International Network Searching, Learning, and Explorative Capability: Small and Medium-sized Enterprises from China

Abstract

This study investigates the extent to which international learning intent and different dimensions of international network searching (i.e., breadth and depth) contribute to innovation performance of emerging market small and medium-sized enterprises (ESMEs). We contend that simple international network searching or motivation for learning does not guarantee the successful innovation of ESMEs. The present study posits that the international explorative capabilities of these ESMEs enable them to transform knowledge from external network resources into innovation performance. We collected data from 204 China-based ESMEs and analyzed these data using structural equation modeling. Findings demonstrate that international learning intent and breadth of international network positively affect ESMEs' own explorative capability and thus innovation performance. However, the depth of international network does not significantly influence international explorative capability. Using learning and network searching perspectives on ESMEs' internationalization, this study elucidates that ESMEs can improve their own innovation performance by improving access to and application of external knowledge learned through extensive international partner networks.