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Bridging the learning divide: the role of institutional WOM in stimulating emerging countries’ SMEs internationalization

Meqbel Aliedan (School of Business, Management Department, King Faisal University, Al-Ahsa, Saudi Arabia)

Review of International Business and Strategy

ISSN: 2059-6014

Article publication date: 31 May 2021

Issue publication date: 13 April 2022

170

Abstract

Purpose

The purpose of this study is to explore the relationship between experiential knowledge of foreign markets, institutional word of mouth (WOM) and small and medium enterprises’ (SMEs’) internationalization. Specifically, it aims to provide explanations of what and how cross-border experiential knowledge can be institutionally transmitted for SMEs’ internationalization purposes via WOM.

Design/methodology/approach

An exploratory approach was adopted within the phenomenological/qualitative research tradition. The data collection process was conducted through 23 semi-structured interviews with founders and chief executive officers of Saudi international SMEs.

Findings

The study’s findings confirm that SMEs seeking productive opportunities in the international market could improve their internationalization experience if they made proper use of institutional WOM as a catalyst for inter-firm learning. This concerns SMEs from emerging countries in particular as they are usually in a bid to legitimatize their presence in foreign markets.

Originality/value

The triadic relationship between experiential knowledge, institutional WOM and internationalization has not been previously researched. The current study, therefore, clearly adds value to the concept of WOM from three dimensions: institutionalization, cross-borderity and SMEs’ internationalization.

Keywords

Acknowledgements

The author would like to thank and appreciate the Deanship of Scientific Research at King Faisal University, Saudi Arabia for the financial support under Nasher Track (Grant No 2060007).

Citation

Aliedan, M. (2022), "Bridging the learning divide: the role of institutional WOM in stimulating emerging countries’ SMEs internationalization", Review of International Business and Strategy, Vol. 32 No. 2, pp. 228-245. https://doi.org/10.1108/RIBS-07-2020-0080

Publisher

:

Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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