Entrepreneurship, Innovation and Education
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Entrepreneurship, Innovation and Education

Frontiers in European Entrepreneurship Research

Edited by Ulla Hytti, Robert Blackburn and Eddy Laveren

Entrepreneurship, Innovation and Education explores the need for researching innovation and learning in family firms, micro firms, SMEs and in rural and network contexts. The chapters offer new insights into the antecedents of business performance in SMEs by investigating social capital and marketing capabilities. This book critically discusses innovation and entrepreneurship matters in new and varied contexts in Europe.
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Chapter 6: Internationalized SMEs: the impact of market orientation and marketing capability on business performance

Sanna Joensuu-Salo, Kirsti Sorama and Salla Kettunen

Abstract

This chapter analyses (1) the impact of market orientation (MO) and marketing capability on the business performance of small and medium-sized enterprises (SMEs) in the forest sector, and (2) the difference of this impact between internationalized SMEs and SMEs operating only in domestic markets within this sector. The data for this study comes from Finnish SMEs. Linear regression analysis showed that MO did not have a direct effect on the performance but marketing capability did. Therefore, an indirect effect was tested using path analysis. The final empirical path model was tested separately for internationalized SMEs and SMEs operating only in domestic markets. In the final model, marketing capability mediates the effect of MO on performance. Marketing capability had more value in explaining the business performance of internationalized SMEs than SMEs operating only in domestic markets.

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