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Foreign market involvement, entry-mode learning potential and SME internationalization outcomes

Elbanna, Said, Hsieh, Linda, Child, John, Narooz, Rose, Marinova, Svetla, Karmowska, Joanna, Puthusserry, Pushyarag, Tsai, Terence, Zhang, Yunlu (2023) Foreign market involvement, entry-mode learning potential and SME internationalization outcomes. Management Decision, . ISSN 0025-1747. E-ISSN 1758-6070. (In press) (doi:10.1108/MD-01-2023-0045) (KAR id:103414)

Abstract

Drawing on an organizational learning perspective, this paper examines the effect of levels of foreign market involvement (intensity and geographic spread) on internationalization outcomes recognizing that the moderating influence of entry-mode learning potential is not well-documented in the literature on small and medium-sized enterprises (SMEs). Our sample includes 180 SMEs evenly selected from three industries: biotechnology, software and clothing (60 firms in each industry). The sampled firms employ less than 250 employees and are equally distributed between three developed economies and three emerging economies. All were engaged in foreign business. We find that there is a direct relationship between levels of foreign market involvement and internationalization outcomes. Entry-mode learning potential moderates the relationship between intensity of foreign market involvement and internationalization outcomes but not the relationship between geographic spread and internationalization outcomes. CUST_RESEARCH_LIMITATIONS/IMPLICATIONS__(LIMIT_100_WORDS) :No data available. This study reveals several new insights that help explain the pathway through which foreign market involvement activities are translated into internationalization outcomes. CUST_SOCIAL_IMPLICATIONS_(LIMIT_100_WORDS) :No data available. We conclude that the positive relationship between intensity of foreign market involvement and internationalization outcomes is strengthened when SMEs also use an entry mode with a higher learning potential than exporting only.

Item Type: Article
DOI/Identification number: 10.1108/MD-01-2023-0045
Additional information: This author accepted manuscript is deposited under a Creative Commons Attribution Non-commercial 4.0 International (CC BY-NC) licence. This means that anyone may distribute, adapt, and build upon the work for non-commercial purposes, subject to full attribution. If you wish to use this manuscript for commercial purposes, please contact permissions@emerald.com.
Uncontrolled keywords: Internationalization; internationalization outcomes; SMEs; foreign market involvement; learning
Subjects: H Social Sciences > HF Commerce > HF5351 Business
Divisions: Divisions > Kent Business School - Division > Department of Marketing, Entrepreneurship and International Business
Funders: University of Kent (https://ror.org/00xkeyj56)
Depositing User: Pushyarag Nellikka Puthusserry
Date Deposited: 24 Oct 2023 21:50 UTC
Last Modified: 08 Jan 2024 21:45 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/103414 (The current URI for this page, for reference purposes)

University of Kent Author Information

Puthusserry, Pushyarag.

Creator's ORCID: https://orcid.org/0000-0002-0878-1169
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