The Role of Digital Relational Capital in Enhancing Export Competitiveness of Pakistani SMEs

Abstract

In today’s interconnected global economy, no country can thrive in isolation. Developing countries like Pakistan must enhance their export competitiveness to foster economic growth, generate foreign exchange, and reduce dependency on limited sectors. Strong export performance not only supports GDP growth but also encourages industrial diversification, skills development, and integration into global markets. Recognizing the critical role of firm-level factors in national export success, this study explores how digital Relational Capital—the quality of digitally facilitated relationships with external stakeholders—impacts the export competitiveness of Pakistani manufacturing SMEs. This research investigates both the direct and indirect effects of digital Relational Capital on export performance. Specifically, it examines how value creation and joint innovation capabilities mediate this relationship. Additionally, it evaluates the moderated-mediation role of financial reporting of Relational Capital in strengthening the links between Relational Capital, joint innovation, and export performance. This cross-sectional, positivist study collected data from owners and senior managers of manufacturing SMEs in Pakistan using standardized scales drawn from existing literature. Power analysis guided the sampling strategy, and statistical analyses including correlation and regression were conducted using SPSS. Findings confirm that digital Relational Capital significantly enhances export performance. Moreover, value creation and joint innovation capabilities act as key mediators, amplifying the benefits of Relational Capital. The results also highlight that robust financial reporting practices further reinforce these effects, suggesting that transparent communication of relational assets can elevate a firm’s global competitiveness. This study contributes to the resource-based view, social exchange theory, and dynamic capabilities perspective. It offers practical and theoretical insights for SME managers, policymakers, and regulatory bodies seeking to improve the global standing of Pakistan’s manufacturing sector. It also opens new avenues for future research on the digital dimensions of intangible assets in emerging markets.