Effectual networking capability and SME performance in international B2B markets

Abstract

PurposeInternational entrepreneurship and marketing research reports the impact of effectual decision-making logic on small and medium-sized enterprises (SMEs) international performance. How the effectual logic of decision-making enhances the overall performance of SMEs in international business-to-business markets remains a puzzle in the field. The purpose of this study is to investigate the concept of networking capability as an important SME capability translating effectual decision-making into international performance.Design/methodology/approachThe authors examine the model presented in this study using quantitative data from 153 founders or managers in charge of international business at SMEs throughout New Zealand. The authors also used 142 open-ended responses to provide post hoc exploratory analysis.FindingsThe findings of this study suggest that networking capability is a mechanism through which the logic of decision-making enhances the international performance of SMEs.Originality/valueThis study bridges between international marketing and entrepreneurship by investigating how the networking capability of internationalizing SMEs translates their founders’/managers’ effectual logic into a successful performance in international business-to-business markets.