Central European Business Review 2012, 1(3):28-36 | DOI: 10.18267/j.cebr.28

How Relational Capabilities Matter? Organizational Context and Performance of Internationally Oriented SMEs

Mariola Ciszewska-Mlinarič1, Krzysztof Ob³ój2, Franjo Mlinarič3
1 Mariola Ciszewska-Mlinarič, Ph.D., Assistant Professor of Strategic Management, Kozminski University, Jagiellonska 59, 03-301 Warsaw, Poland, mariolac@kozminski.edu.pl
2 Prof. Krzysztof Ob³ój, Ph.D., Full Professor of Strategic Management, Head of Strategy Department, Warsaw University, School of Management, Szturmowa 1/3, 02-678 Warsaw, Poland, Kozminski University, Jagiellonska 59, 03-301 Warsaw, Poland, kobloj@alk.edu.pl
3 Franjo Mlinarič, MSc., Senior Lecturer of Corporate Finance, University of Maribor, Razlagova 14, 2000 Maribor, Slovenia, franjo.mlinaric@uni-mb.si

This article sheds light on the organizational context enhancing development of relational capabilities and examines the significance of relational capabilities for SMEs' financial and non-financial performance. The firm's relational capability is measured separately in customers' and suppliers' networks. This study is based on a sample of 67 SMEs from the five most internationalized industries in Slovenia. Research hypotheses are tested with linear regression models. The results support our prediction that fostering internal social capital, coupled with the usage of economic motivators, augments a firm's relational capability in a supplier network, which in turn is associated with better performance outcomes, both financial and non-financial. The results on relational capability in a customer network with respect to performance are less conclusive, indicating that vertical ties of internationally oriented SMEs (with suppliers and customers) are not of equal importance.

Keywords: relational capability, vertical ties, performance, SME
JEL classification: F23, M16

Received: August 25, 2012; Revised: November 30, 2012; Published: December 31, 2012  Show citation

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Ciszewska-Mlinarič, M., Ob³ój, K., & Mlinarič, F. (2012). How Relational Capabilities Matter? Organizational Context and Performance of Internationally Oriented SMEs. Central European Business Review, 1(3), 28-36. doi: 10.18267/j.cebr.28
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