Organizational resources, networking resources, marketing cap abilities and export performance: evidence from thai agro-based firms
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Date
2010
Authors
Tooksoon, Phadett
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Abstract
The Thai economy is very dependent on rhe agro-hased sector. The availabilirv of
~1bnndant resources has enabled fim1s in thi::: :::ector to play a fundamental role in the economic development and employment for the population. This study is undertaken to identify the competitive strength of firrns in the agro-bascd sector and their
export performance. The resource-based view and the social capital theory provide
inputs into the research frzm1C\\ ode ll is proposed that organizational resources
comprising of reputation resources, financial resources, human resources, and
research and development and technology resources contribute positively to the
firm's expor1 perfom1ance. Besides that the fim1's effort to acquire extemal
resources through netvvorking Yvith business netwmk, institutional networks and
knowledge network are expected to comribute to firm's export performance. Such
relationship however is expected to be mediated by marketing capabilities, which are
comprised of product, price, distribution and promotion. Two dimensions of export
nerfonnance are used. namelv economic and non-economic measures. The .L - •
participating firms in this study are dmwn from the Exporter Directory published by
the Department of Export Promotion (DEP) Thailand. Based on the data analysis, it
was determined that only financial resources are positively related to non-economic
measure of export performance. Meanwhile among networking resources only
business network is statistically significant and positively related to both economic
and non-economic measures of export performance. As regards to marketing
capabilities, two dimensions of marketing capabilities, price capability and
promotion capability, are significant predictors of both dimensions of export
pcrfonnance.on the mediation effect of marketing capabili1ies, the relationship
betweei1 financial resources and non-economic measure is partially mediated by
benveen business nc\V1(>rk and both economic and non-economic measure of export
perfonnance. A:: re;).<:rds to promotion capabilit)', the result shov,;s that it is a partial
mediator bet,,.ceen business net\:vork and economic measure of export performance.
The findings of the study sho\v that export performance is dependent on the
availability as well access to financial resources and external resources. Investment
in nenvorkinQ \Yiih trade facilit<Hinrr organizations such as financial institutions and --~ ';::) .__
other:; involved in the supply chain is a prerequisite for successes. The importance of
enhsncing the finn's capabilities in managing price and promotion should not be
overlooked.
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Keywords
Networking resources , Thai Agro-based firms , Maketing capabilities