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Social capital dynamics and foreign market entry

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  • Agndal, Henrik
  • Chetty, Sylvie
  • Wilson, Heather

Abstract

This paper explores the dynamics of social capital in 121 new foreign market entries (FMEs) of 24 Swedish and New Zealand small- to medium-sized enterprises in the early and later phases of their internationalization. Its main contribution is the systematic assessment of the roles and forms of social capital over time and across countries, thus providing greater insight into the social capital concept. We separate social capital into efficacy and serendipity roles (economic dimension) and direct and indirect relationships (structural dimension). Efficacious and direct social capital is associated with early FMEs, while serendipitous and indirect social capital is more prevalent with later FMEs, indicating that social capital changes with (and is dependent on) FME. Moreover, while geographical proximity does not appear to affect the economic dimension of social capital, it is important for the structural dimension.

Suggested Citation

  • Agndal, Henrik & Chetty, Sylvie & Wilson, Heather, 2008. "Social capital dynamics and foreign market entry," International Business Review, Elsevier, vol. 17(6), pages 663-675, December.
  • Handle: RePEc:eee:iburev:v:17:y:2008:i:6:p:663-675
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Ojala, Arto, 2015. "Geographic, cultural, and psychic distance to foreign markets in the context of small and new ventures," International Business Review, Elsevier, vol. 24(5), pages 825-835.
    3. repec:eee:worbus:v:52:y:2017:i:5:p:653-663 is not listed on IDEAS
    4. von Eije, Henk & Wiegerinck, Hélène, 2010. "Shareholders' reactions to announcements of acquisitions of private firms: Do target and bidder markets make a difference?," International Business Review, Elsevier, vol. 19(4), pages 360-377, August.
    5. repec:spr:manint:v:49:y:2009:i:6:d:10.1007_s11575-009-0018-3 is not listed on IDEAS
    6. D’Angelo, Alfredo & Majocchi, Antonio & Buck, Trevor, 2016. "External managers, family ownership and the scope of SME internationalization," Journal of World Business, Elsevier, vol. 51(4), pages 534-547.
    7. Paul, Justin & Parthasarathy, Sundar & Gupta, Parul, 2017. "Exporting challenges of SMEs: A review and future research agenda," Journal of World Business, Elsevier, vol. 52(3), pages 327-342.
    8. repec:spr:manint:v:55:y:2015:i:2:d:10.1007_s11575-015-0244-9 is not listed on IDEAS
    9. 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.
    10. Indujeeva Peiris & Michèle Akoorie & Paresha Sinha, 2012. "International entrepreneurship: A critical analysis of studies in the past two decades and future directions for research," Journal of International Entrepreneurship, Springer, vol. 10(4), pages 279-324, December.
    11. Jonas Eduardsen & Svetla Marinova, 2016. "Decision-makers' risk perception in the internationalisation of small and medium-sized firms," International Journal of Export Marketing, Inderscience Enterprises Ltd, vol. 1(1), pages 4-26.
    12. repec:eee:jbrese:v:82:y:2018:i:c:p:230-245 is not listed on IDEAS
    13. Bobillo, Alfredo M. & López-Iturriaga, Felix & Tejerina-Gaite, Fernando, 2010. "Firm performance and international diversification: The internal and external competitive advantages," International Business Review, Elsevier, vol. 19(6), pages 607-618, December.
    14. Lindstrand, Angelika & Melén, Sara & Nordman, Emilia Rovira, 2011. "Turning social capital into business: A study of the internationalization of biotech SMEs," International Business Review, Elsevier, vol. 20(2), pages 194-212, April.
    15. Presutti, Manuela & Boari, Cristina & Fratocchi, Luciano, 2016. "The evolution of inter-organisational social capital with foreign customers: Its direct and interactive effects on SMEs’ foreign performance," Journal of World Business, Elsevier, vol. 51(5), pages 760-773.

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