Effectual networking capability and SME performance in international B2B markets

Abstract

Purpose International entrepreneurship and marketing research reports the impact of effectual decision-making logic on small and medium-sized enterprises (SMEs) international performance. How the effectual logic of decision-making enhances the overall performance of SMEs in international business-to-business markets remains a puzzle in the field. The purpose of this study is to investigate the concept of networking capability as an important SME capability translating effectual decision-making into international performance. Design/methodology/approach The authors examine the model presented in this study using quantitative data from 153 founders or managers in charge of international business at SMEs throughout New Zealand. The authors also used 142 open-ended responses to provide post hoc exploratory analysis. Findings The findings of this study suggest that networking capability is a mechanism through which the logic of decision-making enhances the international performance of SMEs. Originality/value This study bridges between international marketing and entrepreneurship by investigating how the networking capability of internationalizing SMEs translates their founders’/managers’ effectual logic into a successful performance in international business-to-business markets.

Marketing intelligence and small firms' performance: the role of entrepreneurial alertness and effectuation

“…Previous research supports a positive relationship between effectuation and firm performance (e.g. Deligianni et al, 2017;Karami et al, 2023). Effectuation enhances small firms' performance in uncertain markets for several reasons.…”

“…Effectuation builds on three types of personal means, including "who I am", "what I know" and "whom I know" (Sarasvathy, 2001;Van Mumford and Zettinig, 2022). The concept of effectual control empowers entrepreneurs to perceive uncertainty and the future in the context of their current resources, allowing them to devise strategies to expand their control over the situation by acquiring access to new resources (Karami et al, 2023;Sarasvathy, 2001). Entrepreneurs subsequently broaden their access to additional complementary resources through pre-commitments.…”

“…Effectuation logic amplifies EA to market opportunities by encouraging entrepreneurs to adopt a mindset concentrated on control rather than predictive logic (Sun et al, 2014). It enables the utilization of existing resources, including a shared understanding of the market situation within an effectual network of relationships, to interpret changes in the market and initiate actions to gather additional pertinent market information for the further development of identified opportunities (Ferrer-Est evez and Chalmeta, 2023;Karami et al, 2023;Read et al, 2016).…”

Factors Influencing Cross-Border Trade Potential on Import Of Goods

“…The integration of partner countries relies on factors that drive collaborative operations, such as the determination of free trade policies, the management of infrastructure systems to support joint transportation and logistics activities, and so on (Rundh, 2022). Furthermore, Karami, Wooliscroft, and McNeill (2023) found that to successfully enter foreign markets, entrepreneurs must develop operational networks to create an environment that is alert and can deal with constantly emerging opportunities. From the above information, it can be concluded that when expanding into foreign markets, importers and exporters must rely on factors driving government policies, the country's infrastructure, and the organization's capability to develop through supply chain networks.…”

Analyzing Factors That Affect Korean B2B Companies’ Sustainable Performance

“…Given the size and importance of the B2B market, former studies have looked at the behavior of B2B companies [5][6][7][8][9]. However, many previous studies on corporate performance have been conducted without distinguishing between B2C and B2B [10][11][12][13][14].…”