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Internationalization and performance of Korean SMEs: the moderating role of competitive strategy

Author

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  • Jaeyoung Cho

    (Kyungpook National University)

  • Jangwoo Lee

    (Kyungpook National University)

Abstract

Drawing upon the liabilities of newness and smallness perspective, we explore the impact of the degree of internationalization (DOI) on the performance of small- and medium-sized enterprises (SMEs) and the moderating impact of competitive strategies. An analysis of data from Korean SMEs reveals an S-shaped relationship between DOI and performance. Moreover, SMEs emphasizing a differentiation strategy may have better performance when increasing the DOI, whereas the opposite is true for SMEs emphasizing a cost leadership strategy. The findings support a three-stage internationalization theory in the SME context and provide a contingency perspective on the performance implications of the optimal DOI.

Suggested Citation

  • Jaeyoung Cho & Jangwoo Lee, 2018. "Internationalization and performance of Korean SMEs: the moderating role of competitive strategy," Asian Business & Management, Palgrave Macmillan, vol. 17(2), pages 140-166, April.
    • Handle: RePEc:pal:abaman:v:17:y:2018:i:2:d:10.1057_s41291-018-0036-8
    DOI: 10.1057/s41291-018-0036-8
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    3. Jaeyoung Cho & Jangwoo Lee, 2020. "Speed of FDI expansions and the survival of Korean SMEs: the moderating role of ownership structure," Asian Business & Management, Palgrave Macmillan, vol. 19(2), pages 184-212, April.
    4. Eunmi Tatum Lee & Young-Ryeol Park & Jooyoung Kwak, 2023. "Knowledge distance and innovation performance: the moderating role of internationalization breadth and depth," Asian Business & Management, Palgrave Macmillan, vol. 22(3), pages 1131-1154, July.
    5. Jaeyoung Cho & Jangwoo Lee, 2018. "Internationalization and longevity of Korean SMEs: the moderating role of contingent factors," Asian Business & Management, Palgrave Macmillan, vol. 17(4), pages 260-285, September.
    6. Xuelin Bu & Limin Chen, 2023. "From efficiency to legitimacy: the changing logic of internal CSR in emerging multinationals during internationalization," Asian Business & Management, Palgrave Macmillan, vol. 22(4), pages 1418-1453, September.
    7. Amelia U. Santos-Paulino & Claudia Trentini & Hamidreza Bakhtiarizadeh, . "Internationalization of small and medium-sized enterprises: A new assessment," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    8. Knight, Gary & Moen, Øystein & Madsen, Tage Koed, 2020. "Antecedents to differentiation strategy in the exporting SME," International Business Review, Elsevier, vol. 29(6).
    9. Stephan Gerschewski & Natasha Evers & Anh Tuan Nguyen & Fabian Jintae Froese, 2020. "Trade Shows and SME Internationalisation: Networking for Performance," Management International Review, Springer, vol. 60(4), pages 573-595, August.
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    11. Youngwoo Lee & Martin Hemmert, 2023. "Performance implications of combining innovation and internationalization for Korean small- and medium-sized manufacturing firms: an exploration–exploitation perspective," Asian Business & Management, Palgrave Macmillan, vol. 22(1), pages 1-25, February.
    12. 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).

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