SME Entrepreneurial Orientation, International Performance, and the Moderating Role of Strategic Alliances

Abstract

International entrepreneurship research maintains that firms with strong entrepreneurial orientations expand to international markets to enhance performance. Yet these firms can suffer from resource constraints as they move abroad. To alleviate this problem, previous research has suggested participation in strategic alliances. We developed and tested a theoretical perspective that merged these ideas, maintaining that firm–level entrepreneurial orientation is associated with higher international performance both directly and in combination with participation in foreign market research or marketing alliances. Based on surveys of U.S. and U.K. firms, our findings indicate that small and medium–sized enterprises (SMEs) have higher international performance when they possess greater entrepreneurial orientation (EO) and when the type of alliance (research or marketing) used is aligned with the capabilities of the firm. Further we find that participating in alliances strengthens the relation between EO and international performance. These results have important implications for managers and policy makers interested in improving SME international performance.

Beyond categorization: New directions for theory development about entrepreneurial internationalization

“…There may also be variance with respect to perceptions of opportunities: the entrepreneurship literature points out that decision-makers perceive market opportunities imitatively or innovatively and this affects the way that a firm enters a market (Cliff, Jennings, & Greenwood, 2006). The reporting of imitative behavior in internationalization among resourceconstrained firms (e.g., Fernhaber & Li, 2010;Oehme & Bort, 2015) suggests that small and young firms may be able to pursue international opportunities in ways that do not require the highly innovative behavior and risk-taking attitudes that have been linked to internationalization in studies of entrepreneurial orientation (see Brouthers, Nakos, & Dimitratos, 2014;Covin & Miller, 2014).…”

Firm Performance During Economic Crisis: The Role of Strategic Orientations and Financial Capital

“…Для фирм малого и среднего бизне-са новые рыночные возможности -основ-ная движущая сила роста [Ba ker, Sinkula, 2009]. Предпринимательская ориентация характеризует предпринимательскую дея-тельность фирм, которая позволяет им ис-кать, создавать и извлекать выгоду из но-вых возможностей для бизнеса [Brouthers, Nakos, Dimitratos, 2015;Covin, Slevin, 1989;Lumpkin, Dess, 1996].…”

The Role of Entrepreneur´s Gender, Age and Firm´s Age in Autonomy. The Case Study from the Czech Republic

“…Based on surveys of U.S. and U.K. firms, findings of Brouthers, Nakos and Dimitratos (2015) indicate that SMEs have higher international performance when they possess greater EO and when the type of alliance (research or marketing) used is aligned with capabilities of the firm. Then, they found out that participating in alliances strengthens the relation between EO and international performance.…”