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The Influence of Domestic Interfirm Networks on the Internationalization Process of Taiwanese SMEs

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  • KU-HO LIN
  • ISABELLA CHANEY

Abstract

This study investigated how domestic interfirm networks contribute to a better understanding of the internationalization process of Taiwanese small and medium enterprises (SMEs) in the automobile and textiles sectors. The rapid growth of business networks in Taiwan's newly internationalizing firms provides an appropriate context in which to study the emergence and evolution of such networks. Findings from the in-depth case studies indicate that domestic interfirm networks are a major factor in the decision to internationalize. Furthermore, the benefits of assured orders in an unknown international market coupled with the availability of market information from other network partners can be a potential source of competitive advantage for the internationalized SME.

Suggested Citation

  • Ku-Ho Lin & Isabella Chaney, 2007. "The Influence of Domestic Interfirm Networks on the Internationalization Process of Taiwanese SMEs," Asia Pacific Business Review, Taylor & Francis Journals, vol. 13(4), pages 565-583, October.
    • Handle: RePEc:taf:apbizr:v:13:y:2007:i:4:p:565-583
    DOI: 10.1080/13602380701345499
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    Cited by:

    1. Montoro-Sanchez, Angeles & Diez-Vial, Isabel & Belso-Martinez, Jose Antonio, 2018. "The evolution of the domestic network configuration as a driver of international relationships in SMEs," International Business Review, Elsevier, vol. 27(4), pages 727-736.
    2. Mai, Nhat Chi, 2018. "Valuing Social Capital: Shifting Strategies for Export Success of Vietnamese Small- and Medium-Sized Enterprises," OSF Preprints rxjav, Center for Open Science.
    3. Elitsa R. Banalieva & Gary Gregg & Ravi Sarathy, 2010. "The Impact of Regional Trade Agreements on the Global Orientation of Emerging Market Multinationals," Management International Review, Springer, vol. 50(6), pages 797-826, December.
    4. Jaeyoung Cho & Jangwoo Lee, 2018. "Internationalization and performance of Korean SMEs: the moderating role of competitive strategy," Asian Business & Management, Palgrave Macmillan, vol. 17(2), pages 140-166, April.
    5. Syed Zulfiqar Ali Shah & Muhammad Anwar & Ch. Mazhar Hussain, 2021. "Top managers' attributes, innovation, and the participation in China–Pakistan Economic Corridor: A study of energy sector small and medium‐sized enterprises," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(2), pages 385-406, March.
    6. María del Carmen Peces & María Amalia Trillo, 2023. "Relational Capital in the Technology Sector: An International Strategic Model," Sustainability, MDPI, vol. 15(5), pages 1-18, February.
    7. Manolova, Tatiana S. & Manev, Ivan M. & Gyoshev, Bojidar S., 2010. "In good company: The role of personal and inter-firm networks for new-venture internationalization in a transition economy," Journal of World Business, Elsevier, vol. 45(3), pages 257-265, July.
    8. De Castro, Melodee Marciana E. & Depositario, Dinah Pura T., 2018. "Factors Related to Export Intensity of Filipino Agripreneurs," Journal of Economics, Management & Agricultural Development, Journal of Economics, Management & Agricultural Development (JEMAD), vol. 4(1), June.
    9. TRILLO HOLGADO, María Amalia & PECES PRIETO, María del Carmen, 2019. "El Capital Relacional Como Factor Clave En El Desarrollo Económico Internacional. Un Estudio De Casos En El Sector Tecnológico," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 19(1), pages 127-144.
    10. Du, Jian & Xu, Yue & Voss, Hinrich & Wang, Song, 2021. "The impact of home business network attributes on Chinese outward foreign direct investment," International Business Review, Elsevier, vol. 30(4).
    11. Lydia Nyankom Takyi & Vannie Naidoo & Courage Simon Kofi Dogbe, 2022. "Government support, strategic alliance and internationalization: Evidence from indigenous Ghanaian exporters," Journal of International Entrepreneurship, Springer, vol. 20(4), pages 619-638, December.
    12. Hadjikhani, Amjad & Hadjikhani, Annoch Isa & Thilenius, Peter, 2014. "The internationalization process model: A proposed view of firms’ regular incremental and irregular non-incremental behaviour," International Business Review, Elsevier, vol. 23(1), pages 155-168.
    13. Raul Serrano & Natalia Dejo‐Oricain & Juan Ferrer & Vicente Pinilla & Silvia Abella‐Garcés & Maria Teresa Maza, 2023. "Domestic clustered networks and internationalization of agrifood SMEs," Agribusiness, John Wiley & Sons, Ltd., vol. 39(1), pages 167-195, January.
    14. Kim, Jae-jin & Hemmert, Martin, 2016. "What drives the export performance of small and medium-sized subcontracting firms? A study of Korean manufacturers," International Business Review, Elsevier, vol. 25(2), pages 511-521.
    15. Smith, Adam & Judge, William & Pezeshkan, Amir & Nair, Anil, 2016. "Institutionalizing entrepreneurial expertise in subsistence economies," Journal of World Business, Elsevier, vol. 51(6), pages 910-922.
    16. Johnson, Julius H. & Arya, Bindu & Mirchandani, Dinesh A., 2013. "Global integration strategies of small and medium multinationals: Evidence from Taiwan," Journal of World Business, Elsevier, vol. 48(1), pages 47-57.
    17. Ankur Roy & Chandra Sekhar & Vishal Vyas, 2016. "Barriers to internationalization: A study of small and medium enterprises in India," Journal of International Entrepreneurship, Springer, vol. 14(4), pages 513-538, December.
    18. Catherine Thevenard-Puthod, 2020. "Pour une meilleure appréhension de la variété des trajectoires d’internationalisation des entreprises artisanales," Post-Print hal-02891818, HAL.
    19. Viacheslav Iurkov & Gabriel R G Benito, 2018. "Domestic alliance networks and regional strategies of MNEs: A structural embeddedness perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(8), pages 1033-1059, October.

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