EXPRESS: Marketing Capabilities, Strategy, and Performance in the International SME

When expanding abroad, small- and medium-size enterprises (SMEs) experience various constraints, especially the liabilities of small size and foreignness. In this study, we examine postures, capabilities, and strategies related to international brand marketing that help SMEs overcome such challenges, establish a brand presence, and attain superior performance in foreign markets. Framing our investigation in the internationalization and capabilities views, we employ multimethod approaches in a two-phase study among internationalizing SMEs based in Taiwan. In phase one, we undertake an extensive literature review and then conduct case studies to formulate a conceptual model. In phase two, we validate the model and associated hypotheses using survey data from a large sample of SMEs that target their products to markets worldwide. Results point to critical roles for these key constructs — international entrepreneurial orientation, international social media capability, and international market knowledge capability — as key antecedents to international branding capability and international brand strategy, in SME international performance. We discuss the theoretical and managerial implications of these findings, highlighting the role of the critical constructs identified above in driving superior international performance in resource-constrained SMEs.