Angelika Lindstrand

The perceived usefulness of SMEs previous customer networks in the internationalisation process of firms

Business networks have been found useful for the internationalisation process of small and medium sized enterprises (SMEs). This paper presents the next step in research on internationalising SMEs and networks, as it investigates the unstudied perceived usefulness of the SMEs previous foreign customer networks. The paper uses international knowledge development theory to better understand how firms find previous customer networks useful in internationalisation. A linear regression analysis of an international sample of 494 firms demonstrates that the perceived usefulness of an SMEs previous foreign customers network is increased by the firms experience in diverse national markets, the need for more knowledge about its customers and suppliers, and the commitment to a national market. Utilisation of customer networks is thus an important strategic asset that the international firm develops from varied experiences, customer- and supplier-specific experiences, and national market commitment.