The Role of Networks in Improving International Performance and Competitiveness: Perspective View of Open Innovation

Junghyun Yoon,Sanghyun Sung,Dongwoo Ryu

doi:10.3390/su12031269

Junghyun Yoon, Sanghyun Sung + Show 1 more

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https://doi.org/10.3390/su12031269

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Abstract

With perspective view of open innovation, this study examines how international networks form and evolve and the empirical relationships among antecedents of international network embeddedness, international performance, and sustainable competitiveness. Data from 356 small and medium-sized exporters (SMEs) in manufacturing or technology industries in South Korea are analyzed by structural equation modeling. It assumes that international network embeddedness plays a mediating role in the relationship between internationalization and related variables. This analysis indicates that information management and proximity significantly affect international performance, while cultural differences do not, and that international network embeddedness mediates relationships between information management and international performance, and proximity and international performance. The results imply that greater international network embeddedness increases SMEs’ international performance—information management and proximity play a pivotal role in embedding international networks and improving international performance. SMEs must establish and intensify international networks to improve international performance and seek to overcome limitations by developing international networks with the goal of entering international markets. Nevertheless, there is relatively little research on international network formation and embeddedness, especially for SMEs. This study determines network formation principles, determinants of international networks, and roles of international network embeddedness in relationships between the determinants and international performance. Notably, this study verifies a comprehensive model of international networks.

Highlights

In spite of the fact that small and medium-sized exporters (SMEs) play essential roles in economic growth, relatively few studies have been devoted to them [1,2,3]
The results indicate no significant difference between the two groups, and we could argue that there should be no non-response bias in this study
This study examined why SMEs choose international networks and the role of embedded international networks in improving SMEs’ international performance and competitiveness

Summary

Introduction

In spite of the fact that small and medium-sized exporters (SMEs) play essential roles in economic growth, relatively few studies have been devoted to them [1,2,3]. SMEs have turned to international markets to overcome the difficulty of maintaining and expanding their domestic market share [4]. These companies especially seek niche strategies, and their success might depend on their ability to enter international markets [5]. This study comprehensively investigates the empirical relationships among the determinants of international networks, the embeddedness of international networks, the international performance, and the competitiveness by employing structural equation modeling (SEM) based on SMEs rather than the larger organizations commonly emphasized in the traditional internationalization literature [17]. Overcoming the above limitations of traditional internationalization studies, this study seeks to help future researchers of internationalization develop studies on this topic by suggesting a comprehensive conceptual model and research direction

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