Economics & Finance / Business & Management / Corporate Strategy & Governance

Shocking: Czech SMEs Go Global in Just 1 Year! The Hidden Trap of Personal Connections

Martin Johanson

Did you know that Czech manufacturing SMEs, after the fall of the Iron Curtain, launched their first international deal an average of just 1.06 years after founding? But here's the twist: relying too much on personal relationships (like friends and family) can actually tank your international performance. This research, published in the Journal of World Business by a team led by scholars including Martin Johanson, dives into the international networks of 155 Czech SMEs. It reveals three key dimensions of a CEO's social capital—relationship, cognitive, and structural embeddedness—and how they differently impact internationalization speed and performance. You'll learn why language skills speed things up but don't guarantee success, why a geographically diverse network is a goldmine, and the surprising dark side of personal connections. Watch this to avoid the common pitfalls and accelerate your business's global journey.