Entrepreneurial orientation and international performance of South Korean SMEs: the sequential mediating role of absorptive capacity and strategic adaptation

Given that international SMEs face liability of foreignness and smallness in foreign markets, this study examines the impact of entrepreneurial orientation on international performance. Based on the organisational learning theory, this study proposes absorptive capacity and strategic adaptation as mediators of this mechanism. The empirical analysis of 144 Korean SMEs through a PLS-SEM analysis shows that absorptive capacity and strategic adaptation successfully mediate the relationship between entrepreneurial orientation and international performance. From the perspective of the entrepreneurship theory and organisational learning theory, these empirical findings explain how entrepreneurial SMEs achieve higher performance in foreign markets through learning and adaptation. For practitioners looking to enter foreign markets or improve their international performance, these findings confirm the importance of entrepreneurship and adapting through learning to enhance performance in foreign markets.