Journal
JOURNAL OF WORLD BUSINESS
Volume 57, Issue 2, Pages -Publisher
ELSEVIER SCIENCE INC
DOI: 10.1016/j.jwb.2021.101266
Keywords
Foreign market entry; International market selection; Business relationships; Business networks; Network capability; International performance
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Funding
- Royal Society of New Zealand Marsden Research Grant [13-UOO-065]
- Agencia Estatal de Investigacion [PID2019-105198GB-I00/AEI/10.13039/501100011033]
- National Natural Science Foundation of China [72032008, 71772165]
- Major Research Project of Philosophy & Social Sciences of the Ministry of Education, P.R.China [17JZD018]
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The article examines the relationship between previous foreign market entry (FME) knowledge and international performance in Australian SMEs. It finds that international market selection and network capability mediate this relationship.
While the literature emphasizes the importance of knowledge and foreign market knowledge for international performance, it is unclear about the intervening/mediating relationships. From a knowledge-based view and network approach, we posit that previous foreign market entry (FME) knowledge can be used in the selection of international markets and to enhance network capabilities and international performance. We test the relationships between these constructs in a sample of 140 Australian SMEs. We contribute to the international SME literature by explaining important mechanisms through which FME knowledge affects SMEs' international performance. International market selection and network capability mediate its relationship with international performance.
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