Factors that Influence the Quality of Relationship between Exporters and Foreign Intermediaries in Relation to SMEs' Export Performance

Abstract

This study intended to investigate factors that influence the relationship quality between Malaysia SME exporters and foreign intermediaries. This paper drew insights from two integrating theories, namely the social capital theory (SCT) and internationalization process (IP) theory, to evaluate the synergistic consequences of several constructs, such as cultural similarity, effective communication, knowledge sharing and trust that are related to export performance. The model was tested using Structural Equation Modelling (SEM) via Smart PLS on a sample of 203 SME exporters in Malaysia. Findings revealed that all hypotheses were supported. This study revealed that cultural similarity is a catalyst in the internationalization process as well as how it influences effective communication and knowledge sharing, thus, the impetus to build trust, which finally reflects the performance outcomes. The findings supported the application of underpinning theories and their tenets in explaining Malaysian SMEs' export performance with the collaboration of foreign intermediaries.