Post-Entry Performance of International New Ventures: The Mediating Role of Learning Orientation

This paper investigates the role of learning orientation in the post-entry performance of international new ventures (INVs) by examining the relationships of niche strategy, network resources, and learning orientation with the multi-dimensional post-entry performance of INVs. Based on the INV internationalisation literature, we develop and validate a conceptual model using a sample of 147 INVs from two relatively small and open economies from New Zealand and Australia. The results show that learning orientation of INVs positively mediates the relationship between niche orientation and network resources and INVs' post-entry performance. Our study indicates that learning orientation may be an important capability through which INVs' focused international business strategies and resources (e.g., niche orientation and network resources) may influence their multi-dimensional post-entry performance in terms of operational, financial and overall effectiveness measures. We draw key implications for research on INVs' post-entry behaviour by explicating the role played by the firms' learning capabilities, and how these capabilities may interact with their strategies and resources in enhancing the post-entry performance of INVs.