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The purpose of this paper is to examine how network competence is related to the growth of domestic and international SMEs originating from the Nordic region. Business networks have been found to drive internationalization of SMEs in the Nordic context, but the impact of network-related organizational competencies on them has not been considered.

The authors apply regression analysis on a sample of 298 Finnish SMEs across five industry sectors, gathered via an online survey in 2008, and with the data having been updated for its financial indicators up to 2010.

The authors find that cross-relational network competence is a significant predictor of growth in internationally operating SMEs. This result is robust across measures among the firms. In comparison, the network competence of domestically operating SMEs is not related to their growth, and relationship-specific competence does not influence growth.

The study does not account for longitudinal aspect of competence development. Growth is measured by the growth in sales and assets, and there are other ways to measure organizational growth. A single-country context also extends some restrictions on the generalizability of the results, although they could be expected to hold across small, open economies similar to Finland and the Nordic area.

The results imply that the strategic aims of SMEs determine their need for network competence, those SMEs seeking internationalization and growth through geographic expansion come to benefit from developing certain types of network competence.

Policy implications arise where governments in Finland and in the Nordic area may aid SMEs’ internationalization efforts by enabling the growth-seeking firms with increased resources for competence development.

This is the first study to examine how the organizational competencies to develop and manage business networks, in particular dyadic and network-level competencies, come to determine realized growth outcomes in domestic and international SMEs. It contributes to the theory of SME internationalization and international entrepreneurship from the business network point of view, while providing further knowledge on internationalization of SMEs originating from the Nordic area.

The purpose of this paper is to develop and empirically test model depicting the relationships among perceived environmental uncertainty, domestic and foreign networking, and export performance.

A sample of small and medium sized enterprises (SMEs) from Finland, Sweden and Norway serve as the study setting. Data were collected via mail surveys from random samples of SME owners/managers. Usable responses were 75 from Finland, 111 from Sweden and 71 from Norway.

Of the four dimensions of uncertainty, only uncertainty about supplier markets emerged as a significant driver of domestic networking activities of SMEs. While domestic networking did not have a significant influence, foreign networking showed a significant positive impact on SMEs' export performance. Firm size was found to have positive impacts on foreign networking and export performance.

The study was limited to manufacturing SMEs in a particular region. Replications in other industries and regions are needed to validate the current findings. People from Finland, Norway and Sweden share similar cultural values and they are low on uncertainty‐avoidance. Hence, they are not threatened by environmental uncertainties and, consequently, may not feel compelled to engage in networking to reduce uncertainty.

The positive linkage between foreign networking and export performance suggests that public officials in these countries should encourage SMEs to strengthen their existing foreign networks and facilitate formation of new ones via trade missions in other countries.

Understanding the role of networking, as a potential buffer between environmental uncertainty and export performance, should be of interest to both researchers and practitioners.

The study this chapter reports focuses on how network theory contributes to the understanding of the internationalization process of SMEs and measures the effect of network capability on performance in international trade and has three research objectives.

The first objective of the study relates to providing new insights into the international market development activities through the application of a network perspective. The chapter reviews the international business literature to ascertain the development of thought, the research gaps, and the shortcomings. This review shows that the network perspective is a useful and popular theoretical domain that researchers can use to understand international activities, particularly of small, high technology, resource-constrained firms.

The second research objective is to gain a deeper understanding of network capability. This chapter presents a model for the impact of network capability on international performance by building on the emerging literature on the dynamic capabilities view of the firm. The model conceptualizes network capability in terms of network characteristics, network operation, and network resources. Network characteristics comprise strong and weak ties (operationalized as foreign-market entry modes), relational capability, and the level of trust between partners. Network operation focuses on network initiation, network coordination, and network learning capabilities. Network resources comprise network human-capital resources, synergy-sensitive resources (resource combinations within the network), and information sharing within the network.

The third research objective is to determine the impact of networking capability on the international performance of SMEs. The study analyzes 11 hypotheses through structural equations modeling using LISREL. The hypotheses relate to strong and weak ties, the relative strength of strong ties over weak ties, and each of the eight remaining constructs of networking capability in the study. The research conducts a cross-sectional study by using a sample of SMEs drawn from the telecommunications industry in Ireland.

The study supports the hypothesis that strong ties are more influential on international performance than weak ties. Similarly, network coordination and human-capital resources have a positive and significant association with international performance. Strong ties, weak ties, trust, network initiation, synergy-sensitive resources, relational capability, network learning, and information sharing do not have a significant association with international performance. The results of this study are strong (R2=0.63 for performance as the outcome) and provide a number of interesting insights into the relations between collaboration or networking capability and performance.

This study provides managers and policy makers with an improved understanding of the contingent effects of networks to highlight situations where networks might have limited, zero, or even negative effects on business outcomes. The study cautions against the tendency to interpret networks as universally beneficial to business development and performance outcomes.

Given the ways in which the research pressures on university staff are becoming seemingly ever greater, an issue of the European Journal of Marketing that is given over to a survey of the kinds of research initiatives which are currently being carried out is timely. The study which provides the basis for this was conducted between December 1994 and February 1995, with questionnaires being sent to staff in universities throughout Europe. At the time the final selection was made, a total of 150 responses had been received from 18 countries.

In this paper, the basic tenets of the European industrial networks research tradition are introduced. It is argued that the network approach offers a particularly powerful descriptive tool for analyzing contemporary interorganizational business exchange. The network approach is applied in a case study of a Finnish SME sector furniture manufacturer’s focal net. The case study should be understood as an example of how the network approach can generate meaningful analyses and provide practical implications for capability development, marketing and purchasing, and strategy development.

This work develops a longitudinal analysis of perceived environmental uncertainty applying the Rasch methodology (1960). The environmental uncertainty is defined as an individual's perceived inability to predict the environment accurately (Milliken, 1987). The study focuses on analysing the state uncertainty from the perspective of the information and under the cognitive approach to the business reality.

Rasch measurement theory (1960) is applied, specifically the differential item functioning analysis based on the responses to a survey of SMEs.

The main sources of uncertainty for all the SMEs in the sample are two sectors in their general environment: economic and political-legal ones. These segments are the only ones in the environment that generate uncertainty that in 2016 is significantly different from that in 2019, being lower in the latter year.

This is a pioneering analysis of uncertainty both for its longitudinal nature and the methodology applied.

The purpose of this paper is to identify the main impact factors on the export capacity of small and medium‐sized enterprises (SMEs) in Fujian Province, China.

A model containing internal and external impact factors on the export capacity of SMEs was developed. Data were collected by e‐mail questionnaire surveys from random samples of SMEs in Fujian Province and 47 usable responses were statistically analyzed by SPSS14.0 using frequencies, t‐tests, correlation and linear regression.

The analysis shows that the government and home and export markets constitute the external impact factors while resource availability has an important internal impact on the export capacity of SMEs in Fujian. Firm scale, cultural differences and business networks do not influence the export capacity of SMEs; however, management, products, experience and geographical location have an indirect effect.

The findings of this study suggest that SMEs in Fujian need to seek more support from government and explore more international markets. It is suggested that an SME export support system should be established by local government in order to better promote the acquisition of resources, product innovation and business network development.

This study offers a first insight into the understanding of Fujian SMEs' export context and explores the relationships between (theorized) impact factors on SME export capacity at the micro level.

The purpose of this paper is to scrutinize the issues, challenges, and impediments coming in the way of small‐ and medium‐sized enterprises (SMEs) internationalization in small developing nations of South Pacific like Fiji and Samoa.

The paper encompasses both quantitative and qualitative data. Analyses of antecedents are descriptive in nature, while establishing the relationship between intervening variables and outcomes are quantitative. For quantitative data, structured questionnaires are used, while for the collection of qualitative data, archival and library research methods are employed. Structured questionnaire is used to collect data from 118 and 78 sampled respondents in Fiji and Samoa, respectively, and statistical analysis is performed using Statistical Package for the Social Sciences package.

These research findings pinpoint that the problem lies in evaluating the nature of issues affecting internationalization of SMEs. The results also show that the performance of Fijian and Samoan SMEs is same across different business sectors and those SMEs in these two countries exhibit different change patterns in their export growth.

The scope of the paper is limited only to the SMEs in Fiji and Samoa and cannot in any way be generalized to large firms.

SMEs seeking to internationalize will need to learn a lot about the internal and external factors impacting their organizations. Many a times entrepreneurs believe that through sustained planning, they can reduce the shocks resulting from environmental uncertainty, however, in reality some of them may be able to benefit while others despite planning may not be able to overcome growth‐related problems, as they may require reactive action. Therefore, learning is essential in international expansion and so is having a clear understanding of the environment that entrepreneurs operate in. Future research should seek to highlight documented cases of SME internationalization.

This paper is one of the important studies taken in the context of Pacific SMEs. The research that has been conducted in the past are mostly confined to Asian countries, with very little in the area of SME internationalization. The findings of this paper will have relevance for policy making and supportive measures at government levels for SME internationalization.

The purpose of this paper is to understand the direct impact of social capital and the influence of market-based capabilities as intervening variables on the export performance of small and medium-sized enterprises (SMEs) in Ghana.

Questionnaire-based survey was used to collect data from top executives and senior managers of exporting companies in Ghana. Data obtained were analysed using the structural equation modelling.

The findings revealed that social capital of SMEs exert the greatest influence on their export performance. Innovation and marketing capabilities are also key drivers of export performance among SMEs as they fully mediate the social capital–export performance relationship. Notwithstanding, marketing capabilities appear to exert a greater influence than innovation capabilities on the export performance of SMEs.

The study used perceptual measures of international performance by managers of SMEs in the Ghanaian exporting sector making it difficult to determine respondent bias.

Managers of exporting firms should build stronger relationships with their customers and suppliers who contribute significantly to their export performance. SMEs would also have to hone their innovation and marketing skills as strategic components in enhancing their export performance.

Market-based resources such as marketing and innovation should not be taken for granted by SMEs in the export business.

The study offers some lessons on how small firms can sharpen their marketing and innovation capabilities to derive export performance benefits from social capital. Theoretically, while the findings offer strong evidence reinforcing the DC theory, an exploration of the nexus of the theories brings to the fore the need to reassess the resource-based view and SC theories.

The paper enhances our understanding of how small businesses with a strong social mission undergo international expansion. Building on the theoretical arguments on social exchange theory (SET), specifically on the literature on reciprocity, the purpose of this paper is to investigate the applicability of the Uppsala Internationalization Model to the context of a social enterprise (SE). The propositions argue that the strong social orientation of SEs encourages a reciprocal exchange with the stakeholders of the host country that limits the number of obstacles they may face during the internationalizing process.

The conceptual development bridges SET with bodies of knowledge on SE, Uppsala Internationalization Model and organizational embeddedness.

The theoretical arguments provide evidence of how the socially oriented mission of a small business aids it with overcoming obstacles presented by internationalization. Specifically, the authors show that socially oriented enterprises are uniquely equipped to conquer the lack of adequate information about a foreign market and a lack of adequate public support in a host country. A social mission, which ignites positive reciprocity with the local stakeholders, serves as a valuable asset in the process of internationalization. Moreover, since the propositions recognize that the norms of reciprocity differ from one national culture to another, they unfold how reciprocal exchanges may be altered because of the nuances of national culture.

This work makes three important contributions. First, it extends our understanding of why SEs can potentially internationalize more rapidly than organizations without a strongly pronounced social mission. Second, the investigation on the applicability of the U-Model to the context of SE answers scholars’ recent call for continuous work on advancing the U-Model. Third, the authors equip practitioners with a thorough understanding of how they can capitalize on the social aspect of a SE in the unique setting of a specific national culture.