Manufacturing Technology, Innovation, Market Orientation, and Experience on SME Export Performance

Abstract

In the context of increasing global export issues, exporting enterprises in developing countries must enhance and allocate their capabilities to maintain competitiveness in international markets. However, there is limited research on the factors influencing performance among these enterprises. Based on the dynamic capability theory, this study analyzes a dataset collected from 142 Vietnamese small- and medium-sized enterprises (SMEs; firms classified by their small size in terms of employees, revenue, or assets) using SmartPLS4 to examine the influence of advanced manufacturing technology (AMT; automated and computer-based production technologies), international experience (IE; a firm's accumulated knowledge and skills gained from operating in foreign markets), innovative capability, and export market orientation (EMO; a firm's focus on understanding and responding to foreign consumers and market needs) factors on firm export performance (EP; a firm's success in meeting its export goals). The findings reveal that IE and EMO orientation positively affect EP. Although AMT has no direct impact on EP, innovative capability and EMO mediate the relationships between AMT and EP and between IE and EP. The study expands the dynamic capability theory boundary and contributes to the international business literature by including AMT and IE to explain how SME export performance is shaped. Additionally, recommendations are provided to improve the export performance of SME managers and policymakers in emerging economies.