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The temporal effects of social and business networks on international performance of South Korean SMEs

The temporal effects of social and business networks on international performance of South Korean... PurposeDrawing on the resource-based view, the purpose of this paper is to investigate the link between resource capabilities and performance by incorporating two network dimensions (i.e. social and business networks), a moderator (i.e. international experience) and a mediator (i.e. marketing capabilities).Design/methodology/approachSME data were collected via surveys. A sampling frame of 3,000 exporting manufactures was developed based on a database sourced from the Korea Chamber of Commerce and Industry. The authors first contacted the managers of each firm in the sampling frame through e-mail or phone to receive permission, and then sent a paper questionnaire. The authors analyzed 392 valid cases using a path analysis.FindingsThe findings largely confirmed the hypotheses in the proposed framework based on the RBV. While social networks only enhanced marketing capabilities and did not directly lead to international performance, business networks enhanced both. Also, unlike social networks, the influence of SME business networks on international performance was weakened as international experience increased. This study found that marketing capabilities mediated the path from business networks to international performance.Research limitations/implicationsThe study explained the distinctive roles played by social and business networks in international performance, extending our knowledge of the RBV by showing how firm resources can turn into sustainable competitive advantages. More importantly, the integration of time into the discussion on networks and international performance extended the business network internationalization process model.Practical implicationsThe authors suggest that Korean SMEs focus on developing their own marketing capabilities by capitalizing on their social and business networks, which could directly enhance international performance. Governments can also offer assistance to SMEs for developing their own marketing capabilities during the initial stages of internationalization, since the benefit of business networks diminishes as international experience increases.Originality/valueBy testing the proposed link between resource capabilities and performance, this study suggested how SME networks can contribute to international performance, extending our understanding of RBV. This study further confirmed the dynamic impact of business networks on international performance, such that it changes over the course of the internationalization process. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Asia Pacific Journal of Marketing and Logistics Emerald Publishing

The temporal effects of social and business networks on international performance of South Korean SMEs

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References (78)

Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1355-5855
DOI
10.1108/APJML-08-2018-0326
Publisher site
See Article on Publisher Site

Abstract

PurposeDrawing on the resource-based view, the purpose of this paper is to investigate the link between resource capabilities and performance by incorporating two network dimensions (i.e. social and business networks), a moderator (i.e. international experience) and a mediator (i.e. marketing capabilities).Design/methodology/approachSME data were collected via surveys. A sampling frame of 3,000 exporting manufactures was developed based on a database sourced from the Korea Chamber of Commerce and Industry. The authors first contacted the managers of each firm in the sampling frame through e-mail or phone to receive permission, and then sent a paper questionnaire. The authors analyzed 392 valid cases using a path analysis.FindingsThe findings largely confirmed the hypotheses in the proposed framework based on the RBV. While social networks only enhanced marketing capabilities and did not directly lead to international performance, business networks enhanced both. Also, unlike social networks, the influence of SME business networks on international performance was weakened as international experience increased. This study found that marketing capabilities mediated the path from business networks to international performance.Research limitations/implicationsThe study explained the distinctive roles played by social and business networks in international performance, extending our knowledge of the RBV by showing how firm resources can turn into sustainable competitive advantages. More importantly, the integration of time into the discussion on networks and international performance extended the business network internationalization process model.Practical implicationsThe authors suggest that Korean SMEs focus on developing their own marketing capabilities by capitalizing on their social and business networks, which could directly enhance international performance. Governments can also offer assistance to SMEs for developing their own marketing capabilities during the initial stages of internationalization, since the benefit of business networks diminishes as international experience increases.Originality/valueBy testing the proposed link between resource capabilities and performance, this study suggested how SME networks can contribute to international performance, extending our understanding of RBV. This study further confirmed the dynamic impact of business networks on international performance, such that it changes over the course of the internationalization process.

Journal

Asia Pacific Journal of Marketing and LogisticsEmerald Publishing

Published: Sep 9, 2019

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