Abstract
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.
Highlights
The findings of this study indicate that market turbulence does not significantly moderate the relationship between relational capital with buyers and export performance
Technological turbulence significantly moderates the relationships between relational capital with buyers and export
Technological turbulence does not moderate the relationship between relational capital with suppliers and export
Summary
A global value chain is a complex global production arrangement that breaks up the production process, so the different stages of production can be carried out by firms in various countries (World Bank, 2017). GVCs cover a chain of interrelated production activities performed by different firms that bring out a product or a service from conception to final product (UNCTAD, 2007). It is a value addition process, rather than just a system for delivering final goods to consumers. A value chain is a set of interrelated activities used by companies to create a competitive advantage (Tarver, 2018) It highlights geographic distance and international expansion of production and distribution. It focuses on value development and value acquisition throughout the supply chain activities (Gereffi, 2011). The concept of the value chain, and the global value chain, seem more appropriate than a supply chain to analyze the present production and distribution system in the global economy
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