The impact of institutional distance in export management: insights from Peruvian agro-exporting SMEs

Abstract

Purpose: This study aims to analyse the joint impact of institutional distance (ID) and the generation of commercial intelligence (GCI) on export proactivity and coordination capacity, as well as the effect of these last ones on the export performance. Design/methodology/approach: This analysis was carried out by using structural equation modelling for 89 Peruvian agro-exporting small and medium enterprises (SMEs). Findings: This study demonstrates the positive impact of relational norms on intelligence generation, and that of the latter on coordination capacity and export proactivity. Likewise, ID has a negative impact on coordination capacity, revealing its inverse effect on this relationship. Research limitations/implications: The paper has limitations due to its cross-sectional nature. In addition, future studies could increase the sample size and studies in other sectors for comparison purposes. Also, studies on ID in emerging countries should be deepened. Practical implications: Managerial implications are reported and show the influence of the institutional context on the coordination capacity and export proactivity of the firm. Originality/value: In the literature review on exporting SMEs in emerging countries, it has been little studied the impact of activities such as relationship management and ID from markets as antecedents to the GCI, export proactivity and coordination capacity as well as their effect on their export performance. Therefore, the originality relies on the insights provided by Peru, because this country bases its exports on its comparative advantages and the reactive behaviour of most of its small and medium enterprises (SMEs).