Abstract
This article explores learning among rapidly internationalizing small and medium sized enterprises (SMEs) and how this supports the post-internationalization growth and survival of these firms. We utilize a qualitative multiple case study approach of ten information and communication technology (ICT) SMEs from a key emerging market—India. Findings suggest that during the post-entry stage, rapidly internationalizing SMEs use a wide range of internal and external sources of knowledge. External sources of knowledge include peer networks, associations in the same industry, international clients/partners, and international connections developed through trade fairs and trade missions. Internal sources of knowledge such as self-learning, especially from trial-and-error and experiential efforts, were found to enhance product, market and technological knowledge; and consequently aided geographic and product diversification. The findings also indicate that firms use a mix of integrated, vicarious, congenital and experiential learning approaches in their post-entry growth and survival phases. Experiential and congenital learning were found to be facilitated by firms’ internal network sources, whereas external network sources provide an ideal platform for vicarious learning. The study provides new insights into networking and learning by providing evidence that exposure to and connection with diverse types of networks can result in various forms of valuable learning for rapidly internationalizing SMEs, which enhances their post-entry growth.
Highlights
Internationalizing small and medium-sized enterprises (SMEs) play a significant role in driving economic growth (Trudgen and Freeman 2014; Gerschewski et al 2018)
The findings provide new insights into the post-internationalization learning processes of rapidly internationalizing SMEs
Our findings reveal that rapidly internationalizing SMEs can overcome liabilities of smallness and foreignness and grow post-market entry through effectively developing and leveraging internal and external learning capabilities
Summary
Internationalizing small and medium-sized enterprises (SMEs) play a significant role in driving economic growth (Trudgen and Freeman 2014; Gerschewski et al 2018). There is a need for fine-grained analysis of SMEs’ post-entry behavior, and how they grow and survive in international markets (cf Ibeh et al 2018; Coviello 2015; Khan and Lew 2018) We contribute to this gap by exploring the following research questions: (1) what learning approaches do rapidly internationalizing SMEs’ utilize at the post-entry stage? From both within and outside the enterprise among rapidly internationalizing SMEs, in the context of emerging markets Such processes represent internal and external learning activities that result in different, yet complementary types of knowledge (Arora and Gambardella 1990; Cohen and Levinthal 1990; Powell et al 1996). This research provides a more fine-grained understanding of the need for SMEs to embed themselves within international networks such as trade fairs and trade missions, alongside learning from clients, suppliers and networks to facilitate diverse learning and enhance post-entry growth
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