Does Government Export Assistance Moderate Strategic Capabilities and Export Performance Manufacturing SMEs in Malaysia?

Purpose: The purpose of this study was to determine whether the government export assistance moderate the relationship between strategic capabilities (i.e. innovation, market-linking, marketing, technology, and management capabilities) and export performance Manufacturing SMEs in Malaysia. Design/methodology/approach: This study used a quantitative approach. Data was obtained via online questionnaires and physical distribution to respondents. Hypothesis testing was analyzed using Partial Least Square (PLS) technique. Findings: Results showed that the moderator strengthens the relationship between strategic capabilities and export performance if the SMEs use financing assistance provided by the government. Research limitations/implications: The limitation of this study is the small number of sample sizes. Practical implications: This study is to test whether the relationship between strategic capabilities and export performance is strengthened with the usage of government export assistance (moderator). Originality/value: The findings of this study will provide insights to SMEs exporters and policymakers in designing development programs to promote manufacturing products of SMEs in international business. This study is originally focusing on Malaysian manufacturing SMEs usage of government assistance program (financial), thus future research can take a step further by studying types of financial assistance used by manufacturing SMEs to gain deeper understanding of the value creation of government export assistance programs to improve their strategic capabilities and increase export performance. Keywords: SMEs, Government Export Assistance, Strategic Capabilities, Export Performance
Introduction Local SMEs have received remarkable support from the government to enable them to enter international markets. The government agencies play an important role in assisting firm promotions and increase [...]