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1 – 10 of over 4000Juan M. Gil-Barragan, José A. Belso-Martínez and Francisco Mas-Verdú
Given the unresolved question about which causal conditions contribute to accelerated internationalization among small and medium enterprises (SMEs) from weak institutional…
Abstract
Purpose
Given the unresolved question about which causal conditions contribute to accelerated internationalization among small and medium enterprises (SMEs) from weak institutional environment, this paper aims to combine theoretically relevant antecedents of domestic networks relationships (weak or strong domestic ties) and decision-making logic (effectuation or causation) to explore the configurations that are the most promising for explaining accelerated internationalization.
Design/methodology/approach
This study uses fuzzy-set qualitative comparative analysis (fsQCA) to examine the accelerated internationalization of 33 contrarian cases of SMEs located in weak institutional environment. The data set has been collected through in-depth interviews with managers in Colombia (21 cases) and Peru (12 cases). Building on the findings, an integrative model for accelerated internationalization is presented.
Findings
The authors found that the combination of weak domestic ties and effectuation logic accelerated the internationalization of SMEs with fewer resource constraints. In contrast, strong domestic ties and causation behavior lead to accelerated internationalization of SMEs with greater resource constraints. They propose a model to help enrich the existing literature about the causal configurations for achieving accelerated internationalization in SMEs from weak institutional environment.
Originality/value
The contribution of this study is to provide empirical evidence to address three shortcomings in the literature. First, the mixed results regarding the impact of strong and weak domestic ties and decision-making logic in the accelerated internationalization of SMEs; second, the limited research on domestic networks; and third, the scarce investigation in weak institutional environment, where the emphasis on constrained resources is higher.
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Marta Fernández Olmos and Isabel Díez-Vial
– The purpose of this paper is to examine the effect of the chosen specific internationalization pathway on the relationship between internationalization and firm performance.
Abstract
Purpose
The purpose of this paper is to examine the effect of the chosen specific internationalization pathway on the relationship between internationalization and firm performance.
Design/methodology/approach
This paper analyses the internationalization pathway among small- and medium-sized enterprises which internationalize through exporting and are more limited in terms of the resources they can leverage across markets.
Findings
Empirical evidence obtained from a sample of wineries in La Rioja shows that the internationalization – export performance relationship is characterized by a U-shaped curve for firms with a gradual internationalization pathway, and an S-shaped curve for firms with an accelerated internationalization pathway.
Research limitations/implications
This empirical study on the impact of export intensity on performance has acknowledged the importance of costs caused by the liability of foreignness and the transaction and coordination costs involved in each market expansion process. However, it has not examined the effect of differences in absorptive and coordination capabilities at the firm level.
Practical implications
The findings about the role of the specific internationalization pathway in driving export intensity and performance appear to be relevant from a public-policy perspective. Local policies aimed at promoting exports have been widely based on the argument that firms can improve their performance through increasing their level of international sales. However, empirical evidence shows that these efforts may not work as well as was thought, unless combined with the right market expansion pathway and the optimal level of exports associated with this international market expansion.
Social implications
Most studies on the effect of international market expansion on firm performance have not considered the influence of the specific market expansion pathway chosen. In taking this factor into account, this paper contributes to the existing body of work by developing an integrative theoretical framework that explores how the pathway of internationalization impacts on firms’ performance.
Originality/value
Most studies on the effect of international market expansion on firm performance have not considered the influence of the specific market expansion process chosen. In taking this factor into account, this paper contributes to the existing body of work by developing an integrative theoretical framework that explores how the process of international market expansion impacts on firms’ performance.
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Jifeng Yu, Alice de Koning and Benjamin M. Oviatt
Accelerated internationalization occurs when a firm engages in international business early in its life cycle or when it builds international business experience with great speed…
Abstract
Accelerated internationalization occurs when a firm engages in international business early in its life cycle or when it builds international business experience with great speed, perhaps incorporating international activities in more parts of the firm's value chain than has occurred historically. Such acceleration seems to have been occurring since the late 1980s, and evidence indicates that it is not a temporary or abnormal phenomenon (Organisation for Economic co-operation and development (OECD), 1997). Many firms around the world experienced an era of accelerated internationalization in the 1990s (OECD, 1997) and many are continuing to do so.
Models of speed of internationalization have been built on narrowly defined resources, emphasizing the intangibles at the cost of tangibles and relying on controlled resources…
Abstract
Models of speed of internationalization have been built on narrowly defined resources, emphasizing the intangibles at the cost of tangibles and relying on controlled resources while overlooking nonterritorial ones. We build an integrative model for both established and unestablished firms, using three determinants of speed – global value chain experiences, resource adjusted expected return from internationalization and existence of e-commerce platforms. The first is under firms’ control while the last two are partially controlled or totally uncontrolled. Five strategies of internationalization are identified – internationalization through accelerated marketization, delayed internationalization, opportunistic (or on/off) internationalization, IB internationalization, and alliance internationalization, each associates with a different speed of internationalization.
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Eva Cristina Manotas and Maria Alejandra Gonzalez-Perez
This paper aims to introduce the use of hazards functions for studying the relationship between internationalization and performance in small and medium-sized enterprises (SMEs…
Abstract
Purpose
This paper aims to introduce the use of hazards functions for studying the relationship between internationalization and performance in small and medium-sized enterprises (SMEs) from emerging economies.
Design/methodology/approach
Hazards functions analysis is applied to a sample of 64 companies, previously grouped into two subsets of manufacturing SMEs from an emerging economy. The first group contains firms that have attained an accelerated internationalization. And the second one those that have followed a sequential internationalization.
Findings
The results show strong evidence that internationalization positively affects the probability of a better performance, and therefore more competitiveness of SMEs.
Practical implications
The proposed methodology is an invitation to use models other than linear regression to explain the relationship between internationalization and performance, studying the risk function of poor performance, whose characterization in the lifetime of SMEs. The result of this study clearly illustrates how internationalization affects the performance of SMEs for both those SMEs with accelerated internationalization and those with a sequential process of internationalization.
Social implications
The implementation of quantitative methodologies, such as the analysis of hazards, has implications in the social practice of research in international business, by inviting the return of data from primary sources, obtained from direct sources, which, although they are not large samples, they are representative, and therefore the results of the well-applied methodology offer powerful and high-reliability information. Irreproducible and non-replicable research results threaten the credibility, usefulness and the very basis of all scientific fields. Studies in entrepreneurship, management and in international business are not exempt from this problem that affects the ethics and credibility of research works.
Originality/value
A literature review is presented exposing the disadvantages of the use of traditional correlation methodologies and proposes the methodology traditionally used in industrial engineering studies of hazard functions as a simple option, free of previous assumptions about the relation between internationalization and performance. Finally, the methodology is subjected to triple testing of conceptualization and measurement of internationalization, performance and the relation between internationalization and performance.
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José Pla‐Barber and Alejandro Escribá‐Esteve
Recent studies are trying to adapt the explanation of the internationalisation process to new environmental conditions. This paper aims to offer evidence of the existence of a…
Abstract
Purpose
Recent studies are trying to adapt the explanation of the internationalisation process to new environmental conditions. This paper aims to offer evidence of the existence of a group of firms that use a speeded‐up internationalisation process.
Design/methodology/approach
Cluster analysis and logit regressions are used on a sample of 271 Spanish export firms.
Findings
The results obtained support the claim that substantial differences do exist between fast and gradual internationalising firms. The firms included in the more international active group are characterised by: a proactive attitude on the part of managers with regard to internationalisation activities, a strategy based on marketing differentiation advantages and strong relationships with clients and suppliers, which encourage or facilitate their international activities.
Practical implications
The results may favour reflection upon what are the most important factors for achieving an active, international strategy and how to respond to these demands. The stimulation of relationships between firms will reduce the uncertainty associated with the risks of foreign operations and increase the international competitiveness of firms.
Originality/value
From a politics perspective the research suggests several ways to stimulate the acceleration of the internationalisation process.
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Md Imtiaz Mostafiz, Murali Sambasivan and See Kwong Goh
This paper aims to investigate the antecedents and outcomes of international opportunity identification (IOI) in export-manufacturing firms. The fundamental question addressed in…
Abstract
Purpose
This paper aims to investigate the antecedents and outcomes of international opportunity identification (IOI) in export-manufacturing firms. The fundamental question addressed in this research is: How does dynamic managerial capability (DMC) of entrepreneurs contribute to IOI and success of the firms?
Design/methodology/approach
The research model was tested through structural equation modeling among the readymade garment manufacturing firms in the least developed country, Bangladesh. A survey was conducted with a random sampling approach and responses were collected from 390 firms.
Findings
The salient findings are: DMC has direct and indirect impacts through IOI on financial and non-financial performance; IOI mediates the relationship between managerial social capital and non-financial performance and between managerial cognition and non-financial performance; IOI has a negative relationship with the financial performance of the firms; and scope of accelerated internationalization positively moderates the relationship between IOI and financial performance of firms.
Originality/value
This paper notably shows that DMC of export-manufacturing entrepreneurs leads to the identification of the right kind of opportunities, which, in turn, generate better performance. It is advantageous for this type of firm to operate a business in multiple countries.
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Nuria Calvo and Oskar Villarreal
Technology applied to learning is blurring the traditional outlines of the relations between publishing and technology industries, moving the internationalization strategy away…
Abstract
Purpose
Technology applied to learning is blurring the traditional outlines of the relations between publishing and technology industries, moving the internationalization strategy away from a gradual perspective toward accelerated internationalization. This paper aims to provide a conceptual model of polyhedral diagnosis of market entry strategy (PODMES model) for “born global” firms involved in e-learning industries.
Design/methodology/approach
The use of the case study methodology allowed apply PODMES model to a “born global” firm of the e-learning industry.
Findings
Results confirm that “born global” firms in the e-learning industry can adopt behaviors contrary to those expected in the literature. These behaviors imply new entry patterns by creating new strategic partner–supplier–client–competitor relations that extend the traditional analysis of the internal value chain to a process of value distribution through product and technology alliances.
Originality/value
This research provides two main contributions. First, an advance upon previous research into “born global” firms, through deep analysis of a case study that offers new findings regarding the phenomenon studied. It permits to align this research with previous analysis, following a strict case study methodology approach. Second, this study offers the application of a new methodology (PODMES model) that integrates the most relevant theories of internationalization (factorial dodecagon) within the five contingencies of entry market and the design of a strategic profile of internationalization.
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Ilan Avrichir, Raquel Meneses and Agnaldo Antonio dos Santos
Although the concepts of family business, internationalization, and agency theory have received some attention in the relevant literature, these concepts and theories have been…
Abstract
Purpose
Although the concepts of family business, internationalization, and agency theory have received some attention in the relevant literature, these concepts and theories have been used independently. The purpose of this paper is to help close the gap between what is known and what needs to be known about the decision-making processes of internationalization of family managers (FM) and non-family managers (NFMs).
Design/methodology/approach
The paper analyzes the story of Busscar, a Brazilian firm that began internationalization under an FM and ended it under an NFM. The management transition took place suddenly, as the family CEO died in a tragic accident, and the company appointed an NFM to replace him virtually overnight. These circumstances, as well as the fact that Busscar accelerated its internationalization process after the transition only to go bankrupt a few years later makes this case critical.
Findings
The paper concludes that under NFMs, the speed and scope of the firm internationalization processes were accelerated and the financial risks were augmented, which is in line with the agency theory hypothesis and contradicts suggestions that NFMs tend to be more structured.
Research limitations/implications
Many researchers argue that it is important to professionalize the management of family firms. It is expected that an NFM leads to a more structured strategy. The study shows otherwise; changing the manager leads to opportunistic internationalization using emerging strategies rather than deliberate ones.
Originality/value
This study suggests that firms, networks, entrepreneurship, and ownership are not the only important variables. Manager origin (inside or outside the family) can change everything.
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Justin Paul and Alexander Rosado-Serrano
During the last two decades, studies on the theoretical models in the area of international business (IB), such as gradual internationalization and the born-global firms, have…
Abstract
Purpose
During the last two decades, studies on the theoretical models in the area of international business (IB), such as gradual internationalization and the born-global firms, have gained the attention of researchers. The purpose of this paper is to critically review the studies on the process of internationalization (Gradual Internationalization vs Born-Global/International new venture models) to identify the research gaps in this area and to prepare a future research agenda.
Design/methodology/approach
Systematic literature review method was employed for this review. The authors highlight the findings from prior studies, compare and contrast salient characteristics and features, based on the articles published in journals with an impact factor score of at least 1.0, and provide directions for research.
Findings
The authors find that there are several areas that were under-explored in prior research. There is a great potential for theoretical extension and theory development in this field as it covers the tenets of four subjects: IB, marketing, strategic management and entrepreneurship.
Originality/value
There is no comprehensive/integrated review exploring the methods/variables and constructs used in prior studies integrating gradual internationalization/born-global models based on all the articles published in well-regarded academic journals. This review seeks to provide deeper insights, which help us to contribute toward the development of this research field.
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