The effect of social networks and dynamic internationalization capabilities on international performance |
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| Affiliation: | 1. Business School, East China University of Political Science and Law, Shanghai 201620, People''s Republic of China;2. School of Economics and Management, Tsinghua University, Beijing 100084, People''s Republic of China;3. Business School, Beijing Normal University, Beijing 100875, People''s Republic of China;1. INCAE Business School, La Garita Alajuela, Costa Rica;2. 14 Toussaint Walk, London SE16 4RS;3. School of Business, Tung Wah College, Mongkok, Hong Kong |
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| Abstract: | This article explores the relationship between social networks and dynamic internationalization capabilities (DICs), and their impact on the international performance of small and medium-sized firms (SMEs) in low-tech industries. We distinguish between exploitative DICs (threshold and consolidation capabilities) and explorative DICs (value-adding and disruption capabilities). Our results, which are based on a sample of small and medium-sized Portuguese exporters, indicate that social networks are a relevant antecedent of exploitative and explorative DICs, and that consolidation and disruption capabilities positively affect international performance. Multiple mediation analysis confirms these relationships. The article concludes with a discussion of implications for research and practice. |
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| Keywords: | Social networks Dynamic capabilities International performance Mediation Partial least square structural equation modeling (PLS-SEM) |
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