The Role of Networks in Improving International Performance and Competitiveness: Perspective View of Open Innovation

Abstract

With perspective view of open innovation, this study examines how international networks form and evolve and the empirical relationships among antecedents of international network embeddedness, international performance, and sustainable competitiveness. Data from 356 small and medium-sized exporters (SMEs) in manufacturing or technology industries in South Korea are analyzed by structural equation modeling. It assumes that international network embeddedness plays a mediating role in the relationship between internationalization and related variables. This analysis indicates that information management and proximity significantly affect international performance, while cultural differences do not, and that international network embeddedness mediates relationships between information management and international performance, and proximity and international performance. The results imply that greater international network embeddedness increases SMEs’ international performance—information management and proximity play a pivotal role in embedding international networks and improving international performance. SMEs must establish and intensify international networks to improve international performance and seek to overcome limitations by developing international networks with the goal of entering international markets. Nevertheless, there is relatively little research on international network formation and embeddedness, especially for SMEs. This study determines network formation principles, determinants of international networks, and roles of international network embeddedness in relationships between the determinants and international performance. Notably, this study verifies a comprehensive model of international networks.

Determinants of the Propensity for Innovation among Entrepreneurs in the Tourism Industry

“…In an industry as globalised as tourism, it can be interesting to create and maintain strong international networks, as they have recently been shown to be a determining factor in improving the export performance of small-and medium-sized enterprises (SMEs) [107].…”

The Fast Lane of Internationalization of Latin American SMEs: A Location-Based Approach

“…Despite the limited financial, human, and tangible resources that usually characterize small and medium-sized enterprises (SMEs), some of these firms achieve considerable success in international business early in their development [2][3][4]. The acceleration of the internationalization process is shaped by the leverage of firm's resources and capabilities [5,6] and external factors such as institutional environment or innovation networks [7][8][9][10].…”

Internacionalización e innovación abierta en PYMES del sector hortofrutícola en Colombia

“…Currently, the studies by Santoro et al (2019) stand out, who empirically proved a positive relationship between an external knowledge supply strategy and internationalization in 135 SMEs in Europe. Yoon and Ryu (2020) established that international networks are essential for SMEs because they help establish and intensify and optimize international performance. Ryu, Baek, and Yoon (2021) found that technological innovation capacity significantly influences international performance.…”