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Drawing on an organizational learning perspective, this paper examines the effect of levels of foreign market involvement (intensity and geographic spread) on internationalization outcomes recognizing that the moderating influence of entry-mode learning potential is not well documented in the literature on small- and medium-sized enterprises (SMEs).

The sample includes 180 SMEs evenly selected from three industries: biotechnology, software and clothing (60 firms in each industry). The sampled firms employ less than 250 employees and are equally distributed between three developed economies and three emerging economies. All were engaged in foreign business.

The authors find that there is a direct relationship between levels of foreign market involvement and internationalization outcomes. Entry-mode learning potential moderates the relationship between intensity of foreign market involvement and internationalization outcomes but not the relationship between geographic spread and internationalization outcomes.

This study reveals several new insights that help explain the pathway through which foreign market involvement activities are translated into internationalization outcomes.

The authors conclude that the positive relationship between intensity of foreign market involvement and internationalization outcomes is strengthened when SMEs also use an entry mode with a higher learning potential than exporting only.

This chapter gives an understanding on how consideration of institutional factors can be important in establishing alliances in emerging markets. There is a huge difference between developed and emerging markets on different issues starting from government and financial institutions to culture and infrastructure. Although these factors have impact on business relationships, they can affect differently from case to case and on the experience of the partners involved in relationships. Further, the extent of difference is not always negative for all firms as it can give some MNEs, who are experts in doing business with emerging market partners, specific advantage over their competitors.

The purpose of this paper is to review literature on home-country institutional factors influencing the internationalization of small and medium-sized enterprises (SMEs) from emerging markets. Based on the analysis, the authors propose a research agenda to guide future studies in this field.

This paper follows a systematic procedure to review 58 selected articles on how institutional contexts in emerging economies impact SME internationalization, covering studies from 1999 to 2023. This period was chosen to capture recent research following the post-1990 market liberalization in most emerging economies, which has shaped new opportunities and challenges for SMEs expanding abroad.

This literature review shows that SMEs’ internationalization knowledge in emerging markets is strongly shaped by home-country institutional conditions. Key mechanisms include imprinting by home institutions and learning from domestic institutional sources, both critical yet underexplored areas in SME development. These processes offer substantial opportunities for future research into how institutional contexts influence SMEs’ global growth.

This research builds on previous studies that have emphasized firm-level and external factors such as host market appeal, consumer needs and resource availability driving SMEs’ internationalization. Focusing on home institutional factors, the authors provide a comprehensive review of academic studies and propose a future research agenda on the external institutional influences shaping emerging market SMEs’ global expansion.

This study, a systematic review, focuses on the internationalisation of small and medium-sized enterprises (SMEs) originating in developing countries. It critically analyses, evaluates and synthesises studies featuring formal and informal institutions, embedded in social and business networks, as a marketing solution for institutional voids. The review shows that current international marketing studies downplay the role of informal institutions in the internationalisation of SMEs. Thus, the authors set a new research agenda for advancing the institutional theory to account for the impact of informal institutions and networks on firm internationalisation.

This review followed five structured stages, including framing the research questions, identifying relevant studies, assessing their quality, summarising the evidence and interpreting the findings. Based on the systematic approach, 434 papers (374 from Web of Science, 60 from Scopus) were generated. Following that, the authors applied the qualitative inclusion/exclusion criteria, which yielded 63 papers. Their analysis involved three authors, with the fourth author focusing on ensuring quality in the analysis.

The study findings invite a different line of theorising market structures and processes focusing on the role of networks as an alternative to formal institutional systems. The outcome of our review suggests that there is scope for developing the institutional theory that account for the role of informal institutions and networks.

Based on the analysis, we call for new theorisation, in the international marketing literature, which accounts for informal networking amongst internationalising SMEs in the light of institutional voids. Thus, the authors promote novel participatory, bottom to top understanding of relationship between institutions and enterprises.

The purpose of this paper is to respond to the call of international marketing professionals for more studies on strategies that firms use in response to the complexities of interacting with other institutions in the emerging markets (EMs) of sub-Saharan Africa. The key research question investigated by employing the exploratory qualitative data gathered is: What strategies and global alliances do small local firms (SLFs) in Nigeria adopt to succeed under complex market conditions?

The methodology employed is exploratory qualitative research. The authors conducted extended interviews to generate rich case study data from the top management of the selected SLFs in Nigeria. The interview data were assessed using open, axial and selective coding to uncover macro-narratives that guide SLFs’ strategies and global alliances.

The macro-narratives derived from the qualitative case analysis reveal a theoretical framework centered on three major elements of competitive strategies in Nigeria: build global capacity and strategic alliances from the get-go; develop local strategic alliances; master matching alliance partners’ needs to create innovative payment plans and, when necessary, shift the transaction cost burden to alliance partners. Matching theory rather than traditional network theories is better at explicating SLFs’ alliances in Nigeria. Implementation of these strategies requires flexible strategic initiatives.

The study adapts institutional interaction theory, network theory, matching alliance perspective, trade credit theories and the literature on small firms’ strategies in EMs to explicate successful small local firm strategies and global alliances under complex market conditions in Nigeria. The recognition that SLFs regularly migrate and shift the burden of transactions’ cost to multiple stakeholders in the supply network by matching customers and supplier needs is important. The discovery of matching theory in explicating SLFs’ global alliances in Nigeria is unique to this study.

This study aims to demonstrate the importance of organizational networks in organizational performance is relatively rich; less understood are processes in organizational networking that entrepreneurs and organizations use in making sense of rapidly changing contexts for organizational performance.

This study conducts an exploratory organizational-level narrative analysis into firms’ experiences in two major emerging markets (EMs), namely, Russia and India – to identify organizational networking processes in the midst of institutional upheavals. The study is based on in-depth case studies of firms in EMs sourced from interview data from senior management and consolidated with secondary data.

The authors find that initially firms rely on informal networks (including blat/svyazi and jaan-pehchaan/jan-pehchan) and later formal (in the form of bureaucratic followed by proprietary) networks to make sense of the changes and uncertainties in turbulent environments. The authors also demonstrate the cyclical nature of strategic sensemaking in the process of developing organizational networks for performance.

The study has a number of theoretical and practical contributions. First, it extends the well-established business networking construct to a more inclusive organizational networking construct. Second, it demonstrates that sensemaking is dependent on interorganizational networking from the outset and throughout the growth of an organization in turbulent markets – from informal to formal bureaucratic and proprietary networks. Finally, this study is unique in documenting the entire process of sensemaking from scanning to performance as well as successfully demonstrating the cyclical nature of sensemaking.

The purpose of this paper is to examine the global sourcing process of Italian craft microbreweries, particularly by identifying the main antecedents leading to the perception of psychic distance. The study also examines how perceived psychic distance affects the selection of intermediaries and the intention to maintain these relationships, with a specific focus on how intermediaries bridge cultural and logistical gaps in international business.

The paper employs a qualitative research methodology and adopts a multiple case study approach, focusing on seven small breweries located in central Italy. The study applies thematic analysis to identify and examine key themes and sub-themes related to global sourcing processes, perceived psychic distance and the role of intermediaries. Additionally, the adoption of network theory provides deeper insights into the relationships between breweries, suppliers and intermediaries.

Results reveal that perceived psychic distance significantly affects global sourcing decisions, with cultural differences, regulatory barriers and communication challenges emerging as critical factors. Intermediaries play a crucial role in facilitating transactions, building trust and providing logistical support. The study highlights the importance of cultural competence, effective communication strategies and trust-building in mitigating the adverse effects of psychic distance.

Limitations are primarily related to the geographical origin of the sample, which is limited to regions in central Italy. Despite this, the study provides valuable insights for craft breweries and other small businesses engaged in international trade. Moreover, it emphasizes the critical role of intermediaries in reducing perceived distance and effectively managing global supply chains.

The study explores a topic largely overlooked in the literature, particularly regarding the analysis of perceived psychic distance, its antecedents and its impact on intermediary selection within the craft beer sector. Additionally, the paper offers valuable guidelines for specific categories of stakeholders (i.e. local intermediaries, foreign suppliers and Italian firms producing raw materials) and provides actionable insights for practitioners, including strategies for supplier selection, quality control and effective communication.

The international entrepreneurial capability has achieved its legitimacy in international business literature. Leveraging capabilities to recognise opportunities is considered a pivotal strategy to achieve success. Drawing on the entrepreneurship literature and opportunity perspective, this study aims to investigate the role of international entrepreneurial capability in enhancing the international opportunity recognition (IOR) process and the performance of export manufacturing firms.

Structural equation modelling has been used to test the hypothesised relationship on 388 export manufacturing entrepreneurial firms operating in the apparel industry of Bangladesh.

The results signify that three international entrepreneurial capabilities, namely, international networking, learning and marketing capability, positively enhance the IOR process of export manufacturing firms. The IOR process positively mediates the relationships between these international entrepreneurial capabilities and firm performance.

Merely having the international entrepreneurial capability is not sufficient to escalate the firm performance. It must be amplified by various strategic actions such as the IOR process. Entrepreneurs need to capitalise on the international entrepreneurial capability to leverage the IOR process and generate non-financial performance success. Entrepreneurial firms that focus more on stimulating non-financial performance can secure better financial performance.

Understanding how international business opportunities (IBOs) are recognized and developed is critical to the study of international entrepreneurship.

We draw on entrepreneurial cognition research broadly and the entrepreneurial judgment perspective specifically to develop a model of the recognition and development of IBOs by considering three theoretically important sets of drivers – social networks, international experience and a proactive mindset. We use a sample of 92 small- and medium-sized enterprises (SMEs) to test the model empirically.

We find robust support. Entrepreneurial judgment surrounding IBOs and uncertain international business environments entails tapping social networks, international experience and a proactive mindset to both recognize third-person opportunities for someone as well as to act upon and develop IBOs as first-person opportunities from which a focal firm can profit.

Conceptually and empirically, we peer inside the black box of IBO entrepreneurial judgment processes by jointly evaluating the abstract recognition of third-person opportunities as well as the concrete actions and interactions that develop the IBOs into first-person opportunities.

Small and medium-sized enterprises in developing countries, particularly in the Sub-Saharan African region, find it hard to innovate due to severe resource constraints and high institutional voids. Given this, the paper examines three international strategic responses that small and medium-sized enterprises in Sub-Saharan Africa adopt to implement innovations in the face of weak institutional environments.

Using comprehensive data from the World Bank Enterprise Survey, the study applies the Instrumental Variable Probit approach to analyse a sample of 8,466 SMEs from eleven countries in the Sub-Saharan African region.

The empirical results show that foreign ownership negatively affects product and process innovation. Additionally, the results reveal that small and medium-sized enterprises that leverage exporting and international quality certifications are likely to implement innovations.

The paper contributes to the literature by suggesting that small and medium-sized enterprises must exploit strategic alternatives to improve their innovation efforts when operating in a weak institutional environment. Thus, by exploring international strategic responses to institutional difficulties when implementing innovations, this paper goes beyond the prevailing research approach in developing countries that mainly emphasises the barriers to innovations.