SMEs’ Export Performance: The Effect of Learning Orientation and Innovativeness

Md Daud Ismail, Roshayati Abdul Hamid, Zizah Che Senik, Abdullah Sanusi Othman, Noor Hasni Juhdi

Abstract


ABSTRACT

This study investigates the role of innovativeness and learning orientation on the internationalisation performance of small and medium entrepreneurial firms. Exporting has been the most appropriate mode of expansion into foreign market for SMEs due to lower risk and less resource commitment. The literature insists that future study should pay more attention on how SMEs improve export performance. Review of literature brings to the conclusion that innovativeness and learning orientation are pertinent in building the success of SMEs in export markets. Notwithstanding the existing investigation on the impact of innovativeness on performance, the results are inconclusive, reinforcing the need for investigation in the context of emerging market and SMEs. In addition, learning orientation composed of three dimensions namely managerial commitment, system perspective and openness and experimentation. Previous studies view learning orientation as summate of all three dimensions. Unlike previous studies, this study investigates the effect of each dimension on innovativeness. A conceptual framework was developed based on the resource-based view. Data were collected from small and medium business exporters in the manufacturing sector of an emerging market. A total of 220 respondents participated in this study. Data were analysed using structural equation modeling to test the hypotheses, and the results show that innovativeness is positively related to export performance. In addition, the findings reveal that managerial commitment is a function of innovativeness. System perspective, and openness and experimentation have no significant effect on innovativeness. Implications and limitations are also discussed in this study.

Keywords: Export performance; innovativeness; learning orientation; small and medium enterprises; emerging market

ABSTRAK

Kajian ini menyelidik peranan daya inovasi dan orientasi pembelajaran ke atas prestasi pengantarabangsaan syarikat enteprise kecil dan sederhana. Eksport adalah mod yang paling sesuai untuk memasuki pasaran asing bagi EKS kerana risikonya adalah rendah dan memerlukan komitmen sumber yang kurang. Kajian lepas menekankan bahawa kajian akan datang seharusnya memberi tumpuan kepada aspek bagaimana EKS meningkatkan prestasi eksport. Sorotan kajian lepas membawa kepada kesimpulan bahawa daya inovasi dan orientasi pembelajaran adalah penting kepada EKS untuk mencapai kejayaan di pasaran eksport. Meskipun terdapat kajian berkaitan kesan daya inovasi ke atas prestasi, hasil kajian mendapati tiada keputusan yang telah dicapai dan ini menunjukan bahawa ada keperluan untuk menjalankan kajian dalam kontek pasaran memuncul dan EKS. Sebagai tambahan, orientasi pembelajaran terdiri daripada tiga dimensi iaitu komitmen pengurusan, perspektif sistem dan keterbukaan dan eksperimentasi. Kajian terdahulu melihat orientasi pembelajaran sebagai gabungan semua tiga dimensi. Berbeza dengan kajian lepas, kajian ini menyelidik kesan setiap individu dimensi terhadap daya inovasi. Satu kerangka konsepsual telah dibangunkan mengikut pandangan berasaskan sumber. Data telah dikumpulkan dari syarikat pengeksport kecil dan sederhana dalam sektor pekilangan di pasaran memuncul. Sejumlah 220 responden telah mengambil bahagian dalam kajian ini. Data telah dianalisa menggunakan model persamaan bestruktur untuk menguji hipotesis, dan keputusannya menunjukkan bahawa hubungan di antara daya inovasi dan prestasi eksport adalah positif. Sebagai tambahan, keputusan menunjukkan komitment pengurusan adalah satu fungsi bagi daya inovasi. Perspektif sistem dan keterbukaan dan eksperimentasi tidak mempunyai hubungan yang siknifikan dengan daya inovasi. Implikasi dan limitasi kajian juga dibincangkan dalam kajian ini.

Kata kunci: Prestasi eksport; daya inovasi; orientasi pembelajaran; enteprise kecil dan sederhana; pasaran memuncul


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