Entrepreneurial Orientation and MSMEs Internationalization: The mediating role of Politicisation

Abstract

The study seeks to determine how entrepreneurial orientation in strategic decision-making process (SDMP) can affect the pace of internationalization, considering the mediating effects of politicisation. Using data from 298 Saudi companies that come under the micro, small and medium-sized enterprises (MSMEs), based on survey and semi-structured interviews, and after the modelling process applying the structural equation model (PLS-SEM) approach, the study found that entrepreneurial orientation reduced the role of politicisation in SDMP; however, the findings did not approve any positive impact in the case of low-level politicisation on the pace of internationalisation. Likewise, this study did not find any influence of environmental munificence on the relationship between politicisation and the pace of internationalisation. Thus, studying and adopting both the resource-based perspective, the organisational information processing theory, and the pace of internationalisation will be fundamental for the MSMEs leaders, as they enrich and support each of their SDMP. The reduction of politicisation effect and the entrepreneurial orientation support the managers of firms to improve their export performance, innovativeness, and global competitiveness.