Entrepreneurial alertness and business model innovation in dynamic markets: international performance implications for SMEs

Abstract

A significant yet rarely probed question in the international entrepreneurship literature is to what extent and when entrepreneurial alertness (EA) manifests into international performance for small and medium‐sized enterprises (SMEs). Using survey data from 214 SMEs in the United Arab Emirates, this study investigates the relationships between EA, business model innovation (BMI), domestic market dynamism and internationalisation scope of SMEs. The study finds that BMI (i.e., entrepreneurial action) significantly mediates the relationship between EA (i.e., entrepreneurial capability) and SMEs' internationalisation scope (i.e., international performance). Furthermore, when domestic market dynamism is high, the effect of BMI on internationalisation scope is strengthened. These findings provide theoretical and practical implications for international entrepreneurship research in the SME context.