Skip to main content
Log in

The export orientation and export performance of high-technology SMEs in emerging markets: The effects of knowledge transfer by returnee entrepreneurs

  • Article
  • Published:
Journal of International Business Studies Aims and scope Submit manuscript

Abstract

Combining international business research with the knowledge-based view, this paper examines factors affecting the export orientation and export performance of high-technology Small and medium enterprises (SMEs) in an emerging economy. Using a unique, hand-collected dataset of 711 SMEs from Zhongguancun Science Park in China, it argues that export orientation and performance depend not only on the development of capabilities through R&D and technology transfer, but also on entrepreneurial characteristics, such as the founder's international background and global networks. It is also shown that both export orientation and performance are positively associated with the presence of a “returnee” entrepreneur.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Acs, Z. J., Morck, R., Shaver, J. M., & Yeung, B. 1997. The internationalization of small and medium sized enterprises: A policy perspective. Small Business Economics, 9 (1): 7–20.

    Article  Google Scholar 

  • Almor, T. 2006. Conceptualizing path of growth for the born global firms. Paper presented at the Annual Conference on Corporate Strategy (ACCS), Berlin.

  • Almor, T., & Hashai, N. 2004. Competitive advantage and strategic configuration of knowledge-intensive, small and medium sized multinationals: A modified resource-based view. Journal of International Management, 10 (4): 479–500.

    Article  Google Scholar 

  • Aulakh, P., Masaaki, K., & Teegen, H. 2000. Export strategies and performance of firms from emerging economies: Evidence from Brazil, Chile and Mexico. Academy of Management Journal, 43 (3): 342–361.

    Article  Google Scholar 

  • Autio, E., Sapienza, H. J., & Almeida, J. G. 2000. Effects of age at entry, knowledge intensity, and imitability on international growth. Academy of Management Journal, 43 (5): 909–924.

    Article  Google Scholar 

  • Barney, J. B. 1991. Firm resources and sustained competitive advantage. Journal of Management, 17 (1): 99–120.

    Article  Google Scholar 

  • Becker, G. S. 1993. Nobel Lecture: The economic way of looking at behaviour. The Journal of Political Economy, 101 (3): 385–409.

    Article  Google Scholar 

  • Bloodgood, J. M., Sapienza, H. J., & Almeida, J. G. 1996. The internationalization of new high potential US ventures. Entrepreneurship Theory and Practice, 20 (4): 61–76.

    Google Scholar 

  • Bonaccorsi, A. 1992. On the relationship between firm size and export intensity. Journal of International Business Studies, 23 (4): 605–635.

    Article  Google Scholar 

  • Brush, C. G., Edelman, L. F., & Manolova, T. S. 2002. The impact of resources on small firm internationalization. Journal of Small Business Strategy, 13 (1): 1–17.

    Google Scholar 

  • Bruton, G., Ahlstrom, D., & Wan, J. C. 2003. Turnaround in Southeast Asian firms: Evidence from ethnic Chinese communities. Strategic Management Journal, 24 (3): 519–540.

    Article  Google Scholar 

  • Buckley, P., Clegg, J., & Wang, C. 2002. The impact of inward FDI on the performance of Chinese manufacturing firms. Journal of International Business Studies, 33 (4): 637–655.

    Article  Google Scholar 

  • Burgel, O., Fier, A., Licht, G., & Murray, G. 2001. The rapid internationalization of high-tech young firms in Germany and the United Kingdom. London: Anglo-German Foundation.

    Google Scholar 

  • Carpenter, M. A., Pollock, T. G., & Leary, M. M. 2003. Testing a model of reasoned risk-taking: Governance, the experience of principals and agents, and global strategy in high-technology IPO firms. Strategic Management Journal, 24 (9): 803–820.

    Article  Google Scholar 

  • Cavusgil, T. 1984. Organizational characteristics associated with export activity. Journal of Management Studies, 21 (1): 3–22.

    Article  Google Scholar 

  • Chandler, G., & Hanks, S. H. 1993. Measuring the performance of emerging businesses: A validation study. Journal of Business Venturing, 8 (5): 391–408.

    Article  Google Scholar 

  • Chen, H., & Chen, T.-J. 1998. Network linkages and location choice in foreign direct investment. Journal of International Business Studies, 29 (3): 445–467.

    Article  Google Scholar 

  • Chung, C. 2006. Beyond guanxi: Network contingencies in Taiwanese business groups. Organization Studies, 27 (4): 461–489.

    Article  Google Scholar 

  • Cooper, A. C., & Artz, K. 1995. Determinants of satisfaction for entrepreneurs. Journal of Business Venturing, 10 (6): 439–457.

    Article  Google Scholar 

  • Coviello, N. E., & Munro, H. J. 1997. Network relationships and the internationalisation process of small software firms. International Business Review, 6 (4): 114–135.

    Article  Google Scholar 

  • Davidsson, P., & Honig, B. 2003. The role of social and human capital among nascent entrepreneurs. Journal of Business Venturing, 18 (3): 301–331.

    Article  Google Scholar 

  • Economist. 2003. On the way back: The overseas Chinese are returning to become entrepreneurs in the Motherland. 6 November.

  • Eden, L. 2008. Letter from the Editor-in-Chief. Journal of International Business Studies, 39 (1): 1–7.

    Article  Google Scholar 

  • Elango, B., & Pattnaik, C. 2007. Building capabilities for international operations through networks: A study of Indian firms. Journal of International Business Studies, 38 (4): 541–555.

    Article  Google Scholar 

  • Eriksson, K., Johanson, J., Majkgård, A., & Sharma, D. D. 1997. Experimental knowledge and cost in the internationalization process. Journal of International Business Studies, 28 (2): 337–360.

    Article  Google Scholar 

  • Erramilli, M. K. 1991. The experience factor in foreign market entry behavior of service firms. Journal of International Business Studies, 22 (3): 479–501.

    Article  Google Scholar 

  • Filatotchev, I., Dyomina, N., Wright, M., & Buck, T. 2001. Effects of post-privatization governance and strategies on export intensity in the former Soviet Union. Journal of International Business Studies, 32 (4): 853–871.

    Article  Google Scholar 

  • Fujita, M. 1995. Small and medium-sized transnational corporations: Salient features. Small Business Economics, 7 (4): 251–271.

    Article  Google Scholar 

  • Gabrielsson, M., & Kirpalani, V. H. 2004. Born globals: How to reach new business space rapidly. International Business Review, 13 (5): 555–571.

    Article  Google Scholar 

  • Gimeno, J., Folta, T. B., Cooper, A. C., & Woo, C. Y. 1997. Survival of the fittest? Entrepreneurial human capital and the persistence of underperforming firms. Administrative Science Quarterly, 42 (4): 750–783.

    Article  Google Scholar 

  • Hagedoorn, J. 2006. Understanding the cross-level embeddedness of interfirm partnership formation. Academy of Management Review, 1 (3): 670–680.

    Article  Google Scholar 

  • Hamel, G., & Prahalad, C. K. 1989. To revitalize corporate performance, we need a whole new model of strategy. Strategic intent. Harvard Business Review, 67 (3): 63–76.

    Google Scholar 

  • Hashai, N., & Almor, T. 2004. Gradually internationalizing “born global” firms: An oxymoron? International Business Review, 13 (4): 465–483.

    Article  Google Scholar 

  • Hoskisson, R. E., Eden, L., Lau, C.-M., & Wright, M. 2000. Strategy in emerging economies. Academy of Management Journal, 43 (3): 249–267.

    Article  Google Scholar 

  • Huff, A. S. 1990. Mapping strategic thought. Chichester: Wiley.

    Google Scholar 

  • Inkpen, A. C., & Tsang, E. 2005. Social capital, networks and knowledge transfer. Academy of Management Review, 30 (1): 146–165.

    Article  Google Scholar 

  • Inkpen, A. C., & Wang, P. 2006. An examination of collaboration and knowledge transfer: China–Singapore Suzhou Industrial Park. Journal of Management Studies, 43 (4): 779–811.

    Article  Google Scholar 

  • Jones, M. V. 2001. First steps in internationalisation: Concepts and evidence from a sample of small high-technology firms. Journal of International Management, 7 (3): 191–210.

    Article  Google Scholar 

  • Jones, M. V., & Coviello, N. E. 2005. Internationalisation: Conceptualising an entrepreneurial process of behaviour in time. Journal of International Business Studies, 36 (3): 284–303.

    Article  Google Scholar 

  • Knight, G. A., & Cavusgil, S. T. 2004. Innovation, organizational capabilities, and the born-global firm. Journal of International Business Studies, 35 (2): 124–141.

    Article  Google Scholar 

  • Kotha, S., Rindova, V. P., & Rothaermel, F. T. 2001. Assets and actions: Firm-specific factors in the internationalization of US Internet firms. Journal of International Business Studies, 32 (4): 769–791.

    Article  Google Scholar 

  • Kumar, N., Stern, L. W., & Anderson, J. W. 1993. Conducting interorganizational research using key informants. Academy of Management Journal, 36 (5): 1633–1651.

    Article  Google Scholar 

  • Lane, P. J., Koka, B. R., & Pathak, S. 2006. The reification of absorptive capacity: A critical review and rejuvenation of the construct. Academy of Management Review, 31 (4): 833–863.

    Article  Google Scholar 

  • Lee, C., Lee, K., & Pennings, J. M. 2001. Internal capabilities, external networks, and performance: A study on technology-based ventures. Strategic Management Journal, 22 (6/7): 615–640.

    Article  Google Scholar 

  • Li, H., Zhang, W., & Zhou, L. A. 2005. Ownership, efficiency and survival in economic transition: Evidence from a Chinese science park. Department of Economics Discussion Paper, Chinese University of Hong Kong.

  • Li, I. 2006. On the return to China. New York: Jorge Pinto Books.

    Google Scholar 

  • Liu, X., & Buck, T. 2007. Innovation performance and channels for international technology spillovers: Evidence from Chinese high-tech industries. Research Policy, 36 (3): 355–366.

    Article  Google Scholar 

  • Lu, J., & Beamish, P. 2001. The internationalization and performance of SMEs. Strategic Management Journal, 22 (6/7): 565–586.

    Article  Google Scholar 

  • Madhok, A. 1997. Cost, value and foreign market entry mode: The transaction and the firm. Strategic Management Journal, 18 (1): 39–61.

    Article  Google Scholar 

  • McAdam, M., & McAdam, R. 2006. The networked incubator: The role and operation of entrepreneurial networking with the university science park. International Journal of Entrepreneurship and Innovation, 7 (2): 87–97.

    Article  Google Scholar 

  • McDougall, P. P., & Oviatt, B. M. 1996. New venture internationalization, strategic change, and performance: A follow-up study. Journal of Business Venturing, 11 (1): 34–40.

    Article  Google Scholar 

  • McDougall, P. P., Shane, S., & Oviatt, B. M. 1994. Explaining the formation of international new ventures: The limits of theories from international business research. Journal of Business Venturing, 9 (6): 467–487.

    Google Scholar 

  • Miller, D. 1993. The architecture of simplicity. Academy of Management Review, 18 (1): 116–138.

    Google Scholar 

  • Mitchell, W., Shaver, J. M., & Yeung, B. 1994. Foreign entrant survival and foreign market share: Canadian companies' experience in US medical sector markets. Strategic Management Journal, 15 (7): 555–567.

    Article  Google Scholar 

  • Naman, J. L., & Slevin, D. P. 1993. Entrepreneurship and the concept of fit: A model and empirical tests. Strategic Management Journal, 14 (2): 137–153.

    Article  Google Scholar 

  • Oviatt, B. M., & McDougall, P. P. 1994. Toward a theory of international new ventures. Journal of International Business Studies, 25 (1): 45–64.

    Article  Google Scholar 

  • Oviatt, B. M., & McDougall, P. P. 1997. Challenges for internationalization process theory: The case of international new ventures. Management International Review, 37 (2): 85–99.

    Google Scholar 

  • Peng, M. W. 2000. Business strategies in transition economies. London: Sage.

    Google Scholar 

  • Peng, M. W., & Zhou, J. Q. 2005. How network strategies and institutional transitions evolve in Asia. Asia Pacific Journal of Management, 22 (4): 321–336.

    Article  Google Scholar 

  • Peteraf, M. 1993. The cornerstones of competitive advantage: A resource-based view. Strategic Management Journal, 14 (3): 179–191.

    Article  Google Scholar 

  • Podsakoff, P., & Organ, D. 1986. Self-reports in organizational research: Problem and prospects. Journal of Management, 12 (4): 531–544.

    Article  Google Scholar 

  • Redding, G. 1996. Weak organizations and strong linkages: Managerial ideology and Chinese family business networks. In G. Hamilton (Ed.), Asian business networks: 47–98. New York: Walter de Gruyter.

    Google Scholar 

  • Reid, S. D. 1981. The decision-maker and export entry and expansion. Journal of International Business Studies, 12 (3): 101–112.

    Article  Google Scholar 

  • Reuber, A. R., & Fischer, E. 1997. The influence of the management team's international experience on the internationalization behaviours of SMEs. Journal of International Business Studies, 28 (4): 807–825.

    Article  Google Scholar 

  • Sapienza, H. J., Autio, E., George, G., & Zahra, S. A. 2006. A capabilities perspective on the effects of early internationalization on firm survival and growth. Academy of Management Review, 31 (4): 914–933.

    Article  Google Scholar 

  • Saxenian, A. 1994. Regional advantage: Culture and competition in Silicon Valley and Route 12. Cambridge, MA: Harvard University Press.

    Google Scholar 

  • Saxenian, A. 2006. The new Argonauts: Regional advantage in a global economy. Cambridge, MA: Harvard University Press.

    Google Scholar 

  • Shane, S., & Khurana, K. 2003. Bringing individuals back in: the effects of career experience on new firm founding. Industrial and Corporate Change, 12 (3): 519–543.

    Article  Google Scholar 

  • Szulanski, G. 1996. Exploring internal stickiness: Impediments to the transfer of best practice within the firm. Strategic Management Journal, 17 (Special Issue): 27–43.

    Article  Google Scholar 

  • Tan, J. 2006. Growth of industry clusters and innovation: Lessons from Beijing Zhongguancun Science Park. Journal of Business Venturing, 21 (6): 827–850.

    Article  Google Scholar 

  • Tung, R., & van Witteloostuijn, A. 2008. From the editors: What makes a study sufficiently international? Journal of International Business Studies, 39 (2): 180–183.

    Article  Google Scholar 

  • Vermeulen, F., & Barkema, H. 2001. Learning through acquisitions. Academy of Management Journal, 44 (3): 457–476.

    Article  Google Scholar 

  • Wernerfelt, B. 1984. A resource-based view of the firm. Strategic Management Journal, 5 (2): 171–180.

    Article  Google Scholar 

  • Westhead, P., Wright, M., & Ucbasaran, D. 2001. The internationalization of new and small firms: A resource-based view. Journal of Business Venturing, 16 (4): 333–358.

    Article  Google Scholar 

  • Wright, M., Robbie, K., & Ennew, C. 1997. Venture capitalists and serial entrepreneurs. Journal of Business Venturing, 12 (3): 227–249.

    Article  Google Scholar 

  • Wright, M., Filatotchev, I., Hoskisson, R., & Peng, M. 2005. Strategy research in emerging economies: Challenging the conventional wisdom. Journal of Management Studies, 42 (1): 1–34.

    Article  Google Scholar 

  • Wright, M., Westhead, P., & Ucbasaran, D. 2007. Internationalization of SMEs and international entrepreneurship: A critique and policy implications. Regional Studies, 41 (7): 1013–1030.

    Article  Google Scholar 

  • Wright, R. W. 1999. International entrepreneurship: Globalization of emerging businesses. Research in global strategic management vol. 7. Stamford, CT: JAI Press.

    Google Scholar 

  • Zahra, S. A., Ireland, R. D., & Hitt, M. A. 2000. International expansion by new venture firms: International diversity, mode of market entry, technological learning, and performance. Academy of Management Journal, 43 (5): 925–950.

    Article  Google Scholar 

  • Zhou, L., Wu, W., & Luo, X. 2007. Internationalization and the performance of born-global SMEs: The mediating role of social networks. Journal of International Business Studies, 38 (4): 673–690.

    Article  Google Scholar 

Download references

Acknowledgements

An earlier version of this paper was presented at the 2007 Academy of Management Conference (Philadelphia, USA). We are grateful to Garry Bruton, Keith Brouthers, Shaker Zahra, Lorraine Eden (the Editor) and two anonymous referees for their insightful comments. Financial support from the British Academy grant number LRG-39371 is gratefully acknowledged.

Author information

Authors and Affiliations

Authors

Additional information

Accepted by Shaker Zahra, and Lorraine Eden, Departmental Editors, 10 April 2008. This paper has been with the authors for two revisions.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Filatotchev, I., Liu, X., Buck, T. et al. The export orientation and export performance of high-technology SMEs in emerging markets: The effects of knowledge transfer by returnee entrepreneurs. J Int Bus Stud 40, 1005–1021 (2009). https://doi.org/10.1057/jibs.2008.105

Download citation

  • Received:

  • Revised:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1057/jibs.2008.105

Keywords

Navigation