The Moderating effect of Business Network on the Relationship Between Export Market Orientation, Total Quality Management and Company Export Performance: Evidence from Furniture Industry of Pakistan

Abstract

The contribution of Pakistan furniture industry in exports have declined in last few years. This situation is alarming for industry and country economic growth and overall performance of the industry. The main objective of study is to investigate the moderating role of the business network (BN) on the relationship among total quality management (TQM), export market orientation (EMO) and company export performance (CEP) of furniture industry of Pakistan. The study has adopted the Partial Least Squares Structural Equation Modeling (PLS-SEM) technique to assess the 119 responses from the furniture industry. The findings of the study shown the significant relationship between EMO, TQM and CEP. More importantly, the study-initiated BN moderating effect on the relationship between EMO, TQM and CEP. However, this study found that BN is the influential variable to enhance the effectiveness of EMO and TQM which leads to higher CEP. Therefore, the present is helping to furniture firms that they can effectively implement the EMO, TQM and BN strategies to increase the CEP in Pakistan context, whereas CEP reported low.

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“…A trade deficit can be a problem because it means a country is spending more money on imports than it is earning from exports. Exporting more furniture can also create more jobs and bring in foreign revenue, which can help boost the country's overall economic growth (Imran et al, 2020). To stay ahead, companies need to adapt to changes in consumer demand and technology.…”

How external network and innovation affect the link between export orientations and export performance?

“…Based on Rekarti et al (2018) study, EP is defined as the capacity of the organization to grow trade and export markets internationally. Specifically, EP of the firm is considered as its ability to increase the sales, market share, safeguard the firm competition in the international market and provide the innovative and superiority products or services to customers (Rekarti et al , 2018; Imran et al , 2020)…”

“…EP is a multidimensional variable (Imran et al , 2020; Costa et al , 2015). Objective dimensions of EP contain some aspects such as the amount of sales, the growth in export and its profitability (Edeh et al , 2020; Dong et al , 2022; Imran et al , 2020). For example, Edeh et al (2020) considered export sales growth, export profitability and export intensity to measure EP.…”

“…Based on Rekarti et al (2018) study, EP is defined as the capacity of the organization to grow trade and export markets internationally. Specifically, EP of the firm is considered as its ability to increase the sales, market share, safeguard the firm competition in the international market and provide the innovative and superiority products or services to customers (Rekarti et al, 2018;Imran et al, 2020) EP is a multidimensional variable (Imran et al, 2020;Costa et al, 2015). Objective dimensions of EP contain some aspects such as the amount of sales, the growth in export and its profitability (Edeh et al, 2020;Dong et al, 2022;Imran et al, 2020).…”

“…Specifically, EP of the firm is considered as its ability to increase the sales, market share, safeguard the firm competition in the international market and provide the innovative and superiority products or services to customers (Rekarti et al, 2018;Imran et al, 2020) EP is a multidimensional variable (Imran et al, 2020;Costa et al, 2015). Objective dimensions of EP contain some aspects such as the amount of sales, the growth in export and its profitability (Edeh et al, 2020;Dong et al, 2022;Imran et al, 2020). For example, Edeh et al (2020) considered export sales growth, export profitability and export intensity to measure EP.…”