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SMEs and networks: Overcoming the liability of outsidership

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  • Roger Schweizer

Abstract

Despite extensive research on the importance of business networks for the internationalization of small- and medium-sized enterprises (SMEs), there is still a lack of knowledge on how such firms actively create networks that facilitate their international expansion. By employing and thereby also developing the concept of liability of outsidership, we offer a process description of how an SME actively transitions from being an outsider to an insider for its internationalization-relevant network. Drawing on evidence from a single case study, we offer a process depiction consisting of four interrelated phases of how an SME actively overcomes liability of outsidership when internationalizing its activities, i.e., (1) Realization of the existence of liability of outsidership through internal/external triggers, (2) Identification of the relevant network, (3) Re-bundling resources and capabilities, and (4) Accessing, managing, and leveraging opportunities identified in the new network. Copyright Springer Science+Business Media New York 2013

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  • Roger Schweizer, 2013. "SMEs and networks: Overcoming the liability of outsidership," Journal of International Entrepreneurship, Springer, vol. 11(1), pages 80-103, March.
    • Handle: RePEc:kap:jinten:v:11:y:2013:i:1:p:80-103
    DOI: 10.1007/s10843-012-0097-2
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    2. Symeonidou, Noni & Bruneel, Johan & Autio, Erkko, 2017. "Commercialization strategy and internationalization outcomes in technology-based new ventures," Journal of Business Venturing, Elsevier, vol. 32(3), pages 302-317.
    3. Ong, Xander & Freeman, Susan & Goxe, François & Guercini, Simone & Cooper, Brian, 2022. "Outsidership, network positions and cooperation among internationalizing SMEs: An industry evolutionary perspective," International Business Review, Elsevier, vol. 31(3).
    4. Mikael Hilmersson & Roger Schweizer & Sylvie Chetty, 2022. "The Relationship Between Timing, Speed, and Performance in Foreign Market Network Entry," Management International Review, Springer, vol. 62(3), pages 325-349, June.
    5. Younis, Heba & Dimitratos, Pavlos & Elbanna, Said, 2022. "International entrepreneurial SMEs in the muslim world: The role of religion in the GCC countries," International Business Review, Elsevier, vol. 31(5).
    6. Vivian Peuker Sardon Steinhäuser & Fábio de Oliveira Paula & Teresia Diana Lewe van Aduard Macedo-Soares, 2021. "Internationalization of SMEs: a systematic review of 20 years of research," Journal of International Entrepreneurship, Springer, vol. 19(2), pages 164-195, June.
    7. Rong, Ke & Wu, Jinxi & Shi, Yongjiang & Guo, Liang, 2015. "Nurturing business ecosystems for growth in a foreign market: Incubating, identifying and integrating stakeholders," Journal of International Management, Elsevier, vol. 21(4), pages 293-308.
    8. Yu Xie & Taewon Suh, 2014. "Perceived resource deficiency and internationalization of small- and medium-sized firms," Journal of International Entrepreneurship, Springer, vol. 12(3), pages 207-229, September.
    9. Aluko, Olu & Ott, Ursula F. & Siwale, Juliana & Odusanya, Kayode, 2022. "Overcoming the liability of outsidership: An fsQCA analysis of African transnational entrepreneurs in the UK," Journal of Business Research, Elsevier, vol. 145(C), pages 106-116.
    10. Eduardsen, Jonas & Marinova, Svetla Trifonova & González-Loureiro, Miguel & Vlačić, Božidar, 2022. "Business group affiliation and SMEs’ international sales intensity and diversification: A multi-country study," International Business Review, Elsevier, vol. 31(5).
    11. Tajeddin, Mahdi & Farashahi, Mehdi & Moghaddam, Kaveh & Simba, Amon & Edwards, Gwyneth, 2023. "Internationalization of Emerging Economy SMEs: A Tripod Approach," Journal of International Management, Elsevier, vol. 29(1).
    12. Yákara Vasconcelos Pereira Leite & Walter Fernando Araújo Moraes & Viviane Santos Salazar, 2016. "Expressions of Relationship Networking in International Entrepreneurship," Journal of International Entrepreneurship, Springer, vol. 14(2), pages 213-238, June.
    13. Jonas Eduardsen & Svetla Marinova & Leonidas C. Leonidou & Paul Christodoulides, 2023. "Organizational Influences and Performance Impact of Cross-Border E-Commerce Barriers: The Moderating Role of Home Country Digital Infrastructure and Foreign Market Internet Penetration," Management International Review, Springer, vol. 63(3), pages 433-467, June.
    14. Dirk Holtbrügge & Sue Claire Berning, 2018. "Market Entry Strategies and Performance of Chinese Firms in Germany: The Moderating Effect of Home Government Support," Management International Review, Springer, vol. 58(1), pages 147-170, February.
    15. Jean-Christophe Gessler, 2016. "Les pratiques collaboratives des PME en vue de leur développement international : une revue de littérature," Post-Print hal-01393156, HAL.

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