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How can emerging-market SMEs domestically benefit from their performance in developed countries? Empirical evidence from China

Li, W.; Liu, Z.; Xia, S.; Yan, J.; Xiong, Y.; Sakka, G.; Li, Yu

How can emerging-market SMEs domestically benefit from their performance in developed countries? Empirical evidence from China Thumbnail


Authors

W. Li

Z. Liu

S. Xia

Y. Xiong

G. Sakka

Yu Li



Abstract

Many small and medium-sized enterprises (SMEs) from emerging economies consider entry into developed markets as a way to promote home country performance. Nevertheless, the extant literature aiming at large companies are not applicable to SMEs, and it is unclear how SMEs with a weak resource basis can improve their domestic performance through overseas venturing. This study leverages a resource-based view on data from 377 Chinese SMEs with operations in developed nations. The findings reveal that emerging-market firms’ overseas performance (both financial and non-financial) is positively related to their home country performance, with the technological learning and demonstration effect playing mediating roles. The relationship between host country performance and technological learning is positively moderated by firms’ resource integration capability. This study is among the first to identify the mechanism through which emerging-market SMEs’ operations in developed countries affects their home country performance. The findings are helpful in guiding emerging-market SMEs’ internationalization.

Citation

Li, W., Liu, Z., Xia, S., Yan, J., Xiong, Y., Sakka, G., & Li, Y. (2022). How can emerging-market SMEs domestically benefit from their performance in developed countries? Empirical evidence from China. Journal of Business Research, 142, 200-210. https://doi.org/10.1016/j.jbusres.2021.12.058

Journal Article Type Article
Acceptance Date Dec 24, 2021
Online Publication Date Jan 5, 2022
Publication Date 2022-03
Deposit Date Jan 10, 2022
Publicly Available Date Mar 28, 2024
Journal Journal of Business Research
Print ISSN 0148-2963
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 142
Pages 200-210
DOI https://doi.org/10.1016/j.jbusres.2021.12.058
Public URL https://durham-repository.worktribe.com/output/1217655

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