The drivers of the post-entry internationalisation commitment of small and medium-sized enterprises

Abstract

By integrating relational embeddedness in international strategic alliance networks (ISANs) and the dynamic capability perspective, this article presents an examination of the drivers of the post-entry internationalisation commitment of small- and medium-sized enterprises (SMEs). Specifically, we investigated the mediating effect of opportunity-sensing capabilities (OSCs) on the relationship between ISAN relational embeddedness and the post-entry internationalisation commitment of SMEs. We also examined the moderating impact of strategic adaptiveness on the relationship between OSCs and post-entry internationalisation commitment. An analysis of 320 UK-based SMEs, performed using structural equation modelling, revealed that OSCs are an important mechanism through which the ISAN relational embeddedness leads to increased post-entry internationalisation commitment. Furthermore, strategic adaptiveness strengthens the positive relationship between OSCs and post-entry commitment to foreign markets. This article extends the existing SME venturing and internationalisation literature to the domain of SME post-entry internationalisation commitment.