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Organizational capabilities and SME exports: the moderating role of external funding intentions and managerial capacity

Author

Listed:
  • Ko Wai Wai

    (Brunel University London)

  • Catherine Liston-Heyes

    (University of Ottawa)

  • Weixi Liu

    (University of Bath)

  • Gordon Liu

    (The Open University)

  • Marc Cowling

    (University of Derby, College of Business)

Abstract

Entry to export markets can stimulate business growth, yet remarkably few small- and medium-sized enterprises (SMEs) pursue export strategies. Using data gathered from the UK Small Business Surveys and a theoretical framework that combines principles from the resource-based view of the firm with notions of “investment readiness” and “managerial capacity,” we examine the empirical relationships between new product development (NPD) and new market entry (NME) capabilities on UK SMEs export decisions. Among other things, we find that there are contexts in which SMEs should develop these capabilities concurrently and others in which they should develop them independently to minimize added managerial complexity. Our results also indicate that in the absence of strong managerial capacity, SMEs should prioritize NME over NPD capabilities. Our findings produce several interesting theoretical and practical implications for SME exports.

Suggested Citation

  • Ko Wai Wai & Catherine Liston-Heyes & Weixi Liu & Gordon Liu & Marc Cowling, 2022. "Organizational capabilities and SME exports: the moderating role of external funding intentions and managerial capacity," Small Business Economics, Springer, vol. 58(1), pages 247-261, January.
    • Handle: RePEc:kap:sbusec:v:58:y:2022:i:1:d:10.1007_s11187-020-00408-x
    DOI: 10.1007/s11187-020-00408-x
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    More about this item

    Keywords

    Exports; New product development; New market entry; External funding intentions; Managerial capacity; Small- and medium-sized enterprises;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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