The role of entrepreneurial networks in overcoming export barriers of small and medium-sized enterprises from developing economies

Abstract

The role of entrepreneurial networks in overcoming export barriers of small and medium-sized enterprises (SMEs) varies depending on the development level of the domestic institutional environment. So far relevant literature has been dominantly focused on the effects of participation of SMEs from developed economies in different forms of domestic and international entrepreneurial networks. However, in the last two decades, the SMEs from post-transition economies (PTE), namely developing economies, have become more involved in international business which is an important challenge for them because of resource scarcity and a long period of international isolation. Starting from the entrepreneurial perspective of internationalization based on accelerated internationalization models, the paper considers modes, motives, benefits, and obstacles of establishing alternative management structures - SME entrepreneurial networks in institutional discontinuity conditions. The research aim is to indicate the importance of establishing network connections as a modus for overcoming resource and institutional export barriers of SMEs from PTE. The research is based on the analysis and synthesis of relevant literature in the field of international entrepreneurship and network approach to the internationalization of SMEs in the context of PTE. Based on conceptual analysis and the results based on previous research, pragmatic recommendations for export SMEs from PTE regarding the choice of appropriate participation modality in entrepreneurial networks are stated.