International entrepreneurial orientation and the international performance of returnee firms: the moderating roles of networks and timing of internationalisation

Research has shown that returnee entrepreneurial firms exhibit high levels of International Entrepreneurial Orientation (IEO). However, evidence suggests ambiguity regarding how the level of IEO affects firms' international performance. Drawing on social network theory, this study theorises about and specifies the network conditions under which IEO leads to higher international performance. Furthermore, whether the effects of networks vary with the timing of internationalisation is investigated. A sample of 216 Chinese returnee entrepreneurial firms with international business operations was used to test the proposed hypotheses. Results confirm that the effect of IEO on firms' international performance is enhanced by both international and domestic networks. Furthermore, the moderating effects of different types of networks vary between early and late internationalised firms. These findings help clarify inconsistent results on the relationship between IEO and international performance by ascertaining the concurrent effects of international and domestic networks and suggesting that the timing of internationalisation may need to be considered in exploiting the benefits of such networks.