Internationalization of emerging economy SMEs: a tripod approach

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Tajeddin, M., Farashahi, M., Moghaddam, K., Simba, A. ORCID: 0000-0002-0276-8211 and Edwards, G., 2022. Internationalization of emerging economy SMEs: a tripod approach. Journal of International Management: 100991. ISSN 1075-4253

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Official URL: https://doi.org/10.1016/j.intman.2022.100991

Abstract

Research acknowledges that SMEs in advanced economies leverage institutional resources for their internationalization. But, knowledge on how emerging economies SMEs (EESMEs), competing in international markets (IMs), internationalize regardless of their size, liabilities, and foreignness is limited. Thus, by extending an integrated strategy tripod framework this study develops new theorizations to account for how EESMEs internationalize and compete in complex IMs with limited market power. Survey data involving 120 Iranian EESMEs is tested to investigate the moderation effect of international market knowledge (IMK) on their internationalization. From our analysis, it emerged that the internationalization strategies adopted by EESMEs are not only influenced by managerial perceptions of the industry, firm, and institutional factors, but also they are positively moderated by international market knowledge. Thus, IMK strengthens the influence of international supportive policies, as formal institutions, on the degree of EESME internationalization. Moreover, it implies that, EESMEs managers have to consider; (i) resource–based, institution–based, and industry–based factors as drivers for their internationalization and (ii) how IMK overshadows the effect(s) of contextual factors on their internationalization strategies.

Item Type:

Journal article

Publication Title:

Journal of International Management

Creators:

Tajeddin, M., Farashahi, M., Moghaddam, K., Simba, A. and Edwards, G.

Publisher:

Elsevier BV

Date:

15 November 2022

ISSN:

1075-4253