Journal
JOURNAL OF BUSINESS RESEARCH
Volume 129, Issue -, Pages 96-109Publisher
ELSEVIER SCIENCE INC
DOI: 10.1016/j.jbusres.2021.02.042
Keywords
SME internationalization; International performance; Effectuation; Business networks; Social networks
Categories
Funding
- Broman Foundation for Research and Entrepreneurship
- National Natural Science Foundation of China [71772165]
- National Key Project of Philosophy and Social Science from Ministry of Education of the People's Republic of China [17JZD018]
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This study found that knowledge circulating in firms' business networks can influence the relationship between non-predictive strategy and affordable losses in the internationalization process of SMEs, while social networking mediates the relationships between non-predictive strategy, affordable losses, and international performance.
This study investigates the performance implications of the distinct mechanisms represented by business and social networks in the effectual internationalization. Our hypotheses consider the influence of both network types on firms' decision-making during internationalization, including the use of effectuation's overarching principle of non-predictive strategy and the analysis of affordable losses as preferred criterion for selecting between action paths. We test our structural model on a sample of 469 SMEs from Brazil, China, and Poland. The analysis demonstrates that the knowledge circulating in the firms' business networks negatively moderates the relationship between non-predictive strategy and affordable losses, while social networking mediates the relationships between both non-predictive strategy and affordable losses, on the one hand, and international performance, on the other.
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