Institutional knowledge, organizational learning capabilities, and FTA utilization of South Korean exporting SMEs

The evolution of international trade institutions significantly impacts firm competitiveness, requiring exporting firms to adapt to institutional changes. While some firms effectively leverage these opportunities, others struggle to do so. This study conceptualizes the institutional knowledge (IK) of exporting firms within the context of free trade agreements (FTAs) and examines its predictors and outcomes. Based on a survey of 152 exporting SMEs in South Korea’s agricultural and food sectors, this study reveals that IK facilitates greater FTA utilization, and that organizational learning capabilities (OLC) promote firms’ IK. These findings not only underscore the importance of IK for exporting SMEs to enhance competitiveness but also highlight the role of OLC in strengthening IK. Business leaders should recognize the importance of IK under dynamic trade institutional changes and advance OLC to foster internal IK. This research contributes to the international business literature by highlighting the role of IK and OLC in export competitiveness.