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Article
Publication date: 5 May 2021

Henry Boateng, George Oppong Appiagyei Ampong, Diyawu Rahman Adam, Kwame Simpe Ofori and Robert Ebo Hinson

The purpose of this paper is to examine the role of social interaction ties, trust and business networks in the acquisition of foreign business knowledge and foreign institutional…

Abstract

Purpose

The purpose of this paper is to examine the role of social interaction ties, trust and business networks in the acquisition of foreign business knowledge and foreign institutional knowledge. It also assesses the effect of these types of knowledge on small and medium enterprises’ (SME) export performance. Furthermore, this study determines the moderating role of absorptive capacity in the relationship between foreign business knowledge, foreign institutional knowledge and export performance.

Design/methodology/approach

This study used a survey research design using data from nontraditional SME exporters in Ghana. There were 257 respondents who were employees (managers/owners) of SMEs in Ghana. The model was analyzed using structural equation modeling.

Findings

Social interaction ties, trust and business networks have a significant effect on the acquisition of foreign business knowledge and foreign institutional knowledge. Furthermore, foreign business knowledge and foreign institutional knowledge have a significant positive effect on export performance. The path between foreign business knowledge and export performance is also moderated by absorptive capacity. However, the moderating role of absorptive capacity in the relationship between foreign institutional knowledge and export performance is not significant.

Originality

This study uses social capital to explain how SMEs acquire foreign business knowledge and foreign institutional knowledge, and how both affect SMEs’ export performance. Furthermore, it tests the moderating role of absorptive capacity in the relationship between foreign business knowledge, foreign institutional knowledge and export performance.

Details

VINE Journal of Information and Knowledge Management Systems, vol. 52 no. 5
Type: Research Article
ISSN: 2059-5891

Keywords

Article
Publication date: 26 July 2021

Aidatu Abubakari, Kwame Simpe Ofori, Henry Boateng, Koffi N’Da and Robert Ebo Hinson

It is well documented in the extant literature that knowledge plays a crucial role in small and medium enterprise (SME) internationalization. Exporting SMEs from developing…

Abstract

Purpose

It is well documented in the extant literature that knowledge plays a crucial role in small and medium enterprise (SME) internationalization. Exporting SMEs from developing economies faces many challenges, including lack of knowledge about institutions in foreign markets, inadequate knowledge about foreign institutions and limited internationalization knowledge (IK). However, research on the export performance of SMEs has thus far focused on the internationalization strategies of multinational corporations. This study aims to explore the effect of foreign market knowledge on SME export performance. The authors also assessed the moderating effect of employee absorptive capacity in the knowledge-performance nexus.

Design/methodology/approach

The authors adopted a survey design to collect data from owners/managers of SMEs exporters in the Greater Accra region of Ghana. A total of 350 questionnaires were distributed based on convenience. Of this number, 257 usable responses were used in the final analysis. The authors tested the proposed model using partial least squares-structural equation modeling.

Findings

The findings show that the three types of foreign market knowledge tested in this study, namely, foreign institutional knowledge (FIK), foreign business knowledge and IK have positive and significant effects on SME exporters’ performance. It also shows that employees’ absorptive capacity affects the relationship between FIK and SME exporters’ performance.

Originality/value

The study demonstrates the types of knowledge relevant to SME export performance. The study further demonstrates the moderating effect of employee absorptive capacity on the relationship between knowledge and export performance. The study advances existing knowledge on SME performance, especially from an emerging economy context.

Details

Global Knowledge, Memory and Communication, vol. 71 no. 6/7
Type: Research Article
ISSN: 2514-9342

Keywords

Article
Publication date: 13 September 2022

Henry Boateng, Subodh Sharma Sigdel, Kwame Simpe Ofori, George Cudjoe Agbemabiese and Robert Ebo Hinson

This study aims to examine the effect of market orientation on foreign knowledge acquisition. It also assesses the moderating role of absorptive capacity in the relationship…

Abstract

Purpose

This study aims to examine the effect of market orientation on foreign knowledge acquisition. It also assesses the moderating role of absorptive capacity in the relationship between foreign knowledge acquisition, firm innovativeness and performance.

Design/methodology/approach

A questionnaire was administered to 257 respondents who were owners, managers or owner/managers of export firms in Ghana. The data were analyzed with structural equation modeling.

Findings

The findings show that customer orientation significantly influenced foreign business knowledge acquisition but not performance, and that competitor orientation significantly influenced both foreign business knowledge acquisition and firm innovativeness. Absorptive capacity was found to play a significant role in linking foreign business knowledge to innovativeness.

Originality/value

The study adds to the literature on knowledge management in firms by identifying the moderating role of absorptive capacity in the relationship between foreign business knowledge acquisition, innovativeness and performance.

Article
Publication date: 8 May 2007

Yi Zhang, Zigang Zhang and Zhixue Liu

This paper seeks to challenge the traditional wisdom that sheds light upon sequential entry modes in developed countries by exploring the dynamic entry mode choice in sequential…

11475

Abstract

Purpose

This paper seeks to challenge the traditional wisdom that sheds light upon sequential entry modes in developed countries by exploring the dynamic entry mode choice in sequential foreign direct investment (FDI) in emerging economies.

Design/methodology/approach

A review of the literature on the entry mode choice is undertaken. Based on analysing two related theories consisting of the knowledge‐based theory of the firm and organizational learning theory, entry mode choices in sequential FDI in emerging economies are investigated using both an internationalisation process model and the capability‐developing perspective, and exclusive propositions are put forward accordingly. Then, these propositions are tested on the context of China with the methodology of paired‐samples t‐tests.

Findings

Based on macro‐level longitudinal data in China from 1979 to 2005, the choice of entry mode in sequential FDI in emerging economies is inconsistent with the capability‐developing theory of the firm, but is consistent with the international process model.

Practical implications

This study provides four practical implications. First, managers intending to invest abroad need to consider the cost and return of a specific entry mode. Second, knowledge about host markets has a more important effect on entry mode choice in emerging markets than MNCs' internal organizational capabilities. Third, MNCs adopt sequential investment in emerging economies, in which they adopt joint ventures in earlier entries and then shift to green‐field investment in later entries. Fourth, experiential learning, which consists of learning about host markets and local partners' skills, is emphasized in sequentially entering emerging markets.

Originality/value

This paper expands the research scope of previous studies that either explore a static choice of entry mode in foreign markets or only examine the entry mode choice in sequential FDI in developed countries. Taking into consideration the dynamic choice of entry modes, the paper studies sequential FDI in emerging economies, which throws light upon theoretical analysis of sequential FDI in China, and which has practical implications for foreign firms that are interested in China and planning to enter China's markets.

Details

Management Decision, vol. 45 no. 4
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 3 June 2019

Md Imtiaz Mostafiz, Murali Sambasivan and See Kwong Goh

The purpose of this study is to establish the antecedents and the outcomes of foreign market knowledge (FMK) accumulation in the context of emerging economies. The antecedent is…

Abstract

Purpose

The purpose of this study is to establish the antecedents and the outcomes of foreign market knowledge (FMK) accumulation in the context of emerging economies. The antecedent is dynamic managerial capability (DMC) with managerial human capital, social capital and cognition as its dimensions. The outcomes are financial and non-financial performances. This study bridges the gap by linking individual-level capability and FMK accumulation to achieve performance.

Design/methodology/approach

This study has utilized a survey-based approach to collect data. The sample consists of 365 export manufacturing firms operating in the apparel industry of Bangladesh. Structural equation modeling analysis has been used to test the hypothesized model.

Findings

The direct effects of managerial social capital and managerial cognition on FMK accumulation are positively significant. The results also show that FMK accumulation fully mediates the relationship between: managerial social capital and financial and non-financial performances and managerial cognition and financial and non-financial performances.

Practical implications

Export manufacturing entrepreneurs in the low-tech industry should focus more on the network development and leverage on their cognitive mentality as a global mindset to succeed in international markets. These two factors are critical to accumulate foreign knowledge.

Originality/value

This study provides empirical evidence on dynamic managerial capability and FMK accumulation of export manufacturing firms in low-tech emerging economies context. Out of the three building blocks of DMC, this study has found that managerial social capital and managerial cognition of entrepreneurs are crucial as antecedents to FMK accumulation and firm performance.

Details

Journal of Business & Industrial Marketing, vol. 34 no. 4
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 11 April 2016

Hongzhi Gao, Monica Ren, Jing Zhang and Ruoyi Sun

Small and medium-sized exporters (SMEs) are driven to develop a network entry strategy to tap into a new foreign market. The purpose of this paper is to draw on the network…

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Abstract

Purpose

Small and medium-sized exporters (SMEs) are driven to develop a network entry strategy to tap into a new foreign market. The purpose of this paper is to draw on the network perspective to evaluate how a network gatekeeper facilitates a foreign SME exporter’s entry into local business networks in China.

Design/methodology/approach

The single case study method was adopted. The Ule New Zealand Mall, an online shopping platform that sells New Zealand products in China, was selected in this case study. The authors applied the critical incident technique to evaluate the position of New Zealand Post (as a home country-based network gatekeeper), the roles within the position, and the key outcome of the network gatekeeping.

Findings

The study discovers two key roles of network gatekeepers: bridging the gap in trust between outsider networks and insider networks; and reducing the costs of experiential learning for SME exporters. Finally, this study concludes that the “brokered insidership” position acquired by SME exporters is the key outcome of network gatekeeping in foreign market entry.

Originality/value

This study advances the understanding of theories of structural holes, business network and gatekeeping. The authors articulate the critical position assumed by a network gatekeeper in bridging two otherwise disconnected business networks, and their key roles in networking. The study also proposes a new network concept – “brokered insidership”.

Details

International Marketing Review, vol. 33 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 31 July 2018

Yunhao Dai

The purpose of this paper is to empirically examine the effect of returnee managers on Chinese firms’ performances at overseas markets.

Abstract

Purpose

The purpose of this paper is to empirically examine the effect of returnee managers on Chinese firms’ performances at overseas markets.

Design/methodology/approach

By hand collecting two data set containing managers’ foreign experiences and firms’ principal customers, this study empirically examines the relationship between returnee managers and overseas customers.

Findings

The author shows that firms with returnee managers: have higher probability of gaining overseas customers and proportion of overseas sales; and are more likely to conduct international M&A, adopt international Big 4 auditors and list overseas. In addition, returnee executives who came back from individualistic culture with overseas working experience, when entering the overseas market where they have experienced, are more effectively in helping firms to perform well.

Research limitations/implications

The findings in this study suggest that firms with returnee managers are better able to develop relationships with overseas customers and expand overseas markets than those firms without returnee managers.

Practical implications

For policy makers, this study justifies government policies that aim to attract and encourage more returnees to come back. Furthermore, the author shows that returnees with different foreign experiences, national culture of different countries, whether doing business with their familiar foreign country, and their positions in current organizations have different effects on overseas customers. Firms can utilize all these information to choose the “right” returnees to increase their success in overseas markets.

Originality/value

This study is among the first to examine the role of returnee managers in an emerging economy on firm’s probability of gaining overseas customers and expanding overseas sales.

Details

China Finance Review International, vol. 9 no. 1
Type: Research Article
ISSN: 2044-1398

Keywords

Article
Publication date: 1 April 1998

Thom J. Belich and Alan J. Dubinsky

An increasing number of small firms are moving into export operations. This paper reports the results of a study that examined the influence of market distance on managers’…

Abstract

An increasing number of small firms are moving into export operations. This paper reports the results of a study that examined the influence of market distance on managers’ choosing between use of in‐house expertise (integration) or external sources to obtain foreign market information. Market distance is defined as the sum of factors that affect the flow of information from and to the foreign market. Findings indicate that increased market distance leads to greater reliance on external sources (less integration) for market information.

Details

Journal of Business & Industrial Marketing, vol. 13 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

Book part
Publication date: 21 October 2019

Angels Dasi, Frank Elter, Paul Gooderham and Torben Pedersen

The disruption global digitally based firms are imposing on the positions of established multinational telcos is not just in degree, but also in kind. As such, the telcos are…

Abstract

The disruption global digitally based firms are imposing on the positions of established multinational telcos is not just in degree, but also in kind. As such, the telcos are entering a period of VUCA. Although digitally based competitors could suffer from liabilities of “outsidership,” we argue that the physical presence of telcos in local markets will be insufficient to avoid a future as utilities or dumb-pipes. One significant issue as they confront VUCA is therefore whether telcos are able to develop and apply dynamic capabilities.

Details

International Business in a VUCA World: The Changing Role of States and Firms
Type: Book
ISBN: 978-1-83867-256-0

Keywords

Article
Publication date: 9 March 2015

Sascha Fuerst and Peter Zettinig

This paper aims to examine the dynamic process of knowledge creation of the international new venture (INV) through the interaction with network partners. The process of how INVs…

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Abstract

Purpose

This paper aims to examine the dynamic process of knowledge creation of the international new venture (INV) through the interaction with network partners. The process of how INVs make use of external sources for the acquisition of international market knowledge is not well-understood.

Design/methodology/approach

To uncover the dynamics of the knowledge creation process, the authors applied event-driven process research by following the internationalization process of four INVs in real time. More specifically, they adopted qualitative diary research combined with periodic follow-up interviews as the main data collection method. A visual mapping strategy was used for the analysis of the process data.

Findings

The analysis shows that different pathways of knowledge acquisition through congenital learning, searching, vicarious learning and grafting interact with each other. Grafting and experiential learning alongside the partner lead to the acquisition of internationalization knowledge in particular. Knowledge sources for international market knowledge are proactively created by the entrepreneurs. The wider effectual stakeholder network constitutes an important source for international market knowledge.

Research limitations/implications

The authors followed the early internationalization process of the case firm in real time over a 10-month period. This provides a limited window of observation. Future research might extend the observation period to examine further the evolutionary nature of the different learning types throughout the growth of the INV. The case firms operate in Internet-enabled businesses and are all located in the same country and city (i.e. Colombia and the city of Medellin). Future studies might focus on firms operating in different industries and geographical areas.

Practical implications

Congenital technological knowledge is a prerequisite for internationalization. The entrepreneur, however, does not need to rely on congenital international market knowledge. Such knowledge can be developed through network partners. Foreign business and institutional knowledge can be obtained vicariously, also from professional advisors. Internationalization knowledge, however, needs to be developed in close interaction with an international cooperation partner, where a strong relationship commitment prevails.

Originality/value

The authors use effectuation theory combined with process research methods to gain insights into the dynamics of knowledge creation within the INV. Thereby, they are able to shed light on the dynamics of the process that is difficult to capture through cross-sectional research designs. Research on the internationalization process of young ventures in the context of Latin America is scarce. Therefore, the paper contributes new knowledge about the development of these firms in that particular region.

Details

European Business Review, vol. 27 no. 2
Type: Research Article
ISSN: 0955-534X

Keywords

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