The Influence of networking on the internationalization of SMEs: Evidence from internationalized Chinese firms

Abstract

This study investigates influential networking behaviours in supporting the internationalization of SMEs. Using primary data collected from 210 Chinese SMEs in Beijing and Hong Kong, regression analysis was applied to test associations between networking behaviours, resource availability and internationalization patterns. Findings indicate that resources made available from networks do not necessarily facilitate the internationalization of firms. The availability of foreign business resources is positively associated with the achievement of rapid internationalization but the availability of general organizational resources indicates a negative association. The ability of SMEs to plan and conduct networking activities strategically with key partners is beneficial to obtain the influential resources for accelerating foreign business development. The article concludes with implications for policy-makers and SME owners/managers, suggesting they should target support initiatives and skills training aimed at nurturing and developing influential networking behaviours.

Entrepreneurial education and internationalisation of firms in transition economies: a conceptual framework from the case of Croatia

“…Networks help in overcoming and leveraging liabilities related to smallness, foreignness, and capital shortages (Zahra, 2005). On one hand, personal networks can assist in opportunity recognition (He, 2009), facilitating the development of international marketing strategy (Coviello, 2006;Tang, 2011), and increasing the quantity and the quality of knowledge resources needed to compete (Aldrich and Carter, 2004;Patton, 2014). Thus, they play an effective role in speeding up the process (Kiss and Danis, 2010).…”

As capacidades dinâmicas para a inovação e os padrões de internacionalização de empresas de base tecnológica: um estudo de casos múltiplos com PMEs brasileiras

“…These reasons reinforce the importance of business networks, especially to SMEs, as these commonly face resources, knowledge and information constraints in order to internationalize (Tang, 2011;Westhead, 2008).…”

“…Additionaly, there are the drivers for the internationalization process, such as innovation (Cerrato, 2009;Chetty & Stangl, 2010;Colovic, 2013;D'Angelo, 2012;Esteve-Pérez & Rodríguez, 2013;Gashi et al, 2014;Gerschewski et al, 2015;Guan & Ma, 2003;Halilem et al, 2014;Karadeniz & Goeçer, 2007;Kylaeheiko et al, 2011;Loefgren, 2014;Oxtorp & Elg, 2015;Pla-Barber & Alegre, 2007;Poblete & Amorós, 2013;Rammer & Schmiele, 2009;Rodríguez & Rodríguez, 2005;Sass, 2012), business networks (Ghauri et al, 2003;Johanson & Vahlne, 2009;Tambunan, 2009;Tang, 2011) and the manager's goals and global mindset (Andersson & Tell, 2009;Bloodgood, 2006;Blackburn, Hart, & Wainwright, 2013;Miocevic & Crnjak-Karanovic, 2012).…”

“…Especially concerning the business networks, they play an important role in the internationalization process of high tech SMEs, as networks and the managers' relationships present potencial strengths that support the international business development (Kenny & Fahy, 2011), which may also support firms to overcome liabilities (Johanson & Vahlne, 2009;Tang, 2011). The liabilities of foreignness refer to the advantages local firms possess, as opposed to international entrants, concerning to the economic and social costs and the establishment of commercial relations in a local market (Luo & Mezias, 2002).…”

“…During the internationalization process of the firm, business networks are fundamental for solving export-related problems (Ghauri et al, 2003), to leverage specific resources that are of difficult acquisition not available within enterprises (Tang, 2011), to provide access to new market opportunities for firms from emerging countries (Mtigwe, 2005;Tambunan, 2009), to exploit and to ascend the manager's social capital (Basly, 2007;Gerschewschi et al, 2014;Kenny & Fahy, 2011;Kontinen & Ojala, 2012), to obtain information about countries' political, economic, legal and cultural issues (Crick, Kaglanda, & Matlay, 2011;Zhou et al, 2007), to obtain information and knowledge about the characteristics of the market and the consumer patterns of behavior (Cavusgil et al, 2010), and to explore possibilities of co-innovation with international partners for a better product performance (Loefgren, 2014;Oxtorp & Elg, 2015).…”