The Impact of Entrepreneurial Orientation on Export Performance of New Zealand’s SMEs: The Mediating Effect of Networking Capability

Abstract

Small and medium-sized enterprises (SMEs) play a significant role in New Zealand's economic development since they comprise of the majority of private enterprises and are one of the main sources of job creation, innovation, and economic productivity growth. In this context, a significant determinant of the continuous economic growth of New Zealand is the development of SMEs, which is not only focused on the number of start-ups but also on the progressive advancement of the economic environment and entrepreneurial skills. Thus, successful expansion of business environment can be achieved by increasing SMEs' international market share through entrepreneurial orientation (EO) strategy and international network connections, and these are important for the survival and success of SMEs venturing into the overseas markets which ultimately reflects on the economic situation of the participating nation. However, little is known about the roles EO and networking capabilities play in enabling New Zealand SMEs, in particular, to create and capture value in the international markets. Therefore, this study will contribute to the literature by determining the mediating role of networking capability on the association between EO and export performance of SMEs in New Zealand. This study will utilize samples of randomly selected SMEs situated in Auckland city, New Zealand, which is the nation’s largest city and commercial hub, and study data will be collected using a structured questionnaire. Additionally, the design of this study is an explanatory research and therefore, will employ Structural Equation Modeling (SEM) analysis to examine the study hypotheses.