Determinants of Export performance in SMEs: An Interpretive Structural Modelling (ISM) and MICMAC Approach

Purpose: This current research seeks to determine and discuss the most powerful determinants that improve the performance of the Small and Medium Enterprises (SMEs) in exports. The main aim is to come up with a methodological structural paradigm explaining the interplay of managerial, strategic, technological, and operational, toward enhancement of international competitiveness and success in exports. This research paper provides policymakers, SME support institutions, and business leaders with a guideline on how they should strengthen the export preparation and capability. Design/Methodology/Approach: The study uses the Interpretive Structural Modelling (ISM) method to investigate and develop hierarchical relations between eight fundamental determinants of SME export performance entrepreneurial orientation, total quality management, export market orientation, business network, absorptive capacity, digital capabilities, product innovation, and managerial competence. The Structured Self-Interaction Matrix (SSIM) was constructed by the use of expert opinion of academics, export consultants and SME practitioners and subsequently analysis based on MICMAC analysis was done to enable the variables to be classified as driving and dependence power. Findings: The findings in the ISM-MICMAC have shown that the most pervasive force of managing entrepreneurial orientation and business networking is based on the more relevant managerial competence and the operation of digital capabilities. A mediating factor was discovered to be the absorptive capacity that connects on the foundational enablers to total quality management, export market orientation, and product innovation that were set as the dependent variables. The top of this model is export performance as the final dependent outcome. The hierarchical has shown that export success is because of the sequential interplay of managerial, technological, and innovation-oriented factors. Implications: The research adds to the body of literature in export management because it has provided an in-depth based ISM framework which elucidates the relationship of interdependent factors (internal and external) that promote the competitiveness of the SMEs in their exportation activities. The results are useful as actionable measures to be taken by the export promotion agencies, SME policymakers, and business associations to develop capacity building interventions focused on managerial development, digital transformation, and innovation driven strategies. Originality: The study is one of the first to incorporate behavioral, technological, managerial, and operational factors into one ISM-MICMAC framework of SME export performance. It is fairly theoretical and practically relevant in its provision that presents a causal sequence of success factor, thus availing a strategic direction of enhancing SME internationalization and sustainable export expansion.