To read this content please select one of the options below:

The internationalization performance of Indonesian SMEs during COVID-19 pandemic: exploring a mediation model

Grisna Anggadwita (Faculty of Economics and Business, Universitas Gadjah Mada, Yogyakarta, Indonesia and School of Economics and Business, Telkom University, Bandung, Indonesia)
Nurul Indarti (Department of Management, Faculty of Economics and Business, Universitas Gadjah Mada, Yogyakarta, Indonesia)
Paresha Sinha (Department of Strategy and Human Resource Management, Waikato Management School, The University of Waikato, Hamilton, New Zealand)
Hardo Firmana Given Grace Manik (Department of Management, Faculty of Business, Universitas Kristen Duta Wacana, Yogyakarta, Indonesia)

Review of International Business and Strategy

ISSN: 2059-6014

Article publication date: 23 June 2023

Issue publication date: 7 November 2023

349

Abstract

Purpose

Small and medium enterprises (SMEs) in emerging economies face significant challenges in formulating effective strategies to enter international markets, particularly amid uncertain conditions such as the COVID-19 pandemic. Consequently, there is a pressing need to examine the performance of these SMEs and evaluate their internationalization process. This study aims to examine the effects of international entrepreneurial orientation on the internationalization performance of SMEs and the mediating effects of organizational dynamic capability and organizational culture in Indonesia.

Design/methodology/approach

This study used a quantitative method with a survey approach by distributing questionnaires to 206 SMEs in Indonesia that have implemented internationalization practices. Partial least squares-structural equation modeling (PLS-SEM) was used to predict and estimate relationships.

Findings

This study finds that one of the SMEs’ strategies to encounter the new normal era of COVID-19 is to improve their internationalization performance, especially by actively participating in international markets. The empirical results show that organizational dynamic capabilities and organizational culture are proven to fully mediate the relationship between international entrepreneurial orientation and the internationalization performance of SMEs. Meanwhile, international entrepreneurial orientation does not directly affect SMEs’ internationalization performance. This study confirms the mediating role of organizational dynamic capabilities and organizational culture in dynamic capabilities theory and their relevance to internationalization.

Originality/value

This study provides valuable insights and encourages owner-managers and policy-makers in emerging economies, particularly Indonesia, to develop organizational dynamic capabilities and organizational culture that align with the demands of internationalization.

Keywords

Acknowledgements

The authors thank to the reviewers for their useful suggestions. A research grant [Penelitian Unggulan Departemen Manajemen] from Faculty of Economics and Business, Universitas Gadjah Mada, are gratefully acknowledged. The authors declare no conflict of interest.

Citation

Anggadwita, G., Indarti, N., Sinha, P. and Manik, H.F.G.G. (2023), "The internationalization performance of Indonesian SMEs during COVID-19 pandemic: exploring a mediation model", Review of International Business and Strategy, Vol. 33 No. 5, pp. 763-785. https://doi.org/10.1108/RIBS-04-2023-0030

Publisher

:

Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

Related articles