The impact of network relationships on the internationalization process of Vietnamese small and medium enterprises

Abstract

Vietnam’s Small and Medium-sized Enterprises (SMEs) have rapidly engaged in internationalization over the past two decades. This study applies a network approach to examine what factors influence the internationalization of enterprises (SMEs). We surveyed 145 enterprises (SMEs) in Ho Chi Minh City in the field of manufacturing, showing that business and personal networks affect the internationalization of enterprises (SMEs). Specifically, a business network positively affects the time of first international market entry, internationalization speed, and resource commitments, while a personal network has a positive impact, speed of internationalization, and resource commitments, but not the timing of initial entry into the international market. In this study, we analyze and evaluate our survey results to discuss the impact and influence of relationship networks on the internationalization ability of SMEs and, at the same time, propose some directions for future research. Policy implications on how to facilitate the internationalization of (SMEs) are also discussed.