Foreign market knowledge, entry mode choice and SMEs’ international performance in an emerging market

Joseph Amankwah-Amoah, Samuel Adomako, Robert Opoku, Joseph Danquah, Nadia Zahoor

    Research output: Contribution to journalArticlepeer-review

    Abstract

    This paper examines the mediating role of equity entry mode choice in the relationship between foreign market knowledge (FMK) and international performance of small and medium-sized enterprises (SMEs) originating from emerging markets. In addition, this paper investigates when FMK enhances firms’ equity mode choice by considering financial slack as a moderating variable. Using data obtained from 205 SMEs engaged in cross-border activities in Ghana, the results reveal that FMK and international performance relationship is mediated by foreign market equity entry mode choice. The results also suggest that FMK positively relates to SMEs’ preference for equity mode for foreign market entry and this relationship is amplified when slack resource is greater. These findings offer theoretical as well as practical implications for SME managers in developing and emerging markets in terms of entry mode decisions.
    Original languageEnglish
    Article number100955
    JournalJournal of International Management
    Early online date12 May 2022
    DOIs
    Publication statusE-pub ahead of print - 12 May 2022

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