Faculdade de Economia – Universidade Nova de Lisboa Fall Semester 2009/2010

Summary of the article:

Relationship Capabilities, Quality, and Innovation as Determinants of Export Performance

By Luis Filipe Lages, Graça Silva and Chris Styles

Forthcoming at the Special Issue on “The Performance Implications of International Marketing Strategy

Mónica Marques n.514

Index Page • Executive Summary 3 • Introduction 4 • Theoretical Justification of the Relationships 5 • Methodology 6 • Discussion of the Results of the Exploratory Interviews / Summary of the Interviews • Conclusion 8 9 2 .

Product Strategy and Export Performance.Executive Summary The analyzed article pretends to explain the connection between Organizational Learning. the authors concluded that the managers should give importance to the relationship management capabilities to influence positively product innovation as well as product quality. and the influence of the first mentioned company capabilities in the last two topics. After the realization of interviews. Quality Capabilities. • Analysis of the importance Organizational Learning. The way how the article authors develop it is the following: • • Quality. Relationship Verification of the connections between Product Innovation and Product Utilization of interviews when the relevance of the questioned people is Capabilities and Quality Capabilities in the Product Strategy. high in the export activities of the company. Relationship. 3 .

in the manufacturing area. the article interviews focused mainly the Portuguese exporting companies. in a better way. excluding the services companies as well as the ones in the primary industries.Introduction The analyzed document has the objective to explain. the relationship between the firm capabilities and product strategy. To achieve the necessary explanations. 4 .

in this summary is showed one of it to illustrate the justification structure: H1: There is a positive association between organizational learning capabilities and product innovation. • Burton and Schlegelmilch defended that the exported companies presented better capabilities to product innovation and product quality. • Both studies of Johanson and Vahlne. however. and relationship performance. Kaleka. the markets knowledge improve. To justify the presented hypothesis of the study. • According to the Krasnikov and Jayachandran reference of 2008. For each one.Theoretical Justification of the Relationships The article mentions a high theoretical support to achieve the main findings of the study. 5 . Some examples are following illustrated: • When Wolf and Pett compared the size of the companies. the relationship capabilities have a essential connection with the customer relationships. were presented some references. the large ones showed a higher potential to have a better resource base than the smaller ones. H3: There is a positive association between relationship performance and economic performance. increasing the possibility to be successful economically. defend that when the relations between the company and its exporters are strong. in1977 and Ling-yee and Ogunmokun. product quality. in 2001. and Katsikeas (2004) defended the positive effect of product development capabilities on the market position of the firms. the theoretical support was also used. H4: There is a positive association between quality capabilities and product quality. H2: There is a positive association between relationship capabilities and product innovation. but was not detected an important difference in the export intensities. • Morgan.

in 1996. said that quality capabilities have an important influence on the advantage sustentation of the company. in 2009 discovered that the product innovation can help to improve the innovation performance. H5: There is a positive association between product innovation and relationship performance and product quality and relationship performance. • In 2002. 6 .• Golhar Ahire and Waller. • Di Benedetto Zhang and Hoenig. H6: There is a positive association between (a) product innovation and economic performance and (b) product quality and economic performance. Katsikeas Leonidou and Samiee confirmed the positive relationship product quality on export performance.

• Initially. 7 . amount of information sharing. in 2006. The authors did more 100 contacts with companies. employee quality. • The Harman single-factor test was used to control the bias. commitment to learning. product quality strategy.Methodology • The interviews used to write the summarized article. shared vision. the company reminded the potential interviews 3 weeks after the interviews and in the 8th week too. In the end. communication quality of the relationships. quality managers and managing directors. top management commitment. • The initial sample size was reduced to 524 companies. only were considered 419 interviews. quality capabilities. relationship capabilities. • The authors defined in the article some of the main measures used in this study to help to clarify some reasoning showed in the document: economic performance. • With these clarifications. employee involvement. organizational learning capabilities for innovation. relationship performance. the authors explain also the importance of each one in the development of the company performance. importer involvement. in an anonymous form. were paper-and-pencil interviews to export managers. product innovation strategy. customer focus. • The interviews didn’t know what was the conceptual model of the article authors. the random sample was constructed by 1332 exporting manufacturing firms in Portugal. • After to ask for companies’ availability of the companies. open-mindedness to innovation. employee empowerment.

The transactions volume is €500. it is important to refer that the authors utilized theoretical support and linked it with the data of the interviews. as to test the hypothesis. • The people who answered to the questionnaires were working for 11 years and with a function’s experience of 9 years inside the company. they made use of: Partial Least Squares with Smart PLS 2. in the international market. To take some conclusions.Discussion of the Results of the Exploratory Interviews / Summary of the Interviews • First of all. • The interviewed companies revealed a considerable experience. 8 .000 to €1. the Average Variance Extracted.6 million with the companies’ importers. around 22 years.0. when the main relationships with the importers happen inside the European continent with duration of 11 years.

The relationship performance influences positively the economic performance. product innovation and relationship capabilities have a small influence on relationship performance. the organizational learning capabilities don’t demonstrate a large impact on product innovation and as well as the relationship capabilities on product innovation. • However. product innovation and product quality. The product innovation strategy has not so much influence as the relationship performance. • The product quality is extensively influenced by quality capabilities as well as relationship capabilities. the companies should pay attention to their areas of product innovation and relationship management capabilities. So. • The product quality presented a medium effect and. • • Organizational learning and relationship capabilities have a helpful impact on product innovation. Concluding. when the companies presented strong relations with their importers. the possibility to be successful outside to the national market is high. 9 .Conclusion The main conclusions of this article are: • The economic performance is affected mainly for the relationship performance. as well as the quality capabilities and the product quality. • Finally. with a small effect on it is mentioned the product quality strategy. and also the case between relationship performance. the product innovation presents a notorious influence on economic performance. • Another good relationship is verified with the connection of the economic performance with the product innovation and product quality. However the product quality is not enough to guarantee a positive economic performance in the international market. and finally. product quality and relationship performance.

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