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

Imran Ali, Murad Ali, Mohammad Asif Salam, Zeeshan Ahmed Bhatti, Ghulam Ali Arain, Muhammad Burhan

Research output: Contribution to journalArticlepeer-review

5 Citations (Scopus)

Abstract

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.
Original languageEnglish
Pages (from-to)87-100
Number of pages14
JournalIndustrial Marketing Management
Volume88
Early online date11 May 2020
DOIs
Publication statusPublished - 1 Jul 2020
Externally publishedYes

Bibliographical note

NOTICE: this is the author’s version of a work that was accepted for publication in Industrial Marketing Management. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Industrial Marketing Management, 88, (2020)
DOI: 10.1016/j.indmarman.2020.04.013

© 2020, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/

Funder

Scientific Research (DSR) , King Abdulaziz University, Jeddah , under grant No. ( DF-563-120-1441 ).

Keywords

  • Absorptive capacity
  • And performance
  • Innovation
  • Prior success experience
  • Strength of ties
  • Vicarious learning

ASJC Scopus subject areas

  • Marketing

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