Abstract
Abstract
This study highlights the often overlooked but important nature of the combined tripartite effect of institutional quality, firm-specific resources and industry conditions in understanding internationalization of small and medium-sized enterprises (SMEs), especially in the context of an emerging African economy. Institutional quality was assessed by government effectiveness and social network; organizational resources was measured by market orientation while industry conditions was captured by competitive intensity. Institutional theory, resource-based and dynamic capabilities view, and industry-based view were integrated to serve as the study’s theoretical framework. 145 valid data samples were obtained from SMEs with export commitments in Nigeria. Confirmatory factor analysis was conducted while hierarchical moderated regression analysis was employed to test all hypothesized relationships. Findings showed that government institutional support does not directly influence SMEs’ international performance, attesting to the institutional void paradigm. Nonetheless, social network significantly predicted SMEs’ internationalization. Additionally, both market orientation and competitive intensity had a positive effect on internationalization; and positively strengthened the relationship between government effectiveness and internationalization. Further, CEOs’ education was found to be germane for SMEs’ internationalization. Implications are discussed.
Keywords Government effectiveness, Market orientation, Social network, Competitive intensity, International performance, Institutional void, Nigeria.