Entrepreneurial alertness and business model innovation in dynamic markets: international performance implications for SMEs

Abstract

A significant yet rarely probed question in the international entrepreneurship literature is to what extent and when entrepreneurial alertness (EA) manifests into international performance for small and medium-sized enterprises (SMEs). Using survey data from 214 SMEs in the United Arab Emirates, this study investigates the relationships between EA, business model innovation (BMI), domestic market dynamism and internationalisation scope of SMEs. The study finds that BMI (i.e., entrepreneurial action) significantly mediates the relationship between EA (i.e., entrepreneurial capability) and SMEs' internationalisation scope (i.e., international performance). Furthermore, when domestic market dynamism is high, the effect of BMI on internationalisation scope is strengthened. These findings provide theoretical and practical implications for international entrepreneurship research in the SME context.

Entrepreneurial mindset and family business performance: the United Arab Emirates perspectives

“…Many authors state the gaining importance and momentum of the relationship between entrepreneurial mindsets and business performance because of its implications for a business's growth and success. Therefore, identifying and finding new opportunities signify the most crucial activities of entrepreneurship (Ahmad et al, 2022;Chaudhary et al, 2021;Hisrich and Ramadani, 2017; Kirzner, 1973;Lew et al, 2023). In this line, alertness to opportunity represents a viable business opportunity (Daniel et al, 2021).…”

“…Identification and development of new opportunities represent the spirit of entrepreneurship (Chaudhary et al, 2021;Hisrich and Ramadani, 2017;Kirzner, 1973;Lew et al, 2023), while alertness to opportunity "is at the heart of the entrepreneurial process because, without the identification of a viable business opportunity, there is no entrepreneurship" (Daniel et al, 2021, p. 1). Tang et al (2012) noted that entrepreneurial alertness consists of three basic elements: scanning and searching for information; connecting disparate information; and evaluating profitable business opportunities.…”

Entrepreneurial alertness as a determinant of success in the SME context: a qualitative study

“…the stakeholders. Whatever the innovation system the firm adopts, the research it carries out using digital applications has the particularity of stimulating individuals’ capacity for entrepreneurial alertness (Chavoushi et al , 2021; Lew et al , 2023). In addition, this research contributes to collective-creative theory, explaining that individuals can become innovative and entrepreneurial through online applications, which increase their creativity, letting them detect opportunities from existing information and resources and usually complemented with new knowledge obtained (Brockman, 2014; Fellnhofer, 2021).…”

“…SME management tends to be quite centralised, generally on the owner or manager, who in the vast majority of cases is the same person (Mendoza Moheno and Hernández Calzada, 2008; Lima, 2000). Consequently, the entrepreneurial alertness in SMEs is all the more important, since as small companies they must pay greater attention (Lew et al , 2023).…”

“…The business alertness has been characterised by the potential to recognise opportunities missed by others, with the capacity to affect individual actions in the market (Kirzner, 1979(Kirzner, , 1999. The effect of the entrepreneurial alertness in recognising and identifying entrepreneurial opportunities can be said to mean a prosperous future for organisations, in particular, small-and medium-sized enterprises (SMEs) (Lew et al, 2023).…”