Types of foreign networks and internationalization performance of Korean SMEs
Abstract
Purpose
The purpose of the study is to empirically analyze how various types of foreign networks influence the internationalization performance of Korean small and medium enterprises (SMEs). The specific aim is to investigate the impact of each network type (family and friends, clients (buyers, vendors, etc.), potential buyers contacted through an Internet search for export, acquaintances from trade shows and fairs and acquaintances from government organizations) on internationalization performance outcomes, such as financial performance, financial performance satisfaction and strategic performance.
Design/methodology/approach
To identify influential foreign networks, multiple regression analysis was conducted. The sample consisted of 484 exporting Korean SMEs.
Findings
The results emphasized the role of business networks with clients in enhancing financial performance, financial performance satisfaction and strategic performance of Korean SMEs in international markets.
Originality/value
The research contributes to the expansion of SME internationalization literature by identifying various types of foreign networks used in international markets and revealing their differential roles on the internationalization performance of Korean SMEs.
Keywords
Acknowledgements
This work was supported by the National Research Foundation of Korea Grant funded by the Korean Government (NRF-2013S1A3A2043346).
Citation
Jeong, S.W. (2016), "Types of foreign networks and internationalization performance of Korean SMEs", Multinational Business Review, Vol. 24 No. 1, pp. 47-61. https://doi.org/10.1108/MBR-08-2015-0039
Publisher
:Emerald Group Publishing Limited
Copyright © 2016, Emerald Group Publishing Limited