Abstract

PurposeThis study aims to extend the understanding of entrepreneurial orientation (EO) by investigating the international EO (IEO) from the perspective of the international performance of born global firms. The born global firm's EOs toward global firms led to innovation and dynamic organizational capabilities and to improve the firms' international performance and development.Design/methodology/approachIt is a hypothesis that IEO predicted that utilization of export promotion programs (EPPs) would be positively associated with international performance. The samples of 405 respondents were collected from born global firms to acquire higher international performance of firms in China. Structural equation modeling (SEM) and mediation analysis are processed to test the proposed hypotheses empirically.FindingsThe results from the SEM test revealed that the network relationships and utilization of EPPs fully mediate the effect of IEO on international performance. These results indicate that not only IEO is an important factor of network relationships but also the utilization of EPPs and international performance for born global firms. IEO can motivate managers to find the right network relationships and ultimately improve company performance. The IEO of the initiative has strong impact on the performance of international firms.Originality/valueThere is a comprehensive view among the relationships of IEO, entrepreneurial competencies and the network utilization of government EPPs, international performance in the context of born global firms. Theoretical and practical implications are discussed in detail.

Highlights

  • Performance ofFrom the past three decades, academic scholars have given more attention to entrepreneurial orientation (EO), which is continuously developing very fast (Covin and Wales, 2019)

  • The results from the Structural equation modeling (SEM) test revealed that the network relationships and utilization of export promotion programs (EPPs) fully mediate the effect of International EO (IEO) on international performance. These results indicate that IEO is an important factor of network relationships and the utilization of EPPs and international performance for born global firms

  • These results indicate that IEO is an important factor of network relationships, and the utilization of EPPs and international performance for born global firms, investigating only the direct effect of EO on Normed chi square Goodness-of-fit-index

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Summary

Introduction

From the past three decades, academic scholars have given more attention to entrepreneurial orientation (EO), which is continuously developing very fast (Covin and Wales, 2019). The main objective of this study is to investigate how IEO, entrepreneurial competencies and the utilization of export promotion programs (EPPs) engaged in affecting international performance by using a sample of born-global firms in Guangzhou, China. It can be generally expected that born global firms seeking the positive and active global partner network have to develop their relationships better and get up-to-date information from the international market to increase the firm performance (Peng and Luo, 2000; Su and Wang, 2018). Regarding the notion of EO (Miller, 2011), argued that the concept of EO had related to three basic characteristics, innovative approach, willingness to take on controlled risks and proactiveness behavior, extended new theory and scale This measure has been exploited in a wide-ranging of research settings and revealed high levels of reliability in several studies Martin and Javalgi (2016). The dimensions were market share, firm size, sales volume and profitability in foreign markets

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