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Going global, fast or slow? Networking decisions for smaller firms

Going global, fast or slow? Networking decisions for smaller firms PurposeThis study aims to provide insights into the development of firm strategies of international expansion by examining the direct relationship between internationalization speed and firm performance and by exploring the interactive role played by networking capability.Design/methodology/approachThis is an empirical study based on survey data collected from 343 small and medium-sized enterprises operating in Australia and New Zealand. Regression modelling analysis was performed.FindingsThis study found an inverted U-shape relationship between the speed at which a firm expands internationally and its performance. Expanding too fast or too slow leads to lower performance, and this performance implication is because of an interactive effect of the firm's networking capability.Research limitations/implicationsThis study contributes to the literature by generating insights into how firm strategies of international expansion lead to improvement of firm performance, thereby giving guidance and providing suggestions to managers regarding how quickly to internationalize.Practical implicationsThis study contributes to the literature by generating insights into how firm strategies of international expansion lead to improvement of firm performance and by providing suggestions to managers regarding decision-making in developing strategies for international expansion speed.Originality/valueThis is an original study based on empirical data collected from a management survey. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Business Strategy Emerald Publishing

Going global, fast or slow? Networking decisions for smaller firms

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References (18)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
0275-6668
DOI
10.1108/jbs-01-2019-0010
Publisher site
See Article on Publisher Site

Abstract

PurposeThis study aims to provide insights into the development of firm strategies of international expansion by examining the direct relationship between internationalization speed and firm performance and by exploring the interactive role played by networking capability.Design/methodology/approachThis is an empirical study based on survey data collected from 343 small and medium-sized enterprises operating in Australia and New Zealand. Regression modelling analysis was performed.FindingsThis study found an inverted U-shape relationship between the speed at which a firm expands internationally and its performance. Expanding too fast or too slow leads to lower performance, and this performance implication is because of an interactive effect of the firm's networking capability.Research limitations/implicationsThis study contributes to the literature by generating insights into how firm strategies of international expansion lead to improvement of firm performance, thereby giving guidance and providing suggestions to managers regarding how quickly to internationalize.Practical implicationsThis study contributes to the literature by generating insights into how firm strategies of international expansion lead to improvement of firm performance and by providing suggestions to managers regarding decision-making in developing strategies for international expansion speed.Originality/valueThis is an original study based on empirical data collected from a management survey.

Journal

Journal of Business Strategy – Emerald Publishing

Published: May 14, 2020

Keywords: Small and medium-sized enterprise; Business strategy; Performance; International expansion; Internationalization speed; Networking capability; Dynamic capabilities

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