Foreign market entry knowledge and international performance: The mediating role of international market selection and network capability |
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| Institution: | 1. Institute for Advanced Research in Business and Economics (INARBE) and Department of Business Administration, Public University of Navarre, Arrosadia Campus, 31006 Pamplona, Navarre, Spain;2. Department of Innovation, Entrepreneurship and Investment Management/Center for Vietnamese Studies, Zhejiang University of Technology, China;3. Department of Business Studies, Uppsala University, Box 513, 75120 Uppsala, Sweden |
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| Abstract: | 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. |
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