DefinePK

Abstract

The global manufacturing landscape has become increasingly dynamic, compelling small and medium-sized enterprises (SMEs) to strengthen their innovation and collaboration mechanisms to sustain export competitiveness. This study investigates the role of Joint Innovation Capabilities (JIC) as a critical determinant of Export Performance (EP) among manufacturing SMEs in Pakistan. Drawing on the Resource-Based Theory (RBT), Dynamic Capability View (DCV), and Social Exchange Theory (SET), the research posits that relational assets among firms foster collaborative innovation, which in turn enhances export competitiveness. The study employs a quantitative, cross-sectional survey design, collecting data from 341 owners, CEOs, and managers from textile, sports goods, and surgical instrument SMEs operating in Punjab’s major industrial hubs — Sialkot, Faisalabad, and Gujranwala. Data analysis using SPSS 23 and AMOS 23 confirms that JIC significantly influences export performance (β = 0.309, p < 0.01), explaining a substantial portion of the variance in export success. Exploratory and confirmatory factor analyses validated the measurement model, ensuring construct reliability (Cronbach’s α = 0.884) and discriminant validity (AVE = 0.771). The findings underscore that SMEs possessing robust joint innovation capabilities — such as co-development, shared R&D, and mutual knowledge exchange — achieve superior export competitiveness. The study extends relational capital theory by identifying JIC as the “missing link” between inter-firm collaboration and export success. Policy and managerial implications emphasize fostering innovation networks, transparent communication, and knowledge-sharing platforms across SME clusters.
Keywords: Joint Innovation Capabilities, Export Performance, Relational Capital, Manufacturing SMEs, Pakistan, Dynamic Capability View