Going global, fast or slow? Networking decisions for smaller firms

Abstract

Purpose

This study aims to provide insights into the development of firm strategies of international expansion by examining the direct relationship between internationalization speed and firm performance and by exploring the interactive role played by networking capability.

Design/methodology/approach

This is an empirical study based on survey data collected from 343 small and medium-sized enterprises operating in Australia and New Zealand. Regression modelling analysis was performed.

Findings

This study found an inverted U-shape relationship between the speed at which a firm expands internationally and its performance. Expanding too fast or too slow leads to lower performance, and this performance implication is because of an interactive effect of the firm's networking capability.

Research limitations/implications

This study contributes to the literature by generating insights into how firm strategies of international expansion lead to improvement of firm performance, thereby giving guidance and providing suggestions to managers regarding how quickly to internationalize.

Practical implications

This study contributes to the literature by generating insights into how firm strategies of international expansion lead to improvement of firm performance and by providing suggestions to managers regarding decision-making in developing strategies for international expansion speed.

Originality/value

This is an original study based on empirical data collected from a management survey.

Citation

Zhao, C., Kang, Y. and Kennedy, J.C. (2020), "Going global, fast or slow? Networking decisions for smaller firms", Journal of Business Strategy, Vol. 41 No. 3, pp. 11-19. https://doi.org/10.1108/JBS-01-2019-0010