Marketing Capabilities, Strategy, and Performance in International Small- and Medium-Sized Enterprises

Abstract

When expanding abroad, small- and medium-sized enterprises (SMEs) experience various constraints, especially the liabilities of small size and foreignness. In this study, the authors examine postures, capabilities, and strategies related to international brand marketing that help SMEs overcome such challenges, establish a brand presence, and attain superior performance in foreign markets. Framing the investigation in the internationalization and capabilities perspectives, the authors employ multimethod approaches in a two-phase study among internationalizing SMEs based in Taiwan. In the first phase, they undertake an extensive literature review and then conduct case studies to formulate a conceptual model. In the second phase, the authors validate the model and associated hypotheses using survey data from a large sample of SMEs that target their products to markets worldwide. Results point to critical roles for these key constructs—international entrepreneurial orientation, international social media capability, and international market knowledge capability—as key antecedents to international branding capability and international brand strategy, in SMEs’ international performance. The authors discuss the theoretical and managerial implications of these findings, highlighting the role of the critical constructs identified previously in driving superior international performance in resource-constrained SMEs.