Post-entry performance of international new ventures: The mediating role of learning orientation

Abstract

This paper investigates the role of learning orientation in the post-entry performance of international new ventures (INVs) by examining the relationships of niche strategy, network resources, and learning orientation with the multi-dimensional post-entry performance of INVs. Based on the INV internationalisation literature, we develop and validate a conceptual model, using a sample of 147 INVs from the two relatively small and open economies of New Zealand and Australia. The results show that the learning orientation of INVs positively mediates the relationship between niche orientation and network resources and INVs' post-entry performance. Our study indicates that learning orientation may be an important capability through which INVs' focused international business (IB) strategies and resources (e.g., niche orientation and network resources) may influence their multi-dimensional post-entry performance in terms of operational, financial, and overall effectiveness measures. We draw key implications for research on INVs' post-entry behaviour by explicating the role played by the firms' learning capabilities, and how these capabilities may interact with their strategies and resources in enhancing the post-entry performance of INVs.

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

“…The importance of knowledge and learning in the pre-and post-internationalization phases of firms has been widely acknowledged (Knight and Cavusgil 2004;Knight and Liesch 2016;Tuomisalo and Leppäaho 2019). Knowledge has been found to aid rapidly internationalizing SMEs to recognize opportunities, develop offerings and ways of doing business, adapt efficiently and effectively to foreign environments, and become established in new markets (Autio et al 2000;Gerschewski et al 2018). Extant literature emphasizes the need for technological learning within knowledge-intensive businesses in order to identify commercial potential (Clarysse et al 2011;Deligianni et al 2015) and understand technological trends.…”

“…Rapidly internationalizing small and medium-sized enterprises (SMEs) play a significant role in driving economic growth (Trudgen and Freeman 2014;Gerschewski et al 2018). Accordingly, the strategies used by rapidly internationalizing SMEs continue to attract considerable interest (Oviatt and McDougall 1994;Knight and Cavusgil 2004;Gerschewski et al 2018).…”

“…Rapidly internationalizing small and medium-sized enterprises (SMEs) play a significant role in driving economic growth (Trudgen and Freeman 2014;Gerschewski et al 2018). Accordingly, the strategies used by rapidly internationalizing SMEs continue to attract considerable interest (Oviatt and McDougall 1994;Knight and Cavusgil 2004;Gerschewski et al 2018). SMEs that internationalize rapidly are called International New Ventures (INVs) (Oviatt and McDougall 1994) and Born Global firms (Knight and Cavusgil 2004;Knight and Liesch 2016).…”

Learning orientation and innovation performance: the mediating role of operations strategy and supply chain integration

“…In addition, if organizations are more learning-oriented, they would probably become more inclined to interact with external sources of knowledge and may even intend to integrate themselves with those in their supply chains. Learning orientation is a basic organizational attitude toward learning (Gerschewski et al, 2018) and it has a great role in creating and using knowledge that can influence innovation (Mahmoud et al, 2016;Nasution et al, 2011). Learning orientation by obtaining and distributing information about customer needs, market changes, and competitive advantages (Abdulai Mahmoud & Yusif, 2012) has an important role in innovation (Rhee, Park, & Lee, 2010;Tho & Trang, 2015).…”

Competitive strategies and international new ventures’ performance: Exploring the moderating effects of internationalization duration and preparation

“…Extant research on the analysis of change in strategic decisions and issues along INVs' internationalization process is limited (Gerschewski et al, 2018;Ibeh et al, 2018). In a seminal longitudinal study, McDougall and Oviatt (1996) report that the new ventures which have increased their internationalization during a 2-year period show significant positive relationships between strategy change and venture performance.…”