TY - JOUR
T1 - How international SME's vicarious learning may improve their performance? The role of absorptive capacity, strength of ties with local SMEs, and their prior success experiences
AU - Ali, Imran
AU - Ali, Murad
AU - Salam, Mohammad Asif
AU - Bhatti, Zeeshan Ahmed
AU - Arain, Ghulam Ali
AU - Burhan, Muhammad
N1 - Funding Information:
This project was funded by the Deanship of Scientific Research (DSR) , King Abdulaziz University, Jeddah , under grant No. ( DF-563-120-1441 ). The authors, therefore, gratefully acknowledge DSR technical and financial support.
Publisher Copyright:
© 2020 Elsevier Inc.
PY - 2020/7/1
Y1 - 2020/7/1
N2 - This study investigates whether inter-firm relationships can raise innovation and overall performance during SME internationalization, focusing on how SMEs learn from firms in transnational markets and the nature of such relationships. It contributes to research by proposing the role of vicarious learning from networked firms in the host country to improve their absorptive capacity (ACAP), innovation, and overall performance. In particular, this study proposes the moderating roles of the strength of ties with and prior success experience of SMEs in the host country market for enhancing international SMEs' vicarious learning to improve their ACAP, innovation, and overall performance. Structural equation modeling was applied to a sample of 163 valid responses received from international SMEs operating in various industrial sectors in Saudi Arabia. The obtained results support the significantly positive role of international SMEs' vicarious learning from local firms in developing their ACAP and enhancing their innovation and overall performance. However, international SMEs must have strong ties with local firms and learn from such firms' prior success experiences to derive these benefits fully.
AB - This study investigates whether inter-firm relationships can raise innovation and overall performance during SME internationalization, focusing on how SMEs learn from firms in transnational markets and the nature of such relationships. It contributes to research by proposing the role of vicarious learning from networked firms in the host country to improve their absorptive capacity (ACAP), innovation, and overall performance. In particular, this study proposes the moderating roles of the strength of ties with and prior success experience of SMEs in the host country market for enhancing international SMEs' vicarious learning to improve their ACAP, innovation, and overall performance. Structural equation modeling was applied to a sample of 163 valid responses received from international SMEs operating in various industrial sectors in Saudi Arabia. The obtained results support the significantly positive role of international SMEs' vicarious learning from local firms in developing their ACAP and enhancing their innovation and overall performance. However, international SMEs must have strong ties with local firms and learn from such firms' prior success experiences to derive these benefits fully.
KW - Absorptive capacity
KW - Vicarious learning
KW - Innovation and performance
KW - Prior success experience
KW - Strength of ties
UR - http://www.scopus.com/inward/record.url?scp=85084344243&partnerID=8YFLogxK
U2 - 10.1016/j.indmarman.2020.04.013
DO - 10.1016/j.indmarman.2020.04.013
M3 - Article
AN - SCOPUS:85084344243
VL - 88
SP - 87
EP - 100
JO - Industrial Marketing Management
JF - Industrial Marketing Management
SN - 0019-8501
ER -