Export Performance of SMES in Malaysia and The Important of Relationship Quality Between Exporters and Intermediaries

Abstract

The purpose of this study is to examine the influence of relationship quality between Malaysia SMEs exporter and their intermediaries. This paper draws insights from three integrating theories such as social capital theory (SCT), internationalization process (IP) theory and relational exchange theory (RET) to examine the synergistic outcome of several constructs on export performance. The model is tested using Structural Equation Modeling (SEM) via Smart PLS on a sample of SME exporters in Malaysia. The findings reveal that all hypotheses are supported. The research highlights that cultural similarity is a catalyst in the internationalization process and show the mechanism of how it (cultural similarity) can influence effective communication and lead to knowledge sharing process thus impetus trust which finally reflect the performance outcomes. Results also confirm that trust serves as a mediator between cultural similarity and export performance. The findings extended the application of the underpinning theories and their tenets in explaining the Malaysian SMEs’ export performance use foreign intermediaries.