The effect of foreign market knowledge on SME export performance: a study of non-traditional SMEs in Ghana
No Thumbnail Available
Date
2021
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Global Knowledge, Memory and Communication
Abstract
Purpose: It is well documented in the extant literature that knowledge plays a crucial role in small and
medium enterprise (SME) internationalization. Exporting SMEs from developing economies faces many
challenges, including lack of knowledge about institutions in foreign markets and inadequate knowledge about
foreign institutions and limited internationalization knowledge (IK). However, research on the export
performance of SMEs has thus far focused on the internationalization strategies of multinational corporations.
This study aims to explore the effect of foreign market knowledge on SME export performance. The authors
also assessed the moderating effect of employee absorptive capacity in the knowledge-performance nexus.
Design/methodology/approach – The authors adopted a survey design to collect data from owners
managers of SMEs and exporters in the Greater Accra region of Ghana. A total of 350 questionnaires were
distributed based on convenience. Of this number, 257 usable responses were used in the final analysis. The
authors tested the proposed model using partial least squares-structural equation modeling.
Findings: The findings show that the three types of foreign market knowledge tested in this study,
namely, foreign institutional knowledge (FIK), foreign business knowledge and IK have positive and
significant effects on SME exporters’ performance. It also shows that employees’ absorptive capacity
the relationship between FIK and SME exporters’ performance.
Originality/value: The study demonstrates the types of knowledge relevant to SME export performance.
The study further demonstrates the moderating effect of employee absorptive capacity on the relationship
between knowledge and export performance. The study advances existing knowledge on SME performance.
especially from an emerging economy context.
Description
Research Article
Keywords
Knowledge, Ghana, Export performance