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

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  • Ahmed Ibrahim Karage
  • Raja Nerina Raja Yusof
  • Devika Nadarajah

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.

Suggested Citation

  • Ahmed Ibrahim Karage & Raja Nerina Raja Yusof & Devika Nadarajah, 2021. "Effect of International Entrepreneurial Orientation on the Internationalization of SMEs: The Contingent Effect of Export Promotion Programs," International Business Research, Canadian Center of Science and Education, vol. 14(12), pages 160-160, December.
    • Handle: RePEc:ibn:ibrjnl:v:14:y:2021:i:12:p:160
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    References listed on IDEAS

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    3. Marian V Jones & Nicole E Coviello, 2005. "Internationalisation: conceptualising an entrepreneurial process of behaviour in time," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(3), pages 284-303, May.
    4. Kuivalainen, Olli & Sundqvist, Sanna & Servais, Per, 2007. "Firms' degree of born-globalness, international entrepreneurial orientation and export performance," Journal of World Business, Elsevier, vol. 42(3), pages 253-267, September.
    5. Fink, Matthias & Harms, Rainer & Kraus, Sascha, 2008. "Cooperative internationalization of SMEs: Self-commitment as a success factor for International Entrepreneurship," European Management Journal, Elsevier, vol. 26(6), pages 429-440, December.
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    Cited by:

    1. Navarro-García, Antonio & Ledesma-Chaves, Pablo & Gil-Cordero, Eloy & De-Juan-Vigaray, María Dolores, 2024. "Intangible resources, static and dynamic capabilities and perceived competitive advantage in exporting firms. A PLS-SEM/fsQCA approach," Technological Forecasting and Social Change, Elsevier, vol. 198(C).

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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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