The drivers of the post-entry internationalisation commitment of small and medium-sized enterprises

Nadia Zahoor, Yong Kyu Lew

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Abstract

By integrating relational embeddedness in international strategic alliance networks (ISANs) and the dynamic capability perspective, this article presents an examination of the drivers of the post-entry internationalisation commitment of small and medium sized enterprises (SMEs). Specifically, we investigated the mediating effect of opportunity-sensing capabilities (OSCs) on the relationship between ISAN relational embeddedness and post-entry internationalisation commitment of SMEs. We also examined the moderating impact of strategic adaptiveness on the relationship between OSCs and post-entry internationalisation commitment. An analysis of 320 UK-based SMEs, performed using structural equation modelling, revealed that OSCs are an important mechanism through which the ISAN relational embeddedness leads to increased post-entry internationalisation commitment. Furthermore, strategic adaptiveness strengthens the positive relationship between OSCs and post-entry commitment to foreign markets. This article extends the existing SME venturing and internationalisation literature to the domain of SME post-entry internationalisation commitment.
Original languageEnglish
Number of pages39
JournalInternational Small Business Journal
Publication statusAccepted/In press - 11 Aug 2021

Keywords

  • rational embeddedness
  • opportunity sensing capabilities
  • strategic adaptiveness
  • post entry internationalisation commitment
  • small and medium enterprises

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