The export orientation and export performance of high-technology SMEs in emerging markets: The effects of knowledge transfer by returnee entrepreneurs

Abstract

Combining international business research with the knowledge-based view, this paper examines factors affecting the export orientation and export performance of high-technology Small and medium enterprises (SMEs) in an emerging economy. Using a unique, hand-collected dataset of 711 SMEs from Zhongguancun Science Park in China, it argues that export orientation and performance depend not only on the development of capabilities through R&D and technology transfer, but also on entrepreneurial characteristics, such as the founder's international background and global networks. It is also shown that both export orientation and performance are positively associated with the presence of a “returnee” entrepreneur. Journal of International Business Studies (2009) 40, 1005–1021. doi:10.1057/jibs.2008.105

The determinants of export performance: a review of the literature 2006-2014

“…However, SMEs (50 studies) increasingly join the global markets in pursuit of opportunities, and play a potentially essential role in providing employment and strengthening future prospects in many countries (Knight, 2000, Nazar andSaleem, 2011). Generally, small firms are likely to have fewer resources, meaning that the use of the RBV does not help in explaining their exporting motivation and internationalizing mechanism (Filatotchev et al, 2009). Considering that exporting is a particularly appropriate entry mode for SMEs, more attention should be devoted to the issue of how such enterprises improve export performance.…”

“…Exporting activities enhance organizational capabilities, which, in turn, generate additional resources that boost the firms' performance (Filatotchev et al, 2009). …”

“…In terms of individual theory, the RBV alone cannot properly explain the internationalizing mechanism of small firms in emerging economies, as small firms from such economies are likely to have limited resources (Filatotchev et al, 2009, Yi et al, 2012. Emerging economies always have more salient institutions as the scope and the pace of institutional transitions are unprecedented, which post more challenges to export firms, and firms in emerging economies tend to be small Alegre, 2007, Singh, 2009).…”

Learning by exporting: Lessons from high-technology SMEs

“…This is especially true for small and medium-sized enterprises (SMEs). A recent strand of IB literature has highlighted the importance of understanding the effects of the internationalization process undertaken by those technologically-driven SMEs which tend to internationalize relatively early in their lifecycle (Autio et al 2000;Zahra et al 2000;Filatotchev et al 2009). While there is some evidence that the internationalization of such firms is associated with improved performance in terms of profitability and growth (Bloodgood et al 1996;Burgel et al 2001), there is little direct evidence on the extent to which such firms are able to benefit from learning by exporting, often the initial stage in the internationalization process for SMEs (Jones 2001).…”

Theoretical Foundations

“…Research focus thus has moved to the development, coordination, and exploitation of resources in different units of the MNE (Chang, Gong, & Peng, 2012). This includes topics such as increases of resource commitments over time (Johanson & Johanson, 2006;Santangelo & Meyer, 2011), competitive dynamics (Chang & Park, 2012;Narayanan & Fahey, 2005), headquarters-subsidiary relationships (de Jong et al, 2015;Jindra, Giroud, & Scott-Kennel, 2009), and subsidiary exports (Estrin, Meyer, Wright, & Foliano, 2008;Filatotchev, Stephan, & Jindra, 2008;Filatotchev, Liu, Buck, & Wright, 2009). Other scholars investigate internal processes in MNE subsidiaries, such as human resource management practices (Bjö rkman, Fey, & Park, 2007) and organizational culture (Caprar, 2011;Taylor et al, 2008;Welch & Welch, 2006).…”