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Drawing on an organizational learning perspective, this paper examines the effect of levels of foreign market involvement (intensity and geographic spread) on internationalization outcomes recognizing that the moderating influence of entry-mode learning potential is not well documented in the literature on small- and medium-sized enterprises (SMEs).

The sample includes 180 SMEs evenly selected from three industries: biotechnology, software and clothing (60 firms in each industry). The sampled firms employ less than 250 employees and are equally distributed between three developed economies and three emerging economies. All were engaged in foreign business.

The authors find that there is a direct relationship between levels of foreign market involvement and internationalization outcomes. Entry-mode learning potential moderates the relationship between intensity of foreign market involvement and internationalization outcomes but not the relationship between geographic spread and internationalization outcomes.

This study reveals several new insights that help explain the pathway through which foreign market involvement activities are translated into internationalization outcomes.

The authors conclude that the positive relationship between intensity of foreign market involvement and internationalization outcomes is strengthened when SMEs also use an entry mode with a higher learning potential than exporting only.

Within the Ayrshire knitwear industry in Scotland, a group of small‐ and medium‐sized enterprises (SMEs) have formed a network with the purpose of developing group branded products for export markets. The initiative was instigated by the Ayrshire Textile Group (ATG), which was created in 1991 as a partnership between Enterprise Ayrshire, a government funded body, and the local textile industry. This paper briefly reviews the existing literature describing the internationalisation process of firms and discusses why SMEs may consider networks as a means to developing international markets. The case study of the ATG empirically illustrates how network relationships may facilitate foreign market development by SMEs, the role of enterprise companies in this process, and the problems that SMEs are likely to face in the process. The paper concludes with a discussion of future directions of the research.

The purpose of this paper is to explore how firms that do both sourcing and selling choose which countries to source from and to which countries to sell. It also looked at the role of competitive strategy, vertical integration, and foreign involvement in the decision‐making.

A survey instrument that was designed based on personal interviews with 20 German garment industry executives was administered to 750 German, Austrian and Swiss garment manufacturers. In total, 93 questionnaires were usable. Factor analysis was employed in evaluating the data.

The results indicate that firms that both source and sell at the same time have more complex decision making than normative models suggest. These decisions tend not to be isolated decisions. The factors that are considered in sourcing are different in the decision as to where to sell. Foreign involvement, competitive strategy, and vertical integration influence the firms' decision making.

The study is exploratory in nature and it is limited in its application. Moreover, the disproportionately large number of German respondents may skew the results. In addition, the total number of respondents is relatively small. The study may also suffer from any or all of the following deficiencies: lack of reliability and validity test, having only one executive per firm respond to the survey, not considering country‐specific characteristics, and lack of control for the market‐entry strategy and market size variables.

Most research in this area focuses on either the sourcing or the selling side. This study looks at how sourcing and selling decisions are made by firms engaged in both activities. Additionally, the roles of competitive strategy, vertical integration, and foreign involvement in relation to the decision making are investigated.

This chapter contributes to the ongoing debate about how digitalisation affects the internationalisation of small- and medium-sized firms (SMEs). By applying the Uppsala Internationalisation Process model, this chapter examines the impact of e-commerce on the internationalisation of SMEs. The study uses a unique dataset, which includes 14,513 SMEs across several sectors in 34 countries. The results show that firms using the Internet as a means to provide information about the firm exhibit a higher degree of internationalisation, while using the Internet to facilitate transactions was found to have a positive impact on the ratio of foreign sales to the total sales; however, these foreign sales are likely to be concentrated in less regions/markets. Furthermore, perceived export barriers were found to be a significant moderator of the effects of e-commerce usage on international intensity and international diversification. This suggests that e-commerce does not automatically facilitate the internationalisation of SMEs.

The purpose of this paper is to develop and test a theoretical model of managerial decisions involving international market entry.

The authors propose a mathematical model that seeks the optimal level of cultural distance between the host and the home country and the market potential of the host country that maximizes a firm's investment in an international market. The authors illustrate the intuition and the managerial application of the model using a large data set of cross‐border acquisitions, then the results of this data set are used to validate the model in a specific data context.

The authors find that cultural distance and market potential have curvilinear and interaction effects on the level of equity participation. The empirical results are further used to conduct sensitivity analysis of decisions for changes in parameters.

The authors’ general approach can be used to analyze any two variables that have interaction effect on a variable of interest related to market entry strategies.

The authors illustrate the intuition and the managerial application of the model using a large data set of cross‐border acquisitions. Managers can use this approach in choosing CBA targets.

The study provides a mathematical framework and an empirical illustration of optimizing the cultural distance and market potential for maximizing equity participation in foreign market acquisitions. This is a new unique contribution to the literature.

The purpose of this paper is to understand how high‐tech firms from China internationalize and to determine whether they follow the gradual internationalization model suggested by the Uppsala school and/or the rapid internationalization model as suggested by the “born global” stream of researchers.

This is an inductive and exploratory study that tries to understand questions of how and why. A multiple case study method is used to find empirical evidence for the a priori assumptions derived from the literature.

It was found that the gradual internationalization model is still valid although high‐tech firms from China internationalize much faster than suggested by earlier studies and they do not follow the process suggested by born global studies.

The authors develop a number of propositions that can be empirically tested in pursuit of theory building for the internationalization of smaller firms from emerging markets.

The paper compares and contrasts the models suggested by Uppsala studies and by researchers in the field of born global studies and provides concrete propositions that can be tested to develop a theory for emerging market firms.

Focuses on characteristics of a host country′s market that influence a firm′s entry mode choice of exporting versus producing in that foreign country. A survey was conducted among US manufacturers who exported a given product to one country and locally produced the same product within another country. The host country′s market characteristics were described in terms of their business environment, production factors, and competitiveness of local competitors. The hypotheses tested indicated that the level of competitiveness of local competitors and availability of local production factors have a greater impact on the firm′s entry mode choice than a host country′s business environment factors.

This paper aims to respond to the call for empirical research on cluster internationalization to learn more about the mechanism of cluster internationalization and the intensity of this process in a Polish context, which is specific due to Poland.

The authors provide a conceptual model of cluster internationalization and show results of their own primary, empirical and quantitative research on cluster internationalization in Poland.

The study reveals that Polish clusters are at the beginning of the internationalization process, particularly of the outward internationalization. The most popular mode of internationalization is exports. The level of Polish cluster internationalization operations is relatively low.

Data were provided by cluster managers, but none of the cluster organizations had a reliable monitoring system for the international involvement of cluster members. These results are merely a snapshot; therefore, a longitudinal study should also be carried out.

The research demonstrates that cluster companies can take advantage of internationalization operations performed by cluster organizations. The attempts of Polish government should be directed to push the internationalization of micros and small and medium-sized enterprises via cluster initiatives on the one hand and on the other hand to develop some kind of incentives for large companies to participate in cluster organizations as in reality exports are dominated by large firms.

The main value added of this paper consists in developing the conceptual model of cluster internationalization and applying the model in empirical research on the internationalization of Polish clusters. The study bridges the theory of firm internationalization, especially the approaches to firm internationalization with the theory of clusters. It offers insight into internationalization of clusters in Poland.

The purpose of this paper is to investigate the internationalisation of small firms from a Central and Eastern Europe (CEE) country with an emerging market economy, while accounting for the constantly changing institutional framework as well as resource (un)availability which may influence their involvement in foreign market operations. In doing so, it supports the applicability of the revised Uppsala internationalisation process model (2009), which highlights the key role of networks for international activity.

This study is based on a qualitative approach leading to multiple case studies. The main source of data is semi-structured, in-depth interviews conducted within six small firms.

The revisited Uppsala model proves to be generally valid for the small firms analysed in this study. Networks play a crucial role for knowledge creation and exchange, and frequently represent the most reliable resource at firms’ disposal. Trust is an indispensable ingredient that shapes network relationships. Institutional changes acted as push factors for small firms’ internationalisation.

Policy-makers and entrepreneurs should direct their efforts at encouraging international network building and the formation of partnerships. Specific policy-driven actions should facilitate the connection between (international) entrepreneurs and potential foreign business partners.

This study brings insights to the revised Uppsala model, particularly considering the continuous and relatively rapid changes within the institutional environment that interact with the experiential learning curve and resource accumulation and subsequent commitment to foreign markets. Furthermore, it is one of the few studies that address the internationalisation of small firms from a CEE economy.

The purpose of this paper is to propose an integrated theoretical framework to examine the determinants of the choice of ownership‐based entry mode strategy for small to medium‐sized enterprises (SMEs) in international markets.

The statistical data sources were mail survey and secondary data collection. Logistic regression was used in the testing of the hypotheses.

All four theoretical views (including transaction cost theory, the views of Uppsala process model, organizational capability perspective, and bargaining power theory) have relevance for the choice of SMEs' ownership‐based entry mode strategy in international markets.

This study was limited to the manufacturing sector only. Given the limited scope, caution must be exercised in generalizing from this study's sample to firms in the service sector. Furthermore, this study is a cross‐sectional analysis and may not draw a complete picture of the course of SMEs' ownership‐based entry mode choice over time. Future research should use longitudinal analysis to explore the evolution of SMEs' international expansion over time.

This study proposes a decision path diagram that can give the SMEs some suggestions about how they should consider their choice of ownership‐based entry mode strategy in international markets. The executives of SMEs that invest in international markets can draw useful lessons from this study.

This study proposes a well‐rounded theoretical framework based on four theoretical views (including transaction cost theory, the views of Uppsala process model, organizational capability perspective, and bargaining power theory) to examine SMEs' choice of ownership‐based entry mode strategy in international markets. The limitations for past research that are inherent in focusing on a single theoretical view can be overcome.