The Information Paradox in Internationalization: Can ignorance ever be bliss? Evidence from emerging market SME managers

Abstract

This research investigates the effect of knowledge on the perception of internationalization barriers and the intention to internationalize among emerging market small/medium enterprise (SME) managers. Drawing from social cognitive theories in entrepreneurship, the study tests a paradoxical effect of knowledge on a sample of 150 managers. The model predicts that the characteristics specific to emerging market SMEs will reverse the traditionally positive relationship of knowledge on internationalization intention commonly found in the literature. Consistent with the hypothesis, the results indicate that knowledge relates negatively to internationalization intention. Additionally, the effect of perceived barriers on intention to internationalize becomes positive when perceived international market knowledge is higher. By clarifying the role of knowledge in the emerging market SME context, the study adds novel understanding to the key concept of internationalization knowledge.