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1 – 10 of 24Said Elbanna, Linda Hsieh, John Child, Rose Narooz, Svetla Marinova, Pushyarag Puthusserry, Joanna Karmowska, Terence Tsai and Yunlu Zhang
Drawing on an organizational learning perspective, this paper examines the effect of levels of foreign market involvement (intensity and geographic spread) on internationalization…
Abstract
Purpose
Drawing on an organizational learning perspective, this paper examines the effect of levels of foreign market involvement (intensity and geographic spread) on internationalization outcomes recognizing that the moderating influence of entry-mode learning potential is not well documented in the literature on small- and medium-sized enterprises (SMEs).
Design/methodology/approach
The sample includes 180 SMEs evenly selected from three industries: biotechnology, software and clothing (60 firms in each industry). The sampled firms employ less than 250 employees and are equally distributed between three developed economies and three emerging economies. All were engaged in foreign business.
Findings
The authors find that there is a direct relationship between levels of foreign market involvement and internationalization outcomes. Entry-mode learning potential moderates the relationship between intensity of foreign market involvement and internationalization outcomes but not the relationship between geographic spread and internationalization outcomes.
Practical implications
This study reveals several new insights that help explain the pathway through which foreign market involvement activities are translated into internationalization outcomes.
Originality/value
The authors conclude that the positive relationship between intensity of foreign market involvement and internationalization outcomes is strengthened when SMEs also use an entry mode with a higher learning potential than exporting only.
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Desalegn Abraha and Akmal S. Hyder
This chapter gives an understanding on how consideration of institutional factors can be important in establishing alliances in emerging markets. There is a huge difference…
Abstract
This chapter gives an understanding on how consideration of institutional factors can be important in establishing alliances in emerging markets. There is a huge difference between developed and emerging markets on different issues starting from government and financial institutions to culture and infrastructure. Although these factors have impact on business relationships, they can affect differently from case to case and on the experience of the partners involved in relationships. Further, the extent of difference is not always negative for all firms as it can give some MNEs, who are experts in doing business with emerging market partners, specific advantage over their competitors.
Ofer Dekel-Dachs, Marta Najda-Janoszka, Peter Stokes, Amon Simba and Shlomo Tarba
This study, a systematic review, focuses on the internationalisation of small and medium-sized enterprises (SMEs) originating in developing countries. It critically analyses…
Abstract
Purpose
This study, a systematic review, focuses on the internationalisation of small and medium-sized enterprises (SMEs) originating in developing countries. It critically analyses, evaluates and synthesises studies featuring formal and informal institutions, embedded in social and business networks, as a marketing solution for institutional voids. The review shows that current international marketing studies downplay the role of informal institutions in the internationalisation of SMEs. Thus, the authors set a new research agenda for advancing the institutional theory to account for the impact of informal institutions and networks on firm internationalisation.
Design/methodology/approach
This review followed five structured stages, including framing the research questions, identifying relevant studies, assessing their quality, summarising the evidence and interpreting the findings. Based on the systematic approach, 434 papers (374 from Web of Science, 60 from Scopus) were generated. Following that, the authors applied the qualitative inclusion/exclusion criteria, which yielded 63 papers. Their analysis involved three authors, with the fourth author focusing on ensuring quality in the analysis.
Findings
The study findings invite a different line of theorising market structures and processes focusing on the role of networks as an alternative to formal institutional systems. The outcome of our review suggests that there is scope for developing the institutional theory that account for the role of informal institutions and networks.
Originality/value
Based on the analysis, we call for new theorisation, in the international marketing literature, which accounts for informal networking amongst internationalising SMEs in the light of institutional voids. Thus, the authors promote novel participatory, bottom to top understanding of relationship between institutions and enterprises.
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Adesegun Oyedele and Fuat Firat
The purpose of this paper is to respond to the call of international marketing professionals for more studies on strategies that firms use in response to the complexities of…
Abstract
Purpose
The purpose of this paper is to respond to the call of international marketing professionals for more studies on strategies that firms use in response to the complexities of interacting with other institutions in the emerging markets (EMs) of sub-Saharan Africa. The key research question investigated by employing the exploratory qualitative data gathered is: What strategies and global alliances do small local firms (SLFs) in Nigeria adopt to succeed under complex market conditions?
Design/methodology/approach
The methodology employed is exploratory qualitative research. The authors conducted extended interviews to generate rich case study data from the top management of the selected SLFs in Nigeria. The interview data were assessed using open, axial and selective coding to uncover macro-narratives that guide SLFs’ strategies and global alliances.
Findings
The macro-narratives derived from the qualitative case analysis reveal a theoretical framework centered on three major elements of competitive strategies in Nigeria: build global capacity and strategic alliances from the get-go; develop local strategic alliances; master matching alliance partners’ needs to create innovative payment plans and, when necessary, shift the transaction cost burden to alliance partners. Matching theory rather than traditional network theories is better at explicating SLFs’ alliances in Nigeria. Implementation of these strategies requires flexible strategic initiatives.
Originality/value
The study adapts institutional interaction theory, network theory, matching alliance perspective, trade credit theories and the literature on small firms’ strategies in EMs to explicate successful small local firm strategies and global alliances under complex market conditions in Nigeria. The recognition that SLFs regularly migrate and shift the burden of transactions’ cost to multiple stakeholders in the supply network by matching customers and supplier needs is important. The discovery of matching theory in explicating SLFs’ global alliances in Nigeria is unique to this study.
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Anton Klarin and Rifat Sharmelly
This study aims to demonstrate the importance of organizational networks in organizational performance is relatively rich; less understood are processes in organizational…
Abstract
Purpose
This study aims to demonstrate the importance of organizational networks in organizational performance is relatively rich; less understood are processes in organizational networking that entrepreneurs and organizations use in making sense of rapidly changing contexts for organizational performance.
Design/methodology/approach
This study conducts an exploratory organizational-level narrative analysis into firms’ experiences in two major emerging markets (EMs), namely, Russia and India – to identify organizational networking processes in the midst of institutional upheavals. The study is based on in-depth case studies of firms in EMs sourced from interview data from senior management and consolidated with secondary data.
Findings
The authors find that initially firms rely on informal networks (including blat/svyazi and jaan-pehchaan/jan-pehchan) and later formal (in the form of bureaucratic followed by proprietary) networks to make sense of the changes and uncertainties in turbulent environments. The authors also demonstrate the cyclical nature of strategic sensemaking in the process of developing organizational networks for performance.
Originality
The study has a number of theoretical and practical contributions. First, it extends the well-established business networking construct to a more inclusive organizational networking construct. Second, it demonstrates that sensemaking is dependent on interorganizational networking from the outset and throughout the growth of an organization in turbulent markets – from informal to formal bureaucratic and proprietary networks. Finally, this study is unique in documenting the entire process of sensemaking from scanning to performance as well as successfully demonstrating the cyclical nature of sensemaking.
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Md Imtiaz Mostafiz, Murali Sambasivan and See Kwong Goh
The international entrepreneurial capability has achieved its legitimacy in international business literature. Leveraging capabilities to recognise opportunities is considered a…
Abstract
Purpose
The international entrepreneurial capability has achieved its legitimacy in international business literature. Leveraging capabilities to recognise opportunities is considered a pivotal strategy to achieve success. Drawing on the entrepreneurship literature and opportunity perspective, this study aims to investigate the role of international entrepreneurial capability in enhancing the international opportunity recognition (IOR) process and the performance of export manufacturing firms.
Design/methodology/approach
Structural equation modelling has been used to test the hypothesised relationship on 388 export manufacturing entrepreneurial firms operating in the apparel industry of Bangladesh.
Findings
The results signify that three international entrepreneurial capabilities, namely, international networking, learning and marketing capability, positively enhance the IOR process of export manufacturing firms. The IOR process positively mediates the relationships between these international entrepreneurial capabilities and firm performance.
Originality/value
Merely having the international entrepreneurial capability is not sufficient to escalate the firm performance. It must be amplified by various strategic actions such as the IOR process. Entrepreneurs need to capitalise on the international entrepreneurial capability to leverage the IOR process and generate non-financial performance success. Entrepreneurial firms that focus more on stimulating non-financial performance can secure better financial performance.
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Dante Di Gregorio, Martina Claasen Musteen and Douglas Thomas
Understanding how international business opportunities (IBOs) are recognized and developed is critical to the study of international entrepreneurship.
Abstract
Purpose
Understanding how international business opportunities (IBOs) are recognized and developed is critical to the study of international entrepreneurship.
Design/methodology/approach
We draw on entrepreneurial cognition research broadly and the entrepreneurial judgment perspective specifically to develop a model of the recognition and development of IBOs by considering three theoretically important sets of drivers – social networks, international experience and a proactive mindset. We use a sample of 92 small- and medium-sized enterprises (SMEs) to test the model empirically.
Findings
We find robust support. Entrepreneurial judgment surrounding IBOs and uncertain international business environments entails tapping social networks, international experience and a proactive mindset to both recognize third-person opportunities for someone as well as to act upon and develop IBOs as first-person opportunities from which a focal firm can profit.
Originality/value
Conceptually and empirically, we peer inside the black box of IBO entrepreneurial judgment processes by jointly evaluating the abstract recognition of third-person opportunities as well as the concrete actions and interactions that develop the IBOs into first-person opportunities.
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Olena Khlystova, Yelena Kalyuzhnova and Maksim Belitski
Institutional trust is vital for social and economic activity and crucial in reducing uncertainty for entrepreneurs and society. To shed light on the role of institutional trust…
Abstract
Purpose
Institutional trust is vital for social and economic activity and crucial in reducing uncertainty for entrepreneurs and society. To shed light on the role of institutional trust on productive entrepreneurial activity, this paper analyses the impact of six urban entrepreneurial ecosystems (EEs) using the contexts of the transition economies of Eastern Europe, Caucasus and Central Asia. This study aims to pursue the research question: what role does institutional trust play in the relationship between formal institutions and productive entrepreneurship in the EEs of transition economies? This paper aims to posit that the development and enforcement of formal institutions and institutional trust enhance productive entrepreneurship.
Design/methodology/approach
In this study, the authors apply a mixed-method approach. The authors’ dataset includes 657 respondents (ecosystem stakeholders) from six city-level entrepreneurial ecosystems in the transition economies of Georgia, Ukraine and Kazakhstan, as well as 51 semi-structured interviews from EE representative stakeholders to examine the validity of the findings.
Findings
Institutional trust in many cities has been negatively affected by institutionalised corruption and continuous non-transparent reforms, furthering prior research in developing and transition economies. The authors’ findings suggest that institutional trust can be investigated not as a country phenomenon but as a regional phenomenon extending prior research towards understanding the institutional trust – productive entrepreneurship research domain at the city EE level.
Originality/value
The authors apply the institutional trust perspective to the EEs in cities in order to examine how institutional trust affects productive entrepreneurship in challenging institutional environments. The authors contribute to the literature on institutions and entrepreneurship by using a mixed-method analysis to examine the relationship between formal institutions and institutional trust in the context of EEs in transition economies.
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Mohamed Yacine Haddoud, Adah-Kole Onjewu, Paul Jones and Robert Newbery
Based on an institutional approach to explaining firms’ internationalisation, this paper aims to empirically investigate the role of Export Promotion Programmes (EPPs) in…
Abstract
Purpose
Based on an institutional approach to explaining firms’ internationalisation, this paper aims to empirically investigate the role of Export Promotion Programmes (EPPs) in moderating the influence of export barriers perceptions on small and medium enterprises’ (SMEs) propensity to export.
Design/methodology/approach
The study uses evidence from Algeria, the largest North-African country. The data were collected using an online questionnaire, targeting SMEs operating in the manufacturing sector. The study considers the influence of procedural, informational, environmental and functional barriers on export propensity, to uncover the moderating role of trade missions, trade shows and export seminars and workshops on such relationships. To examine these links, five main hypotheses are proposed and tested through a non-linear partial least squares structural equation modelling on a sample of 128 Algerian SMEs.
Findings
The results show that while internal barriers decrease firms’ export propensity, EPPs including trade fairs and shows may independently pose either a positive or negative influence on such relationships.
Research limitations/implications
The study confirms the applicability of the institutional perspective to explaining firms’ internationalisation. More importantly, the present study highlights the role of EPPs in moderating the influence of export barriers perceptions on SMEs’ international market entry, a role neglected by the extant empirical literature.
Practical implications
The current findings hold important implications to export promotion organisations operating in African countries. Notably, the results reveal that some programmes could have a negative influence if they are not delivered appropriately.
Originality/value
This study offers a rare focus on the moderating role of EPPs in the relationship between export barriers and export propensity, within the setting of a North-African country.
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Nadia Zahoor, Zaheer Khan, Ahmad Arslan, Huda Khan and Shlomo Yedidia Tarba
This paper presents a theorization and an empirical analysis of the influences of international open innovation (IOI) on the international market success of emerging market small…
Abstract
Purpose
This paper presents a theorization and an empirical analysis of the influences of international open innovation (IOI) on the international market success of emerging market small and medium-sized enterprises (ESMEs). An analysis of the moderating roles played by cross-cultural competencies and digital alliance capabilities in this specific context is also presented.
Design/methodology/approach
The study adopted a quantitative research design involving a survey of 231 ESMEs based in the UAE. The authors formulated some hypotheses and tested them by employing hierarchical regression models.
Findings
The findings revealed that IOI positively affects the international market success of ESMEs. The authors further found that both cross-cultural competencies and digital alliance capabilities moderate the relationship between IOI and international market success.
Originality/value
The study advances the international marketing, knowledge and innovation management literature in two ways. First, it is a pioneering study that advances both the theoretical and empirical scholarship regarding the relationship between IOI and emerging market firm international market success by employing an extended resource-based view. Second, it further highlights the role played by cross-cultural competencies and digital alliance capabilities as effective governance mechanisms that moderate the relationship between IOI and international market success.
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