Internationalization and the performance of born-global SMEs: the mediating role of social networks

Lianxi Zhou, Wei-ping Wu and Xueming Luo
Additional contact information
Lianxi Zhou: Department of Marketing and International Business, Lingnan University, Tuen Mun, Hong Kong
Wei-ping Wu: Department of Marketing, School of Business, Hong Kong Baptist University, Kowloon Tong, Hong Kong
Xueming Luo: Department of Marketing, College of Business Administration, University of Texas at Arlington, Arlington, TX, USA

Journal of International Business Studies, 2007, vol. 38, issue 4, 673-690

Abstract: This paper offers a social network explanation for the purported relationship between internationalization and firm performance in the context of born-global small and medium enterprises (SMEs). We argue that home-based social networks play a mediating role in the relationship between inward and outward internationalization and firm performance. The mediating mechanism is attributed to three information benefits of social networks: (1) knowledge of foreign market opportunities; (2) advice and experiential learning; and (3) referral trust and solidarity. Using survey data from SMEs in the largest emerging economy of China, we found some support for this mediating role of social networks in the form of guanxi. The results imply that international business managers should consider social networks as an efficient means of helping internationally oriented SMEs to go international more rapidly and profitably. Journal of International Business Studies (2007) 38, 673–690. doi:10.1057/palgrave.jibs.8400282

Date: 2007
References: Add references at CitEc
Citations: View citations in EconPapers (293)

Downloads: (external link)
http://www.palgrave-journals.com/jibs/journal/v38/n4/pdf/8400282a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/jibs/journal/v38/n4/full/8400282a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jintbs:v:38:y:2007:i:4:p:673-690

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/41267/PS2

Access Statistics for this article

Journal of International Business Studies is currently edited by John Cantwell

More articles in Journal of International Business Studies from Palgrave Macmillan, Academy of International Business
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().