Market orientation and internationalization in small and medium-sized enterprises

Abstract

This article builds on studies from the literature on market orientation (MO) and internationalization to develop a model and a set of hypotheses regarding the relationships among MO, knowledge acquisition (KA), and market commitment (MC), and the direct and indirect effects of these variables on the performance of small and medium-sized enterprises (SMEs) in foreign markets. The model and its hypotheses are tested by means of an empirical study of a multi-industry sample of Spanish SMEs operating in foreign markets. The results, obtained by structural equation modeling, indicate that a direct positive relationship exists between MO and a strategy of internationalization, and that the effect of MO on performance in foreign markets is moderated by KA and MC. © 2008 International Council for Small Business.