Knowledge Acquisition and Networking in International Trade Show: The Impact on Market Selection and Market Entry Modes

Abstract

Contemporary research in the field of international business has shown interest in the international activities of small and medium enterprises (SMEs) in emerging economies. The related literatures have been growing in the second half of the 20th century. Among these, the relevant literatures with regards to international trade show have shown their significant in gaining knowledge and network on international markets. Despite the critical roles in promoting products and service, international trade show has received little attention in the SMEs’ context. In addition, the international trade show activities and internationalization process in the SMEs’ context have become one of the most international business areas of study. The emphasis of this study is on the roles of knowledge and network acquired from participating in international trade shows of SMEs.

The qualitative research aims to indicate the influences resulted from different types of knowledge and network on two mains SMEs internationalization: market selection and entry mode. Based on literature, there are five types of knowledges: market, product, cultural, competitor, and technological knowledge and four types of networks: buyer, competitor, supplier, professional and government network that SMEs received from trade show participation. Market selection are divided into different categories namely, pattern, stage, as well as pace, and type for entry mode.

The qualitative data were collected by semi-structured interview of managers/owners with a sample of twenty two SMEs was conducted to determine the influence of knowledge and network on market selection and entry mode. The findings lead to the conclusion of definition for each type of knowledge and network including shipping knowledge which was not initially found on existing literatures. In addition, different firms perceive the importance of each elements in knowledge and network unequally. All of knowledge and network was blended into knowledge and network that firms received from other sources. Their impact and process on market selection and entry mode are differently depends on capabilities and limitation of each firms. Various internationalization theories including Uppsala, International New Venture, Born global, Resource-based view, Eclectric paradigm and Network are used to discuss the findings.

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