How Do Rapidly Internationalizing SMEs Learn? Exploring the Link Between Network Relationships, Learning Approaches and Post-entry Growth of Rapidly Internationalizing SMEs from Emerging Markets

Abstract

This article explores learning among rapidly internationalizing small and medium sized enterprises (SMEs) and how this supports the post-internationalization growth and survival of these firms. We utilize a qualitative multiple case study approach of ten information and communication technology (ICT) SMEs from a key emerging market—India. Findings suggest that during the post-entry stage, rapidly internationalizing SMEs use a wide range of internal and external sources of knowledge. External sources of knowledge include peer networks, associations in the same industry, international clients/partners, and international connections developed through trade fairs and trade missions. Internal sources of knowledge such as self-learning, especially from trial-and-error and experiential efforts, were found to enhance product, market and technological knowledge; and consequently aided geographic and product diversification. The findings also indicate that firms use a mix of integrated, vicarious, congenital and experiential learning approaches in their post-entry growth and survival phases. Experiential and congenital learning were found to be facilitated by firms’ internal network sources, whereas external network sources provide an ideal platform for vicarious learning. The study provides new insights into networking and learning by providing evidence that exposure to and connection with diverse types of networks can result in various forms of valuable learning for rapidly internationalizing SMEs, which enhances their post-entry growth.

Critical success factors for the internationalisation of small–medium enterprises in indonesia

“…It helps SMEs to deal with foreign business partners and improve product innovation capabilities (Zahra et al, 2009). Active engagement with a local and international network, industry association, and international fairs and trade are keys to SMEs' internationalisation (Puthusserry et al, 2020).…”

“…Knowledge accumulation can be obtained from internal sources and external sources. The study by Puthusserry et al (2020) found that internal sources of knowledge, such as self-learning, increase product quality, market and technological knowledge, and product diversification. Product innovation capability encourages SMEs to operate in the international market (Cassiman & Golovko, 2011).…”

The Role of Network Ties on SMEs Internationalization Process in the Developing Countries Emerging Markets: A Comparison between Mongolia, China, and Malaysia

“…Even in the post-entry stage, the network influence positively on SMEs internationalization speed with the assistance of internal sources of knowledge, which can be self-learning, especially from trial-and-error and experiential efforts and external sources of knowledge which include peer networks, associations in the same industry, international customer, clients, and partners, and international relations developed through trade fairs and trade missions (Puthusserry et al, 2020). Many studies have found international networking is a cumulative process through which firms can identify business opportunities and support their entry into foreign markets (Ciravegna et al, 2014).…”

“…In the modern world, small and medium-sized enterprises (SMEs) have long been recognized as significant contributors to economic development both in developed and developing countries (Hashim, 2015, Solongo, 2017, Puthusserry et al, 2020 because they generate economic growth, create job opportunity, advance technological capability, diversify products, and tax revenues, and assist in alleviating poverty and income inequality based on their limited resources, especially, in developing and emerging markets (Arudchelvan and Wignaraja, 2015). Also, it is proven that SMEs are closely linked in the gross domestic product (GDP) and export increase, and most of the registered enterprises in both developed and developing countries fall in the category of SMEs.…”

Learning in SME Internationalization: A New Perspective on Learning From Success versus Failure

“…Learning in SME Internationalization: A New Perspective on… chains affect the maintaining of innovation levels and competitiveness in Thai SME internationalization (Soontornthum et al 2020), how the breadth and depth of international network searching and learning intent affect Chinese SMEs' exploratory learning (Xiao et al 2020), and how Indian SMEs' success-and failure-based learning affects post-internationalization growth and survival with the emphasis of vicarious, congenital and experiential learning (Puthusserry et al 2020). These three papers are directly in line with 'relationship knowledge' and 'business network perspective', as well as entrepreneurship and learning in internationalization process in the 1977 and 2009 Uppsala models and our integration of self-and vicarious learning from success and failure with Uppsala models (see Figs.…”