Contents lists available at ScienceDirect Journal of International Management journal homepage: www.elsevier.com/locate/intman Modelling the effects of institutional support and international knowledge on competitive capabilities and international performance: Evidence from an emerging economy Mohammad Falahat a , Yan Yin Lee b , T. Ramayah d,e , Pedro Soto-Acosta c, ⁎ a Faculty of Accountancy and Management, Universiti Tunku Abdul Rahman (UTAR), Bandar Sungai Long, 43000 Kajang, Selangor, Malaysia b Department of Consultancy and Commercialisation, Universiti Tunku Abdul Rahman (UTAR), Jalan Sungai Long 9, Bandar Sungai Long, 43000 Kajang, Selangor, Malaysia c Department of Management & Finance, University of Murcia, Campus de Espinardo, 30100 Espinardo, Murcia, Spain d School of Management, Universiti Sains Malaysia (USM), 11800 Minden, Penang, Malaysia e Internet Innovation Research Center, Minjiang University, A212, Newhuadu Business School, Minjiang University, 200 Xiyuangong Road, Shangjie Town, Minhou County, Fuzhou, Fujian, China ARTICLE INFO Keywords: Government support International knowledge Competitive capabilities International performance Internationalization ABSTRACT This paper explores the process through which institutional support initiatives contribute to the international performance of firms from the small open economy of Malaysia. We examine both direct and indirect causal effects of institutional support (informational, training, trade mobility and financial aid-related support) on internationalization. We develop a model to address how institutional support initiatives affect the performance of export-oriented or so-called born global firms. From a survey of 250 firms from Malaysia, an emerging Southeast Asian market, we find that government support initiatives do not have significant impacts on firm performance unless examined based on processes of government support initiatives, international knowledge, com- mitment, competitive capabilities, and international performance. Government support in- itiatives play a critical role in export-oriented firms from small open economies (SMOPECs) in emerging markets by contributing to a number of contextual deficits that determine the inter- national performance of a firm. This study provides guidelines for policy makers and business owners on how institutional support can facilitate the accumulation of knowledge about inter- national markets, enhance commitment to exports and help firms gain competitive capabilities in the export market for greater success in international markets. 1. Introduction Internationalization contributes significantly to the economic growth of small open economies (SMOPECs) (Kahiya, 2020). SMOPECs in emerging markets share characteristics that distinguish them from advanced economies, including infrastructure lim- itations, less developed socioeconomic performance, and more political risks and administrative barriers that tend to affect national economic development and the performance of individual companies (Falahat et al., 2018). In addition, at the firm level, emerging market SMEs are hindered in their internationalization efforts by limited financial and knowledge resources that could help them https://doi.org/10.1016/j.intman.2020.100779 Received 2 March 2020; Received in revised form 27 June 2020; Accepted 29 July 2020 ⁎ Corresponding author. E-mail addresses: Falahat@utar.edu.my (M. Falahat), leeyanyin@utar.edu.my (Y.Y. Lee), ramayah@usm.my (T. Ramayah), psoto@um.es (P. Soto-Acosta). Journal of International Management 26 (2020) 100779 1075-4253/ © 2020 Elsevier Inc. All rights reserved. T