Foreign market knowledge, entry mode choice and SME international performance in an emerging market

Joseph Amankwah-Amoah, Samuel Adomako, Joseph Kwadwo Danquah, Robert A. Opoku and Nadia Zahoor

Journal of International Management, 2022, vol. 28, issue 4

Abstract: This paper examines the mediating role of equity entry mode choice in the relationship between foreign market knowledge (FMK) and international performance of small and medium-sized enterprises (SMEs) originating from emerging markets. In addition, this paper investigates when FMK enhances firms' equity mode choice by considering financial slack as a moderating variable. Using data obtained from 205 SMEs engaged in cross-border activities in Ghana, the results reveal that FMK and international performance relationship is mediated by foreign market equity entry mode choice. The results also suggest that FMK positively relates to SMEs' preference for equity mode for foreign market entry and this relationship is amplified when slack resource is greater. These findings offer theoretical as well as practical implications for SME managers in developing and emerging markets in terms of entry mode decisions.

Keywords: Africa; Foreign market; Entry mode choice; Upper echelons; Knowledge management; SMEs; Ghana (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (3)

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DOI: 10.1016/j.intman.2022.100955

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