Effect of innovation capabilities on export performance: evidence from manufacturing SMEs in Tanzania
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Date
2023
Journal Title
Journal ISSN
Volume Title
Publisher
Emerald Publishing Limited
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/approach
A 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.
Findings
The 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/implications
This 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 implications
Managers of exporting SMEs should develop and cultivate PRODIN and MAKIN to nurture EXPF of their firms.
Originality/value
The 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.
Description
Abstract. Full Text Article available at: https://doi.org/10.1108/TECHS-09-2022-0038
Keywords
Export performance, Innovation capabilities, SMEs, Tanzania, Product innovation, Process innovation, Small-and Medium-sized Enterprises
Citation
Ringo, D. S., Kazungu, I., & Tegambwage, A. G. (2023). Effect of innovation capabilities on export performance: evidence from manufacturing SMEs in Tanzania. Technological Sustainability. https://doi.org/10.1108/TECHS-09-2022-0038