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The effect of business model innovation on SMEs’ international performance: The contingent roles of foreign institutional voids and entrepreneurial orientation

Author

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  • Bryan Jean, Ruey-Jer
  • Kim, Daekwan
  • Sinkovics, Rudolf R.
  • Cavusgil, Erin

Abstract

Despite the growing trend of firms adopting innovative business models for internationalization, scholarly attention remains limited. Existing research provides inconclusive findings regarding the link between business model innovation and international performance. Drawing on signaling theory, this study develops and tests a theoretical framework examining the impact of business model innovation on international performance of small and medium-sized enterprises (SMEs). Analyzing a unique sample of Chinese exporting firms, findings reveal a positive relationship between SMEs’ innovative business models and their foreign market performance. Notably, this relationship strengthens amidst significant foreign institutional voids. However, the relationship weakens for firms displaying greater entrepreneurial orientation.

Suggested Citation

  • Bryan Jean, Ruey-Jer & Kim, Daekwan & Sinkovics, Rudolf R. & Cavusgil, Erin, 2024. "The effect of business model innovation on SMEs’ international performance: The contingent roles of foreign institutional voids and entrepreneurial orientation," Journal of Business Research, Elsevier, vol. 175(C).
    • Handle: RePEc:eee:jbrese:v:175:y:2024:i:c:s0148296323008081
    DOI: 10.1016/j.jbusres.2023.114449
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