The Impact of Commercial Diplomacy on the Export Performance of Halal Food Products: Explaining the Mediating Roles of Market Intelligence and Brand Legitimacy and the Moderating Role of Environmental Turbulence

Abstract

This study aimed to examine the effect of commercial diplomacy on the export performance of halal food products by investigating the mediating roles of export market intelligence and halal brand legitimacy and the moderating role of environmental turbulence. This applied study employed a descriptive-survey, cross-sectional design. The statistical population comprised chief executive officers, marketing and sales managers, and international affairs specialists of food-exporting companies in Tehran, Alborz, Qazvin, and Gilan provinces, Iran. The final sample consisted of 100 exporting companies selected through non-probability convenience sampling. Data were collected using a questionnaire based on a five-point Likert scale. Face validity was assessed and confirmed by academic and industry experts, while reliability was evaluated using Cronbach’s alpha. The hypothesized relationships were tested through partial least squares structural equation modeling (PLS-SEM) using SmartPLS 3. Mediation and moderation effects were examined using bootstrapping with 500 subsamples. Commercial diplomacy had significant positive effects on export performance (β=0.184, p=0.041) and halal brand legitimacy (β=0.227, p=0.045), whereas its effect on export market intelligence was not significant (β=-0.062, p=0.594). Export market intelligence (β=0.343, p=0.001) and halal brand legitimacy (β=0.350, p=0.002) significantly and positively predicted export performance. However, the indirect effects of commercial diplomacy on export performance through export market intelligence (β=-0.021, p=0.621) and halal brand legitimacy (β=0.080, p=0.067) were not statistically significant. Environmental turbulence significantly and negatively moderated the relationships of export market intelligence (β=-0.191, p=0.019) and halal brand legitimacy (β=-0.174, p=0.045) with export performance. Commercial diplomacy appears to enhance halal food export performance primarily through a direct institutional and trade-facilitation mechanism rather than through the development of firms’ internal market intelligence or brand-legitimacy capabilities. Export market intelligence and halal brand legitimacy nevertheless constitute independent drivers of superior export performance. Because environmental turbulence weakens the effectiveness of these capabilities, successful halal export strategies should simultaneously strengthen diplomatic support, market intelligence, brand legitimacy, and organizational resilience to environmental instability.