Internationalisation commitment of emerging market firms: A comparative study of Chile and Brazil

Abstract

Purpose

Enhancing firm commitment towards internationalisation is an important step towards ensuring successful international performance. However, there is limited research on this topic for emerging market firms. The purpose of this paper is to investigate the factors that influence the internationalisation commitment of emerging market firms located in two Latin American countries with different institutional environments.

Design/methodology/approach

This study proposes and tests a conceptual model that includes drivers and barriers of internationalisation commitment. Data were collected from Chilean and Brazilian firms. The model uses confirmatory factor analysis to develop the underlying multi-item constructs and structural equation modelling to test the model.

Findings

The results show that managers’ perceptions of firm resources and capabilities are significant drivers of internationalisation commitment in both countries. In addition, perceptions of internal firm-specific barriers, such as a manager’s lack of international experience and knowledge, are negatively related to internationalisation commitment in Chile, but not in Brazil. Finally, external environmental barriers are negatively related to internationalisation commitment in Brazil, but not in Chile.

Practical implications

The context for the study is Chile and Brazil. Both are important emerging markets in Latin America, with a strong focus on firm internationalisation. The research design is cross-sectional and so does not allow for any causal claims to be made. The findings have important implications for internationalisation efforts of managers and export promotion agencies of emerging markets with different institutional environments.

Originality/value

This research contributes to the relatively scant but increasing number of empirical studies which investigate emerging market internationalisation in Latin America.

Citation

Bianchi, C., Carneiro, J. and Wickramasekera, R. (2018), "Internationalisation commitment of emerging market firms: A comparative study of Chile and Brazil", Journal of Small Business and Enterprise Development, Vol. 25 No. 2, pp. 201-221. https://doi.org/10.1108/JSBED-07-2017-0221