The mediating role of product planning and development on the relationship between markets strategies and export performance

Abstract

To ensure competition and survival of business, understanding the indicators or drivers of export performance is important. Based on the organizational learning theory and strategic fit theory, this study aims to test the influence of market exploration strategies (MERS) and market exploitation strategies (METS) on SMEs’ export strategic performance, export financial performance (EFP), and export customer performance (ECP). This study confirms the leading mediating role of product planning and development (PPD) in the effects of MERS and METS on export performance outcomes. The authors collected questionnaire data electronically from 122 experienced SMEs that conduct international transactions in Saudi Arabia. Results from the Analysis of Moment Structures indicate that MERS and METS positively influence export performance; PPD mediates the relationship between MERS and METS in export performance dimensions; and number of sales and ownerships are control variables that influence EFP and ECP, respectively. This study contributes to the literature and society by proposing a framework that addresses the direct and indirect relationships between export marketing strategies and PPD, and their effects on SMEs’ export performance.