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Emerging market entry node pattern and experiential knowledge of small and medium-sized enterprises
Linnaeus University, School of Business and Economics, Department of Marketing.
2013 (English)In: International Marketing Review, ISSN 0265-1335, Vol. 30, no 2, 106-129 p.Article in journal (Refereed) Published
Abstract [en]

Purpose – To conceptualize “entry node”, to describe the entry node pattern (i.e. the initial entry node and changes in it) of SMEs entering emerging market business networks, and to determine how network nodes are associated with experiential knowledge.

Design/methodology – Using data from an on-site survey based on a standardized questionnaire, hypotheses were tested using ANOVA on 197 SMEs in southern Sweden that entered the emerging markets of the Baltic States, Poland, Russia, or China. 

Findings – The entry node is the establishment point into a foreign market network. Four entry situations are defined – triad via home market, triad via host market, dyad from home market, and dyad at host market – each using different entry nodes. After initial entry, one third of the firms changed their nodes, primarily into a more committed node. Various nodes display significant differences in the level of accumulated societal, business network and customer-specific experiential knowledge. A more committed node is associated with more experiential knowledge. 

Research limitations – Knowledge is complex to measure, since various factors influence the level of accumulated experiential knowledge. This study examines the association between types of nodes and experiential knowledge, but does not aim to explain knowledge accumulation. Perceptual measures are used and possible method biases involved are safeguarded through an on-site survey method.

Originality – This paper conceptualizes the novel concept of entry node, provides insight into the SME node pattern in emerging markets, and examines the association between nodes and experiential knowledge.

 

Place, publisher, year, edition, pages
2013. Vol. 30, no 2, 106-129 p.
Keyword [en]
Internationalization, Networks, Small-to-medium-sized enterprises, Sweden, Emerging markets, Market entry, Entry node, Experiential knowledge
National Category
Business Administration
Research subject
Economy, Business administration; Economy, Marketing
Identifiers
URN: urn:nbn:se:lnu:diva-26305DOI: 10.1108/02651331311314547ISI: 000318055200003OAI: oai:DiVA.org:lnu-26305DiVA: diva2:627206
Note

ersätter manuskriptet med titeln: SME node pattern and experiential knowledge in emerging markets

Available from: 2013-06-11 Created: 2013-06-11 Last updated: 2015-03-24Bibliographically approved
In thesis
1. Internationalization processes of small and medium-sized enterprises: Entering and taking off from emerging markets
Open this publication in new window or tab >>Internationalization processes of small and medium-sized enterprises: Entering and taking off from emerging markets
2012 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

The high economic growth of formerly closed markets such as China, Russia, Poland, and the Baltic states has created vast business and growth opportunities for small and medium-sized enterprises (SMEs). Although this international business expansion of SMEs occurs in highly dissimilar business contexts and fierce international competition, it remains overlooked by research. Therefore, the main aim of this thesis is to contribute to an enhanced understanding of internationalization processes of SMEs by studying the overarching research question: What are the main features of internationalization processes of SMEs in an emerging market context? Three sub-problems are researched with regard to SMEs entering and taking off from emerging markets, as well as differences and similarities between these processes, in order to identify what features characterize them. Empirically, two surveys of 116 and 203 Swedish SMEs, respectively, with experiences of entry into emerging markets were conducted through standardized questionnaires via mail and on-site visits. In addition, case studies were conducted through interviews and observations of five internationalizing Chinese SMEs and four Chinese wholesale and retail market platforms. Five essays are compiled within the thesis and major findings and conclusions provide theoretical and empirical contributions to research on the internationalization processes of SMEs. With regard to the overlooked internationally experienced manufacturing SMEs from mature markets such as Sweden, theoretical advancements are made identifying the main concepts of their entry into emerging markets: entry node (the establishment point into the foreign business network); market-specific experiential knowledge; and perceived institutional distance. With regard to the internationally novel Chinese SMEs, these were seen to diverge from traditional internationalization paths. Indications were found of a parallel expansion abroad and at home, even using foreign markets as a springboard for further growth at home. The take-off node concerns the departure from an emerging home market, where a paradox of knowledge was found: the use of indirect export via a domestic intermediary facilitates the take off, but hinders further international expansion since no international experience or relationships are built up. Moreover, institutional distance was reduced due to collective internationalization through co-locating abroad. Generally, degree of maturity of the home market; as well as degree of internationalization and type of firm; are the main features behind differences between internationalization processes of SMEs in an emerging market context.

Place, publisher, year, edition, pages
Växjö, Kalmar: Linnaeus University Press, 2012. 272 p.
Series
Linnaeus University Dissertations, 78/2012
Keyword
network approach to internationalization, foreign business networks and relationships, internationalization process, foreign market entry, entry/take-off node, experiential knowledge, institutional distance, emerging markets, Sweden, China, small and medium-sized enterprises (SMEs)
National Category
Social Sciences
Research subject
Economy, Business administration; Economy, Marketing
Identifiers
urn:nbn:se:lnu:diva-17726 (URN)978-91-86983-35-2 (ISBN)
Public defence
Ny200, Ekonomihögskolan, Kalmar Nyckel, Kalmar (Swedish)
Opponent
Supervisors
Available from: 2012-02-27 Created: 2012-02-22 Last updated: 2013-11-07Bibliographically approved

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