International Entrepreneurial Orientation Research Articles

The mediated and moderated effects of IEO on international performance: An investigation of emerging market SMEs

Mixed and inconsistent research results linking International Entrepreneurial Orientation (IEO) to international performance have led to controversies about the value of IEO as a determinant of international performance. Our research proposes a new model that considers international dynamic capabilities (IDCs) as a mediator between IEO and international performance. Cultural and institutional distance are considered as boundary conditions. Using multi-country, multi-informant, and multi-source data collected from 303 SMEs in China and Tunisia, we find that IDCs mediate the effect of SMEs' IEO on international performance, but the impacts of three IEO dimensions on IDCs vary under different institutional and cultural contexts.

ENTREPRENEURIAL ORIENTATION AS AN ANTECEDENT TO THE RAPID INTERNATIONALIZATION OF MOROCCAN SMES IN THE WOMEN’S ENTREPRENEURSHIP FIELD

Purpose – This article aims to explore the importance of the international entrepreneurial orientation (IOE) of Moroccan women entrepreneurs (based on innovation, risk-taking and proactivity) in the speed of internationalization of Moroccan SMEs through the niche strategy as an intermediate variable. Research methodology – We adopted a quantitative study on a sample of 45 Moroccan SMEs to test the research hypotheses using the structural equation method, under Smart-PLS software. Findings – A significant relationship between the international entrepreneurial orientation of Moroccan women entrepreneurs and the speed of internationalization with the intermediation of the niche strategy. Despite well-calculated steps, innovative products and the courage to take risks on foreign markets, women entrepreneurs tend to adopt niche strategies to be more protected in the internationalization process: both to avoid direct competition from large companies and to speed up the internationalization process Research. Limitations – Theoretically, it was difficult to operationalize the phenomenon studied, for several reasons: the large number of movements in this approach, the number of variables mobilized. Methodologically, the criteria used to select the sample made it difficult to find more than 45 eligible companies (Exploratory quantitative study). Originality/Value – This article is one of the very few to combine international and women’s entrepreneurship. Furthermore, this is the first article in the field of women’s international entrepreneurship, as far as I know, that addresses the relationship between entrepreneurial orientation and the speed of internationalization of exporting SMEs.

Configuring international entrepreneurial orientation and dynamic internationalization capability to predict international performance

In recent years, the dynamics of international business have changed. This has largely been attributed to uncertainties caused by the COVID-19 pandemic and global trends towards individualistic behaviours. To remain competitive, international entrepreneurial firms (IEFs) renew their behaviours and reconfigure their capabilities. However, scholars have hitherto not uncovered the configurational interplay connecting behaviours and capabilities between the pre-and-post-COVID periods. Drawing on the configurational perspective of dynamic capability theory, we explored the configurational specificities of dynamic internationalisation capability and an international entrepreneurial orientation (IEO) as the behavioural aspect of IEFs. Adopting a longitudinal approach, we applied fsQCA to data drawn from Malaysia. Results show that whereas, in the pre-COVID period, IEFs exhibited an IEO along with threshold and disruption capabilities, in the wake of the pandemic, they are gingerly manifesting an IEO with an overwhelming priority on value-adding and consolidation capabilities suited to weather crises and secure international performance.

Marketing Capabilities, Strategy, and Performance in International Small- and Medium-Sized Enterprises

When expanding abroad, small- and medium-sized enterprises (SMEs) experience various constraints, especially the liabilities of small size and foreignness. In this study, the authors examine postures, capabilities, and strategies related to international brand marketing that help SMEs overcome such challenges, establish a brand presence, and attain superior performance in foreign markets. Framing the investigation in the internationalization and capabilities perspectives, the authors employ multimethod approaches in a two-phase study among internationalizing SMEs based in Taiwan. In the first phase, they undertake an extensive literature review and then conduct case studies to formulate a conceptual model. In the second phase, the authors validate the model and associated hypotheses using survey data from a large sample of SMEs that target their products to markets worldwide. Results point to critical roles for these key constructs—international entrepreneurial orientation, international social media capability, and international market knowledge capability—as key antecedents to international branding capability and international brand strategy, in SMEs’ international performance. The authors discuss the theoretical and managerial implications of these findings, highlighting the role of the critical constructs identified previously in driving superior international performance in resource-constrained SMEs.

Beyond the International Entrepreneurial Orientation–International Performance Nexus: Early or Late Internationalisation of SMEs?

Currently, knowledge around the role of international entrepreneurial orientation (IEO) on different types of internationalisation is limited. This study aims to unveil whether and how IEO can improve international performance by focusing on the model adopted in the internationalisation process (a traditional versus born global model). Data were collected from 221 internationalised French small and medium-sized enterprises (SMEs) and analysed using a structural equation model. The results highlight that IEO had a significant positive effect on both international economic performance and export turnover for born globals, but not older firms. When we consider the IEO subdimensions, the findings show a stronger positive impact of both international proactiveness and innovativeness on the number of foreign markets and on export turnover for born globals. The study guides international SME managers on why and how they should adjust the IEO of their firms according to their internationalisation models to achieve superior performance internationally.

Intangible resources, static and dynamic capabilities and perceived competitive advantage in exporting firms. A PLS-SEM/fsQCA approach

The aim of this paper is to fill the existing research gap in the knowledge of the interrelationships between relational resources, the static capabilities associated with the planning and organization of export activity, certain dynamic capabilities—international entrepreneurial orientation, orientation to foreign markets and strategic flexibility—and the achievement of perceived competitive advantages in international markets. The proposed conceptual model is analyzed on the basis of an empirical study using a multisectoral sample of 330 Spanish exporting companies. The results obtained, based on the use of SmartPLS and fsQCA, show that: 1) relationship resources are essential determinants for the development of an adequate export planning and organization capacity and have an impact on the international entrepreneurial orientation of the organization; 2) it is necessary to plan and organize exports well, since the adequate development of dynamic capabilities in international markets will depend on this; 3) international entrepreneurial orientation, orientation to foreign markets and strategic flexibility are essential, directly or indirectly, for the achievement of sustainable competitive advantages in foreign markets. Based on the results and conclusions obtained, the main implications for management are proposed.

The Internationalization Process of Tunisian Small and Medium Enterprises (SMEs) in Africa

In this paper, the author analyzes the role of several determinants in the internationalization process of Tunisian small and medium enterprises (SMEs) in Africa and their consequent performance. A quantitative study was carried out on 46 companies operating in information and communication technologies (ICTs). SPSS and Smart PLS were used to analyze the obtained data. The results demonstrate the importance of the total mediating role of international entrepreneurial orientation (IEO) in the relationship between competitiveness and international performance. However, networking generates a direct effect on international performance. Tunisian SMEs in the ICT industry are called upon to review their African-market methods of management and inspection to guarantee optimal use of resources and avoid the loss of business opportunities. Besides, according to this research, the weight of Tunisian SMEs’ competitive advantage allows them to adopt entrepreneurial behavior characterized by innovation, proactivity and risk-taking in Africa. This pushes them to adopt a permanent design and adaptation of valuable methods of value creation, innovation, and localization of opportunities. This entrepreneurial behavior also compels companies to better structure their management, develop skills of intuition and anticipation in the market, take risks as well as initiatives and consequently achieve greater performance and sustainability.

Exploring the born global firms from the Asia Pacific

AbstractThis study aims to synthesize the extant research on the Born Global Firms (BGF) phenomenon, mainly focusing on the Asia Pacific region (APAC). We adopt the systematic literature review methodology to identify the main context-specific drivers (‘success factors’) and outcomes of BGFs’ accelerated internationalization and the challenges they face before, during, and after global expansion. The analysis and evaluation of relevant studies reveal several critical variables that need to be extensively investigated (separately and in tandem) by scholars in order to advance existing theories and, at the same time, explain the out-of-pattern behaviors of BGFs outside the typical ‘Western economy’ context. Among the core variables are international entrepreneurial orientation and culture adoption, organizational learning and networking strategies, global strategic human capital and network resources (as predictors of BGFs’ international performance) and resource constraints, institutional and cultural distances, and liabilities of newness, smallness, foreignness, outsidership, and emergingness (as constraints to BGFs’ success). By identifying the research gaps and proposing a comprehensive framework with promising avenues for future research into the phenomenon of BGFs from the APAC region, this study helps enhance our understanding of the global strategy formation and execution processes of international new ventures from ‘the East’ and stimulate interdisciplinary dialogue between international business, strategy, and entrepreneurship scholars.

Learning Orientation as Mediator between International Entrepreneurial Orientation and International Firm Performance in Global Halal Industry

The halal industry has provided a new competitive advantage for Muslim countries, especially Malaysia, as the export of halal products is now one of the most important contributions to the national income. The contribution is mostly by small-medium enterprises (SMEs). However, in ensuring the sustainability of SMEs in the international market, the firm needs to hire managers with internationally oriented entrepreneurs to prepare SMEs to face uncertain environments globally through the intervention of learning orientation as an organizational culture. Thus, this research was conducted to examine the mediating effect of learning orientation between the international entrepreneurial orientation and international firm performance of SMEs in the global halal industry. This study is a quantitative, cross-sectional study. Purposive sampling was used as the sampling method where the sample was selected based on four criteria: SMEs, manufacturer, possession of a Malaysia halal certification, and exporter of halal products. Responses collected from 136 top management teams from participating firms were analyzed using PLS-SEM. The results show that the relationship between international entrepreneurial orientation with international firm performance is conditional upon learning orientation. To operate internationally, having managers equipped with prior entrepreneurial behavior is insufficient to increase performance. Learning orientation thus serves as a platform to transfer tacit knowledge to employees and at the same time value employees’ ideas so that continuous changes can take place. This improvement will ultimately result in higher international firm performance.

The internationalization performance of Indonesian SMEs during COVID-19 pandemic: exploring a mediation model

PurposeSmall and medium enterprises (SMEs) in emerging economies face significant challenges in formulating effective strategies to enter international markets, particularly amid uncertain conditions such as the COVID-19 pandemic. Consequently, there is a pressing need to examine the performance of these SMEs and evaluate their internationalization process. This study aims to examine the effects of international entrepreneurial orientation on the internationalization performance of SMEs and the mediating effects of organizational dynamic capability and organizational culture in Indonesia.Design/methodology/approachThis study used a quantitative method with a survey approach by distributing questionnaires to 206 SMEs in Indonesia that have implemented internationalization practices. Partial least squares-structural equation modeling (PLS-SEM) was used to predict and estimate relationships.FindingsThis study finds that one of the SMEs’ strategies to encounter the new normal era of COVID-19 is to improve their internationalization performance, especially by actively participating in international markets. The empirical results show that organizational dynamic capabilities and organizational culture are proven to fully mediate the relationship between international entrepreneurial orientation and the internationalization performance of SMEs. Meanwhile, international entrepreneurial orientation does not directly affect SMEs’ internationalization performance. This study confirms the mediating role of organizational dynamic capabilities and organizational culture in dynamic capabilities theory and their relevance to internationalization.Originality/valueThis study provides valuable insights and encourages owner-managers and policy-makers in emerging economies, particularly Indonesia, to develop organizational dynamic capabilities and organizational culture that align with the demands of internationalization.

PERAN MEDIASI EXPORT MARKET ORIENTATION PADA PENGARUH INTERNATIONAL ENTREPRENEURIAL ORIENTATION TERHADAP EXPORT PERFORMANCE

This research is motivated by a decline in sales to SMEs in Bali due to the COVID-19 pandemic that has hit the whole world. The government is promoting exports to anticipate a weakening local market because of the COVID-19 pandemic. The purpose of this study was to analyze the mediating role of export market orientation on the effect of international entrepreneurial orientation on export performance in export SMEs in Bali. The data in this study will be obtained by distributing questionnaires to export SMEs in Bali. Testing the validity of the data used validity testing and reliability testing. Data analysis techniques using descriptive statistical analysis and inferential statistical analysis (SEM-PLS). The results of the study show that international entrepreneurial orientation has a positive and significant effect on export performance. Export market orientation has a positive and significant effect on export performance. Export market orientation positively and significantly mediates the effect of international entrepreneurial orientation on export performance. The mediating role of export market orientation is partial mediation in the influence of international entrepreneurial orientation on export performance in export SMEs in Bali.

The role of international networking to mediate internet technology capabilities and international entrepreneurship orientation to export performance

The purpose of this study is to explain the role of international networks in mediating the effect of internet technology capabilities and international entrepreneurship orientation on export performance. The population of this research is creative industry SMEs that have been exporting for at least the last 3 years in Bali. The size of the sample used was 170 managers of creative industry SMEs exporters with a purposive sampling method. The analytical technique used is Path Analysis using SEM-PLS. The results show that the internet technology capabilities have a positive and significant effect on export performance. International entrepreneurship orientation also has a positive and significant impact on export performance. Furthermore, the internet technology capabilities have a positive and significant impact on international networking; international entrepreneurship orientation also has a positive and significant impact on international networking; and international networking affects export performance. In addition, international networking is able to mediate the effect of internet technology capabilities and international entrepreneurship orientation on export performance. Therefore, it is important for SMEs of creative industry exporters in Bali to develop their internet technology capabilities and improve their international entrepreneurial orientation in order to be able to build wider international networks and have an impact on increasing export performance.

The Context Sensitivity of International Entrepreneurial Orientation and the Role of Process and Product Innovation Capabilities

AbstractDrawing on a contingency perspective of the resource‐based view of the firm, we test the thesis that a relationship between international entrepreneurial orientation (IEO) and the international performance of export‐manufacturing firms is context‐sensitive and contingent on innovation capabilities. Using time‐lagged survey data from 369 Bangladeshi export‐manufacturing firms in a least developed country (LDC) as an extreme empirical context, we predict that process and product innovation capabilities are essential to the relationship between IEO and international performance among export‐manufacturing firms. We find that the effect of IEO on international performance is not positive; however, the relationship becomes positive when moderated by process and product innovation capabilities. International entrepreneurial firms in an LDC succeed when they can better align IEO‐driven efforts with these capabilities. Our study advances knowledge on the context sensitivity of IEO and embellishes a resource‐based theory of IEO.

The Roles of Unique Product Development and Global Technological Competence in the Effect of International Entrepreneurial Orientation on Company Performance in International Markets: A Study on Born Global Companies

The Roles of Unique Product Development and Global Technological Competence in the Effect of International Entrepreneurial Orientation on Company Performance in International Markets: A Study on Born Global Companies

Influential dynamic capabilities and small and medium enterprises' internationalization success: mediating role of international entrepreneurial orientation

PurposeThis study aims to analyze how international entrepreneurial orientation mediates the relationship between influential dynamic capabilities and the internationalization success of small and medium-sized enterprises (SMEs) in the context of the United Arab Emirates (UAE).Design/methodology/approachAdopting a quantitative approach, the researchers designed a questionnaire based on an extensive literature review and used structural equation modeling to ascertain the mediating role of international entrepreneurial orientation in the relationship between influential dynamic capabilities and SMEs' internationalization success.FindingsThe findings of this study indicate that international entrepreneurship orientation mediates the relationship between dynamic capabilities and internationalization success, as the indirect impact value is greater than the direct effect value for the relationship. Because the existence of the mediator in the model has no significant impact on the model's direct effects, full mediation is the most appropriate mediation type.Research limitations/implicationsThis study has some limitations. One of the major limitations of this study relates to the limited finances of the incumbent, as the questionnaires were delivered to the respondents via email, but the incumbent had to follow up with phone calls and reminders. Second, this study mainly relied upon primary data and analysis based on the use of qualitative techniques; in future, researchers can incorporate qualitative aspects using interviews and other qualitative analysis tools and techniques. Third, limitation relates to sample size, as the sample size of research was above 500 but was limited to just UAE. Future researchers can conduct a cross-sectional analysis to determine the mediating role of different factors for the promotion of internationalization.Practical implicationsThis study highlights the fundamental factors affecting the internationalization of SMEs in the UAE context, which has rarely been discussed. This study broadens the scope of internationalization by discussing its impact on SMEs' financial and non-financial performance.Social implicationsThis study will contribute to the advancement of current information about the elements that impact the internationalization of SMEs and develop a new framework for analyzing SMEs' internationalization in the UAE.Originality/valueThis study contributes to the literature by developing and testing a framework based on a comprehensive literature review to include different factors and their constructs that impact the potential internationalization of SMEs in developing economies. This study identifies and addresses a research gap regarding the relationship between internationalization and company performance among UAE SMEs.

국제기업가지향성이 GVC지속가능 성과에 미치는 영향 연구

With the recent emphasis placed on the Global Value Chain(GVC) in the field of international business, there has been growing attention for sustainable management encompassing not only the economic performance of firms participating in GVC activities but also their environmental and social performance. Presenting international entrepreneurial orientation as a leading factor in sustainable GVC performance, this study aims to investigate the effects of the sub-factors of international entrepreneurial orientation, including innovativeness, proactiveness, and risk-taking on sustainable GVC performance. Using survey data f rom 219 K orean m anufacturing a nd e xporting f irm s, i t w as c onfirm ed t hat t he i nternational entrepreneurial orientation has positive effects on sustainable GVC performance. This study has the academic implication in expanding the leading factor of GVC performance focused on the network perspective to entrepreneurial orientation. The findings also provide managerial effects in suggesting that it is necessary for firms participating in GVC to take a strategic approach to achieving sustainable GVC performance through international entrepreneurial orientation.

The evolving international entrepreneurship orientations and international entrepreneurship capital in the rapidly changing and digitizing international environments

The relationship between entrepreneurial orientations and internationalization has been examined extensively, but the recent developments in the rapidly changing environment point to the need for further examination of international entrepreneurs’ orientations in their own embedding contexts and beyond. There is ample evidence suggesting a positive relationship between the firm’s combined overall international entrepreneurial orientation, its extent of innovativeness, export (or international marketing), collaborative, and socio-cultural orientations and the scope and speed of its internationalization. The aim of this article is to examine the challenges and developments among the integral components of international entrepreneurial orientations and their associated activities, strategies, and resources to integrate their interactive impacts for better understanding of the broader concepts of international entrepreneurship orientations and international entrepreneurship capital in the increasing complexities of entrepreneurial internationalization processes.

How does international entrepreneurial orientation influence firms' internationalization? An exploration with Indian software product top management teams

PurposeThe purpose of this study is to explore how international entrepreneurial orientation of top management team (TMT) of software product firms influence their firms' internationalization activities.Design/methodology/approachThis study uses interpretive analysis techniques and examines data collected from in-depth interviews and secondary sources from 20 software product firms.FindingsThe analysis of data reveals the existence of a pathway through which the international entrepreneurial orientation of the TMT influences the firm's strategic learning functions (knowledge creation, dissemination, interpretation and implementation) which in turn influences the firm's internationalization activities.Research limitations/implicationsThe authors extend the existing knowledge by demonstrating an existence of path to interpret the individual attribute of international entrepreneurial orientation of TMT with the organization's knowledge management functions. Building on the theories of knowledge-based view and organizational learning, and by leveraging the microfoundations approach, a process model is also derived based on evidence from data analysis to enable examination of the combined effects of the international entrepreneurial orientation of TMT, firm's strategic learning on internationalization.Originality/valueThe authors provide an integrative process model that connects TMTs' international entrepreneurial orientation to the firms' strategic learning processes, which in turn is linked to examine the combined influence of these constructs on the internationalization activities of a firm.

Japanese SME Internationalization in Halal Food Industry: A Preliminary Study

Recently, Japanese small and medium-sized enterprises (SMEs) have faced a shrinking domestic market due to a declining population in Japan. In contrast, the global Muslim population has been drastically increasing, which is attractive to Japanese SMEs, especially food manufacturers. Despite the situation, there has been little empirical research on the internationalization of Japanese SMEs in the halal food industry. With this in mind, this study explores it by adopting an existing framework of SME internationalization. The main aims are to describe the process of how one Japanese small food manufacturer has entered a foreign Muslim market by starting and expanding its halal food business and to identify the role of international entrepreneurial orientation (IEO) in this specific field. By analyzing this case, the findings show the following things. First, IEO is considered an important factor to lead to the internationalization of Japanese SMEs in the halal food industry because the president of the manufacturer actively collected information on the halal food business and built an appropriate organizational structure. Second, since the halal industry in Japan has obstacles to SME internationalization, Original Equipment Manufacturing (OEM) is an effective form of entry into foreign Muslim markets, which gave the president opportunities to collect market information and build a network in the market. Third, procurement innovation is imperative to receive foreign halal certification and break down a cultural barrier based on food habits since ingredients Japanese manufacturers procure possibly contain non-halal materials at the level of not only first-tier suppliers but second and third-tier suppliers.

The Effect of Start-up Corporate Entrepreneurial Orientation on Adaptive Capacity on Overseas Market and Export Performance: The Moderating Effect of Business Psychological Distance

Purpose The purpose of this study is to establish an export strategy using the international entrepreneurial orientation, which is one of the corporate strategies of early-stage companies, and to draw implications that can be used to enter the overseas market and create corporate performance by using it. Design/Methodology/Approach To examine the effect of entrepreneurial orientation on the ability to adapt to overseas markets and export performance, as well as the moderating effect of business psychic distance, this study used 208 export start-up companies as the research subject. Findings The following summarizes the findings of this study. To begin, the effect of sub-factors of international business orientation, such as innovation, initiative, and risk taking, on overseas market adaptability and export performance was identified. Second, it was ascertained whether adaptability to foreign markets had a statistically significant effect on export performance. Finally, it was found that the group with a high degree of business psychic distance demonstrated a greater degree of difference significance. Research Implications This study presented a strategic direction for early stage start-ups undergoing internationalization, and in subsequent research, we will expand the study by including variables related to compan strategy.