Internationalization of businesses with an emphasis on international entrepreneurship, explaining the mediating role of organizational capabilities and moderating global mindset

Document Type : Original Article

Authors

1 Assistant Professor, Department of Business Management, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran

2 MSc. Student, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran

Abstract

Organizational capabilities have been considered as one of the most key factors in the internationalization of companies. The current research pursues three main goals: first, it examines the effect of international entrepreneurship on international performance; second, it examines the mediating role of organizational capabilities in the relationship between international entrepreneurship and international performance; and third, it examines the moderating role of global mindset in the relationship between international entrepreneurship and networking capability. The statistical population of the research comprises businesses with an international approach that has been introduced as a top exporter by the Chamber of Commerce. The statistical sample also included 82 companies that were selected using the available sampling method. The data collection tool is also a questionnaire whose reliability has been confirmed, with a Cronbach's alpha of 0.79. Data analysis was performed using quantitative methods, regression equation modeling, the PLS approach, and SmartPLS version 2 software. The results show that international entrepreneurship indirectly affects international business performance through networking capability, marketing capability, and technological capability by 0.18, 0.37, and 0.14, respectively, as well as the global mindset of the relationship between international entrepreneurship and networking capability. adjusted positively, with a factor of 0.42.

Keywords

Main Subjects

References

عبدالمنافی، سعید؛ نجیب زاده، عنایت اله؛ باغبانی آرانی، ابوالفضل؛ مقصودی گنجه، یاسر؛ پورعیسی، منا؛ امیری، سیاوش (1400). بررسی تاثیر برندگرایی بر عملکرد برند در شرکت‌های تعاونی کشاورزی (عرقیجات و گیاهان دارویی شهرستان فیروزآباد): نقش گرایش کارآفرینانه و قابلیت بازاریابی. فصلنامه تعاون و کشاورزی، 10(38)، 84-104. 
کلابی، امیرمحمد (1401). مدل بین‌المللی‌سازی شرکت‌های دانش‌بنیان با تبیین نقش‌گرایش کارآفرینانه، نوسازی استراتژیک، قابلیت‌های پویا و توسعه سرمایه انسانی. نشریه علمی پژوهشی مدیریت کسب‌وکارهای بین‌المللی، 5(4)، 71-90.    
 
Acosta, A. S., Crespo, Á. H., & Agudo, J. C. (2018). Effect of market orientation, network capability and entrepreneurial orientation on international performance of small and medium enterprises (SMEs). International Business Review, 27(6), 1128-1140.‏ 
Adomako, S Amankwah‐Amoah, J., Danso, A. (2019). Entrepreneurial orientation, environmental sustainability and new venture performance: Does stakeholder integration matter?. Business Strategy and the Environment, 28(1), 79-87. 
Ali, H., Li, M., Qiu, X., & Farooq, Q. (2023). Global Mindset and Adaptive Marketing Capabilities in the Internationalization of Mature Chinese SMEs: International Opportunity Perspective. Sustainability, 15(3), 20-44. 
Armario, J. M., Ruiz, D. M., & Armario, E. M. (2008). Market orientation and internationalization in small and medium‐sized enterprises. Journal of Small Business Management, 46(4), 485-511. 
Azar, G., & Ciabuschi, F. (2017). Organizational innovation, technological innovation, and export performance: The effects of innovation radicalness and extensiveness. International business review, 26(2), 324-336. 
Barbosa, D., Hernandez-Espallardo, M., & Rodriguez, A. (2016). International market orientation and international outcomes. Global Economy Journal, 16(4), 669-696.  
Bell, J., McNaughton, R., Young, S., & Crick, D. (2020). Towards an integrative model of small firm internationalisation. Journal of international entrepreneurship, 1, 339-362. 
Boso, N., Story, V. M., & Cadogan, J. W. (2013). Entrepreneurial orientation, market orientation, network ties, and performance: Study of entrepreneurial firms in a developing economy. Journal of business Venturing, 28(6), 708-727.‏
Bosse, D. A., Harrison, J. S., Pollack, J. M., & Schrempf-Stirling, J. (2023). Entrepreneurial opportunities as responsibility. Entrepreneurship Theory and Practice, 47(1), 3-16.
Cabral, Â. M. R., Carvalho, F. M. P., & Ferreira, J. A. V. (2020). International Performance of SMEs’ International Strategic Groups. administrative sciences, 10(3), 65.‏
Chatterjee, S., Chaudhuri, R., Vrontis, D., & Maalaoui, A. (2023). Internationalization of family business and its performance: examining the moderating role of digitalization and international networking capability. Review of Managerial Science, 16(2), 1-28.
Chen, X., Zou, H., & Wang, D. T. (2009). How do new ventures grow? Firm capabilities, growth strategies and performance. International Journal of Research in Marketing, 26(4), 294-303.
Clark, D. R., & Pidduck, R. J. (2023). International new ventures: Beyond definitional debates to advancing the cornerstone of international entrepreneurship. Journal of Small Business Management, 12(2), 1-23.
Dias, Á., Pereira, L., & Lopes da Costa, R. (2023). Organizational capabilities as antecedents of entrepreneurship: a basis for business practice and policy making. Journal of African Business, 24(1), 1-18.
Felício, J. A., Caldeirinha, V. R., & Ribeiro-Navarrete, B. (2015). Corporate and individual global mind-set and internationalization of European SMEs. Journal of Business Research, 68(4), 797-802.‏
Felício, J. A., Caldeirinha, V. R., & Rodrigues, R. (2012). Global mindset and the internationalization of small firms: The importance of the characteristics of entrepreneurs. International Entrepreneurship and Management Journal, 8, 467-485.
Felício, J. A., Meidutė, I., & Kyvik. (2016). Global mindset, cultural context, and the internationalization of SMEs. Journal of Business Research, 69(11), 4924-4932.
Fornell, C. and Larcker, D. (1981). Evaluating Structural Equation Modeling with Unobserved Variables and Measurement Error, Journal of Marking Research, 18(1), 39-50.
Forsgren, M., & Johanson, J. (2014). Managing in international multi-centre firms. In Managing networks in international business (pp. 19-31). Routledge.
Gabrielsson, M. (2013). A dynamic model of growth phases and survival in international business-to-business new ventures: The moderating effect of decision-making logic. Industrial Marketing Management, 42(8), 1357-1373.
Gaffney, N., Cooper, D., Kedia, B., & Clampit, J. (2014). Institutional transitions, global mindset, and EMNE internationalization. European Management Journal, 32(3), 383-391.
Gerschewski, S., Rose, E. L., & Lindsay, V. J. (2015). Understanding the drivers of international performance for born global firms: An integrated perspective. Journal of World Business, 50(3), 558-575.‏
Haddoud, M. Y., Nowinski, W., Jones, P., & Newbery, R. (2020). Internal and external determinants of export performance: Insights from Algeria. Thunderbird International Business Review, 61(1), 43-60.
Hakala, H. (2011). Strategic orientations in management literature: Three approaches to understanding the interaction between market, technology, entrepreneurial and learning orientations. International Journal of Management Reviews, 13(2), 199-217.
Javidan, M., & Bowen, D. (2016). The ‘global mindset’of managers. Organizational dynamics, 42(2), 145-155.‏
Ji, J., Plakoyiannaki, E., Dimitratos, P., & Chen, S. (2019). The qualitative case research in international entrepreneurship: a state of the art and analysis. International Marketing Review, 36(1), 164-187.
Jin, B., & Cho, H. J. (2018). Examining the role of international entrepreneurial orientation, domestic market competition, and technological and marketing capabilities on SME’s export performance. Journal of Business & Industrial Marketing, 33(5), 585-598.
Karami, M., & Tang, J. (2019). Entrepreneurial orientation and SME international performance: The mediating role of networking capability and experiential learning. International Small Business Journal, 37(2), 105-124.
Knight, G. A., & Cavusgil, S. T. (2004). Innovation, organizational capabilities, and the born-global firm. Journal of international business studies, 35, 124-141.
Lin, F. J., & Lai, C. (2021). Key factors affecting technological capabilities in small and medium-sized Enterprises in Taiwan. International Entrepreneurship and Management Journal, 17(1), 131-143.
‏ Levy, O., Beechler, S., Taylor, S., & Boyacigiller, N. A. (2007). What we talk about when we talk about ‘global mindset’: Managerial cognition imultinational corporations. Journal of International Business Studies, 38(2), 231-258.
‏ Martín, O. M., Chetty, S., & Bai, W. (2022). Foreign market entry knowledge and international performance: The mediating role of international market selection and network capability. Journal of World Business, 57(2), 101266.
Martin, S. L., Javalgi, R. R. G., & Ciravegna, L. (2020). Marketing capabilities and international new venture performance: The mediation role of marketing communication and the moderation effect of technological turbulence. Journal of Business Research, 107, 25-37.
McDougall, P. P., & Oviatt, B. M. (2000). International entrepreneurship: the intersection of two research paths. Academy of management Journal, 43(5), 902-906.
‏ Medase, K., & Barasa, L. (2019). Absorptive capacity, marketing capabilities, and innovation commercialisation in Nigeria. European Journal of Innovation Management,22(5),790-820.
Mulyana, M., & Kholis, N. (2023). The Effect of Marketing Capability on The Marketing Performance of Islamic Fashion Small Businesses: The Mediator Role of a Religio-Centric Marketing Communication Strategy. e-Academia Journal, 12(1), 28-41.
Navar, A., Peris-Oritz, M., & Barrera-Barrera, R. (2016). Market intelligence effect on perceived psychic distance, strategic behaviours and export performance in industrial SMEs. Journal of business & industrial marketing, 31(3), 365-380.
Salisu, Y., & Abu Bakar, L. J. (2019). Technological capability, innovativeness and the performance of manufacturing small and medium enterprises (SMEs) in developing economies of Africa. Journal of Business and Management, 21(1), 58.
‏Shaw, D. R., Snowdon, B., Holland, C. P., Kawalek, P., & Warboys, B. (2018). The viable systems model applied to a smart network: the case of the UK electricity market. Journal of Information Technology, 19(4), 270-280.‏
Sony, M., Antony, J., & Mc Dermott, O. (2022). How do the technological capability and strategic flexibility of an organization impact its successful implementation of Industry 4.0? A qualitative viewpoint. Benchmarking: An International Journal, 12(3), 27-39.
Sukma, E. A., Suwarni, E., & Rahmawati, R. (2023). Networking capability as an effort for SMEs to internationalize. International Journal of Research in Business and Social Science, 11(5), 149-154.
Tolstoy, D., Nordman, E. R., & Vu, U. (2022). The indirect effect of online marketing capabilities on the international performance of e-commerce SMEs. International Business Review, 31(3), 101946.
‏Wales, W., Gupta, V. K., Marino, L., & Shirokova, G. (2019). Entrepreneurial orientation: International, global and cross-cultural research. International Small Business Journal, 37(2), 95-104.
Walter, A., Auer, M., & Ritter, T. (2006). The impact of network capabilities and entrepreneurial orientation on university spin-off performance. Journal of business venturing, 21(4), 541-567.‏
Wang, L., Xie, Z., Zhang, H., Yang, X., & Tan, J. (2021). Corporate compliance capability of EMNEs: A prerequisite for overcoming the liability of emergingness in advanced economies. International Journal of Emerging Markets. 21(2), 34-47.
Yari, N., Lankut, E., Alon, I., & Richter, N. F. (2020). Cultural intelligence, global mindset, and cross-cultural competencies: A systematic review using bibliometric methods. European Journal of International Management, 14(2), 210-250.
Zahra, S. A., & Garvis, D. M. (2000). International corporate entrepreneurship and firm performance: The moderating effect of international environmental hostility. Journal of business venturing, 15(5-6), 469-492.
Zahra, S. A., Sapienza, H. J., & Davidsson, P. (2006). Entrepreneurship and dynamic capabilities: A review, model and research agenda. Journal of Management studies, 43(4), 917-955.
Zhang, X., Ma, X., Wang, Y., Li, X., & Huo, D. (2016). What drives the internationalization of Chinese SMEs? The joint effects of international entrepreneurship characteristics, network ties, and firm ownership. International Business Review, 25(2), 522-534.
Zou, S., Fang, E., & Zhao, S. (2003). The effect of export marketing capabilities on export performance: an investigation of Chinese exporters. Journal of International marketing, 11(4), 32-55.  
 
. 

Files

History

  • Receive Date: 17 April 2023
  • Revise Date: 27 June 2023
  • Accept Date: 02 July 2023

Share

How to cite

Statistics