Foreign Market Knowledge Research Articles

Mapping the barriers to socio-economic freedom in internationalisation of women-owned SMEs: Evidence from a developing country

Internationalisation of women-owned firms is considered a new strategy for unlocking the full economic potential of a country. However, there has been a desultory work on gender and trade, particularly the epistemological and methodological approaches to explore this phenomenon, which has received inadequate attention. Drawing on the institution-based- theory and incorporating the feminist perspective, this study identifies barriers to socio-economic freedom as a multidimensional concept that influences the internationalisation of women entrepreneurship. Using mixed methods and based on findings from focus group discussion (study-1), in-depth interviews (study-2) and a survey (study-3) of SME women entrepreneurs, the study develops and validates a gender-specific model of barriers to socio-economic freedom that women entrepreneurs face in the internationalisation of their firms. The findings confirm that the additional barriers that women entrepreneurs face emerge from three dimensions (i.e. socio-interactional patterns, socio-psychological attachment and socio-cultural embeddedness) that influence the internationalisation of women-owned SMEs through the lack of foreign market knowledge and information and lack of international business experience. This study extends internationalisation and women entrepreneurship research by identifying novel dimensions of the barriers to socio-economic freedom landscape. Implications of our findings for theory, methods and practice with limitations and future research directions are discussed critically.

Foreign market knowledge, entry mode choice and SME international performance in an emerging market

This paper examines the mediating role of equity entry mode choice in the relationship between foreign market knowledge (FMK) and international performance of small and medium-sized enterprises (SMEs) originating from emerging markets. In addition, this paper investigates when FMK enhances firms' equity mode choice by considering financial slack as a moderating variable. Using data obtained from 205 SMEs engaged in cross-border activities in Ghana, the results reveal that FMK and international performance relationship is mediated by foreign market equity entry mode choice. The results also suggest that FMK positively relates to SMEs' preference for equity mode for foreign market entry and this relationship is amplified when slack resource is greater. These findings offer theoretical as well as practical implications for SME managers in developing and emerging markets in terms of entry mode decisions.

The Role of FMK and HCI in Entrepreneurial Internationalization-Performance : A Meta Analysis

We study the influence of foreign market knowledge (FMK) and home country institutions on the entrepreneurial internationalization-performance relationship. The sample for the current study comprises peer-reviewed journal articles published between 1996 to 2020. Our sample consists of 115 independent samples having 101,475 firms. We extend the previous meta-analysis (Schwens et al., 2018) on international entrepreneurship, which studied the moderating role of knowledge intensity for the same relationship. As per our results, FMK positively moderates the relationships between degree and scope of internationalization and performance. Whereas home country institutions positively moderate the scope of internationalization and performance relationship.

CEO polychronicity and SME internationalization

Purpose This study, leveraging the upper echelon and social network theories, aims to explore the association between chief executive officers (CEO’s) polychronicity and small and medium size enterprises (SMEs’) international performance under the complete mediation effect of social networks. The paper explores this relationship under the moderation effect of CEO perceived time pressure and synchrony preference. Design/methodology/approach The paper investigates a moderated mediating relationship based on a sample of 186 UK firms. Findings The findings of this study suggest that social network fully mediates the CEO polychronicity and firm international performance relationship. Furthermore, CEO perceived time pressure moderates the social network and SME international performance relationship such that it reduces the positive indirect association between CEO polychronicity and SME international performance. CEO synchrony preference, on the contrary, enhances the positive indirect association between CEO polychronicity and SME performance. Originality/value Extant research suggests SMEs having a more robust set of organizational capabilities helps them network and avail foreign market knowledge. However, research exploring antecedents of this organizational capability is scant.

Data-driven use of cross-border e-commerce platforms and export performance: The mediating role of foreign market knowledge acquisition

Data-driven use of cross-border e-commerce platforms and export performance: The mediating role of foreign market knowledge acquisition

Network exploration and exploitation capabilities and foreign market knowledge: The enabling and disenabling boundary conditions for international performance

This empirical study analyzes how strategic orientations influence the relationships between exploration and exploitation-related networking capabilities, foreign market knowledge, and market performance of 198 internationally operating firms in Bangladesh. The results of hierarchical regression showed that a higher level of network exploration capability and network exploitation capability individually generate greater foreign market knowledge. In addition, our results show that international entrepreneurial orientation reinforces the positive effect of network exploration capability. The positive association between market knowledge and performance, in turn, is accentuated by a proactive export market orientation but attenuated by a responsive export market orientation. These findings suggest that, while both types of networking capabilities are beneficial to develop stocks of foreign market knowledge, firms can acquire and create greater knowledge if they strategically align entrepreneurial orientation with network exploration capability. Further, to use this market knowledge with the goal of improving their position in international markets, firms need to develop a proactive rather than a responsive export market orientation. The current study contributes to the literature on networking capabilities by analyzing firms' networking capabilities with the lens of exploration-exploitation typologies and incorporating strategic orientations as the contextual factors of such capabilities.

Foreign market knowledge, international opportunity recognition, and the performance of export‐manufacturing firms

AbstractAccumulating foreign market knowledge is critically essential for international entrepreneurs operating in the export‐manufacturing industry to recognise new international opportunities. Foreign market knowledge positively improves the international opportunity recognition process to achieve superior performance of export‐manufacturing firms. Foreign institutional knowledge is the most important among three types of foreign market knowledge that international entrepreneurs should leverage to recognise new opportunities. International entrepreneurs must seek foreign market knowledge from the breadth of various sources in their quest for successful international performance.

Foreign market entry knowledge and international performance: The mediating role of international market selection and network capability

While the literature emphasizes the importance of knowledge and foreign market knowledge for international performance, it is unclear about the intervening/mediating relationships. From a knowledge-based view and network approach, we posit that previous foreign market entry (FME) knowledge can be used in the selection of international markets and to enhance network capabilities and international performance. We test the relationships between these constructs in a sample of 140 Australian SMEs. We contribute to the international SME literature by explaining important mechanisms through which FME knowledge affects SMEs’ international performance. International market selection and network capability mediate its relationship with international performance.

The effect of foreign market knowledge on SME export performance: a study ofnon-traditional SMEs in Ghana

PurposeIt is well documented in the extant literature that knowledge plays a crucial role in small and medium enterprise (SME) internationalization. Exporting SMEs from developing economies faces many challenges, including lack of knowledge about institutions in foreign markets, inadequate knowledge about foreign institutions and limited internationalization knowledge (IK). However, research on the export performance of SMEs has thus far focused on the internationalization strategies of multinational corporations. This study aims to explore the effect of foreign market knowledge on SME export performance. The authors also assessed the moderating effect of employee absorptive capacity in the knowledge-performance nexus.Design/methodology/approachThe authors adopted a survey design to collect data from owners/managers of SMEs exporters in the Greater Accra region of Ghana. A total of 350 questionnaires were distributed based on convenience. Of this number, 257 usable responses were used in the final analysis. The authors tested the proposed model using partial least squares-structural equation modeling.FindingsThe findings show that the three types of foreign market knowledge tested in this study, namely, foreign institutional knowledge (FIK), foreign business knowledge and IK have positive and significant effects on SME exporters’ performance. It also shows that employees’ absorptive capacity affects the relationship between FIK and SME exporters’ performance.Originality/valueThe study demonstrates the types of knowledge relevant to SME export performance. The study further demonstrates the moderating effect of employee absorptive capacity on the relationship between knowledge and export performance. The study advances existing knowledge on SME performance, especially from an emerging economy context.

Uncovering the factors behind new ventures’ international performance: Capabilities, alertness and technological turbulence

This research is based on the perception that the explanation of International New Ventures' (INVs) performance demands a process view, going deeper than the standard approach, in empirical papers, of testing a direct relationship between company-level antecedents and performance. A three-tier model was developed to investigate the process leading to INVs international performance, emphasizing the role of entrepreneurial alertness. Based on the dynamic capabilities framework, entrepreneurial alertness was envisaged as the mediating element between firms' capabilities and their international performance. Empirical research confirmed the hypothesized model. Firms' capabilities (entrepreneurial orientation, foreign market knowledge, and absorptive capacity) significantly influence the level of entrepreneurial alertness, which impacts on the levels of self-reported satisfaction with the company's international performance. The paper makes four contributions to International Entrepreneurship literature. First, it highlights the key role played by entrepreneurial alertness in explaining INVs' international performance. This is convergent with the dynamic capabilities view on firms' ability to sense and seize specific international business opportunities. Second, this study considers entrepreneurial alertness as a capability that is not limited to the entrepreneur, but it is an organizational capability. Third, it shows that entrepreneurial alertness does not exist in the vacuum, is based on a set of base capabilities, namely entrepreneurial orientation, foreign market knowledge, and absorptive capacity, that simultaneously leverage the INVs to sense possible opportunities and constrain the focus of opportunities to international markets, as a key element to foster INVs' higher performance. Fourth, it underlines the role of technological turbulence as a moderator of the relationship between entrepreneurial alertness and INVs' international performance.

Configuring foreign market knowledge and opportunity recognition capabilities to predict the performance of export-manufacturing firms

ABSTRACT Export-manufacturing firms survive and ultimately succeed when they can accumulate, harvest,and utilise foreign knowledge to better marshal the capabilities to recognise opportunities. Prior studies are replete with a single solution by combining foreign market knowledge (FMK) and firm performance. A shift from contingent theory to the configurational approach suggests that there are multiple solutions available to achieve intended outcomes. Based on the equifinality assumption, we configure FMK in conjunction with opportunity recognition capabilities to predict performance. In total, 382 export-manufacturing firms were investigated by employing fuzzy-set qualitative comparative analysis (fsQCA) and necessary condition analysis (NCA). Salient findings suggest that young firms achieve superior performance from foreign business and institutional knowledge by enhancing opportunity exploration capability, whereas mature firms succeed from internationalisation knowledge and nurturing opportunity exploitation capability. The study is one of which that contributes to the methodology by introducing fsQCA and NCA in the knowledge management literature.

Knowledge grafting during internationalization: utilizing localized professionals in the foreign market

PurposeThe purpose of this paper is to understand knowledge grafting through localized professionals in the internationalization of the firm. Knowledge grafting refers to firms increasing their knowledge stock by acquiring new staff, and while the concept is not new in studies on firms’ internationalization, there is little understanding of the characteristics of the individuals carrying the knowledge, the types of knowledge grafted and how it contributes to a market entry process.Design/methodology/approachThe authors conducted an explorative study with a multiple-case research design and purposely selected five localized Swedish managers working for Russian subsidiaries of Swedish firms. Face-to-face interviews were conducted. The interviews were transcribed and analyzed based on three types of knowledge: general foreign market knowledge, social network knowledge and professional knowledge. The authors also considered both private and professional ties.FindingsThe findings show that characteristics of the localized professional and the firm can influence the type of knowledge grafted and how it is used. The findings also highlight the key role of the individual as knowledge carrier and show an alternative way to obtain knowledge in firm internationalization.Research limitations/implicationsThis study comes with limitations. Only Swedish firms entering Russia with wholly owned subsidiaries have been considered. Further studies comparing knowledge grafting with firms in different entry mode, varying stage of market entry, as well as other countries of origin can further enrich our understanding. Future studies can also focus on localized professionals to shed light on the knowledge transfer between them and other individuals within the firms and the potential impact of their departure on knowledge grafting.Practical implicationsInternationalizing firms should pay attention to the opportunity of grafting knowledge by appointing localized professionals already living in the market. Governmental agencies in the host county can be a valuable source for identifying foreign nationals of the same origin as the firm.Originality/valueTo the best of the authors’ knowledge, this is the first study to focus on the individual level of knowledge grafting and to examine how localized professionals acquire knowledge to support firms in internationalization.

Post-entry internationalization speed of SMEs: The role of relational mechanisms and foreign market knowledge

Prior research shows that small and medium-sized enterprises (SMEs) can utilize domestic networks with internationally experienced partners to accelerate their internationalization process. Yet, there is a lack of clarity and limited empirical evidence regarding the role of relational mechanisms within these networks in driving post-entry internationalization speed (PIS) of SMEs. To address this gap, this study examines the relational mechanisms-PIS relationship by drawing insights from the relational view to argue that foreign market knowledge mediates the relationship between relational mechanisms and PIS. The hypothesized study model is tested using a structural equation modelling (SEM) technique on a sample of 394 UK based manufacturing SMEs. Our results show that foreign market knowledge acquisition from domestic networks fully mediates the relationship between relational mechanisms and PIS. Additionally, the linkage between foreign market knowledge acquisition and PIS is moderated by domestic environmental hostility, such that the relationship is strengthened when domestic environmental hostility increases. We discuss the contributions and implications of our results and suggest opportunities for future research.

Mapping family firm internationalization research: bibliometric and literature review

Internationalization is an important entrepreneurial strategy for the growth and long-term survivability of family firms. Research on family firm internationalization (FFI) has attracted increasing interest as there has been rapid growth in the number of academic publications in recent years. Since its initial stages, this research field has evolved significantly and developed in different directions. In this context, the goal of this study is to provide an overview of the cornerstones of the FFI literature, its main research trends, and promising avenues for future research. To this end, we conducted several analyses, including bibliometric performance and co-word analyses as well as a literature review that provide an updated overview of this growing research field and identify key topics underpinning it. Our analysis covered 115 journal articles published in the Web of Science between 2002 and 2018. The main results of the co-word analysis reveal six thematic clusters: (1) corporate governance, (2) entry mode, (3) board of directors, (4) foreign market knowledge, (5) entrepreneurship, and (6) competitive advantage, which provide a holistic view of the field and offer a new and useful means of determining its traceability. Subsequently, we conducted an in-depth full text review of the articles whose keywords are included in each of these clusters with the objective of identifying potential avenues for future research that can contribute to advancing the knowledge of the uniqueness and heterogeneity of family firms. Hence, we help in understanding the interplay between family and firm behavior, and how family firm-specific features shape the dynamics and processes of internationalization.

Social capital and internationalization of commercial banks in Kenya

Purpose – tо study sought to delve into social capital and commercial banks' internationalization in Kenya drawing on the internationalization concept.
 Design/Method/Approach. The research adopted a positivist philosophical approach and used a descriptive cross-sectional research design targeting top and middle-level managers in Kenya's commercial banks. Data was collected using a structured questionnaire and analyzed using SPSS version 22.0 for both descriptive and inferential statistics. Structural Equation Modelling was used to establish the influence of social capital on commercial banks' internationalization in Kenya.
 Findings. The findings established a significant and positive relationship between the components of social capital: inter-cultural empathy, inter- personal impact and diplomacy, and commercial banks' internationalization.
 Practical implications. The results have significant consequences: Firstly, social capital has a positive and statistically significant relationship with commercial banks' internationalization. Secondly, all dimensions of social capital affect the acquisition of foreign market knowledge and financial resources. Thirdly, the use of individuals' social capital often changes during internationalization.
 Originality/Value. The study's novelty demonstrates the interaction of commercial banks' managers in Kenya on the application of social capital as an internationalization orientation process.
 Research Limitations/Future Research. The research contributes to the advancement of location theory. It opens avenues for future research to establish what extent social capital is beneficial to banks that have ventured into international markets.
 Paper type – empirical.

ACCELERATING SMALL FIRMS’ PRODUCTION PROCESS IMPROVEMENT THROUGH INTERNATIONAL MARKET KNOWLEDGE AND VALUABLE, RARE, INIMITABLE, AND ORGANIZED RESOURCES AND CAPABILITIES

This article aims to explore the factors influencing MSMEs – Micro, Small, and Medium Enterprises production process improvement using variables of VRIO (Value Rarity, Inimitability, and Organization) resources and capabilities, foreign market knowledge, and internationalization. This research is conducted in 150 exporting-MSMEs samples in Central Java, Indonesia. The main analysis applied in this research is multiple regressions. The result shows that VRIO resources and capability, foreign market knowledge, and internationalization, significantly influenced production process improvement. It emphasizes that degree of internationalization only weakly influencing process improvement. The more important factors are internal factors like knowledge, resources, and capability. The result obtained can be used as the basis to develop the strategy of capability improvement for MSMEs in designing internationalization strategy. The strategy will closely relate to MSMEs’ process improvement to compete in international market. This research provides two contributions. First, the internationalization of handicraft MSMEs does not strongly define MSMEs production process improvement. Second, process improvement can be accelerated by gaining market knowledge and exploiting valuable, rare, inimitable, and organized resources and capabilities.

Internationalization of Manufacturing SMEs: The Role of Relational Mechanisms

Small and medium-sized enterprises (SMEs) attempt to accelerate the internationalization process. The purpose of this paper is to investigate the relevance of relational mechanisms for internationalization process of SMEs. Building on the resource-based view, we propose the mediation effect of foreign market knowledge to explain how relational mechanisms promote internationalization process. Structural equation modelling was performed on a sample of 394 UK based manufacturing SMEs. Our results underscore that relational mechanisms have an indirect, mediated effect on internationalization process through foreign market knowledge. We discuss the contributions and implications of our results and suggest opportunities for future research.

Active Internationalization of Software Enterprises: Scale Development and Validation

A 34-item scale was developed to measure the attributes that contribute to success in the active internationalization processes of small and medium enterprises of software. Data from 103 companies was analysed. The scale was developed and available online in 4 languages. Based on established scale development procedures, such as exploratory and confirmatory factorial analysis, a final version of the research scale was proposed, composed by 15 items grouped in 4 dimensions. Innovation, entrepreneurship, network, and foreign market knowledge appear to be important factors for the success in the active internationalization processes of small and medium enterprise of software. Reliability and validity measures were calculated in order to check the adequacy of the proposed model. Concluding remarks discuss theoretical and managerial implications with limitations and directions for future research.

The antecedents and the outcomes of foreign market knowledge accumulation – the dynamic managerial capability perspective

PurposeThe purpose of this study is to establish the antecedents and the outcomes of foreign market knowledge (FMK) accumulation in the context of emerging economies. The antecedent is dynamic managerial capability (DMC) with managerial human capital, social capital and cognition as its dimensions. The outcomes are financial and non-financial performances. This study bridges the gap by linking individual-level capability and FMK accumulation to achieve performance.Design/methodology/approachThis study has utilized a survey-based approach to collect data. The sample consists of 365 export manufacturing firms operating in the apparel industry of Bangladesh. Structural equation modeling analysis has been used to test the hypothesized model.FindingsThe direct effects of managerial social capital and managerial cognition on FMK accumulation are positively significant. The results also show that FMK accumulation fully mediates the relationship between: managerial social capital and financial and non-financial performances and managerial cognition and financial and non-financial performances.Practical implicationsExport manufacturing entrepreneurs in the low-tech industry should focus more on the network development and leverage on their cognitive mentality as a global mindset to succeed in international markets. These two factors are critical to accumulate foreign knowledge.Originality/valueThis study provides empirical evidence on dynamic managerial capability and FMK accumulation of export manufacturing firms in low-tech emerging economies context. Out of the three building blocks of DMC, this study has found that managerial social capital and managerial cognition of entrepreneurs are crucial as antecedents to FMK accumulation and firm performance.

Local horizontal network membership for accelerated global market reach

PurposeThe purpose of this paper is to explain how some born global firms can leverage the rich social capital in their local (home country) horizontal network for accelerated international market entry and growth. Horizontal networks warrant separate attention from their vertical counterparts, which, along with those focussed on external international contexts, dominate most network studies in the realm of born global research.Design/methodology/approachThe study utilises a multi-level qualitative approach in the study of a multi-firm population of animators in Ireland that, due to the small domestic market for their product, needed to pursue global customers from inception. The case study domain was purposely selected as a critical exemplar of a local horizontal network operating in a highly globalised industry. The authors collected data through in-depth interviews with 16 company founders. This primary interview data were complemented by interviews with staff at the apposite industry association and triangulated with secondary data on the local and global industry conditions, members’ international successes and awards.FindingsThe results demonstrate how active membership of a local horizontal network can be leveraged for the acquisition of international market knowledge and customers for born global ventures. This arises from the sharing of collective market knowledge and communal global customer information within the network to mutual benefit.Originality/valueAlthough limited by the specific conditions in this highly globalised, non-competitive industry context, this study is unique in that it finds that cooperative interpersonal and inter-firm relationships embedded in a local horizontal social network, and mediated in part by an institutional support actor, emerge as important levers for a born global’s accelerated acquisition of foreign market knowledge and of global customers.