Internationalization of SMEs and market orientation: A study of customer knowledge, networks and cultural knowledge

Abstract

Purpose

This paper aims to study the context of market orientation and the contribution of customer knowledge, networking and cultural knowledge to market orientation particularly to the internationalization of firms in developing economies.

Design/methodology/approach

A multiple case approach is adopted with four Swedish firms internationalizing to the Indian market. The data was obtained through personal interviews and typically lasted an hour. Follow-up questions were obtained by personal meetings or on Skype. Data was collected over a period of seven months during 2016-2017.

Findings

This study highlights the importance of customer knowledge, networking and cultural knowledge for foreign small and medium enterprises (SMEs) in the initial stages of internationalization. It proposes that a holistic market sensing of the target market can be achieved as the three constructs contribute to the market orientation of the firms and help in devising relevant strategic fit with the market.

Research limitations/implications

The sample size is small due to a limited number of Swedish SMEs who have the experience of operating in the Indian market. Future studies may include the Nordic region, and a quantitative approach for testing market orientation frameworks can be adopted.

Originality/value

This study lifts the concept of market sensing as customer knowledge, networking and cultural knowledge strengthen the market orientation of the firm. It addresses the research gap about limited research in developing market contexts for SME internationalization and specifically on Swedish SMEs in the Indian market.

Citation

Billore, S. and Billore, G. (2020), "Internationalization of SMEs and market orientation: A study of customer knowledge, networks and cultural knowledge", European Business Review, Vol. 32 No. 1, pp. 69-85. https://doi.org/10.1108/EBR-06-2018-0112