The Impact of Marketing and Innovation Capabilities on SME Export Performance: Government Policy as a Moderating Factor

ABSTRACT : This study examines the effects of marketing capabilities and innovative capabilities on the export performance of small and medium-sized enterprises (SMEs), with government policy serving as a moderating variable. Using a quantitative approach, primary data were collected from export-oriented SMEs and analyzed to assess how internal strategic capabilities and external policy support interact in enhancing international competitiveness. Marketing capabilities are measured through market intelligence, customer relationship management, and promotional strategies, while innovative capabilities encompass product development, process innovation, and adaptability. The findings indicate that both marketing capabilities and innovative capabilities have a positive and significant impact on SME export performance. Furthermore, government policy is found to weakly strengthen the relationship between marketing capabilities and export performance, suggesting a complementary role of external support. However, government policy weakens the relationship between innovative capabilities and export performance, indicating that regulatory rigidity and policy–firm misalignment may constrain firms’ ability to effectively commercialize innovation in global markets. This study contributes to the management and economics literature by integrating capability-based perspectives with policy analysis in the SME export context and provides practical implications for policymakers and managers in designing more adaptive strategies to support export-oriented growth.