The mediated and moderated effects of IEO on international performance: An investigation of emerging market SMEs

Mixed and inconsistent research results linking International Entrepreneurial Orientation (IEO) to international performance have led to controversies about the value of IEO as a determinant of international performance. Our research proposes a new model that considers international dynamic capabilities (IDCs) as a mediator between IEO and international performance. Cultural and institutional distance are considered as boundary conditions. Using multi-country, multi-informant, and multi-source data collected from 303 SMEs in China and Tunisia, we find that IDCs mediate the effect of SMEs' IEO on international performance, but the impacts of three IEO dimensions on IDCs vary under different institutional and cultural contexts.