The perceived usefulness of network experiential knowledge in the internationalizing firm

Because networks are a growing mode of doing business, internationalizing firms need to understand how they can use experiential knowledge of networks. In the context of organizational learning theory, we discuss in this article the perceived usefulness of network experiential knowledge, its antecedents, and its performance effects in the internationalization process of firms. A LISREL analysis of 256 firms found that more perceived usefulness of network experiential knowledge has a performance enhancing effect. Preceding the perceived usefulness of network experiential knowledge is internationalization experiential knowledge. In-depth study of interaction effects found that firms that have diverse market experiences and that are in a new foreign expansion situation particularly find their network experiential knowledge useful. This implies that the internationalizing firm builds routines from diverse market experiences for the development of networks in the early stages of a specific new international business expansion.