Antecedents of knowledge competency and performance in born globals

Taekyung Park · Jaehoon Rhee

58 citations0/0 files storedManagement Decision

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International Business and FDI Innovation and Knowledge Management International Student and Expatriate Challenges

Abstract

Purpose This study aims to investigate the antecedents of knowledge competency and international performance in South Korean born globals, with particular focus on the moderating effects of the absorptive capacity. Design/methodology/approach Building on previous studies, the study constructs and tests a research model using structural equation modeling and multiple regression analysis for data collected from 271 early internationalizing SMEs. To secure results of hypothesis testing, non‐response bias was assessed using a t‐test, and tests for data screening and common method bias were conducted. Findings The results indicate that, for early internationalizing small firms, the prior international business experience of managers and networks affect building knowledge competencies. In the relationship between the use of networks and knowledge competencies, in particular, absorptive capacity is found to play a moderating role. It also finds that international business performance is driven by knowledge competencies the small firms accumulate. The findings imply that firms shortly after inception should raise their ability to acquire and utilize external resources and knowledge to secure international performance. Originality/value This study makes an important contribution to the body of literature on rapid internationalization of small firms by examining the moderating effects of absorptive capacity on the relationship between founding teams' prior international business experience and firms' networks and knowledge competencies. The present study thus helps move forward our understanding on drivers of knowledge competency building and performance of the early internationalizing firm.

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References

2003Common method biases in behavioral research: A critical review of the literature and recommended remedies.1991Firm Resources and Sustained Competitive Advantage 1988Structural equation modeling in practice: A review and recommended two-step approach.2004Firm resources and sustained competitive advantage 1998Principles and Practice of Structural Equation Modeling 1990Absorptive Capacity: A New Perspective on Learning and Innovation 1988On the Evaluation of Structural Equation Models 1989Structural Equations with Latent Variables

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