Discussion and Implications
SMEs must optimize their limited resources to develop capabilities that are important in achieving high performance in international markets. The development of such capabilities may become heightened when international entrepreneurial orientation is internally high and when the firm is externally faced with severe domestic competition. With this in mind, a research framework was proposed based on RBV and contingency theory and tested with data collected from 470 Korean SMEs. The findings of this study supported all the proposed hypotheses. The following discussion highlights the study’s major findings.
First, this study confirmed that higher international entrepreneurial orientation correlates with stronger technological (H1) and marketing capabilities (H2), indicating that the internal creative spirit of SME entrepreneurial orientation does facilitate the development of both capabilities, as suggested by many earlier studies (e.g., Dayan et al., 2016; Keh et al., 2007; Knight and Cavusgil, 2004; Martin and Javalgi, 2016). While the essential role of international entrepreneurial orientation in export performance has been explained previously (Knight, 2000; Knight, 2001; Knight and Cavusgil, 2004; Oviatt and McDougall, 1994), this study delved further into the full mediating effects of organizational capabilities between international entrepreneurial orientation and export performance. This implies that SME international entrepreneurial orientation itself may not automatically lead to export performance. Only when entrepreneurial orientation facilitates technological and marketing capabilities does this effect occur, directly promoting export performance (H5 and H6).