The impact of organisational innovativeness, entrepreneurial competencies and external environment on export performance of SMEs in Malaysia

Small and medium-sized enterprises (SMEs) are crucial to Malaysia’s economy as they contribute to gross domestic product, employment opportunities, and export performance. However, the export performance of SMEs is below the target set by the government. This study investigates the influence of organisational innovativeness (OI), entrepreneurial competencies (EC), and external environment (EE) on the export performance (EP) of SMEs in Malaysia. Systematic random sampling was used to select and collect data from 1,101 respondents listed in the Malaysia External Trade Development Corporation directory. 133 usable data were analysed using partial least squares structural equation modelling (PLS-SEM). The results show that OI and EC have a significant influence on EP of SMEs. OI should be embedded as part of the processes in SMEs, and owner-managers should continuously enhance their competencies to improve EP. Furthermore, EE significantly moderates the relationship between EC and EP of SMEs in a negative direction. This shows how important it is for SMEs to check and monitor EE in international business to act proactively. The results helped advance empirical research on SMEs EP in a developing country by using the resource-based view (RBV) theory and the contingency theory (CT) as theoretical bases. SME exporters should focus on EE to improve their EP. SMEs should conduct OI activities to improve EP, while owner-managers need to assess and improve their EC. Government agencies can use the dimensions of EC as a basis for developing training modules and financial institutions can use them to assess the competencies of borrowers to increase the likelihood of business success