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Network development and knowledge creation within the foreign market: A study of international entrepreneurial firms

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  • Daniel Tolstoy

Abstract

The aim of this paper is to contribute to international entrepreneurship theory by adopting a foreign market perspective when examining the links between network development and knowledge creation. Network development is argued to enhance the understanding of regional market structures and make firms more inclined − and better able − to create knowledge in foreign market business relationships (business relationships represent focal points in networks). The basis of this argument is that networks provide a multitude of opportunities for the exploitation of previously unexploited combinations of knowledge. Data were gathered from surveys conducted with an effective random sample of 188 small and medium-sized enterprises (SMEs) in Sweden. A LISREL-based analysis was performed to test the three hypotheses deduced from theory. Findings showed that network development has a direct positive impact on knowledge creation and that knowledge combination functions as a mediating construct between network development and knowledge creation.

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  • Daniel Tolstoy, 2009. "Network development and knowledge creation within the foreign market: A study of international entrepreneurial firms," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 22(5), pages 379-402, March.
    • Handle: RePEc:taf:entreg:v:22:y:2009:i:5:p:379-402
    DOI: 10.1080/08985620903168273
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