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The study presented in this chapter examines an increasingly important phenomenon in the internationalization of small and medium-sized enterprises (SMEs). Following technological developments, more and more SMEs are using high-commitment foreign market entry modes. These firms, called micromultinationals, have established subsidiaries in international markets despite their resource constraints. The study is an examination of a micromultinational’s development during its internationalization life-cycle regarding changes in international entry mode, organizational structure, communication, sharing of knowledge and control.

A multiple case study method has been selected for this research. Data has been collected from four Finnish micromultinationals.

The study postulates that despite smallness and youth, immediate multinationalization is possible, as is the simultaneous expansion of both geographic scope and operations. The international operation mode of the case companies has moved toward the highest-commitment entry modes during their internationalization life-cycle. The micromultinational’s globalization process takes time and continuous readjustments and development. Some of the cases have struggled with issues related to things such as communication and sharing of knowledge throughout their existence.

The results of the study suggest that any micromultinational should carefully consider their choice of investment mode (wholly owned greenfield vs. partly owned acquisition) to avoid the stagnation phase. The unlearning is difficult and with a certain path dependency, learning advantage of newness does not seem to exist even if a firm is small and relatively young.

This is the first study to examine the internal development of a micromultinational company during its internationalization life-cycle.

The purpose of this paper is to present an overview of the conceptual frameworks and concepts with which the research on internationalization patterns of small and medium‐sized enterprises (SMEs) should be conducted.

A comprehensive overview of concepts and a conceptual framework to study internationalization patterns of SMEs is offered.

The complexities of existing definitions and methodologies for researching internationalization patterns are highlighted, and a synthesis of the issues is provided. An integrative model of internationalization pathways, and their antecedents and outcomes is presented.

It is recommended that future research focuses especially on the time dimension of internationalization patterns. Future research can contribute to the literature by adopting a longitudinal approach with larger samples and more detailed cases to capture the dynamics of internationalization.

Practitioners might map their positions, and look for challenges and opportunities with regard to their chosen internationalization pattern. They can also benchmark other firms’ pathways and fine‐tune their own approach to internationalization.

The paper integrates a large body of research in an important research area in international marketing. It also provides guidance on how to conduct future research in the area, and introduces the content of this special issue of the International Marketing Review.

We combine insights from the strategic management and international business literatures in order to explore the moderating role of business group characteristics on the link between innovation and internationalization in the context of the pharmaceutical sector in India. We test our three hypotheses on a sample of 219 Indian pharmaceutical firms affiliated with business groups, over a five-year period (2005–2010) in a panel of 1,096 firm-year observations. Results indicate that, contrary to our contention, research expenditure is negatively associated with export intensity, implying that firms in the Indian pharmaceutical sector may face a trade-off between investing in innovation and international expansion. As expected, business group characteristics significantly impact the strength of the relationship between innovation and internationalization. Theoretical and practitioner implications are discussed.

Building on new venture internationalization, agency, and signaling theories, the purpose of this paper is to examine the relationship between the level of firm internationalization and initial public offering (IPO) performance. Further, the purpose of this paper is to evaluate the moderating role of firm ownership structure on this relationship.

The data set for this study is composed of 298 firms that made IPOs in years 1997, 1998, 2001 and 2002 in the US stock exchanges. The study utilizes hierarchical ordinary least squares (OLS) regression analyses to test its hypotheses. The model developed in this study identified IPO firm ownership structure as the moderator variable, IPO firm internationalization as the predictor variable, and underpricing as the criterion variable. This paper utilized robust regression modeling analyses available in Stata to analyze the data and test their hypotheses.

Results based on data collected from 298 IPO firms suggest that firm internationalization has a positive impact on IPO underpricing. Results also report that the relationship between firm internationalization and IPO underpricing is moderated by CEO and blockholder ownership, with the relationship being stronger in IPO firms with higher levels of CEO and blockholder ownership.

The current paper examines the impact of an IPO firm's internationalization prior to its going public on the subsequent performance of the IPO. In doing so, this paper seeks to help in resolving some of the apparent theoretical and empirical contradictions identified in literature. In addition, the introduction of IPO ownership structure as a moderator variable in the relationship between IPO firm internationalization and performance extends the applicability of agency theory to IPO firms and ensures a multi‐theoretic, finer‐grained conceptualization of this relationship.

The internationalization process in recent decades has been discussed from different approaches. In this chapter, we study the evolution of selected Latin American and Spanish companies that have experienced a growing evolution from small or medium-sized enterprises to large corporations with participation in global markets and a strategic role played by the family organizations and small business groups. It is a study of multiple cases scope focused on two main lines of discussion. In one hand, the trajectories of internationalization and, and the other, the family firm organization and structure, correspondingly to sectorial aspects and the global situations that have encouraged the expansion of markets, the acquisitions of assets outside the countries of origin, and the outsourcing system. The group of companies selected to discuss the heterogeneity of the internationalization processes is based in case studies: Lojas Amerianas-Brazil, Crystal Lagoons-Chile, Despegar.com-Argentina, Sol-Meliá, Spain, Ferrovial, Spain, Talgo, Spain. Among the findings of this comparative study, the following stand out: (1) debates about the family business are alive, (2) multidimensional perspectives between countries are needed to understand not only internationalization but also the relevance of competitive learning, entrepreneurial vision evolution, and diversity of trajectories between sectors and companies, and finally (3) the importance of culture and immigration in business and family development from Small and Medium Enterprises (hereafter SME) to large businesses.

Internationalization is of high relevance and has been discussed intensively. However, different internationalization paths have been proposed by theoretical models and have been observed in reality. In this study, we examine the internationalization path of 52 German firms over a period of ten years using comprehensive and rich data on all new ventures established by these companies within this period. We find four distinct patterns of internationalization and propose a stage model of internationalization based on these findings. Our results show different challenges for managers depending on the stage of internationalization and render interesting starting points for further research.

Many national and regional governments and various trade associations have created and are currently developing services that aim to provide support for firms that have just begun to or which plan to operate in international markets. Consequently, the purpose of this chapter is to illustrate the role of various support services especially in the case of software small and medium-sized enterprises (SMEs) aiming to expand internationally and accelerate their international growth. In the empirical part of the chapter, the authors review the key support organisations Finland has for its software industry. Through a descriptive empirical survey (n = 25) of the industry, we illustrate the role of various support services that are especially targeted at firms aiming to accelerate their international growth, irrespective of the phase of internationalisation. Furthermore, the authors study the use, quality and effectiveness of the internationalisation of support services from the viewpoint of managers of Finnish software SMEs. Based on our results, it is easy and logical to argue that better targeted programmes should be developed for rapidly internationalising firms in the turbulent software market. However, there are already a few innovative and better targeted programmes being offered to Finnish software firms. According to our study, in the later phases of internationalisation, the key to success is more closely linked to the availability of external funding as well as knowledge and contacts provided by international consultants.

This paper reviews the literature on internationalization barriers of small and medium enterprises (SMEs) from developing countries. The purposes of the study are: (1) to explicitly point out specific factors influencing the growth and internationalization of SMEs from developing countries and (2) to identify the research gaps to provide lucid and succinct directions for future research in this area.

The authors selected relevant papers from journals listed on Web of Science and Scopus databases.

It was found that there are large number of questions remain unanswered regarding the internationalization of SMEs from developing countries regarding the factors determining their growth and internationalization.

This review distinctively accentuates previous studies on such barriers influencing the growth of SMEs from developing countries and systematically synthesize the issues faced by those SMEs. Thus, the authors seek to provide a comprehensible platform for researchers working in this area.

The purpose of this paper is to investigate the role played by knowledge and experience of the entrepreneurs in early internationalisation of small- and medium-sized Indian new ventures. Using the theory of international new ventures (INV) and knowledge-based view (KBV); the conceptual framework of this study develops three propositions. First, it has been suggested that experience of the entrepreneurs motivates them to internationalise. Second, experience of the entrepreneurs increases their market and technological knowledge. Finally, it has been suggested that without market and technological knowledge, new ventures find it difficult to expand beyond national borders.

This study employs a comparative case analysis research design to investigate the propositions. The key constructs are drawn from prior empirical research and the relationships are tested using qualitative analysis.

Key findings of this study suggest that along with experience and knowledge, entrepreneurs’ education background is positively associated with new venture internationalisation. It was found that importance of knowledge resources varies across nature of business and industry in which INVs operate.

Findings of this study contribute to advancing the literature on INV and KBV. The findings provide a framework to entrepreneurs to help them improve their decision-making logic and increase the speed of international growth.

Very few studies have investigated the internationalisation of new ventures from India. The knowledge is limited on the ways in which entrepreneurs acquire experience and assimilate knowledge in internationalising their operations.

This article aims to compare the average profitability by sector for companies that have invested in China during 2008-2011, with the average profitability for Spanish firms from the same sector.

Analysis done through Analysis System of Iberian Balances (SABI) database.

The results show that companies that invest in China gain economic rewards that are greater than those that do not invest in China, with the most profitable sectors comparatively being the metallurgy and the wholesale trade.

We have not found previous analysis in this way.