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PurposeThe purpose of this study is to investigate the role of business process innovativeness in the networking-export performance relationship in a developing country low-tech industry setting. Most innovation research in international business and entrepreneurship is conducted on high-tech industries in developed countries. Less research has focused on the low-tech industry context. This study bridges this research gap by testing whether international new ventures’ (INVs) networking resources impact their export performance through business process innovativeness.Design/methodology/approachThe study tests the link between low-tech INVs’ networking, business process innovativeness and export performance using a sample of 647 export start-up apparel firms in Bangladesh, the second largest apparel exporter in the world.FindingsThe results recognize that an INV entrepreneur’s personal and inter-firm networking are directly and positively related to business process innovativeness and export performance. The findings also indicate that business process innovativeness acts as a mediator only between an INV’s inter-firm networking and its export performance.Research limitations/implicationsThe study was undertaken in a Bangladeshi low-tech industry setting-the apparel sector; thus, future research may include data collection from a range of industries across countries. Data collected for the purpose of this study used a cross-sectional research design, and this may only have confirmed the relationships in the model and not causality between the constructs.Practical implicationsThe findings highlight that low-tech INVs should focus more on leveraging their personal and inter-firm networking resources, as this should result in improved export performance. The results also provide directives for INVs in regard to improving their business process innovativeness to achieve increased performance.Originality/valueThe study is not only carried out in the context of low-tech early internationalizing firms (i.e. INVs), but also contributes to theory and practice by testing whether INVs’ networking resources (personal and inter-firm) have an impact on business process innovativeness, which in turn leads to improved performance.
Journal of Business and Industrial Marketing – Emerald Publishing
Published: Jul 3, 2017
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