business contact had a positive impact on the export performance of the venture. Secondly, the model assessed if the market knowledge shared in the relationship was exclusive enough to explain the export venture‟s performance.
Findings revealed that both experiential knowledge and relationship exclusiveness of knowledge were significant contributors to export venture performance. Results also showed that an export manager‟s current level of foreign market knowledge influenced his ability to acquire experiential market knowledge. In addition, the quality of the relationship influenced the degree to which the knowledge acquired through a business relationship remained exclusive (relationship embeddedness of knowledge).
The study concludes with a discussion on the implications for export performance theory, implications for SME exporters and suggestions for future research.
Key words: business relationships, experiential knowledge, SMEs, export performance