Examining the Mediating Role of Organizational Learning in Linking Competitive Strategies to Export Performance: Evidence from Ethiopian SMEs
DOI:
https://doi.org/10.20372/star.V14.i1.13Keywords:
Organizational Learning, Differentiation strategy, Cost Leadership Strategy, SMEs’ export performanceAbstract
The study's goal is to investigate how differentiation and cost leadership strategies affect Ethiopian SMEs' export performance. In the meantime, to comprehend how organizational learning functions as a mediator between them. To do this, the study used a quantitative research approach and an explanatory cross-sectional survey design. Only 300 Ethiopian coffee-exporting SMEs that are actively involved in Ethiopian coffee exporting were surveyed to collect data. Finally, the collected data were analyzed using structural equation modeling (SEM) with SMART PLS 3.2 software. The findings reveal that cost leadership has a significant direct impact on export performance, while its indirect effect via organizational learning on performance is statistically insignificant. In contrast, differentiation strategy has a direct negative effect on export performance; however, it positively affects organizational learning, which improves export results. The study highlights organizational learning's dual role as a mediator, advising SMEs to prioritize it and balance cost leadership with differentiation strategies to improve export performance. It offers actionable insights for managers and policymakers, stressing learning as a strategic focus. Future research should expand with longitudinal designs, additional variables, and diverse samples from developing nations to generalize findings.
Downloads
Metrics
References
Abubakar, M. S., Rahim, N. A., Yusof, R. N. R., & Yahya, M. H. H. (2024). Strategic Orientation Influence OnSmes’ Export Performance In Nigeria: Measurement Validation And Preliminary Analysis. Journal International Studies, 20(2), 149–190. https://doi.org/10.32890/jis2024.20. 2.6
An, G., & Lifen, C. (2017). Explore the Integration of Cost Leadership Strategy and Differentiation Strategy. 381–385. https://doi.org/10.2991/ICEMC-17.2017.7 5
Aulakh, P. S., Kotabe, M., & Teegen, H. (2000). Export Strategies and Performance of Firms from Emerging Economies: Evidence from Brazil, Chile, and Mexico. Academy of Management Journal, 43(3), 342–361. https://doi.org/10.5465/1556399
Ayob, A. H., & Senik, Z. C. (2015). The role of competitive strategies on export market selection by SMEs in an emerging economy. International Journal of Business and Globalisation, 14(2), 208. https://doi.org/10.1504/ijbg.2015.067436
Calori, R., & Ardisson, J. M. (1988). Differentiation strategies in ‘stalemate industries.’ Strategic Management Journal, 9(3), 255–269. https://doi.org/ 10.1002/smj.4250090305
Chukwuma, I. O., Chukwuma, P. C., & Madu, I. L. (2024). Organisational Learning: A Resource-Based View Analysis. International Journal of Scientific Research and Management (IJSRM), 12(04), 6079–6087. https://doi.org/10. 18535/ijsrm/v12i04.em03
Chung, H.F.L., & Ho, M.H.-W. (2021), International competitive strategies, organizational learning and export performance: a match and mis-match conceptualization, European Journal of Marketing, 55 (10), 2794-2822. https://doi. org/10.1108/EJM-04-2019-0309
Crossan, M., Vera, D., & Pathak, S. (2021). Organizational learning. In Strategic Management (pp. 467–484). https://doi. org/10.1093/oso/9780190090883.003.0026
Das, S., &Canel, C. (2022). Linking manufacturing and competitive strategies for successful firm performance: a review and reconceptualization. Journal of Strategy and Management, 16(1), 148–172. https://doi.org/10.1108/jsma-02-202 2-0043
De Montreuil Carmona, L. J. (2023). Analyzing the path of Resource-based and Dynamic Capabilities Theories for explaining the differentiated performance of firms. Revista De Negócios, 27(4), 107. https://doi.org/10.7867/1980-4431.2022v 27n4p107-125
Fornell, C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18(1), 39–50. https://doi. org/10.1177/002224378101800104
Gatimu, S. K., &Amuhaya, J. (2022). Effect of Competitive Strategies On The Performance Of Smes In Kiambu County, Kenya. Journal of Business and Strategic Management, 7(1), 69–87. https://doi.org /10.47941/jbsm.846
Gomes, G., & Wojahn, R. M. (2016). Organizational learning capability, innovation and performance: study in small and medium-sized enterprises (SMES). Revista De Administração, 52(2), 163–175. https://doi.org/10. 1016/j.rausp .2016.12.003
Haddoud, M. Y., Onjewu, A. E., Nowiński, W., & Jones, P. (2020). The determinants of SMEs’ export entry: A systematic review of the literature. Journal of Business Research, 125, 262–278. https://doi.org/10.1016/j.jbusres.2020.12.017
Hair, J. F., Sarstedt, M., Pieper, T. M., & Ringle, C. M. (2012). The use of partial least squares Structural equation modeling in Strategic Management Research: A review of past practices and recommendations for future applications. Long Range Planning, 45(5–6), 320–340. https://doi.org/10.1016/j.lrp.2012.09.008
Hendijani, R., & Saei, R. S. (2024). Supply chain integration, competitive strategies and firm performance. International Journal of Organizational Analysis. https://doi.org/10.1108/ijoa-06-2023-3788
Islami, X., Mustafa, N., &Latkovikj, M. T. (2020). Linking Porter’s generic strategies to firm performance. Future Business Journal, 6(1),1-15. https://doi.org/10.1 186/s43093-020-0009-1
Kalmuk, G., & Acar, A. (2015). The mediating role of organizational learning capability on the relationship between innovation and firm’s performance: a conceptual framework. Procedia - Social and Behavioral Sciences, 210, 164–169. https://doi.org/10.1016/j.sbspro.2015.11.355
Kero, C. A., & Bogale, A. T. (2023). A systematic review of Resource-Based view and dynamic capabilities of firms and future research avenues. International Journal of Sustainable Development and Planning, 18(10), 3137–3154. https://doi.org/10.18280/ijsdp.181016
Mitroulis, D., & Kitsios, F. (2016). Fostering a competitive differentiation strategy for sustainable organizational performance. In Springer proceedings in business and economics (pp. 85–112). https://doi.org/10.1007/978-3-319-33003-7_5
Morgan, N. A., Kaleka, A., &Katsikeas, C. S. (2003). Antecedents of Export Venture Performance: A theoretical model and Empirical assessment. Journal of Marketing, 68(1), 90–108. https://doi.org/ 10.1509/jmkg.68.1.90.24028
Navaia, E., Moreira, A., & Ribau, C. (2023). Differentiation Strategy and Export Performance in Emerging Countries: Mediating Effects of Positional Advantage among Mozambican Firms. Economies, 11(2), 44. https://doi.org/10.3390/ economies11020044
Obadia, C., & Vida, I. (2023). Export marketing strategy and performance: A focus on SMEs promotion. International Business Review, 33(2), 102229. https://doi.org/10.1016/j.ibusrev.2023.102229
Prima, Y., Sabihaini, S., & Ghofar, A. (2022). Cost leadership Strategy and differentiation Strategy mediate the effect of entrepreneurship orientation on the performance of Batik Lendah SMES. JurnalManajemen Dan Kewirausahaan, 10(1), 49–57. https://doi.org/10.26905 /jmdk.v10i1.7182
Rua, O., França, A., & Ortiz, R. F. (2018). Key drivers of SMEs export performance: the mediating effect of competitive advantage. Journal of Knowledge Management, 22(2), 257–279. https://doi. org/10.1108/jkm-07-2017-0267
Ryan, P., Giblin, M., Andersson, U., & Clancy, J. (2018). Subsidiary knowledge creation in co-evolving contexts. International Business Review, 27(5), 915–932. https://doi.org/10.1016/j.ibusrev .2018.02.003
Sidani, Y. M. (2024). Learning theory—organizational. In Edward Elgar Publishing eBooks (pp. 157–163). https://doi.org/10.4337/9781035308767.ch19
Sulistyo, H., & Ayuni, S. (2019). Competitive advantages of SMEs: The roles of innovation capability, entrepreneurial orientation, and social capital. Contaduría Y Administración, 65(1), 156. https://doi.org/10.22201/fca.24488410e.2020.1983
Sun, N. W., Chen, N. K., & Mei, N. J. (2024). Integrating The Resource-Based View And Dynamic Capabilities: A Comprehensive Framework For Sustaining Competitive Advantage In Dynamic Markets. Epra International Journal of Economic and Business Review, 1–8. https://doi.org/10.36713/epra18157
Tamayo,T.I., Gutiérrez,G.L.J., Llorens,M.F. J., & Martínez, L.F.J. (2016). Organizational learning and innovation as sources of strategic fit. Industrial Management & Data Systems, 116(8), 1445–1467. https://doi.org/10.1108/imds-12-2015-0518
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic Capabilities and Strategic Management. Strategic Management Journal, 18(7), 509–533. http://www. jstor.org/stable/3088148
Tresnawati, P., & Rufaidah, P. (2018). The role of entrepreneurship orientation and competitive strategies toward business performance. Journal of International Conference Proceedings, 1(2). https://doi.org/10.32535/jicp.v1i2.317
Yu, J., Zhou, J. X., Wang, Y., & Xi, Y. (2013). Rural Entrepreneurship in an Emerging Economy: Reading Institutional Perspectives from Entrepreneur Stories. Journal of Small Business Management, 51(2), 183–195. https://doi.org/10.111 1/jsbm.12012
Zehir, C., & Kirali, A. E. (2022). Role Of Learning Capability In The Relationship Between Competitive Strategies And Business Performance: A Review During The Covid-19 Pandemic Period. Journal of Global Strategic Management. https://doi.org/10.20460/jgsm.2022.311
Zhou, S. (2023). Organizational learning, knowledge management capability and organizational innovation performance: Basis for learning organizational framework. International Journal of Research Studies in Management, 11(6). https://doi.org/10.5861/ijrsm.2023.1073
Zucchella, A., & Siano, A. (2014). Internationalization and innovation as resources for SME growth in foreign markets. International Studies of Management and Organization, 44(1), 21–41. https://doi.org/10.2753/imo0020-882 5440102
Downloads
Published
How to Cite
License
Copyright (c) 2025 Journal of Science, Technology and Arts Research

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
STAR © 2023 Copyright; All rights reserved