Different countries, different institutions: how do brand-oriented SMEs leverage branding capabilities to boost export performance?

Abstract

PurposeThis study aims to develop a moderated mediation model that enables the examination of the direct relationship between brand orientation (BO) and export performance, the mediating effects of external and internal branding capabilities on the BO-export performance link, and the moderating influence of institutional environment, i.e. regulatory turbulence and policy support.Design/methodology/approachA time-lag primary data was collected from two-wave survey of 684 cross-industry exporting small and medium-sized enterprises (SMEs) using an online-email based survey technique, and the research model was validated using ordinary least squares regression analysis in SPSSV.27 and Hayes’ PROCESS macroV.2.13.FindingsRegression findings indicate that the relationship between BO and export performance is not direct, but rather mediated by means of both external and internal branding capabilities. It further helps to uncover the dual role of institutional environment, with regulatory turbulence weakening and policy support strengthening the indirect influences of BO on export performance via external and internal branding capabilities.Research limitations/implicationsThis study advances branding literature by conceptualizing and empirically testing the role of BO associated with internal and external branding capabilities and, subsequently, with export performance.Practical implicationsThe research findings indicate that brand-oriented SMEs must actively engage in the development of branding capabilities to improve their export performance.Originality/valueWhile brand creation is essential for the success and growth of SMEs competing in the worldwide marketplaces, there is a dearth of research explaining the underlying mechanisms and boundary conditions through which BO influences export performance.