How can emerging market small and medium-sized enterprises maximise internationalisation benefits? The moderating effect of organisational flexibility

Abstract

A fundamental assumption in the small business literature is that the competitive advantages of small and medium-sized enterprises (SMEs) are rooted in their organisational flexibility. However, prior research tends to view the effects of different types of organisational flexibility as homogeneous. In the context of the internationalisation of SMEs from emerging markets, this article proposes that different types of organisational flexibility influence the extent to which SMEs can benefit from their internationalisation. Using a sample of Chinese SMEs, the study shows that strategic flexibility helps emerging market SMEs benefit from their internationalisation, but that operational flexibility weakens the main effect. Finally, structural flexibility has no significant influence on the internationalisation–performance relationship.