Examining the role of international entrepreneurial orientation, domestic market competition, and technological and marketing capabilities on SME’s export performance

The purpose of this paper is to extend our understanding of the development of small- and medium-sized enterprise (SME) organizational capabilities and their contributions to export performance by incorporating two antecedents: one from the internal environment (international entrepreneurial orientation) and another from the external environment (domestic market competition).

A proposed framework built on resource-based view and contingency theory was tested using partial least squares with data collected from 470 Korean SMEs.

International entrepreneurial orientation and domestic market competition both prompted SMEs to develop their technological and marketing capabilities, leading to enhanced performance in international markets. Full mediating effects of technological and marketing capabilities were discovered between international entrepreneurial orientation and export performance.

Given the direct effect of organizational capabilities on export performance, SMEs should facilitate the spirit of international entrepreneurial orientation and heightened managerial awareness of domestic market competition to efficiently cultivate organizational capabilities.

Unique findings indicate that SME capabilities can be optimally cultivated under the coexistence of an internal impetus (i.e. international entrepreneurial orientation) and a harsh external environment (i.e. domestic competition), demonstrating the significance of context in developing organizational capabilities.