Mitigating the impact of late internationalization of emerging market SMEs: A dynamic capability perspective

In this study, we investigate the impact of internationalization timing on the export performance of small and medium-sized enterprises (SMEs) in emerging markets. Our theoretical foci are the learning advantage of newness theory and the dynamic capability perspective to focus on how late internationalization can adversely affect export performance. Our findings suggest that the dynamic capabilities and industry experience of the SME Manager can mitigate these adverse effects. The time since initial international entry and an informal approach during export commencement exacerbate them. This conclusion is based on examining a substantial dataset, encompassing 8,278 SMEs from 84 emerging economies, collected over 14 years (2006–2020). This study uncovers novel insights into the intricate dynamics of SME internationalization and its influence on export performance.