Abstract

International entrepreneurship research maintains that firms with strong entrepreneurial orientation expand to international markets to enhance performance. Yet these firms can suffer from resource constraints as they move abroad. This study advances research on entrepreneurial orientation and internationalization performance by examining the mediating role of relational embeddedness and the moderating role of simultaneity of production and consumption in the context of internationalization of service. Using an original data of 167 emerging market service firms, the authors test the proposed relationships. Results are consistent with the hypothesized conceptual scheme, in that relational embeddedness mediates the relationship between entrepreneurial orientation and internationalization performance and simultaneity of production and consumption moderates the direct relationship between entrepreneurial orientation and relational embeddedness and the indirect relationship between entrepreneurial orientation and internationalization performance. These results have important implications for managers and policy makers interested in improving service internationalization performance of MNEs

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