The effect of geographic scope on growth and growth variability of SMEs

Fariborzi, Hadi; Osiyevskyy, Oleksiy; DaSilva, Carlos

doi:10.1016/j.jwb.2022.101371

Cited by 10 publications

(4 citation statements)

References 83 publications

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“…The breadth of internationalization described by the geographic spread of foreign market involvement of their international sales can also provide firms with opportunities for learning and accumulating knowledge from diverse markets and environments (e.g. the need to satisfy different customer demands and to compete with different competitors in different foreign markets) (Fariborzi et al ., 2022; Pangarkar, 2008). These learning opportunities can then be leveraged to reduce perceived risks and costs regarding international operations and contribute to the performance and competitiveness of internationalizing SMEs (Hilmersson, 2014).…”

Section: Theoretical Perspective and Hypothesis Developmentmentioning

confidence: 99%

“…Internationalization can introduce additional risks and costs for SMEs due to the liabilities associated with their small size, limited experience, and unfamiliarity with foreign markets (Lu and Beamish, 2006a). Most scholars concur that the advantages and drawbacks of internationalization vary depending on the context, which underscores the importance of a contextual perspective when examining the relationship between internationalization and performance (Fariborzi et al ., 2022; Schwens et al ., 2018a; Yildiz et al ., 2022). By considering the unique circumstances and conditions of each firm and market, a deeper understanding of the relationship can be attained (Child et al ., 2022; O'higgins et al ., 2022).…”

Section: Introductionmentioning

confidence: 99%

“…Taking into account the aforementioned factors, this study contributes to the existing literature on SME internationalization and performance in several ways. First, we respond to a call for more research to study how SMEs benefit from internationalization (Vanninen et al ., 2022) and clarify how internationalization affects SME performance (Fariborzi et al ., 2022; Martín et al ., 2022; Paul et al ., 2017; Ribau et al ., 2018) and specifically “the international performance attained with internationalization (Morais and Ferreira, 2020). Second, we build on the ongoing interest in using organizational learning as a theoretical lens to study the complex relationship between SME internationalization strategy and performance (Kang et al ., 2022; Sadeghi et al ., 2023).…”

Section: Introductionmentioning

confidence: 99%

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Foreign market involvement, entry-mode learning potential and SME internationalization outcomes

Elbanna,

Hsieh,

Child

et al. 2023

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PurposeDrawing on an organizational learning perspective, this paper examines the effect of levels of foreign market involvement (intensity and geographic spread) on internationalization outcomes recognizing that the moderating influence of entry-mode learning potential is not well documented in the literature on small- and medium-sized enterprises (SMEs).Design/methodology/approachThe sample includes 180 SMEs evenly selected from three industries: biotechnology, software and clothing (60 firms in each industry). The sampled firms employ less than 250 employees and are equally distributed between three developed economies and three emerging economies. All were engaged in foreign business.FindingsThe authors find that there is a direct relationship between levels of foreign market involvement and internationalization outcomes. Entry-mode learning potential moderates the relationship between intensity of foreign market involvement and internationalization outcomes but not the relationship between geographic spread and internationalization outcomes.Practical implicationsThis study reveals several new insights that help explain the pathway through which foreign market involvement activities are translated into internationalization outcomes.Originality/valueThe authors conclude that the positive relationship between intensity of foreign market involvement and internationalization outcomes is strengthened when SMEs also use an entry mode with a higher learning potential than exporting only.

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Section: Theoretical Perspective and Hypothesis Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Foreign market involvement, entry-mode learning potential and SME internationalization outcomes

Elbanna,

Hsieh,

Child

et al. 2023

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“…Low performance variability implies high level of consistency that helps organizations acquire resources and legitimacy from their stakeholders (e.g. employees, suppliers, customers and investors; Fariborzi et al , 2022), whereas high performance variability may cause problematic issues. For example, employees are likely to leave the firm in pursuit of more stable employment prospects, rather than risk losing their job in the future (Pearce and Patel, 2018).…”

Section: Theoretical Background and Hypothesis Developmentmentioning

confidence: 99%

Performance variability, prior failure experience and entrepreneurs’ physical health

Lin

Zhang

2023

CMS

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Purpose Past studies have mainly concentrated on the impact of stress and self-employment on physical health. However, little research has paid attention to firm-level determinants of entrepreneurs’ physical health. This study aims to investigate the relationship between performance variability and entrepreneurs’ physical health as well as the moderating effect of prior failure experience. Design/methodology/approach This study uses data drawn from 255 start-ups across the Bohai Economic Rim in China over a period of three years (2015–2017). The results are still robust after several robustness checks. Findings Results show that performance variability is positively related to the probability of entrepreneurs showing poor health. This confirms that performance variability has an adverse effect on entrepreneurs’ physical health. Moreover, this relationship is moderated by the prior failure experience of entrepreneurs. Practical implications First, entrepreneurs should gain more information about the firm’s daily operation to reduce the potential threat of performance variability. Second, it is imperative for entrepreneurs to build a stable relationship with their stakeholders to avoid the potential costs related to performance variability. Finally, entrepreneurs should take health consequences into consideration when making strategic decisions. Originality/value First, this paper contributes to the studies on the antecedents of entrepreneurs’ physical health by introducing a firm-level determinant (i.e. performance variability). The findings enhance the understanding of the association between entrepreneurs and new ventures. Second, this paper also enriches the extant literature on the outcomes of performance variability. Finally, this paper attempts to offer new insights into prior failure experience by establishing its moderating effect on the performance–health relationship.

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Business vs. Non-business Networks: Illustrating the Profile of International, Traditional Manufacturing SMEs

Pallás-Rocafull,

Villar,

Pla-Barber

2024

Networks and Foreign Markets

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The effect of geographic scope on growth and growth variability of SMEs

Cited by 10 publications

References 83 publications

Foreign market involvement, entry-mode learning potential and SME internationalization outcomes

Foreign market involvement, entry-mode learning potential and SME internationalization outcomes

Performance variability, prior failure experience and entrepreneurs’ physical health

Business vs. Non-business Networks: Illustrating the Profile of International, Traditional Manufacturing SMEs

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