Abstract
This study investigates the complex relationship between home-peer performance and export market entry intensity on SME export market exit. Using a longitudinal dataset of 32,108 Canadian SMEs, we investigate the dual-sided effects of home-peer performance in international markets. Our research incorporates the awareness-motivation-capability perspective, highlighting the conditions under which SMEs’ aggressive export strategies in the face of thriving peers could accelerate their market exit. The findings show that an intense export focus in competitive markets increases SMEs’ risk of failure, challenging the conventional wisdom of learning-based entry strategies. By defining the intricate dynamics of SME internationalization, this study goes beyond traditional social learning paradigms, providing critical insights for SMEs’ strategic management in global marketplaces.
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