A Conditional Process Model of Relational Capital and Export Performance: The Moderated Mediation Effect of Financial Reporting

Abstract

This study investigates the conditional process through which Relational Capital (RC) influences Export Performance (EP) among Pakistan’s manufacturing SMEs, incorporating the moderating role of Financial Reporting of Relational Capital (FRRC) and the mediating roles of Joint Innovation Capabilities (JIC) and Value Creation (VC). Drawing upon the Resource-Based Theory (RBT), Dynamic Capability View (DCV), and Social Exchange Theory (SET), the research establishes a moderated–mediation framework explaining how relational assets, when effectively reported and leveraged, enhance firms’ innovation capabilities and export outcomes. Using data from 341 managers, owners, and executives of manufacturing SMEs in Sialkot, Faisalabad, and Gujranwala, this study applies Structural Equation Modeling (SEM) and hierarchical regression analysis to validate hypothesized relationships. Results indicate that RC significantly predicts EP both directly and indirectly through JIC and VC, while FRRC strengthens these indirect effects, confirming a moderated–mediation relationship. The findings underscore the strategic value of transparent financial reporting as an enhancer of relational and innovative resources, offering theoretical and managerial implications for policymakers and export-oriented SMEs.