Inter-organizational Social Capital, Ambidextrous Innovation and Post-entry Expansion Performance

Abstract

This study develops and tests arguments of the effects of three dimensions of inter-organizational social capital (ISC) – relational, cognitive and structural social capital on ambidextrous innovation and the effect of the latter on post-entry expansion performance. We test these relationships on a sample of 257 internationalized SMEs operating in the UK. Findings from the study indicate that all three dimensions of ISC have positive effects on ambidextrous innovation and that ambidextrous innovation in turn drives both initial and subsequent expansion performance of the sampled firms. The findings further revealed that, ambidextrous innovation mediates the relationships between all three dimensions of ISC and post-entry expansion performance. The findings extend the international entrepreneurship and network research streams by explicating the unique role of ISC in enhancing SMEs’ ambidextrous innovation and post-entry expansion performance.