Institutional capabilities of FTA utilization and export performance of SMEs in South Korea: moderation effect of entrepreneurial orientation

Purpose This study aims to conceptualize the institutional capabilities of exporting firms in the context of free trade agreements (FTA) and empirically demonstrate its impact on the export performance of small and medium-sized enterprises (SMEs). This study also investigates the moderating effect of entrepreneurial orientation in this relationship. Design/methodology/approach This study conducted an empirical analysis based on 152 valid responses from SMEs in South Korea’s agricultural and food sectors. The data was collected through a survey, and the proposed model was tested using partial least squares structural equation modeling. Findings The results indicate that the institutional capabilities of FTA utilization have a positive effect on the export performance of SMEs. In addition, entrepreneurial orientation, particularly risk-taking, strengthens the positive impact of these capabilities on export performance. Originality/value This study contributes to international business literature by introducing the concept of institutional capabilities in FTA utilization and demonstrating its impact on SMEs’ export performance, bridging a gap in prior research that focused mainly on multinational enterprises.