Developing Dynamic Capabilities for Export Venture Growth: A Study of Turkish and US Export Manufacturing SMEs

Drawing on the dynamic capabilities theory and microfoundations notion, this thesis extends previous research on exporting by developing a theory-based model to examine the relationships of goal orientation and process thinking skills with dynamic capabilities, which in turn lead to export venture growth. The research also develops hypotheses concerning the role of market dynamism and competitive intensity in moderating the relationships of dynamic capabilities with export venture growth. The conceptual model is empirically tested using data from Turkey (204 responses) and the US (210 responses), focusing on export manufacturing small- and medium-sized enterprises (SMEs). The findings confirm that, while learning orientation significantly drives process thinking skills, prove orientation is not significantly associated with process thinking skills in either sample. On the other hand, prove orientation positively moderates the learning orientation-process thinking skills link in both samples. Concerning the outcomes of dynamic capabilities, the findings reveal that in the Turkish sample, dynamic capabilities affect all three aspects of export venture growth, namely, sales, profit and market share. However, in the US sample, this effect is significant for profit growth and market share growth performance aspects. Regarding the role of environmental conditions, in the Turkish sample, while market dynamism significantly moderates the effect of dynamic capabilities on sales growth and profit growth, its moderating effect on the relationship between dynamic capabilities and market share growth is insignificant. In the US sample, market dynamism does not moderate the impact of dynamic capabilities on any of the three aspects of export venture growth. Surprisingly, results do not support the moderating role of competitive intensity on the dynamic capabilities-export venture growth link in either sample. The results are discussed in the context of previous empirical findings. Important implications for international marketing scholars and exporters are discussed. The thesis considers limitations of the study and discusses fruitful directions for future research.