Effect of International Entrepreneurial Orientation on the Internationalization of SMEs: The Contingent Effect of Export Promotion Programs

Ahmed Ibrahim Karage, Raja Nerina Raja Yusof and Devika Nadarajah

International Business Research, 2021, vol. 14, issue 12, 160

Abstract: The study argues that the role of export promotion programs (EPPs) is indirectly exhibited by enhancing the influence of managerial and organizational resources on the internationalization of SMEs. This study proposes that the dimensions of international entrepreneurial orientation (innovativeness, pro-activeness and risk-taking) will show varied strengths as predictors of the internationalization of SMEs’ with the influence of EPPs. Using structural equation modeling, data collected from 266 exporting SMEs in Nigeria were analyzed and it is concluded that SMEs’ risk-taking in internationalization increases with participation in EPPs. Similarly, there was an increase in innovativeness among internationalizing SMEs with increased participation in EPPs. Finally, participation in EPPs did not show any impact in pro-activeness attribute towards internationalization of SMEs. This study demonstrates the supportive role of institutions in SMEs’ managerial capacity building in overcoming internationalization challenges by developing the culture of risk taking and innovativeness.

Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:ibn:ibrjnl:v:14:y:2021:i:12:p:160

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