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Building social capital for internationalization

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  • Suzana Braga Rodrigues
  • John Child

Abstract

Social capital may be defined as social relationships that confer actual or potential benefits. It can therefore be understood as a particular type of resource. Recent research has drawn attention to how connections and relationships (networking) both at home and abroad can be crucially important for small and medium-sized enterprises (SMEs) seeking to export or invest abroad. However, relatively little is known about how SMEs initiate, develop and maintain network relationships. This paper reports a study of 32 British SMEs exporting, or attempting to export, to Brazil and of domestic institutional agencies whose role was to facilitate business conducted between British and Brazilian SMEs. The study explored both the functions of social capital for the SMEs and the process whereby it was developed. Its findings confirm the value of social capital in international entrepreneurship. It can provide information, interpretation, market opportunities, and some degree of protection against the risks associated with foreignness, newness and smallness. The study also confirms the vital importance of personal trust in sustaining social capital between small firms.

Suggested Citation

  • Suzana Braga Rodrigues & John Child, 2012. "Building social capital for internationalization," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 16(1), pages 23-38.
    • Handle: RePEc:abg:anprac:v:16:y:2012:i:1:913
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    References listed on IDEAS

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    1. Benjamin M Oviatt & Patricia Phillips McDougall, 2005. "Toward a theory of international new ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(1), pages 29-41, January.
    2. John Child & Suzana B. Rodrigues & J. George Frynas, 2009. "Psychic Distance, its Impact and Coping Modes," Management International Review, Springer, vol. 49(2), pages 199-224, April.
    3. Jane W. Lu & Paul W. Beamish, 2001. "The internationalization and performance of SMEs," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 565-586, June.
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    Cited by:

    1. Elena-Mădălina Vătămănescu & Elena-Alexandra Gorgos & Alexandru Mihai Ghigiu & Monica Pătruț, 2019. "Bridging Intellectual Capital and SMEs Internationalization through the Lens of Sustainable Competitive Advantage: A Systematic Literature Review," Sustainability, MDPI, vol. 11(9), pages 1-22, April.
    2. Jane Menzies & Stuart Orr & Justin Paul, 2020. "SME Internationalisation: The Relationship Between Social Capital and Entry Mode," Management International Review, Springer, vol. 60(4), pages 623-650, August.
    3. Pierre Van Der Eng, 2017. "Dealing With Liability Of Foreignness: The Case Of Philips In Australia, 1945-1980," CEH Discussion Papers 06, Centre for Economic History, Research School of Economics, Australian National University.
    4. Mohamad D. Revindo & Christopher Gan, 2018. "Factors Affecting Variation in SMES' Export Intensity," LPEM FEBUI Working Papers 201820, LPEM, Faculty of Economics and Business, University of Indonesia, revised May 2018.
    5. Rafael Henrique Mainardes Ferreira & Claudia Tania Picinin, 2018. "Bibliometric analysis for characterization of oil production in Brazilian territory," Scientometrics, Springer;Akadémiai Kiadó, vol. 116(3), pages 1945-1974, September.

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