The role of macro-level factors has been identified as pivotal to firm performance. Yet, there is little focus on how home country infrastructure influences the export growth of small and medium-sized enterprises (SMEs) in latecomer economies such as transition countries. This paper addresses this concern by arguing that the relevance of home country infrastructure on SME export growth depends on the dynamic interactions of enterprise capabilities. We empirically test this assertion with a sample of 8663 firms from 16 transition economies. Using the Structural equation modelling (PLS-SEM) technique, we find that home-country infrastructure does not promote SME export growth. Additionally, we find that home-country infrastructure dampens the digitalisation of export-oriented SMEs. Moreover, we provide evidence suggesting that SMEs can benefit from digitalisation by leveraging innovation capabilities in their export growth strategies. The findings of this study strongly indicate that policy actions targeting infrastructure improvement in transition economies will enhance SME capabilities and export performance.

This study delves into the critical role of market orientation (MO) in international entrepreneurship, particularly in the context of exports. While previous research emphasizes the positive impact of MO on firm performance, this study examines its entrepreneurial implications, highlighting the overlooked dimensions of opportunity recognition and exploitation in an international business context. By differentiating between proactive and responsive MOs, this study elucidates how each dimension uniquely contributes to firm performance through these entrepreneurial mechanisms. Furthermore, it examines the moderating effects of export assistance and environmental dynamism on these relationships, providing a holistic view of MO’s role in entrepreneurial outcomes within international markets.

This work theorizes about the dyadic interplay between entrepreneurs and VCs and how these individual-level interactions lead to firm-level outcomes such as the initial decision to internationalize. We integrate agency and prospect theories to explain how different risk preferences (competing and non-competing) combinations between entrepreneurs and VCs can reduce or increase agency effects and the subsequent effect on the propensity to internationalize. Using prospect theory’s utility curve, we connote the reference point as an individual aspiration to show how higher entrepreneurial aspiration (reference point shifting) helps avoid agency effects and increases the propensity to internationalize. Based on six different scenarios, we provide several testable propositions and future research directions that can enrich international entrepreneurship theory and practice.