On the Way to Being a Micromultinational – Hindrances and Success Factors

Abstract

Purpose

The chapter addresses two research questions. Firstly, where does the line between the highly internationalised small and medium enterprises (SME) and micromultinationals (mMNE) lie? Secondly, what are the success factors and hindrances to the process of becoming an mMNE? How to internationalise being a small company and build prosperous relationships on the foreign and domestic market on the way to becoming mMNE?

Methodology/approach

The single company longitudinal case study of a furniture producer from Poland is analysed. Data for the case was collected using six detailed interviews.

Findings

Due to different networking possibilities, which are often based on long-term but not formalised cooperation, sometimes the line between the highly internationalised SME, formally using only exporting and the mMNE is very narrow. The analysis corroborates the former studies concerning factors of the successful establishment of mMNEs, drawing attention to the importance of entrepreneurship and networking. However strong embeddedness in domestic relationships may constitute, at the same time, a driver as well as a hindrance in the process described.

Originality/value

The case study examines in detail the process of becoming an mMNE which may be used for teaching purposes regarding new organisational forms in international business.

Citation

Ratajczak-Mrozek, M. (2015), "On the Way to Being a Micromultinational – Hindrances and Success Factors", The Future of Global Organizing (Progress in International Business Research, Vol. 10), Emerald Group Publishing Limited, Leeds, pp. 295-311. https://doi.org/10.1108/S1745-886220150000010016