Introduction: since the business arena is moving towards becoming more global hence more dynamic, the organizations should balance their capabilities with the international market’s demands and conditions. This makes the companies investigate the development of more capabilities through identification of the major competencies able to better improve competitiveness and export performance according to the cultural gaps. Objective: investigating the enjoyment of dynamic export capabilities and export performance for competitive advantage, export performance and cultural gap. Study Method: the study population included all the managers and experts working in small and medium-sized enterprises active in leather industry whose central offices or factories are based in Tehran. The total number of the study population was 460 individuals. The sampling method used herein was a simple randomized method. The study sample volume was comprised of 210 individuals who were selected based on Cochran’s formula. Some 250 questionnaires were administered to gather the data required and, in the end, 210 questionnaires were received. The present study makes use of a descriptive-survey method of the correlation and applied type. The hypotheses test has been carried out using equation structure software Smart-PLS2. Findings: innovation, unpredictability and flexibility are positively correlated with competitive advantage. Moreover, the relationship between the four dynamic export capabilities, i.e. adaptation, innovation, unpredictability and flexibility, and the competitive advantage is stronger when the competition intensity is lower. There is a positive and significant relationship between competitive advantage and cultural gap and cultural gap was shown to have a positive relationship with competitive advantage.
