Enhancing the learning advantages of newness: The role of internal social capital in the international performance of young entrepreneurial firms

In this paper, we draw on social capital theory to explore the role of internal social exchanges in contributing to the international performance of young entrepreneurial firms. We argue that internal social capital embedded within young ventures helps them cultivate international learning effort pertaining to the effective alignment of resources and activities related to their international growth. The empirical analysis, based on a sample of 150 young internationalizing SMEs from India, demonstrates both direct and indirect effects of internal social capital on international performance. Whereas previous research focuses on the importance of social networks with external actors, our study emphasizes internal social capital linked to the underlying learning advantages of newness and opportunity capture and contributes to the literature on early and rapid internationalization. © 2020 Elsevier Inc.