Bridging the learning divide: the role of institutional WOM in stimulating emerging countries’ SMEs internationalization

Abstract

Purpose The purpose of this study is to explore the relationship between experiential knowledge of foreign markets, institutional word of mouth (WOM) and small and medium enterprises’ (SMEs’) internationalization. Specifically, it aims to provide explanations of what and how cross-border experiential knowledge can be institutionally transmitted for SMEs’ internationalization purposes via WOM. Design/methodology/approach An exploratory approach was adopted within the phenomenological/qualitative research tradition. The data collection process was conducted through 23 semi-structured interviews with founders and chief executive officers of Saudi international SMEs. Findings The study’s findings confirm that SMEs seeking productive opportunities in the international market could improve their internationalization experience if they made proper use of institutional WOM as a catalyst for inter-firm learning. This concerns SMEs from emerging countries in particular as they are usually in a bid to legitimatize their presence in foreign markets. Originality/value The triadic relationship between experiential knowledge, institutional WOM and internationalization has not been previously researched. The current study, therefore, clearly adds value to the concept of WOM from three dimensions: institutionalization, cross-borderity and SMEs’ internationalization.

Omnichannel management capabilities in international marketing: the effects of word of mouth on customer engagement and customer equity

“…For B2B service providers, it is important to improve the effectiveness of omnichannel management (Kingshott et al, 2020). Aliedan (2021) highlights that WOM plays an irreplaceable role for B2B customers who participate in the international market and facilitates their internationalization because WOM helps B2B organizations to better understand market trends and industry competitiveness as well as rivals' methods and strategies, policies and regulatory frameworks, and business and social networks.…”

“…Therefore, sharing positive WOM about the service provider allows customers to recognize and reflect on their overall capabilities in satisfying customers' needs. Such recognition and reflection encourage customers to further engage with the same service provider and develop favorable perceptions about them (Aliedan, 2021;Youssef et al, 2018). Therefore, WOM plays an important role in sustaining the effective use of omnichannel in B2B service firms, particularly when serving internationalized business customers.…”

“…higher-order construct capturing information consistency, source trustworthiness, and customer endorsement as subdimensions. Considering the emphasis international businesses place on organizational content management capabilities and the significant role played by WOM in the international business community (Aliedan, 2021;St Amant, 2008), we postulate the following.…”

“…Therefore, sharing positive WOM about the service provider allows customers to recognize and reflect on their overall capabilities in satisfying customers' needs. Such recognition and reflection encourage customers to further engage with the same service provider and develop favorable perceptions about them (Aliedan, 2021; Youssef et al. , 2018).…”

Incongruent influences: joint effects on the job attitudes of employees with psychological contract breach in the MENA region

“…However, equivocal influences are known to result when reputation is driven by negative events such as corporate downsizing (Love and Kraatz, 2009) or product recalls (Rhee and Haunschild, 2006). Reputation can also be driven by word of mouth (WOM) behaviors, which transmit information regarding the market and organizational knowledge through individuals and organizations (Aliedan, 2021).…”