The effects of learning orientation and marketing programme planning on export performance: Paradoxical moderating role of psychic distance

Abstract

Despite extensive research on the effect of organisational learning processes on firm performance, how and when a propensity to learn influences the export performance of small and medium-sized enterprises (SMEs) remains unclear. Using multiple-informant and time-lagged primary data from 242 SMEs in a sub-Saharan African market, this study examines the roles of marketing programme planning and host country psychic distance in linking export learning orientation to export performance. Findings from the study show that increases in both export learning orientation and marketing programme planning are associated with increases in export performance. In addition, the study finds that while increases in psychic distance weaken the effect of export learning orientation on export performance, it strengthens the effect of marketing programme planning on export performance. These findings draw attention to the idea that cognitive distance between home and host country markets may play a paradoxical role in explaining when organisational learning activities may help or hurt exporting SMEs.

Innovation, internationalisation and the performance of microbusinesses

“…We find evidence, after controlling for any selection effect that more productive firms are more likely to export, of a significant 'learning-byexporting' effect (Wagner, 2012;Karami and Tang, 2019). The discussion and evidence highlight potential complexity in microbusiness development paths (Assadinia, et al, 2019), and particularly the role of internationalisation as the link between innovation and higher productivity.…”

Place and policy barriers of rural Nigeria's small and medium enterprises' internationalization

“…There is an additional implication and recommendation for scholars, which is that the structural and human interaction of the barriers highlights the possibility for academics to produce new models and theory. This can help address and extend Assadinia et al's (2019), O'Grady and Lane's (1996), and Nebus and Chai's (2014) “psychic distance” notion. It is therefore recommended that scholars adopt our coordinated approach in identifying and evaluating the potential scholarly benefits of examining people and non‐people related challenges to address SMEs' barriers (see H1 and H2 sub‐categories).…”

“…It is defined as a system of rules created and enforced through social or governmental institutional regulation and governance. It determines how firms perform externally (Amoako & Lyon, 2014; Assadinia et al, 2019) and how business is transacted (Collinson, Narula, & Rugman, 2017; Daniel et al, 2014; Rugman & Collinson, 2009). However, physical distance could sometimes be problematic in complying with legality (Assadinia et al, 2019).…”

“…Geographical barriers are particularly evident in rural areas where SMEs are far away from markets and centralized locations. This is partly what Assadinia et al (2019) refer to as “psychic distance,” which has adversely impacted on SMEs' wealth creation and internationalization (Adekunle, 2011; Obeng & Haugh, 2014). However, we do not know “how” the challenges can be resolved despite recent attempts by Colclough et al (2019).…”

“…Despite these positive contributions (Boso, Story, & Cadogan, 2013), recent accounts on internationalization have highlighted SMEs' challenges/barriers such as low survival rate (Igwe et al, 2020) as a result of rurality and SMEs “psychic distance” from markets (Assadinia, Kadile, Gölgeci, & Boso, 2019; Mendy & Hack‐Polay, 2018; Nebus & Chai, 2014; O'Grady & Lane, 1996). “Psychic distance” refers to not only the physical distance from markets but also the limited capital, shortage of expertise, and improper record‐keeping that render small businesses' survival problematic (McElwee & Smith, 2012; Phillipson et al, 2017).…”