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Enhancing the learning advantages of newness: The role of internal social capital in the international performance of young entrepreneurial firms

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  • Bai, Wensong
  • Liu, Runqian
  • Zhou, Lianxi

Abstract

In this paper, we draw on social capital theory to explore the role of internal social exchanges in contributing to the international performance of young entrepreneurial firms. We argue that internal social capital embedded within young ventures helps them cultivate international learning effort pertaining to the effective alignment of resources and activities related to their international growth. The empirical analysis, based on a sample of 150 young internationalizing SMEs from India, demonstrates both direct and indirect effects of internal social capital on international performance. Whereas previous research focuses on the importance of social networks with external actors, our study emphasizes internal social capital linked to the underlying learning advantages of newness and opportunity capture and contributes to the literature on early and rapid internationalization.

Suggested Citation

  • Bai, Wensong & Liu, Runqian & Zhou, Lianxi, 2020. "Enhancing the learning advantages of newness: The role of internal social capital in the international performance of young entrepreneurial firms," Journal of International Management, Elsevier, vol. 26(2).
    • Handle: RePEc:eee:intman:v:26:y:2020:i:2:s1075425319302753
    DOI: 10.1016/j.intman.2020.100733
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    Citations

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    Cited by:

    1. Williams, David W. & Crook, T. Russell, 2021. "Unpacking the age at initial internationalization-performance relationship: A meta-analytic investigation," Journal of Business Venturing Insights, Elsevier, vol. 15(C).
    2. Jafari-Sadeghi, Vahid & Amoozad Mahdiraji, Hannan & Bresciani, Stefano & Pellicelli, Anna Claudia, 2021. "Context-specific micro-foundations and successful SME internationalisation in emerging markets: A mixed-method analysis of managerial resources and dynamic capabilities," Journal of Business Research, Elsevier, vol. 134(C), pages 352-364.
    3. Appiah, Emmanuel Kusi & Galkina, Tamara & Gabrielsson, Peter, 2023. "Liminality and developmental process of learning advantage of newness of early internationalizing firms," International Business Review, Elsevier, vol. 32(6).
    4. Acedo, Francisco J. & Coviello, Nicole & Agustí, María, 2021. "Caution ahead! The long-term effects of initial export intensity and geographic dispersion on INV development," Journal of World Business, Elsevier, vol. 56(6).
    5. Joan Freixanet & Ryan Federo, 2022. "When Born Globals Grow Up: A Review and Agenda for Research on the Performance of Maturing Early Internationalizers," Management International Review, Springer, vol. 62(6), pages 817-857, December.
    6. Afaf Jghamou & Aziz Maziri & El Hassan Mallil & Jamal Echaabi, 2022. "SECI Model Combined with ISO 9001 2015 to Support Organizational KM for Manual Assembly Manufacturing Operations," International Journal of Knowledge Management (IJKM), IGI Global, vol. 18(1), pages 1-21, January.
    7. Singh, Sanjay Kumar & Mazzucchelli, Alice & Vessal, Saeedeh Rezaee & Solidoro, Adriano, 2021. "Knowledge-based HRM practices and innovation performance: Role of social capital and knowledge sharing," Journal of International Management, Elsevier, vol. 27(1).
    8. Nadia Zahoor & Yong Kyu Lew, 2022. "Sustaining superior international performance: Strategic orientations and dynamic capability of environmentally concerned small‐ and medium‐sized enterprises," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1002-1017, March.

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