Abstract
Using data from SMEs in Hubei province, the role of entrepreneurship in the sustainable performance of born global firms in China was discussed. The structural equation modeling analysis of 345 questionnaires indicates that both international knowledge and international entrepreneurial capability are significantly related to born global firms’ performance. Dynamic capabilities, which includes three sub-dimensions: adaptation capability, absorption capability and innovation capability, was found to be less important to firm performance. Therefore, it may be argued that born global firms in inland China are still limited by resources, including those generated from the international knowledge needed to adapt to internal and external pressures.
Highlights
In developed and developing countries, small and medium sized enterprises (SMEs) are the backbone of the economy [1]
H5 to H8 were not supported, since international entrepreneurship capability is significant at 5% level with a negative sign
This research contributes to research examining the relationship between international entrepreneurship and the performance of Chinese born-globals by taking a more holistic view
Summary
In developed and developing countries, small and medium sized enterprises (SMEs) are the backbone of the economy [1]. They contribute to a country’s exports [2] and play a significant role in employment generation [3]. SMEs that experience rapid economic growth, with increasing income and buying power, create significant economic and social development impact [4]. SMEs in emerging economies are an engine of growth and worthy of examination. There are growing efforts to research SME internationalization and international entrepreneurship’s role in China. This research seeks to further advance such theoretical understandings of SMEs and international entrepreneurship within China
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