Foreign market involvement, entry-mode learning potential and SME internationalization outcomes

Said Mohamed Elbanna; Linda Hsieh; John Child; Rose Narooz; Svetla Marinova; Pushyarag N. Puthusserry; Joanna Karmowska; Terence Tsai; Yunlu Zhang

doi:10.1108/MD-01-2023-0045

Foreign market involvement, entry-mode learning potential and SME internationalization outcomes

Said Mohamed Elbanna, Linda Hsieh, John Child, Rose Narooz, Svetla Marinova, Pushyarag N. Puthusserry, Joanna Karmowska, Terence Tsai, Yunlu Zhang

Research output: Contribution to journal › Article › peer-review

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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.

Original language	English
Journal	Management Decision
Early online date	16 Nov 2023
DOIs	https://doi.org/10.1108/MD-01-2023-0045
Publication status	E-pub ahead of print - 16 Nov 2023

Bibliographical note

Acknowledgments:
This work was supported by the British Academy/Leverhulme Trust (grants #: SG090831, SG120531), the UAE National Research Foundation (Grants # 101 UAEU-NRF, 3209-31B014), the Birmingham Business School, the China Europe International Business School and the Qatar University and Marubeni Corporation (Grant # (M-QJRC-2020–1). The authors’ thanks are extended to Suzana Rodrigues and Rene Seifert for their earlier contributions to this research project

Keywords

Internationalization
Internationalization outcomes
SMEs
Foreign market involvement
Learning

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10.1108/MD-01-2023-0045

ElbannaS2023Foreign
This author accepted manuscript is deposited under a Creative Commons Attribution Non-commercial 4.0 International (CC BY-NC) licence. This means that anyone may distribute, adapt, and build upon the work for non-commercial purposes, subject to full attribution. If you wish to use this manuscript for commercial purposes, please visit Marketplace.
Accepted author manuscript, 374 KBLicence: Creative Commons: Attribution-NonCommercial (CC BY-NC)

Social Organisation as a Facilitator of Internationalisation Among High-Tech SMEs: A Comparison of UK and Taiwan.
Hsieh, L.
British Academy
1/03/10 → 31/01/12
Project: Research Councils

Cite this

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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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note = "Acknowledgments: This work was supported by the British Academy/Leverhulme Trust (grants #: SG090831, SG120531), the UAE National Research Foundation (Grants # 101 UAEU-NRF, 3209-31B014), the Birmingham Business School, the China Europe International Business School and the Qatar University and Marubeni Corporation (Grant # (M-QJRC-2020–1). The authors{\textquoteright} thanks are extended to Suzana Rodrigues and Rene Seifert for their earlier contributions to this research project",

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AU - Puthusserry, Pushyarag N.

AU - Karmowska, Joanna

AU - Tsai, Terence

AU - Zhang, Yunlu

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N2 - 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.

AB - 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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KW - Internationalization outcomes

KW - SMEs

KW - Foreign market involvement

KW - Learning

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M3 - Article

SN - 0025-1747

JO - Management Decision

JF - Management Decision

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Foreign market involvement, entry-mode learning potential and SME internationalization outcomes

Abstract

Bibliographical note

Keywords

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Social Organisation as a Facilitator of Internationalisation Among High-Tech SMEs: A Comparison of UK and Taiwan.

Cite this