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The influence of international networks on internationalization speed and performance: A study of Czech SMEs

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  • Musteen, Martina
  • Francis, John
  • Datta, Deepak K.
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    Abstract

    Drawing on social capital theory and the international entrepreneurship literature, we develop hypotheses relating the structural, cognitive and relational aspects of the international network of SME CEOs to two internationalization outcomes - speed and performance. The study is based on a sample of 155 Czech SMEs covering a broad range of manufacturing industries. Our findings indicate that firms sharing a common language with their international ties are able to internationalize faster than firms that do not share a common language. Moreover, we observe that geographically diverse networks contribute to superior performance. Extensive reliance on personal contacts hinders the performance of the first international venture.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of World Business.

    Volume (Year): 45 (2010)
    Issue (Month): 3 (July)
    Pages: 197-205

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    Handle: RePEc:eee:worbus:v:45:y:2010:i:3:p:197-205

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    Related research

    Keywords: International networks SMEs internationalization Social capital;

    References

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    Cited by:
    1. Klaus Meyer & Ornjira Thaijongrak, 2013. "The dynamics of emerging economy MNEs: How the internationalization process model can guide future research," Asia Pacific Journal of Management, Springer, vol. 30(4), pages 1125-1153, December.
    2. Kiss, Andreea N. & Danis, Wade M. & Cavusgil, S. Tamer, 2012. "International entrepreneurship research in emerging economies: A critical review and research agenda," Journal of Business Venturing, Elsevier, vol. 27(2), pages 266-290.
    3. Cui, Lin & Li, Yi & Li, Zijie, 2013. "Experiential drivers of foreign direct investment by late-comer Asian firms: The Chinese evidence," Journal of Business Research, Elsevier, vol. 66(12), pages 2451-2459.
    4. Hohenthal, Jukka & Johanson, Jan & Johanson, Martin, 2014. "Network knowledge and business-relationship value in the foreign market," International Business Review, Elsevier, vol. 23(1), pages 4-19.
    5. Galina Shirokova & Patricia McDougall-Covin, 2012. "The role of social networks and institutions in the internationalization of Russian entrepreneurial firms: Do they matter?," Journal of International Entrepreneurship, Springer, vol. 10(3), pages 177-199, September.
    6. Eberhard, Manuel & Craig, Justin, 2013. "The evolving role of organisational and personal networks in international market venturing," Journal of World Business, Elsevier, vol. 48(3), pages 385-397.
    7. Suh, Yongyoon & Kim, Moon-Soo, 2014. "Internationally leading SMEs vs. internationalized SMEs: Evidence of success factors from South Korea," International Business Review, Elsevier, vol. 23(1), pages 115-129.
    8. Kontinen, Tanja & Ojala, Arto, 2011. "Network ties in the international opportunity recognition of family SMEs," International Business Review, Elsevier, vol. 20(4), pages 440-453, August.
    9. Contò, Francesco & Fiore, Mariantonietta & Antonazzo, Anna Paola & La Sala, Piermichele, 2012. "A development model for the internationalization of SME agro-food of Puglia: the ISCI project," MPRA Paper 42526, University Library of Munich, Germany.
    10. Ciravegna, Luciano & Majano, Sara B. & Zhan, Ge, 2014. "The inception of internationalization of small and medium enterprises: The role of activeness and networks," Journal of Business Research, Elsevier, vol. 67(6), pages 1081-1089.

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