The moderating effect of exploitative and exploratory learning on internationalisation–performance relationship in SMEs

The internationalisation of small and medium enterprises (SMEs) is an increasing phenomenon, but the effective advantages of internationalisation have been disputed yet. This study extends internationalisation research by focusing on learning perspective to investigate the relationship between the firm’s internationalisation and performance. Specifically, a path regression model is applied to examine how exploitative and exploratory learning is able to moderate SMEs’ exporting process to drive business performance. The differences in organisational learning are further investigated compared to domestic firms. The findings suggest that exploitation does not affect SMEs’ internationalisation–performance link, but it is likely a critical antecedent to efficiently move to global markets, while exploration plays a significant role to positively leverage the effect of international involvement on business performance.