Inter-Firm Collaboration and Export Performance: A Mediation Analysis

Abstract

This study aims to encourage small and medium-sized enterprises to collaborate to enhance export rate. It investigates the influence of inter-firm collaboration on industry export performance and how this relationship is mediated by firm export performance in SMEs of Pakistan. Data was gathered using a quantitative technique based on questionnaires distributed among 491 owners and employees of the SMEs involved in exports. Data were analyzed using AMOS to determine the relationship among variables; firm export performance, inter-firm collaboration and industry export performance. Mediation analysis was tested using Baron and Kenny’s procedure. Results revealed that inter-firm collaboration is an important factor in enhancing industry export performance and this relationship is significantly mediated by firm export performance. Industry export performance is an essential element for SMEs survival and growth. The study contributes theoretically and empirically by analyzing the role of interfirm collaboration in economic development and provides important implications for owners, managers, policymakers of SMEs, and export-related government agencies on improving cooperation.