The internationalization of Indian SMEs in B‐to‐B markets

Rajshekhar G. Javalgi · Patricia R. Todd · Elad Granot

46 citations0/0 files storedJournal of Business and Industrial Marketing

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

Abstract

Purpose The study aims to examine the effect of market orientation on the international performance of Indian SMEs in the business‐to‐business market; assess the potential moderating effect of environmental uncertainty, along with market orientation, on SMEs' performance; and discuss implications to guide SME owners/managers in their efforts to successfully expand internationally in turbulent markets. Design/methodology/approach Surveys were sent to a random cross‐sectional industry sample of SMEs located in India. The data consisted of 150 responses. Findings Market orientation and international orientation are positively related to export performance and the relationship between the market orientation and international performance of Indian SMEs is moderated by market turbulence. Research limitations/implications The data were collected at a single point in time, and therefore do not allow the determination of cause and effect or the impact of changes over time. Data were collected with a reliance on self‐reports for all of the research variables. Practical implications The positive relationship between market orientation, international orientation, and the degree of internationalization of the firm would suggest that the upper management of Indian SMEs should place a priority on promoting behaviors consistent with a positive international orientation, especially in turbulent markets. Originality/value Studies focused on market orientation have been done primarily in the context of advanced economies. The significant economic contribution of SMEs is well understood, but their business practices in emerging economies have not been studied extensively. This study extends the literature concerning factors that impact business success in an important emerging market such as India.

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1979Review of Psychometric theory (2nd ed.).1990The Effect of a Market Orientation on Business Profitability 1993The myopia of learning 1990Market Orientation: The Construct, Research Propositions, and Managerial Implications 1993Market Orientation: Antecedents and Consequences 1990The Effect of a Market Orientation on Business Profitability 1990Market Orientation: The Construct, Research Propositions, and Managerial Implications 1993Corporate Culture, Customer Orientation, and Innovativeness in Japanese Firms: A Quadrad Analysis

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