Organisational digital capabilities to international performance: knowledge-based view on employee perspective on international network capability

Purpose The emergence of technological knowledge management resources, including the internet and social media technologies, has significantly transformed firms’international marketing strategies. Drawing on the knowledge-based view and dynamic capability theory, this study aims to investigate whether internet marketing capability (IMC) and social customer relationship management capability (SCRM) enhance international performance through the development of international network capability (INC). Design/methodology/approach The paper empirically tested the proposed conceptual model using survey data from 197 export-oriented manufacturing firms. The proposed relationship was tested using partial least squares structural equation modeling with a bootstrapping procedure. Findings Both IMC and SCRM positively influence INC. In turn, INC significantly enhances customer relationship performance (CRP) and IMG. The results of mediation analyses reveal that INC transmits the effects of IMC on CRP and of SCRM on IMG, indicating partial mediation in both relationships. Originality/value The results show that the organization INC is a key predictor of the international market performance. By distinguishing between customer relational performance (CRP) and international growth performance (IMG), the findings of this research explain how different digital capabilities translate into distinct international outcomes for emerging-market exporting firms. This study also extends this line of research by suggesting that a firm’s INC is an important determinant for IMG.