Export Performance in SMEs: The Importance of External Knowledge Search Strategies and Absorptive Capacity

Abstract

External knowledge search strategies are considered essential for increasing export performance, a crucial goal for small and medium enterprises (SMEs) in a globalised and turbulent environment. SMEs are known to have limited resources, which leads them to choose the export strategy as the best alternative for entering foreign markets. The present study analyses the link between industrial and non-industrial knowledge search strategies and export performance, taking into account absorptive capacity (AC) as a mediating variable. Results from a sample of 222 Spanish exporting SMEs reveal that orientation to collaborate with industrial partners contributes to firms’ AC and export performance. Moreover, AC is found to have a full mediating role between orientation to collaborate with industrial partners and export performance. The study makes a novel contribution by applying organisational learning theory to explain how both the strategies firms adopt to access external knowledge and their absorptive capacity affect their export performance.