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

The perceived usefulness of SMEs previous customer networks in the internationalisation process of firms
Angelika Lindstrand; D. Deo Sharma; Kent Eriksson
International Journal of Entrepreneurship and Small Business, Vol. 15, No. 3 (2012) pp. 285 – 307
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.

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