Entrepreneurial English Competence and Competitiveness in Micro and Small Enterprises: A Linguistic Resource Conversion Perspective

Authors

  • Laili Rahmatul Fajri Universitas Islam Tasikmalaya Author

DOI:

https://doi.org/10.66203/econovia.01210

Keywords:

entrepreneurial english communication competence, linguistic resource conversion, market interface capability, opportunity conversion, entrepreneurial competitiveness, micro and small enterprises

Abstract

Digitalization has expanded market connectivity for micro and small enterprises (MSEs), but access to geographically dispersed markets does not necessarily translate into competitive economic outcomes. A critical theoretical gap concerns how entrepreneur-held English communication competence becomes a venture-level capability capable of converting market possibilities into economic value. Addressing this gap, the article develops Entrepreneurial Linguistic Resource Conversion Theory (ELRCT), a middle-range explanation of linguistic resource conversion in owner-dependent MSEs. The theory integrates language-sensitive international business research, resource-based and dynamic capability perspectives, market-facing capability reasoning, and opportunity research to specify a conditional cross-level conversion mechanism. ELRCT conceptualizes Entrepreneurial English Communication Competence as a situated entrepreneurial resource that contributes to Market Interface Capability, which facilitates Opportunity Conversion and subsequently Entrepreneurial Competitiveness. Digital Market Embeddedness and Cross-Border Market Exposure delimit the strength of these conversion processes. By replacing direct proficiency–performance reasoning with a resource-capability-realization logic, ELRCT clarifies the linguistic microfoundations of market-facing capability and provides testable propositions for examining when linguistic resources acquire competitive economic value in MSEs.

References

Barner-Rasmussen, W., Gaibrois, C., & Wilmot, N. V. (2024). Perfection, hybridity or shutting up? A cross-country study of how language ideologies shape participation in international business. International Business Review, 33(1), Article 102189. https://doi.org/10.1016/j.ibusrev.2023.102189

Barney, J., Wright, M., & Ketchen, D. J., Jr. (2001). The resource-based view of the firm: Ten years after 1991. Journal of Management, 27(6), 625–641. https://doi.org/10.1177/014920630102700601

Bodlaj, M., & Čater, B. (2022). Responsive and proactive market orientation in relation to SMEs’ export venture performance: The mediating role of marketing capabilities. Journal of Business Research, 138, 256–265. https://doi.org/10.1016/j.jbusres.2021.09.034

Brannen, M. Y., Piekkari, R., & Tietze, S. (2014). The multifaceted role of language in international business: Unpacking the forms, functions and features of a critical challenge to MNC theory and performance. Journal of International Business Studies, 45(5), 495–507. https://doi.org/10.1057/jibs.2014.24

Chatterjee, S., Chaudhuri, R., & Vrontis, D. (2022). Examining the role of cross-cultural factors in the international market on customer engagement and purchase intention. Journal of International Management, 28(3), Article 100966. https://doi.org/10.1016/j.intman.2022.100966

Day, G. S. (1994). The capabilities of market-driven organizations. Journal of Marketing, 58(4), 37–52. https://doi.org/10.1177/002224299405800404

Donbesuur, F., Owusu-Yirenkyi, D., Ampong, G. O. A., & Hultman, M. (2023). Enhancing export intensity of entrepreneurial firms through bricolage and international opportunity recognition: The differential roles of explorative and exploitative learning. Journal of Business Research, 156, Article 113467. https://doi.org/10.1016/j.jbusres.2022.113467

Egger, P. H., & Lassmann, A. (2012). The language effect in international trade: A meta-analysis. Economics Letters, 116(2), 221–224. https://doi.org/10.1016/j.econlet.2012.02.018

Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: What are they? Strategic Management Journal, 21(10–11), 1105–1121. https://doi.org/10.1002/1097-0266(200010/11)21:10/11%3C1105::AID-SMJ133%3E3.0.CO;2-E

Fraccastoro, S., Gabrielsson, M., & Pullins, E. B. (2021). The integrated use of social media, digital, and traditional communication tools in the B2B sales process of international SMEs. International Business Review, 30(4), Article 101776. https://doi.org/10.1016/j.ibusrev.2020.101776

Gkypali, A., Love, J. H., & Roper, S. (2021). Export status and SME productivity: Learning-to-export versus learning-by-exporting. Journal of Business Research, 128, 486–498. https://doi.org/10.1016/j.jbusres.2021.02.026

Hoque, M. T., Nath, P., Ahammad, M. F., Tzokas, N., & Yip, N. (2022). Constituents of dynamic marketing capability: Strategic fit and heterogeneity in export performance. Journal of Business Research, 144, 1007–1023. https://doi.org/10.1016/j.jbusres.2022.02.011

Hu, L., Filipescu, D. A., & Pergelova, A. (2024). Understanding SMEs’ internationalization through digital platforms: The role of knowledge sharing and consumer education. International Marketing Review, 41(5), 1044–1073. https://doi.org/10.1108/IMR-09-2023-0252

Hultman, M., Iveson, A., & Oghazi, P. (2023). Talk less and listen more? The effectiveness of social media talking and listening tactics on export performance. Journal of Business Research, 159, Article 113751. https://doi.org/10.1016/j.jbusres.2023.113751

Kalinic, I., & Brouthers, K. D. (2022). Entrepreneurial orientation, export channel selection, and export performance of SMEs. International Business Review, 31(1), Article 101901. https://doi.org/10.1016/j.ibusrev.2021.101901

Kankaanranta, A., & Planken, B. (2010). BELF competence as business knowledge of internationally operating business professionals. Journal of Business Communication, 47(4), 380–407. https://doi.org/10.1177/0021943610377301

Karhunen, P., Kankaanranta, A., Louhiala-Salminen, L., & Piekkari, R. (2018). Let’s talk about language: A review of language-sensitive research in international management. Journal of Management Studies, 55(6), 980–1013. https://doi.org/10.1111/joms.12354

Kaur, J., & Birlik, S. (2021). Communicative effectiveness in BELF (English as a Business Lingua Franca) meetings: ‘Explaining’ as a pragmatic strategy. The Modern Language Journal, 105(3), 623–638. https://doi.org/10.1111/modl.12717

Ku, H., & Zussman, A. (2010). Lingua franca: The role of English in international trade. Journal of Economic Behavior & Organization, 75(2), 250–260. https://doi.org/10.1016/j.jebo.2010.03.013

Martín Martín, O., Chetty, S., & Bai, W. (2022). Foreign market entry knowledge and international performance: The mediating role of international market selection and network capability. Journal of World Business, 57(2), Article 101266. https://doi.org/10.1016/j.jwb.2021.101266

Meier, A., Eller, R., & Peters, M. (2025). Creating competitiveness in incumbent small- and medium-sized enterprises: A revised perspective on digital transformation. Journal of Business Research, 186, Article 115028. https://doi.org/10.1016/j.jbusres.2024.115028

Melitz, J., & Toubal, F. (2014). Native language, spoken language, translation and trade. Journal of International Economics, 93(2), 351–363. https://doi.org/10.1016/j.jinteco.2014.04.004

Merín-Rodrigáñez, J., Alegre, J., & Dasí, À. (2025). International entrepreneurship in innovative SMEs: Examining the connection between CEOs’ dynamic managerial capabilities, business model innovation and export performance. International Business Review, 34(2), Article 102321. https://doi.org/10.1016/j.ibusrev.2024.102321

Ricci, R., Battaglia, D., & Neirotti, P. (2021). External knowledge search, opportunity recognition and Industry 4.0 adoption in SMEs. International Journal of Production Economics, 240, Article 108234. https://doi.org/10.1016/j.ijpe.2021.108234

Strango, C., Mutascu, M., & Hegerty, S. W. (2025). Does English proficiency promote international trade? International Economics, 183, Article 100628. https://doi.org/10.1016/j.inteco.2025.100628

Su, L., Cui, A. P., Samiee, S., & Zou, S. (2022). Exploration, exploitation, ambidexterity and the performance of international SMEs. European Journal of Marketing, 56(5), 1372–1397. https://doi.org/10.1108/EJM-03-2021-0153

Talukder, S., & Barner-Rasmussen, W. (2024). Exploring the language choice dilemma of international small firms: A social exchange perspective on English-only versus multilingualism. International Business Review, 33(3), Article 102257. https://doi.org/10.1016/j.ibusrev.2024.102257

Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319–1350. https://doi.org/10.1002/smj.640

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7%3C509::AID-SMJ882%3E3.0.CO;2-Z

Tenzer, H., Pudelko, M., & Harzing, A.-W. (2014). The impact of language barriers on trust formation in multinational teams. Journal of International Business Studies, 45(5), 508–535. https://doi.org/10.1057/jibs.2013.64

Tibrewal, A., de Jong, A., Parkes, G., Tenzer, H., & Bel-Lahsen, M. (2024). Language operative capacity in small and medium-sized enterprises. Management International Review, 64(6), 955–989. https://doi.org/10.1007/s11575-024-00556-2

Tolstoy, D., Rovira Nordman, E., Melén Hånell, S., & Özbek, N. (2021). The development of international e-commerce in retail SMEs: An effectuation perspective. Journal of World Business, 56(3), Article 101165. https://doi.org/10.1016/j.jwb.2020.101165

Tolstoy, D., Rovira Nordman, E., & Vu, U. (2022). The indirect effect of online marketing capabilities on the international performance of e-commerce SMEs. International Business Review, 31(3), Article 101946. https://doi.org/10.1016/j.ibusrev.2021.101946

Westjohn, S. A., Magnusson, P., Franke, G. R., & Peng, Y. (2022). Trust propensity across cultures: The role of collectivism. Journal of International Marketing, 30(1), 1–17. https://doi.org/10.1177/1069031X211036688

Zhang, C., Bai, T., Zhou, A. J., & Zhou, S. S. (2025). Digital platforms, internal digitalization, and internationalization of SMEs. Long Range Planning, 58(6), Article 102588. https://doi.org/10.1016/j.lrp.2025.102588

Downloads

Published

06-07-2026