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Business model innovation in international performance: the mediating effect of network capability

Author

Listed:
  • Agnes Asemokha
  • Lasse Torkkeli
  • Anisur R. Faroque
  • Sami Saarenketo

Abstract

Networks and business models are two critical defining factors in the internationalisation of small- and medium-sized enterprises (SMEs). Although scholars have recently suggested that business model innovation be linked to dynamic capabilities, there has been limited research interest. This study aims to do so by linking business model innovation with dynamic networking capabilities and examining their role in SME internationalisation. Using a sample of 210 internationally operating Finnish SMEs and conducting regression and mediation analysis, we find that: 1) network capability predicts business model innovation in SMEs; 2) business model innovation predicts higher international performance; 3) business model innovation mediates the relationship between network capability and international performance. The study thus contributes by establishing network capability as an antecedent of business model innovation in achieving international performance.

Suggested Citation

  • Agnes Asemokha & Lasse Torkkeli & Anisur R. Faroque & Sami Saarenketo, 2020. "Business model innovation in international performance: the mediating effect of network capability," International Journal of Export Marketing, Inderscience Enterprises Ltd, vol. 3(4), pages 290-313.
    • Handle: RePEc:ids:ijexpo:v:3:y:2020:i:4:p:290-313
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    Citations

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    Cited by:

    1. Evers, Natasha & Ojala, Arto & Sousa, Carlos M.P. & Criado-Rialp, Alex, 2023. "Unraveling business model innovation in firm internationalization: A systematic literature review and future research agenda," Journal of Business Research, Elsevier, vol. 158(C).
    2. Bryan Jean, Ruey-Jer & Kim, Daekwan & Sinkovics, Rudolf R. & Cavusgil, Erin, 2024. "The effect of business model innovation on SMEs’ international performance: The contingent roles of foreign institutional voids and entrepreneurial orientation," Journal of Business Research, Elsevier, vol. 175(C).
    3. Vuorio, Anna & Torkkeli, Lasse, 2023. "Dynamic managerial capability portfolios in early internationalising firms," International Business Review, Elsevier, vol. 32(1).

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