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Interpersonal Social Networks and Internationalization of Traditional SMEs

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  • Barbara Masiello
  • Francesco Izzo

Abstract

This study aims to understand the role of interpersonal social networks in the international strategies of “traditional SMEs,” namely small firms that are “born local” and that operate in low‐tech and non‐knowledge‐intensive industries. Specifically, building on the social capital approach and the international entrepreneurship literature, this study investigates how the structure and the content of interpersonal social networks affect both the activities of exploration/exploitation of opportunities abroad, as well as the path and the performance of the internationalization processes in the pre‐entry and post‐entry phases. Results show the dynamics of internationalization as a “social embedded” endeavor, by highlighting heuristics and path‐dependent phenomena connected to the features of the interpersonal social networks. Findings contribute to the literature as to the decision‐making processes, the role of trust, and the possible negative effects generated by the structure and the content of the interpersonal social networks, including the market withdrawals.

Suggested Citation

  • Barbara Masiello & Francesco Izzo, 2019. "Interpersonal Social Networks and Internationalization of Traditional SMEs," Journal of Small Business Management, Taylor & Francis Journals, vol. 57(S2), pages 658-691, November.
    • Handle: RePEc:taf:ujbmxx:v:57:y:2019:i:s2:p:658-691
    DOI: 10.1111/jsbm.12536
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    Cited by:

    1. Hazem Ali & Min Li & Zhongli Wu & Xunmin Qiu, 2023. "An Examination of the Identification and Exploitation of International Opportunities Among Chinese Traditional SMEs," SAGE Open, , vol. 13(3), pages 21582440231, September.
    2. Hazem Ali & Min Li & Xunmin Qiu & Qamar Farooq, 2023. "Global Mindset and Adaptive Marketing Capabilities in the Internationalization of Mature Chinese SMEs: International Opportunity Perspective," Sustainability, MDPI, vol. 15(3), pages 1-19, January.
    3. Hung Quang Doan & Francesca Masciarelli & Andrea Prencipe & Nam Hoang Vu, 2023. "Social capital and firm performance in transition economies," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(4), pages 751-780, December.

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