The Impact of International Networking Capability on International Performance: The Mediating Role of Dynamic Entrepreneurship Capabilities

Abstract

International entrepreneurship, which means the development of the local market to the foreign market, is a key driver for the growth of the firm and gaining a sustainable competitive advantage. A review of the literature shows that few studies have addressed the dynamic capabilities of international entrepreneurship. The purpose of this study is to investigate the impact of international networking capability on the firm’s international performance by considering the mediating role of dynamic entrepreneurial capabilities (foreign market knowledge capability, adaptive capability, and international entrepreneurial opportunity recognition capability). The population of this research is Iranian software development companies including members of the Iranian Informatics Association, the Association of Iranian Mobile Application Developers, and the Association of Iranian Software Developers and Exporters. A total of 200 firms were selected as the final sample of this study. This research is a cross-sectional survey in which the data collected are analysed using the SEM-PLS approach. The results of this study indicate that although international networking capability has a positive effect on foreign market knowledge capability, adaptive capability, and international entrepreneurial opportunity recognition capability, its direct impact on the firm’s international performance is not confirmed. Besides, based on the results, foreign market knowledge capability, adaptive capability, and international entrepreneurial opportunity recognition capability have a positive and favourable effect on a firm’s international performance. The implications of this research will help firm managers to identify and develop the capabilities needed for international entrepreneurship.