The internationalization of Indian SMEs in B‐to‐B markets

Abstract

PurposeThe study aims to examine the effect of market orientation on the international performance of Indian SMEs in the business‐to‐business market; assess the potential moderating effect of environmental uncertainty, along with market orientation, on SMEs' performance; and discuss implications to guide SME owners/managers in their efforts to successfully expand internationally in turbulent markets.Design/methodology/approachSurveys were sent to a random cross‐sectional industry sample of SMEs located in India. The data consisted of 150 responses.FindingsMarket orientation and international orientation are positively related to export performance and the relationship between the market orientation and international performance of Indian SMEs is moderated by market turbulence.Research limitations/implicationsThe data were collected at a single point in time, and therefore do not allow the determination of cause and effect or the impact of changes over time. Data were collected with a reliance on self‐reports for all of the research variables.Practical implicationsThe positive relationship between market orientation, international orientation, and the degree of internationalization of the firm would suggest that the upper management of Indian SMEs should place a priority on promoting behaviors consistent with a positive international orientation, especially in turbulent markets.Originality/valueStudies focused on market orientation have been done primarily in the context of advanced economies. The significant economic contribution of SMEs is well understood, but their business practices in emerging economies have not been studied extensively. This study extends the literature concerning factors that impact business success in an important emerging market such as India.