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

Mariola Ciszewska-Mlinarič, Krzysztof Obłój and Franjo Mlinarič

Central European Business Review, 2012, vol. 2012, issue 3, 28-36

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.

Keywords: relational capability; vertical ties; performance; SME (search for similar items in EconPapers)
JEL-codes: F23 M16 (search for similar items in EconPapers)
Date: 2012
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DOI: 10.18267/j.cebr.28

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