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How Relational Capabilities Matter? Organizational Context and Performance of Internationally Oriented SMEs

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  • Mariola Ciszewska-Mlinarič
  • Krzysztof Obłój
  • Franjo Mlinarič

Abstract

This article sheds light on the organizational context enhancing development of relational capabilities and examines the significance of relational capabilities for SMEs' financial and non-financial performance. The firm's relational capability is measured separately in customers' and suppliers' networks. This study is based on a sample of 67 SMEs from the five most internationalized industries in Slovenia. Research hypotheses are tested with linear regression models. The results support our prediction that fostering internal social capital, coupled with the usage of economic motivators, augments a firm's relational capability in a supplier network, which in turn is associated with better performance outcomes, both financial and non-financial. The results on relational capability in a customer network with respect to performance are less conclusive, indicating that vertical ties of internationally oriented SMEs (with suppliers and customers) are not of equal importance.

Suggested Citation

  • Mariola Ciszewska-Mlinarič & Krzysztof Obłój & Franjo Mlinarič, 2012. "How Relational Capabilities Matter? Organizational Context and Performance of Internationally Oriented SMEs," Central European Business Review, Prague University of Economics and Business, vol. 2012(3), pages 28-36.
    • Handle: RePEc:prg:jnlcbr:v:2012:y:2012:i:3:id:28:p:28-36
    DOI: 10.18267/j.cebr.28
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    References listed on IDEAS

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    Cited by:

    1. Petra Koudelková, 2014. "Innovation in Small and Medium Enterprises in the Czech Republic," Central European Business Review, Prague University of Economics and Business, vol. 2014(3), pages 31-37.

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    More about this item

    Keywords

    relational capability; vertical ties; performance; SME;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration

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