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The Effects of Firm Relational Capital on Export Performance: The Moderating Role of Technological Turbulence

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posted on 2022-01-21, 20:32 authored by Misbah Uddin Chowdhury
Global value chains (GVCs) offer a range of opportunities to manufacturers interested in increasing their export market share by utilizing their business relationships with other firms. In recent studies, it is recognized that relational capital helps manufacturing firms to enhance their competitiveness in global markets. However, prior research does not provide a conclusive account of the impact of relational capital on their export performance in general, and particularly in the context of developing countries. Drawing on a learning-based perspective and contingency approach, this study fills these gaps by theorizing the link between relational capital and firm performance with a focus on developing-country firms that participate in GVCs. Specifically, we propose that the relational capital of these firms will have a stronger positive impact on their export performance when the market and technological turbulence are lower. The results confirm the key hypotheses by showing that developing-country firms' relational capital with buyers has a positive and significant impact on their export performance and that technological turbulence negatively moderates the relationship between relational capital with buyers and export performance. Overall, this research extends the literature on knowledge transfer, interfirm relational capital, and business performance in a developing country context.