Abstract:
Purpose – This paper aims to examine the relationship between innovation capabilities (INVC) and export
performance (EXPERF) of manufacturing small and medium enterprises (SMEs). Moreover, the paper aims to
investigate the moderating effect of risk-taking propensity (RSTP) in the relationship between INVC and the
SMEs’ EXPERF.
Design/methodology/approach – A cross-sectional survey design was used and data were collected
through structured questionnaires from 250 manufacturing exporting SMEs in Tanzania. Confirmatory factor
analysis was used to test the measurement model. The hypotheses were empirically tested using PROCESS
macro test.
Findings – The findings affirm that INVC is a significant predictor of EXPERF. Additionally, RSTP was
found to be a significant moderator of the relationship between INVC and EXPERF.
Research limitations/implications – Although the study was able to accomplish its overall objective, it is
limited in terms of the context under which the study was conducted. This study covered only manufacturing
SMEs in a single country, Tanzania. Hence, the findings should be interpreted with caution since each country
has specific institutional environments that support innovation.
Originality/value – The findings of this study expand the application of the resource-based view (RBV)
theory in exporting context. The study revealed how INVC as an intangible resource can lead to successful
performance. Hence, the findings of this study broaden the applicability of RBV theory. Also, this study
contributes to the debate about the innovation-export performance relationship by revealing a moderating role
of RSTP in the relationship between INVC and EXPERF.
