Knowledge absorptive capacity: do all its dimensions matter for export performance of SMEs?
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Date
2016
Journal Title
Journal ISSN
Volume Title
Publisher
World Journal of Entrepreneurship, Management and Sustainable Development
Abstract
In this paper, we study the relationship between knowledge absorptive capacity (KAC)
and export performance of developing country SMEs where empirical evidence is currently
scarce. We particularly report the contribution of the four dimensions of KAC (knowledge
acquisition capacity, assimilation capacity, transformation capacity and application capacity) to
export performance. Given the impulsiveness of international business environment, knowledge
is an important capability required by SMEs for competition in export markets (Kedia & Bhagat,
1998; Lopez & Rodriguez, 2005) - requiring internationalizing firms to recognize the value of
external knowledge and also generate and apply it to commercial ends (Zahra and George 2002).
Firms recognizing the importance of external knowledge perform better in exporting; manifest in
their likelihood to devise and adapt their products, services and processes that continue to meet
the needs of the evolving market (Kropp et al. 2006; Mehmet, 2008). The lack of knowledge has
been cited as one of the possible factors explaining the marginal performance of exporting firms
in emerging economies (Onyeiwu, 2011; Okello-Obura et al, 2008). But, while the importance of
KAC of firms has been widely researched and documented since the influential paper of Cohen
and Lenvinthal (1990), most research has concentrated on assessing its impact on the
performance of large firms within their domestic markets (Rothermel & Alexandre, 2009; Jansen
et al, 2005) as opposed to export markets; moreover, also ignoring its possibility to explain
significant variances in performance of exporting SMEs in developing countries. Indeed,
Onyeiwu, (2011) posit that the role of KAC has been underplayed by the literature on Africa’s
economic growth.
Description
Keywords
Knowledge absorptive capacity, Export performance, SMEs
Citation
Godwin Mwesigye Ahimbisibwe Stephen Korutaro Nkundabanyanga Gideon Nkurunziza David Nyamuyonjo , (2016),"Knowledge absorptive capacity: do all its dimensions matter for export performance of SMEs?", World Journal of Entrepreneurship, Management and Sustainable Development, Vol. 12 Iss 2 pp. - http://dx.doi.org/10.1108/WJEMSD-09-2015-0041