Enhancing Export Potential: The Synergistic Impact of Digitalisation and Export Market Orientation in Driving Export Success in Sri Lanka's Apparel Sector

Abstract

The purpose of this study is to examine the impact of digitalisation on the performance of Sri Lankan apparel exporters, both directly and indirectly. The indirect effect of digitalisation on export performance is evaluated through the mediation of export market orientation (EMO). EMO is the export ventures’ effort to infuse marketing strategies into its export activities. Given that apparel export ventures have embraced digital capabilities, the evaluation was conducted using data collected from 87 apparel manufacturing exporters in Sri Lanka operating on medium and large scale. Primary data was collected using a questionnaire instrument. The analytical technique employed in this study was partial least squares structural equation modelling (PLSSEM), which supported identifying the direct and indirect impacts vividly. The discoveries suggest that rather than the direct effect of digitalisation on export performance, the indirect effect of digitalisation through EMO has a significant impact on export performance. Also, the study reveals that EMO as a mediator plays a role of full mediation between the independent and the dependent constructs of the study. Digitalisation through EMO plays a crucial role in improving the export performance of apparel manufacturing exporters because effective adoption of digitalisation enables market sensing and eases the generation of export market intelligence, dissemination of that intelligence and responsiveness. The study provides significant insights for medium and large-scale apparel exporters, policymakers, and industry leaders on the importance of EMO strategies for enhancing export performance and survival in the global market while also serving as a guide for micro and small-scale ventures adopting digital practices.