Organizational Resources, Networking Resources, Marketing Capabilities And Export Performance: Evidence From Thai Agro-Based Firms
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Date
2010-05
Authors
Phadett, Tooksoon
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
The Thai economy is very dependent on the agro-based sector. The availability of
abundant resources has enabled firms in this sector to play a fundamental role in the
economic development and employment for the population. This study is undertaken
to identify the competitive strengths of firms in the agro-based sector and their
export performance. The resource-based view and the social capital theory provide
inputs into the research framework. It 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 export performance. Besides that the firm’s effort to acquire external
resources through networking with business network, institutional networks and
knowledge network are expected to contribute 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
performance are used, namely economic and non-economic measures. The
participating firms in this study are drawn 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
performance. On the mediation effect of marketing capabilities, the relationship
between financial resources and non-economic measure is partially mediated by
price capability. It is also established that price capability act as a partial mediator
between business network and both economic and non-economic measure of export
performance. As regards to promotion capability, the result shows that it is a partial
mediator between business network and economic measure of export performance.
The findings of the study show that export performance is dependent on the
availability as well access to financial resources and external resources. Investment
in networking with trade facilitating organizations such as financial institutions and
others involved in the supply chain is a prerequisite for successes. The importance of
enhancing the firm’s capabilities in managing price and promotion should not be
overlooked.
Description
Keywords
The Thai economy is very dependent , on the agro-based sector