Abstract
Small and medium-sized enterprises (SMEs) face numerous challenges to stay competitive in the international marketplace. They have to align their business models to suit the needs and wants of customers in different markets. They also have to counter the competition of larger, more affluent firms. To meet these challenges, firms must continually create new business solutions. Whereas larger firms may tap into extensive internal knowledge bases for business creation, SMEs often have to reach outside themselves for creative input. This thesis contends that international entrepreneurship can be fostered in constellations of firms and individuals; in some instances, it may even be more accurate to talk about entrepreneurial networks than about entrepreneurial firms. The bedrock assumption of this thesis is that entrepreneurial opportunities are virtually ingrained in the network structure. Relationships across national borders provide multiple avenues for knowledge to intersect, thus creating new business solutions. It is argued that the internationalization of SMEs can unfold as an ongoing pursuit of entrepreneurial opportunities that emerge in everchanging networks. The findings suggest that network knowledge combination can be addressed as a capability that strongly shapes SMEs’ competitiveness in foreign markets.