Entrepreneurship Theory & Practice – Online publication February 20, 2017

Slack, Innovation, and Export Intensity: Implications for Small- and Medium-Sized Enterprises

Andreea N. Kiss, Stephanie Fernhaber and Patricia P. McDougall-Covin

  • Despite the acknowledged importance of resources to small- and medium-sized enterprise (SME) internationalization, scholars have largely focused on the absolute level of resources rather than excess resources. Drawing on behavioral theory and literature on SME internationalization, we argue that SMEs intensify exports when pressured to find a way to survive at low levels of resource slack or when adequately prepared at high levels of slack. In contrast, moderate levels of slack result in a domestic focus by SMEs. We also suggest that for highly innovative SMEs, this pattern of effects changes. Analyses performed on a cross-country sample of 3,280 SMEs confirm our hypotheses.

 

Journal of Small Business ManagementOnline publication February 17, 2017

Born-Global SMEs, Performance, and Dynamic Absorptive Capacity: Evidence from Spanish Firms

M. Ángeles Rodríguez-Serrano and Enrique Martín-Armario

  • Interest has grown in explaining the positive performance of small businesses that internationalize from start up. In response to this question, we have empirically confirmed the relevant role played by dynamic absorption capacity in these firms and the influence of an entrepreneurial market-oriented culture, on the basis of the Dynamic Capabilities Approach, through a sample of 102 Spanish born-global SMEs. The success of these firms is determined by their ability to assimilate and to use knowledge in accordance with the demands of the market.

 

International Business Review – Volume 26, pg. 12-22

Small Italian wine producers’ internationalization: The role of network relationships in the emergence of late starters

Barbara Francioni, Tiia Vissak and Fabio Musso

  • This paper aims to examine how network relationships influenced the internationalization of small Italian wine producers characterized as late starters. It is based on four cases. It shows that foreign tourists helped these firms to expand internationally: they identified business opportunities, suggested firms to contact importers, contacted importers themselves to get access to the same wine in their home country or provided foreign market knowledge. Thus, small wine producers should pay more attention to attracting tourists and creating network relationship with them. Several other network relationships, for instance, with friends and relatives, Italian expatriates and other business partners, also advanced the case firms’ internationalization. Moreover, they were affected by lack of time and resources, language barriers and other factors. Thus, all these aspects also need managers’ attention. Furthermore, they should take a more strategic approach towards internationalization and understand that not all internationalization attempts succeed or result in continuous orders.

 

Journal of International Entrepreneurship – Published online February 10, 2017

The effect of sub-national institutions and international entrepreneurial capability on international performance of export-focused SMEs: Evidence from China and South Korea

Man Zhang, Qian Gao and Hyuk-Soo Cho

  • A number of recent studies have taken notice of the differences among sub-national institutions within the convoluted structures of Asian economies. The influence that the institutional environment exerts upon the performance of larger multi-national enterprises (MNEs) in Asian markets is well-documented; however, the relationship between sub-national institutions, international entrepreneurial capability (IEC), and international performance (IP) is a realm that has been less closely explored. This paper seeks to address that gap by assessing the effect of relevant sub-national institutions, namely, local government support, legal rules, government transparency, and government efficiency on the IEC of export-focused small and medium-sized enterprises (SMEs) in two leading Asian economies. The researchers have devised and assessed a model that links sub-national institutions, their IEC and IP. To this end, data was collected from export-focused SMEs in two important emerging markets, China and South Korea. Three rounds of data collection resulted in 217 complete surveys. This paper discusses the analyzed data as well as the theoretical and managerial contributions of those findings.