SME networking capabilities in export markets and contingencies related to power asymmetry and brand assets

ABSTRACT

This study looks at SME strategic dilemmas in the post-covid world by using the concept of three different but related networking capabilities to deal with the cyclical nature of a business relationship portfolio. The study adds to our understanding of networking capabilities by addressing when specific capabilities (network expansion capabilities, network development capabilities and network management capabilities) should be used by internationalized SMEs towards their partners in export markets. To test the hypothesized structural model, we use survey data from 250 SME manufacturers in the dynamically internationalizing Polish furniture industry. The research results prove that while SME capabilities for business network development and for business network management improve relationships with current retail partners in export markets, network expansion capabilities directly help in improving export market performance. However, the use of networking capabilities is contingent upon external and internal factors. On the one hand, SMEs may more effectively use network expansion capabilities if these are supported by brand assets. On the other hand, SME use of network development capabilities is restricted by the coercive power advantage on the side of export retail partners. © 2023 Elsevier Inc.