“Competitiveness and technological capital as determining factors of exports in small and medium-sized companies”

This study explores international business integration, focusing on Colombian small and medium-sized enterprises (SMEs). It delves into the crucial aspects of competitiveness and technological capital influencing the export models of these SMEs. Using a questionnaire, responses were gathered from 63 Colombian SMEs exporting to 74 countries with 333 tariff positions. This analysis examines competitiveness factors like innovation, productivity, and business structure, as well as technological capital components such as R&D management, technological processes, and equipment, all tailored to the context of Colombian SMEs. The findings establish a comprehensive model elucidating direct and indirect relationships among these variables. They underscore the importance of strengthening competitiveness elements, particularly the infusion of technology into process and product innovation, alongside productivity and business structure rooted in the value derived from information technologies. Simultaneously, the study highlights the importance of nurturing employees’ physical, financial, and language skills within Colombian SMEs. This study accentuates the pivotal role of investment in technological capital aspects, including research and development management, personnel, and leveraging information technology, especially within Colombian SMEs. These investments are instrumental in augmenting performance and ensuring success in the international business arena. The paper contributes to both theoretical understanding and practical applications in enhancing the international competitiveness of Colombian SMEs.


INTRODUCTION
Competing effectively in the international market poses a significant challenge for Latin American countries, particularly for small businesses.According to the Latin American and Caribbean Economic System, these small enterprises constitute 99.5% of the region's business landscape and generate 61% of its employment opportunities.Surprisingly, only 10% of these small businesses partake in international trade.Aside from the macroeconomic factors and the specific regional contexts, internal factors within these companies significantly hinder their integration into the global economy and subsequently influence the performance of SME exports.
Essential components of structural competitiveness, such as the alignment of a company's internal functions with its core mission and purpose, the capacity to innovate -where technological innovation is a focal point -efficient data management through systems that facilitate informed decision-making, productive capacity to meet high-quality standards, organizational learning, knowledge of international markets, and language proficiency, must be scrutinized within the framework of export growth and sustainability.
Identifying competitiveness factors, technological capital, and their correlation with export performance is crucial.Export performance encompasses export orientation, the types of products exported, and export capacity.Competitiveness encompasses business structure (financial, physical, and human capacity), productivity (units produced and sold, labor and inputs), and innovation (product, process, organizational, and marketing).The technological capital encompasses R&D management (collaboration networks and IT), technological endowment (machinery, equipment, information systems, and operators), and technological processes.

LITERATURE REVIEW AND HYPOTHESES
Competitiveness, a multifaceted concept, has been extensively studied in various domains.Porter (1985) initially defined a nation's competitiveness as its industries' ability to innovate and improve market positions.Later, Porter (2002) linked competitive advantage to a nation's overall market performance, emphasizing that the inefficiency of competitiveness often results from businesses failing to incorporate competitive advantages into their strategies.He also introduced the value chain concept, which covers all company activities to satisfy customer needs.Competitive strategies are categorized into cost leadership, differentiation, or focus, with technology playing a pivotal role.Krugman (1994) posited that competitiveness matters less nationally, as leading countries usually do not compete directly.Modern literature views competitiveness from diverse angles.Rock (2010) highlighted that accessing competitive advantages hinges on foreign suppliers, investments, research and development (R&D), and foreign studies.Saldívar (2012) examined competitiveness from two contexts: external, linked to macroeconomics, and internal, tied to microeconomics and company management.Sosa Rodriguez and Reyes (2014) underscored that the competitiveness of export-oriented SMEs in Colima State hinges on efficient quality systems, international competitiveness, innovation, and effective marketing.SMEs often face barriers, like unfamiliarity with government policies for international market entry.Bueno (2011) defines that technological capital encompasses intangible assets crucial for an organization's technical system.It directly influences product attributes, efficient production processes, and knowledge accumulation for future innovations.This capital is pivotal in a firm's competitive ability to enter international markets.Several economic theories shed light on the relationship between technological capital and international trade.The Heckscher-Ohlin theory (Heckscher, 1919;Ohlin, 1933) suggests that a country's characteristics determine whether its products are labor-intensive (indicating low technological levels) or capital-intensive (indicating high technological levels).Vernon's (1966) product life cycle theory explains how the US market's size and wealth drive innovative product development, facilitated by high labor costs that encourage efficient processes.The neotechnology theory (Borkakoti, 1998) emphasizes technological disparities between countries as sources of comparative advantage in international trade.Based on these considerations, technological capital is critical to a firm's competitiveness in international markets.Economic theories provide valuable insights into the dynamic relationship between technological capital and international trade, highlighting the importance of innovation, efficiency, and knowledge accumulation for success on the global stage.
Exporting is a gradual process for companies, involving several factors.It is influenced by motivations for internationalization, internal corporate elements, the role of change agents, and a company's ability to overcome internationalization barriers (Czinkota & Ronkainen, 2002).Exportation refers to selling products or services from one country to residents of another (Hill, 2001).
Companies considering internationalization must decide whether to do so through exportation, importation, or foreign investment.International operations require alignment of a company's mission, objectives, and strategy (Daniels & Radebaugh, 2000).Four primary objectives guide internationalization: increasing sales, acquiring resources, diversifying sales and supply sources, and minimizing competitive risk.External influences related to policies, geography, values, and economic conditions affect a company's internationalizing decision.Companies must also assess the competitive landscape to gain pricing, differentiation, and capabilities advantages.This leads to a typical internationalization pattern, known as the "general pattern focused on minimizing risk" (Daniels & Radebaugh, 2000), which progresses from passive to active opportunity-seeking, external-to-internal operation management, and limited or extensive operation modes.Ultimately, a company's internationalization decision depends on its strategic vision and capacity to integrate international business into its core operations.
In light of the abovementioned considerations, contemporary companies are actively pursuing successful expansion into the international market through exports, imports, and foreign investments.Consequently, they continually assess the standards that must be incorporated to facilitate internationalization.In this sense, different organizations worldwide have carried out studies that identify critical factors of competitiveness and its relationship with the internationalization processes of companies (CONPES, 2006; Comisión Regional de Competitividad, 2016; Departamento Nacional de Planeación, 2018; Schwab, 2017).
Similarly, the development of information and communications technology and other elements of the technological capital (Internet and other emerging technologies) has impacted the level of internationalization of companies, not only by the scope of these technologies in the visibility and marketing process but for optimization and development of effective internal processes to make decisions and increase the achievement of optimal results in the international market.
For the Colombian economy, internationalization and opening markets are two issues of special importance since 1991, when Colombia inserted itself into the world economy more aggressively.The internationalization process driven by the government toward world markets has become evident in the development plans Colombia has generated.
This has favored a growing foreign projection of the business sector that has focused on generating better productivity levels as a driving factor for the growth of exports.Moreover, it brought the diversification of goods and services other than the mining and energy sector, improving sanitary conditions so that products such as those from the agricultural sector have acceptance in the international market.
In 2010, as a continuation of the policy of insertion of companies in the world economy, a structural tariff reform (STR) was implemented to reduce production costs and tariff dispersion and minimize negative protections.With this measure, the average tariff fell from As is evident through these strategies, Colombia is joining forces to advance in the internationalization of companies, and the international aspect has become a relevant part of the companies' strategy and development plans for the country's regions.However, although the number of Colombian companies in the world markets for goods and services has increased progressively, it continues to be low compared to other Latin American countries; the Colombian presence abroad is still below its potential capacity.Therefore, it is a priority in the coming years to expand the export base and consolidate the international perspective in business strategy and management.
While Colombia has an internationalization coefficient of 8.3%, one of its regions, Santander, reaches 1.1%, which reflects the low commercial performance.Exports from this region are concentrated in 76.7% in the hydrocarbon sector (oil and its derivatives since the main petroleum refinery of the country is located there, as well as oil wells managed by multinational companies), 12 2018-2032 Regional Competitiveness Plan, which establishes six strategic axes: productivity for internationalization, territorial development, institutions, science, technology and innovation, infrastructure and human capital.The fundamental goals are to increase exports from 224 billion USD to 1,440 billion USD, improve the national positioning of the amount of exports going from the 18 th position to the 10 th as a minimum, and finally increase participation in exports from Colombia from 0.96% to 4%.In addition to these regional policies aligned to national, the creation of GPS was proposed (Santander internationalization strategy), which aims, through aggressive campaigns, to create an export culture in the region and the training school for internationalization with training for exporting entrepreneurs with export potential (Comisión Regional de Competitividad, 2017).
Based on the context of the region, national studies, and scientific literature, a research model is proposed to determine the elements of competitiveness (innovation, productivity, and business structure) and technological capital (R&D management, technological endowment, technological processes) that influence export processes (export orientation, skills for the international market, export capacity) as part of the internationalization of companies.
For the Santander department, it is of great importance to work on the international insertion of companies in the region, to identify the fundamental parameters generated by the level of competitiveness and technological capital in the internationalization process immersed in the region.The results of the study support and back up proposals and programs from state entities, universities, and organizations for business development that strengthen local, regional, and national companies in the insertion into the international market solidly and competitively.
As defined by Schwab (2017), competitiveness encompasses the array of institutions, policies, and factors shaping a country's productivity level.This notion is underpinned by the Global Competitiveness Index (GCI), which assesses economies based on their factor endowment, efficiency, and innovation elements.The research model encompasses three hypotheses that establish connections between the core variables of competitiveness, technological capital, and exports.The measurement of each variable under scrutiny incorporates various constituent elements, as depicted in Figure 1.
The model of study is considered as a form of internationalization, exports, which is defined as the exit of goods from the national customs territory to another country or an industrial free zone of goods and services (Procolombia, 2013) After an extensive review of the existing literature, the study proceeds to expound upon the subsequent hypotheses: H1: Competitiveness, based on innovation, productivity and business structure, influences the exports of companies.

METHOD
The  1.
The research model proposed competitiveness and technological capital as independent variables, and exports as a dependent variable, presents the items that make up each variable and the indicators (Appendix A).

RESULTS
The results of the descriptive analysis show that 50% of the exporting companies have more than 13 years of creation.The size of the physical infrastructure of the companies in terms of area per square meter (production plant and administrative area) is small, on average 500 m2.The number of units produced for the national market is, on average, 82% compared to sales in the international market at 17%, a similar behavior in the three periods measured.On organizational innovation, the promotion of the company stands out to encourage teamwork and generate new ideas, motivating to achieve new innovations; innovation in marketing stands out for the positioning of the product, considered strategic, to consolidate the product and favor the recording of the brand.The improvement in innovation in services over the last three years is low (0.37), which demonstrates a process of differentiation of companies that is not very dynamic and effective, as well as who develops said processes.The low use of the resources the government grants to the export sector is also evident, many due to ignorance of their existence (0.76).Regarding the technological endowment, it is evident that they have machinery, equipment, and information systems; these are not sufficient for the international operation of the business.They rely on different communication networks, such as the internet, webpages, and others.In expanding their products and services, managers continually seek new export markets, reflecting their interest in international scenarios.Managers recognize the importance of investing in education and training for the international market and in strengthening language skills to establish negotiation and marketing processes.
The correlation analysis is presented in Table 2.It shows the positive relationship between the components of competitiveness, technological capital, and their relationship of influence in improving the ex- port performance of companies.Model 1 shows the relationship between innovation processes, the value created from ICT, and the information systems for administrative and commercial management, compared to exports measured by products, services, promotion, and marketing in the international market.Model 2 presents the relationship between organizational innovation and the value created from ICT, with exports represented by skills in the international market for promotion and marketing.Model 3 presents the relationship between marketing innovation for design or presentation and productivity measured from international sales and exported products (sales, investment, and time).Model 4 proposes the relationship between innovation in processes and innovation in international marketing at fairs and events and international operations and networks, with the success of products Note: ** P < 0.01. in the international market due to packaging and service.Model 5 shows the relationship between the business structure represented in standards, regulations, control at work, and technological processes based on the value created from ICT, with international strategic and operational management.Model 6 presents the relationship between process innovation and the business structure measured by the physical structure in square meters, against employees with language skills.

Figure 2. Direct relationship model between the study variables
Considering the results of the linear regression analysis, Figure 2 shows the direct relationships between the variables of competitiveness and technological capital against exports.
H3 presents the relationships between competitiveness and technological capital, understanding that technological capital can be a factor of competitiveness for companies.This analysis identified eight models with positive correlations according to Beta (β) coefficients and coefficients of determination (R 2 ) shown in Table 3.
The results show that the greater the endowment and technological processes, the greater the results in innovation, productivity and business structure.
In addition, the findings indicate a strong relationship between information technology (IT) staff and language skills, a relationship between IT staff and systems for administrative and commercial management, the total number of employees and the size of the company, a relationship between IT staff operators and computers and physical structure in square meters, a relationship between the value created from ICT, supplies and technological changes, and organizational innovation.
The path analysis found relationships between competitiveness and technological capital, as shown in Figure 3.
The resulting model reveals the correlation between the variables being investigated.The relationship between competitiveness and exports in the study population was evidenced by 3 elements: innovation, productivity, and business structure.d) innovation of international marketing in fairs and events in relation to exports in the success of products in the international market due to packaging and service (β = 0.203 **; R² = 0.338).
Productivity as the second element of competitiveness is positively related to exports through: a) international annual sales with exported products (sales, promotion, and time) (β = 0.468 **; R² = 0.552).
The business structure, as the third element of competitiveness, is positively related to exports through: a) standards, regulations, and control at work with international strategic and operational management (β = 0.292 **; R² = 0.653); Note: **P < 0.01; * P < 0.05.

DISCUSSION
As fundamental axes that prepare and consolidate businesses competitively for the challenges of the international market, innovation is a permanently present element to enter products, services, promotion, and marketing in a differentiated way.To achieve this, one needs to consider innovation as creating or improving a new product or service.It is also necessary to make innovation in production processes involved in transforming raw materials for products or services, in the design or presentation of these, in the administrative and operational management of the organization for export processes, and in the new visibility strategies and commercialization of products or services internationally.This discovery is based on the 12 pillars proposed to measure the competitiveness index proposed by Schwab (2017), which includes basic requirements such as business infrastructure, improving process efficiency, and increasing the level of innovation and sophistication in companies.Hill et al. (2017) consider that the fundamental objective of every company, in addition to growing and generating profits, is to create and deliver added value to its clients.A company adds value when it improves the quality of a product or service, adapts the product to the needs and requirements of the client, and adapts internal processes to the needs of the environment.Arge et al. (n.d.) maintain that international competitiveness is defined as the ability to sustain and increase participation in these markets, starting from the structural characteristics that determine the performance and the ability to respond to that market.Porter (2002) considers that the inefficiency of competitiveness lies in the inability of companies to identify this competitive advantage and translate it into each company's strategy.
These results are consistent with other studies made in different countries and contexts that support innovation in products, processes, organizational, and marketing as an element of competitiveness of companies in the international market (Rock,  The second element that establishes competitiveness in the international market is productivity, measured by the supplies used, the units produced and sold, the size of the company, and the number of administrative and total employees.To achieve productivity, optimization of production, supplies, processes, and resources is required; and this is where the third element appears, the corporate structure, which is based on the financial capacity, administrative capacity, geographic location, and physical infrastructure, which determines the potential and organizational capacity for the international market (Ficker, 2004;Yi, 2015).
Parallel to the elements of competitiveness, this study showed that technological capital, determined by IT staff and R&D management, the endowment of machinery and specialized equipment, information system for administrative and operational management, resources and process technology based on the added value generated by information and communication technologies, help to achieve greater success in companies in inserting themselves into the international market adapting to organizational changes and environmental requirements (Bueno, 2011; Rueda-Barrios & Rodenes-Adam, 2016; RICYT, 2009).
This study shows that the elements above are related positively with exports of companies measured by three aspects.The first is export orientation, which is characterized by the capabilities and characteristics of each company depending on its social object and its facility for internationalization.The second is international insertion, referred to how exporting companies enter the global market regarding the type of product, success entering the foreign market regarding issues such as design, technology, quality, price, packaging, services, and raw material used.The third is the export capacity, which is supported in aspects such as the strategic and operational management capability to define said export with the approach of the insertion strategy and the trained staff with language skills for such insertion.
The results are related to those obtained in studies carried out in different countries and contexts that consider innovation in products, processes, organizational and marketing, as factors that favor the achievement of competitiveness (Jaramillo et

CONCLUSION
In a rapidly evolving global landscape, businesses are navigating an ever-expanding international marketplace.To thrive in this dynamic environment, this analysis reveals that three pivotal factors -innovation, productivity, and structural adaptability -have become the linchpins of competitiveness for companies venturing into the international arena.These elements demand a continuous, strategic reassessment, as they hold the key to a differentiated approach in the pursuit of successful internationalization.
The findings underscore that innovation, hand in hand with streamlined productivity, plays a central role in this transformative journey.For companies, this entails optimizing production processes, efficiently managing supply chains, refining financial structures, fostering administrative agility, and bolstering infrastructure -a holistic approach that equips them to confront and conquer the multifaceted challenges presented by the global market.Moreover, the analysis shines a spotlight on the indispensable significance of technological capital.This encompasses dimensions such as R&D management, technological provision, processes, and innovation -elements that are instrumental in empowering exporting companies.Among these, R&D management emerges as the vanguard, propelling firms toward higher echelons of internationalization.However, this ascent is contingent on robust technological underpinnings, spanning everything from internet capabilities to export-oriented operational systems.These technological investments not only refine production, marketing, and innovation processes but also enhance overall value creation and management systems.
The triumphant navigation of international markets hinges on a three-tiered approach.Export orientation tailors strategies to the unique corporate mission and internationalization capabilities.International insertion deftlies choosing product types and market entry strategies.And export capacity is underpinned by robust strategic and operational management, and a proficient human resource pool.
To wrap up these findings, this study illuminates the pathway to international success: an unwavering evaluation of competitiveness and technological capital, seamlessly integrated into internal strategies.These elements not only align with broader macroeconomic objectives but also significantly contribute to the growth and enduring global presence of individual businesses.Looking ahead, this study points to promising directions for future exploration.These may encompass a deeper dive into the intricacies of innovation strategies, a thorough analysis of the impact of specific technological investments, and an investigation into the role of government policies in fostering internationalization.The company has one or some of the office systems with management software The company has one or some of the systems for integrated management system The company owns one or some of the systems for computer aided design The company has one or some of the systems for supply chain management system The company has one or some of the systems for customer relationship management system The company has other management systems Services contracted for the company, which favor technological processes, management and maintenance of the computer park Services contracted for the company, which favor technological processes, computer consulting Services contracted for the company, which favor technological processes, training Services contracted for the company, which favor technological processes, software development

Output-value created
Benefits generated in the company, by the use of technological processes, reduce costs Benefits generated in the company, by the use of technological processes, improve quality Benefits generated in the company, by the use of technological processes, reduce the processing time of transactions Benefits generated in the company, by the use of technological processes, improve the relationship with customers and offer a better service Benefits generated in the company, by the use of technological processes, improve relations with our suppliers Benefits generated in the company, by the use of technological processes, improve the supply process Benefits generated in the company, by the use of technological processes, configuration of new products or services that improve our position in the market Innovation as the first element of competitiveness is positively related to exports through: a) innovation in processes with products, services, promotion, and commercialization (β = 0.223 **; R² = 0.728); exported products (sales, promotion, and time) (β = 0.420 **; R² = 0.552); and employees with language skills (β = 0.141 **; R² = 0.734); b) the organizational innovation in exports through skills in the international market for promotion and marketing (β = 0.495 **; R² = 0.627); c) innovation of the marketing design or presentation of the exported products (sales, promotion, and time) (β = 0.420 **; R² = 0.552);

Figure 3 .
Figure 3. H3 relationships final model improved products in the last three years Number of new service-enhanced innovations in the past three years With whom does the company develop innovation?Percentage of revenue from sales of improved new products or services in the last three years Process innovation Number of innovations implemented in production processes in the last three years processes Who has developed the innovations in the production processes?Total percentage of cost savings from the implementation of new or improved Organizational innovation and organizational changes introduced by the company in the last three years in relation to information technology for the improvement of management and operation Level of technological and organizational changes introduced by the company in the last three years in relation to R&D to improve management and operation Level of technological and organizational changes introduced by the company in the last three years in relation to the incorporation of qualified personnel to improve management and operation Level of technological and organizational changes introduced by the company in the last three years in relation to training courses to improve the qualification of the personnel involved in management and operation Number of people that make up the technology department Computer-savvy employees Technological processes and innovation The National System of Competitiveness, Science, Technology, and Innovation adopts the definition of competitiveness from CONPES 3439 (2006), viewing it as the country's ability to produce goods and services that can thrive in global markets while en- research design is based on a quantitative approach with a descriptive, correlational, and explanatory scope based on the deductive method.It identifies theoretical variables and empirically verifies them in the reality of companies in the region.This study defined 161 companies from the Santander region in Colombia as the target population, which exported to 74 countries with 333 tariff positions and are registered in the first quarterly report of 2018 issued by the Bucaramanga Chamber of Commerce.The response rate was 39%, corresponding to 63 companies classified mainly in the service, construction, commerce, transportation, agricultural, and industrial sectors.

Table 1 .
Statistical techniques of the study

Table 2 .
Linear regression models for H1 and H2 Note: R 2 : Determination coefficient that explains the relationship between the variables of a model and hypotheses verification.** P < 0.01; * P < 0.05.

Table 3 .
Linear regression models for H3

Technological capital Variable Management in research and development (R&D) Items Indicator
Company personnel are registered in specialized social networks that favor potential international business The company's staff manages its network of professional contacts The company is aware of the ICT support programs of the public administration or industrial support institutions The company has social media contact management software its own software The company has purchased software Number of software R&D design applications Number of inbound logistics R&D software applications Number of software applications R&D production Number of outbound logistics R&D software applications Number of commercial R&D software applications Number of R&D Admin Software applications.Number of computer R&D software applications Computers and operatorsThe company has IT/telecommunications operators Total number of computers that the company has for management and operation