Product development capabilities-based export channel selection and export performance

Abstract

Purpose: Drawing on the resource-based view and institutional theory, this study explores how firms select export channels to realise the value of their product development capabilities (PDC) and improve export performance by aligning PDC, entrepreneurial orientation (EO), cultural-cognitive institutional distance (CCID), and channel selection. Design/methodology/approach: This study adopted a quantitative design and used data collected from multiple respondents in 294 Chinese exporting ventures. Hypotheses were tested using logistic regression analysis and multiple regression analysis. Findings: The results suggest that PDC plays a vital role in export channel decisions. Our results also show that there is a three-way interaction between PDC, EO, and CCID regarding export channel selection. More importantly, our study suggests that firms using export channels that align with PDC, contingent on EO and CCID, generate superior export performance. Originality: This study extends the export channel literature by looking at the different roles of important organisational capabilities (i.e., PDC and EO) on export channel selection. Further, it shows that firms need to align the exploitation of their PDC with the export channel selection, along with EO capabilities, and CCID to achieve better performance in the export market.