MARKET ORIENTATION CAPABILITY, ADAPTIVE CAPABILITY, AND EXPORT PERFORMANCE: THE MEDIATING ROLE OF INNOVATIVE CAPABILITY

Zurina Samsudin Nur Yuhanis Ismon

DOI:

Keywords:

Market Orientation Capability, Adaptive Capability, Innovative Capability, Export Performance

Abstract

This study examines the role of innovative capability in enhancing Malaysian SMEs’ export performance, particularly its influence on market orientation capability and adaptive capability. Despite the crucial role of export performance in economic growth, many SMEs struggle to compete globally due to limited dynamic capabilities. This study addresses this gap by investigating the relationships between market orientation capability, adaptive capability, and innovative capability and their impact on export performance. Using a quantitative research approach, data were collected from Malaysian SMEs and analyzed through structural equation modeling (SEM) to test the hypothesized relationships. The findings reveal that all five hypotheses are significant, confirming the mediating role of innovative capability in strengthening the effects of market orientation and adaptive capability on export performance. These results offer valuable insights for both academics and practitioners, highlighting the importance of dynamic capabilities in driving international competitiveness.

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