The Effect of Business Technology Strategy on Inward Export Performance in the Malaysian Higher Education Industry

Abstract

Services export plays a significant role in the world economy and benefits businesses and countries. In the service sector, higher education service has become vital for countries’ economic sustainability. The flux of international students has created global business opportunities and trade networks. However, past studies have largely focused on exports within the manufacturing industry rather than service exports, particularly on the inward export service industry. Therefore, the present study was conducted to investigate the relationship between business technology strategy, cultural sensitivity, and export performance in the higher education service industry. Data were collected from directors of international offices of 137 Malaysian higher education institutions. PLS-SEM was used for data analysis using the SmartPLS 3.2.8 software. The findings reveal that business technology strategy is positively related to cultural sensitivity and inward export performance. Furthermore, the study found that business technology strategy mediates the relationship between cultural sensitivity and inward export performance. The findings can help researchers in understanding factors that influence the inward export performance of higher education institutions. Since business technology strategy plays a mediating role in the inward export performance of higher education, this study recommends that Malaysian higher education institutions (HEIs) are equipped with the latest education-related technologies in order to increase their internationalization performance.