Network typology and international opportunity recognition: moderating role of entrepreneurial orientation

Sahar Ahmadian,Somayeh Abdolmaleki

doi:10.1186/s40497-018-0104-8

Sahar Ahmadian, Somayeh Abdolmaleki

Open Access

https://doi.org/10.1186/s40497-018-0104-8

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Abstract

International entrepreneurship (IE) is fundamentally captured in the identification and exploitation of opportunities for international exchange. Yet little is known about the methods used by entrepreneurs for opportunity recognition. Previous work on IE emphasizes the importance of social networks for identifying opportunities in foreign markets. While business network and institutional network are less studied in previous studies, this paper aims to examine the effect of social, business, and institutional network on international opportunity recognition with the moderating role of entrepreneurial orientation. By applying network based theory to the analysis of 150 Iranians SMEs, the result indicates that; social network, business network, and institutional network positively affect international opportunities recognition. Furthermore the results show that entrepreneurial orientation moderated the effect of business, and institutional network on international opportunity recognition. While the moderating role of entrepreneurial orientation in the effect of social network on international opportunity recognition, is not supported.

Highlights

Opportunity recognition as a crucial issue in the entrepreneurial process has been the subject of much debate in the field of entrepreneurship (Shane & Venkataraman, 2000)
We found that Entrepreneurial Orientation (EO) acts as a moderator in the relation between business, and institutional networks and the identification of international opportunity
Our findings showed that institutional network ties have a key role in the identification of international opportunity

Summary

Introduction

Opportunity recognition as a crucial issue in the entrepreneurial process has been the subject of much debate in the field of entrepreneurship (Shane & Venkataraman, 2000). Does the entrepreneurial orientation of entrepreneurs moderate the effect of social, business, and institutional network on recognizing opportunity in foreign market? This study is an attempt to investigate three types of network including; social, business, and institutional networks that are between firms and between entrepreneurs to understand how SMEs are informed about international opportunities in foreign markets.

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