The effect of business model innovation on SMEs’ international performance: The contingent roles of foreign institutional voids and entrepreneurial orientation

Jean, Ruey-Jer Bryan; Kim, Daekwan; Sinkovics, Rudolf R.; Cavusgil, Erin

Abstract

Despite the growing trend of firms adopting innovative business models for internationalization, scholarly attention remains limited. Existing research provides inconclusive findings regarding the link between business model innovation and international performance. Drawing on signaling theory, this study develops and tests a theoretical framework examining the impact of business model innovation on international performance of small and medium-sized enterprises (SMEs). Analyzing a unique sample of Chinese exporting firms, findings reveal a positive relationship between SMEs’ innovative business models and their foreign market performance. Notably, this relationship strengthens amidst significant foreign institutional voids. However, the relationship weakens for firms displaying greater entrepreneurial orientation.

Citation

Jean, R.-J. B., Kim, D., Sinkovics, R. R., & Cavusgil, E. (2024). The effect of business model innovation on SMEs’ international performance: The contingent roles of foreign institutional voids and entrepreneurial orientation. Journal of Business Research, 175, Article 114449. https://doi.org/10.1016/j.jbusres.2023.114449

• Journal Article Type: Article
• Acceptance Date: Nov 30, 2023
• Publication Date: 2024-03
• Deposit Date: Sep 6, 2024
• Journal: Journal of Business Research
• Print ISSN: 0148-2963
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 175
• Article Number: 114449
• DOI: https://doi.org/10.1016/j.jbusres.2023.114449
• Keywords: Business model innovation, International performance, Foreign institutional voids, Entrepreneurial orientation
• Public URL: https://durham-repository.worktribe.com/output/2773345