Hypothesis testing: Hypothesis 9 to

The theoretical framework of the study also proposed the moderation effects of technological innovation capability and management innovation capability in contingency part of the model as discussed in Chapter Three (Section 3.2). The contingency model included 4 hypotheses that related to the moderation effect of predictor variables and predicted variables. In hypotheses 9, the study theorised that technological innovation capability moderates the relationship between complementary within-functional area (i.e., exploitative marketing capability vs. exploratory marketing capability), and export venture performance. In hypotheses 10, the study theorised that technological innovation capability moderates the relationship between complementary cross functional area (i.e., exploitative marketing capability vs. exploitative product innovation capability), and export

venture performance. In hypotheses 11, the study theorised that management innovation capability moderates the relationship between complementary within- functional area (i.e., exploitative marketing capability vs. exploratory marketing capability), and export venture performance. In hypotheses 12, the study theorised that management innovation capability moderates the relationship between complementary cross functional area (i.e., exploitative marketing capability vs. exploitative product innovation capability), and export venture performance.

This study used multiple hierarchical regression to test the hypothesised moderating effects (Cohen, Cohen, West & Aiken, 2003; Sørensen, 2011) in SPSS Statistics. Hierarchical regression analysis method helps partition out the total variance explained by each of the entering variables (Sørensen, 2011). The measures of predictor variable and moderator variable were mean-centred to minimise the potential threat of multicollinearity when calculating the interaction term (Madson & Perreault, 1991). In the hierarchical analysis processes, the predictor variable and moderator variable were entered in regression Step 1 and the interaction variable was entered in regression in regression Step 2. The contribution of the interaction variable, in terms of the possible significant increase in variance explained (R2 change), between the two models, was assessed by calculating the partial F- statistics. If the size of the R2 changes for step 2 when the moderator term was entered, the change is an indicator of the size of the moderator effect. A significant partial F-statistics concludes that the hypothesised moderating variable is, in fact, a moderator. The Table 5.12 and Table 5.13 present the results from hypothesis testing.

Hypothesis 9a stated that technological innovation capability moderates the relationship between the exploitative marketing capability and exploratory marketing capability complementarity, and export venture performance. In Table 5.12, the findings show that the R2 change is 0.01 when the interaction variable is added to the predictor and moderator variables. This change is significant (F = 2.25, F-value = 4.39). Thus, technological innovation capability moderates the effects of the exploitative marketing capability and exploratory marketing capability complementarity on the export venture performance. Hypothesis 9b stated that technological innovation capability moderates the relationship between the exploitative product innovation capability and exploratory product innovation

capability complementarity, and export venture performance. In Table 5.12, the findings show that the R2 change is 0.14 when the interaction variable is added to the predictor and moderator variables. This change is significant (F = 25.36, F-value = 3.99). Thus, technological innovation capability moderates the effects of the exploitative product innovation capability and exploratory product innovation capability complementarity on the export venture performance. Hypothesis 10a stated that technological innovation capability moderates the relationship between the exploitative marketing capability and exploitative product innovation capability complementarity, and export venture performance. In Table 5.12, the findings show that the R2 change is 0.01 when the interaction variable is added to the predictor and moderator variables. This change is significant (F = 1.83, F-value = 3.94). Thus, technological innovation capability moderates the effects of the exploitative marketing capability and exploitative product innovation capability complementarity on the export venture performance.

Hypothesis 10b stated that technological innovation capability moderates the relationship between the exploratory marketing capability and exploratory product innovation capability complementarity, and export venture performance. In Table 5.12, the findings show that the R2 change is 0.12 when the interaction variable is added to the predictor and moderator variables. This change is significant (F = 22.32, F-value = 4.07). Thus, technological innovation capability moderates the effects of the exploratory marketing capability and exploratory product innovation capability complementarity on the export venture performance.

Table 5.12: Results of hierarchical regression test for moderating effect of technological innovation capability

Predictor variables Model 1 Model 2 Model 3 Model 4

Main effect

Exploitative MC X Exploratory MC .29 (3.48*)

Exploitative PIC X Exploratory PIC .23 (2.83*)

Exploitative MC X Exploitative PIC .19 (2.66*)

Exploratory MC X Exploratory PIC .30 (3.29*) Technological innovation capability (TECH) .82 (4.53*) .18 (5.06*) .16 (4.95*) .17 (4.29*)

Interaction effect

TECH X (Exploitative MC X Exploratory MC) .23 (4.38*)

TECH X (Exploitative PIC X Exploratory PIC) .21 (3.99*)

TECH X (Exploitative MC X Exploitative PIC) .18 (3.94*)

TECH X (Exploratory MC X Exploratory PIC) .24 (4.07*)

R2 .13 .14 .17 .14

R2 change .01 .13 .01 .12 F 2.25 25.36 1.83 22.32 F-value 4.39 3.99 3.94 4.07 Note: *Indicates meets or exceeds minimum acceptable levels

Hypothesis 11a stated that management innovation capability moderates the relationship between the exploitative marketing capability and exploratory marketing capability complementarity, and export venture performance. In Table 5.13, the findings show that the R2 change is 0.06 when the interaction variable is added to the predictor and moderator variables. This change is significant (F = 13.29, F-value = 4.01). Thus, management innovation capability moderates the effects of the exploitative marketing capability and exploratory marketing capability complementarity on the export venture performance.

Hypothesis 11b stated that management innovation capability moderates the relationship between the exploitative product innovation capability and exploratory product innovation capability complementarity, and export venture performance. In Table 5.13, the findings show that the R2 change is 0.06 when the interaction variable is added to the predictor and moderator variables. This change is significant (F = 4.69, F-value = 4.51). Thus, management innovation capability moderates the effects of the exploitative product innovation capability and exploratory product innovation capability complementarity on the export venture performance.

Hypothesis 12a stated that management innovation capability moderates the relationship between the exploitative marketing capability and exploitative product innovation capability complementarity, and export venture performance. In Table 5.13, the findings show that the R2 change is 0.04 when the interaction variable is added to the predictor and moderator variables. This change is significant (F = 7.54, F-value = 4.72). Thus, management innovation capability moderates the effects of the exploitative marketing capability and exploitative product innovation capability complementarity on the export venture performance.

Hypothesis 12b stated that management innovation capability moderates the relationship between the exploratory marketing capability and exploratory product innovation capability complementarity, and export venture performance. In Table 5.13, the findings show that the R2 change is 0.06 when the interaction variable is added to the predictor and moderator variables. This change is significant (F = 10.50, F-value = 3.68). Thus, management innovation capability moderates the effects of the exploratory marketing capability and exploratory product innovation capability complementarity on the export venture performance.

Table 5.13: Results of hierarchical regression test for moderating effect of management innovation capability

Predictor variables Model 1 Model 2 Model 3 Model 4

Main effect

Exploitative MC X Exploratory MC .18 (3.65*)

Exploitative PIC X Exploratory PIC .12 (4.94*)

Exploitative MC X Exploitative PIC .17 (2.55*)

Exploratory MC X Exploratory PIC .13 (2.61*) Management innovation capability (MGT) .17 (2.74*) .06 (2.71*) .42 (2.57*) .08 (2.10*)

Interaction effect

MGT X (Exploitative MC X Exploratory MC) .29 (5.19*)

MGT X (Exploitative PIC X Exploratory PIC) .16 (2.17*)

MGT X (Exploitative MC X Exploitative PIC) .14 (2.75*)

MGT X (Exploratory MC X Exploratory PIC) .24 (3.24*)

R2 .22 .06 .20 .09

R2 change .06 .02 .04 .06 F 13.29 4.69 7.54 10.50 F-value 4.01 4.51 4.72 3.68 Note: *Indicates meets or exceeds minimum acceptable levels