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Effect of innovation capabilities on export performance: evidence from manufacturing SMEs in Tanzania

Effect of innovation capabilities on export performance: evidence from manufacturing SMEs in... This paper examines the relationship between product innovation (PRODIN), process innovation (PROCIN) and export performance (EXPF) of manufacturing small-and medium-sized enterprises (SMEs). Moreover, the paper investigates the moderating effect of marketing innovation (MAKIN) in the relationship between PRODIN, PROCIN and the SMEs' EXPF.Design/methodology/approachA cross-sectional survey design was used and data were collected through structured questionnaires from 250 manufacturing exporting SMEs in Tanzania. CFA was used to test the measurement model. The hypotheses were empirically tested using PROCESS macro test.FindingsThe findings suggest that PRODIN is a significant determinant of EXPF. However, PROCIN was found to have a significant negative effect on EXPF. Additionally, MAKIN was found to be a significant moderator of the relationship between PRODIN, PROCIN and EXPF.Research limitations/implicationsThis study covered only manufacturing SMEs. Future studies can include large firms because they may behave differently on innovations due to the resources advantage they have. Also, because only a single country context was used, the findings of this study should be interpreted with caution.Practical implicationsManagers of exporting SMEs should develop and cultivate PRODIN and MAKIN to nurture EXPF of their firms.Originality/valueThe findings of this study extend the application of resource-based view theory in exporting context by unpacking the process through which resources result in successful performance. Also, this study contributes to the debate about the innovation–EXPF relationship by establishing a moderating effect of MAKING in the relationship between PRODIN, PROCIN and EXPF. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Technological Sustainability Emerald Publishing

Effect of innovation capabilities on export performance: evidence from manufacturing SMEs in Tanzania

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References (73)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
2754-1312
eISSN
2754-1320
DOI
10.1108/techs-09-2022-0038
Publisher site
See Article on Publisher Site

Abstract

This paper examines the relationship between product innovation (PRODIN), process innovation (PROCIN) and export performance (EXPF) of manufacturing small-and medium-sized enterprises (SMEs). Moreover, the paper investigates the moderating effect of marketing innovation (MAKIN) in the relationship between PRODIN, PROCIN and the SMEs' EXPF.Design/methodology/approachA cross-sectional survey design was used and data were collected through structured questionnaires from 250 manufacturing exporting SMEs in Tanzania. CFA was used to test the measurement model. The hypotheses were empirically tested using PROCESS macro test.FindingsThe findings suggest that PRODIN is a significant determinant of EXPF. However, PROCIN was found to have a significant negative effect on EXPF. Additionally, MAKIN was found to be a significant moderator of the relationship between PRODIN, PROCIN and EXPF.Research limitations/implicationsThis study covered only manufacturing SMEs. Future studies can include large firms because they may behave differently on innovations due to the resources advantage they have. Also, because only a single country context was used, the findings of this study should be interpreted with caution.Practical implicationsManagers of exporting SMEs should develop and cultivate PRODIN and MAKIN to nurture EXPF of their firms.Originality/valueThe findings of this study extend the application of resource-based view theory in exporting context by unpacking the process through which resources result in successful performance. Also, this study contributes to the debate about the innovation–EXPF relationship by establishing a moderating effect of MAKING in the relationship between PRODIN, PROCIN and EXPF.

Journal

Technological SustainabilityEmerald Publishing

Published: Jan 26, 2024

Keywords: Export performance; Innovation capabilities; SMEs; Tanzania

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