The internationalization of small to medium-sized enterprises: do all levels in international networking matter?

Abstract

The purpose of this study was to investigate whether each level in international networking (network extension, network penetration and network integration) matters in the internationalization of small to medium-sized enterprises (SMEs). Design/methodology/approach – The study adopted a cross-sectional and correlational research design. The data were collected through a questionnaire survey of 206 exporting SMEs in Uganda. The study employed a structural equation modelling (SEM) technique using partial least square (PLS) to test the hypothesis. Findings – The findings revealed that network extension and network integration do matter in SMEs’ internationalization, while network penetration does not. Practical implications – SMEs in developing countries need to concentrate on network extension and network integration levels to successfully internationalize their operations. Originality/value – The study provides initial evidence on whether network extension, network penetration and network integration matter in SMEs’ internationalization in developing countries like Uganda.