Title: The perceived usefulness of SMEs previous customer networks in the internationalisation process of firms

Authors: Angelika Lindstrand; D. Deo Sharma; Kent Eriksson

Addresses: Department of Marketing and Strategy, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden. ' Department of Marketing and Strategy, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden. ' Center for Banking and Finance, KTH – The Royal Institute of Technology, P.O. Box 100 44, Stockholm, Sweden

Abstract: Business networks have been found useful for the internationalisation process of small and medium sized enterprises (SMEs). This paper presents the next step in research on internationalising SMEs and networks, as it investigates the unstudied perceived usefulness of the SME's previous foreign customer networks. The paper uses international knowledge development theory to better understand how firms find previous customer networks useful in internationalisation. A linear regression analysis of an international sample of 494 firms demonstrates that the perceived usefulness of an SME's previous foreign customer's network is increased by the firm's experience in diverse national markets, the need for more knowledge about its customers and suppliers, and the commitment to a national market. Utilisation of customer networks is thus an important strategic asset that the international firm develops from varied experiences, customer- and supplier-specific experiences, and national market commitment.

Keywords: customer networks; knowledge development; small and medium-sized enterprises; SMEs; usefulness; international business; perceived usefulness; previous networks; internationalisation process; foreign customers.

DOI: 10.1504/IJESB.2012.045681

International Journal of Entrepreneurship and Small Business, 2012 Vol.15 No.3, pp.285 - 307

Published online: 14 Aug 2014 *

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