Determinants of Firm’s Performance in Export Market : Moderating Effect of Environmental Volatility

Abstract

This paper extends previous firm’s resources & capability and performances research into international arena by developing and testing hypotheses relating to the determinants of firm’s performances in export market. To test the proposed research model and hypotheses, data were collected from 106 SMEs which exported their products in overseas market. The authors investigated the reliability and validity of the proposed instrument by analyzing data. Using hierarchical regression model, authors checked hypotheses. The findings from survey data suggest that export-market orientation, marketing capabilities in export market, and brand reputation in export market is found to be positively related to export performances. Moreover, the authors also found out the relationship between brand reputation in export market and export performances was moderated by the environmental volatility in export market. The relationship was weaker under conditions of high environmental volatility and stronger under conditions of low environmental volatility. On the basis of findings, the authors concluded with a discussion of the implications for practice and further research.