Intangible resources influencing the international performance of professional service SMEs in an emerging market: Evidence from India
Abstract
Purpose
The purpose of this paper is to empirically examine the relationships between the drivers of economic growth in emerging markets to include entrepreneurial orientation (EO), human capital (HC), relational capital (RC), and international performance (IP).
Design/methodology/approach
Data were collected from 199 small- to medium-sized Indian professional service entrepreneurs that employ less than 500 employees and engage in international business. Given the multidimensional nature of IP, structural equation modeling (SEM) was used to test the measurement and substantive models.
Findings
SEM and mediation tests confirmed significant relationships among the constructs in the model and indicated that HC can be leveraged for international growth using RC to deliver new professional services across borders. EO, the strongest predictor, along with HC and RC, directly influenced IP. The effect of HC is mediated by an EO and RC.
Research limitations/implications
By design, only successful professional service firms in India were studied, which limited generalizability.
Practical implications
Entrepreneurs can enhance the likelihood of international expansion success by utilizing highly skilled HC and developing strong network relationships. Entrepreneurial managers should leverage their professional service resources through judicious investments in personnel and relationship-building skills to develop RC.
Originality/value
This study examined entrepreneurial professional HC and RC as related to international entrepreneurship emerging market research. Data collection in India contributes to empirical research on internationalization from emerging markets.
Keywords
Acknowledgements
An earlier version of this manuscript was presented at the XIII International Symposium, University of Belgrade, Faculty of Organizational Science and published in the symposium proceedings (2012). The manuscript has been substantially revised and presented with a new title to reflect feedback received at the symposium.
Citation
Radulovich, L., Javalgi, R.(R).G. and Scherer, R.F. (2018), "Intangible resources influencing the international performance of professional service SMEs in an emerging market: Evidence from India", International Marketing Review, Vol. 35 No. 1, pp. 113-135. https://doi.org/10.1108/IMR-06-2016-0130
Publisher
:Emerald Publishing Limited
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