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Entrepreneurial, market, learning and networking orientations as determinants of business capability and international performance: the contingent role of government support

Author

Listed:
  • Mohammad Falahat

    (Universiti Tunku Abdul Rahman (UTAR))

  • Yan-Yin Lee

    (Universiti Tunku Abdul Rahman (UTAR))

  • Pedro Soto-Acosta

    (University of Murcia)

  • T. Ramayah

    (Universiti Sains Malaysia (USM)
    Sunway University Business School (SUBS))

Abstract

This study presents a business capability model that connects strategic orientations, business capability, government support, and international performance in emerging markets. More specifically, it focuses on the impact of entrepreneurial orientation, market orientation, learning orientation, and networking orientation as determinants of business capability and its effect on international performance. In addition, government support is tested as a moderator between business capability and international performance. The study draws on a quota sampling and analysis of 251 small and medium enterprises (SMEs) across all industries in Malaysia. The proposed research model and its associated hypotheses were tested by using Partial Least Squares (PLS) structural equation modelling (SEM). Findings suggest that multiple strategic orientations facilitate the development of business capability and that it contributes to the speed and scope of internationalisation as well as financial and strategic performance of SMEs. Moreover, government support programmes are found to significantly enhance the intensity of internationalisation. The main conclusions of this investigation can be valuable to SMEs that intend to explore or exploit opportunities in foreign markets.

Suggested Citation

  • Mohammad Falahat & Yan-Yin Lee & Pedro Soto-Acosta & T. Ramayah, 2021. "Entrepreneurial, market, learning and networking orientations as determinants of business capability and international performance: the contingent role of government support," International Entrepreneurship and Management Journal, Springer, vol. 17(4), pages 1759-1780, December.
    • Handle: RePEc:spr:intemj:v:17:y:2021:i:4:d:10.1007_s11365-020-00738-y
    DOI: 10.1007/s11365-020-00738-y
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    1. Edgar R. Ramírez-Solis & Joan Llonch-Andreu & Alberto D. Malpica-Romero, 2022. "Relational capital and strategic orientations as antecedents of innovation: evidence from Mexican SMEs," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-19, December.
    2. Dr. Titus M. Kising’u & Ruwaida Hassan Mwajambia, 2022. "Dynamic Managerial Capabilities on Firm Performance: Evidence from Travel Agencies and Tour Operators in Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(5), pages 770-783, May.
    3. Mário Nuno Mata & Mohammad Falahat & Anabela Batista Correia & João Xavier Rita, 2021. "Impact of Institutional Support on Export Performance," Economies, MDPI, vol. 9(3), pages 1-13, July.

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