A typology of internationalisation patterns for SMEs in developing countries

Abstract

Purpose The purpose of the paper is twofold. Firstly, it provides an inclusive categorical framework of internationalisation patterns for small- and medium-sized enterprises, and secondly, it presents unique evidence from a developing country and corroborates the proposed framework. Design/methodology/approach A cross-sectional convergent mixed-method design was applied to this research. A phenomenological design was used to develop the typology framework, and subsequently, practical evidence was collected through a cross-sectional survey using a self-reporting questionnaire. A two-step hierarchical clustering analysis was performed to test the framework’s robustness, and a set of characteristics was compared between the patterns via a one-way analysis of variance, F-test. Findings The robustness of the constructed categorical framework of 32 internationalisation patterns is substantiated, suggesting that this framework produces veracious discrimination between all patterns of internationalisation. Evidence revealed that the majority of firms showed regional and incremental internationalising behaviour. No true born globals were observed; however, several other early or fast patterns such as “born-international”, “global new venture” and “born-again regional” emerged. Originality/value This paper presents a categorical framework and provides evidence of the behaviour of internationalising SMEs from a Middle Eastern developing economy. The categorical framework constructed in this paper uses predefined thresholds, and it is of value because it is inclusive, rigid and incisive. This paper also provides essential insights into the sub-patterns of internationalisation, specifically the born-again and regional phenomenon of internationalisation.

An Examination of the Identification and Exploitation of International Opportunities Among Chinese Traditional SMEs

“…This study concluded that AMCs, GM, and CI are essential for IOI and IOE among Chinese internationalized traditional SMEs. Aghazadeh and Zandi (2023) claimed that literature didn’t present a great consensus on true born globals, instead, it has introduced the emergence of early and fast internationalization patterns such as “global new venture,”“born international” and “born again regional.” In their systematic review on the internationalization of Chinese SMEs, Hänle et al (2022) found that a growing internationalization research stream starting from 2013 and onward has focused on investigating the global expansion of SMEs with emphasis on the role of firm-level characteristics, sources of internal capabilities and social networks. Our study reported that the internal capabilities possessed by SMEs’ managers: AMCs, GM, and CI were closely related to effective identification and exploitation of international opportunities.…”

“…Oviatt and McDougall (1994) argued that firm internationalization can be conceptualized as an entrepreneurial process involving exploring and exploiting international opportunities. In their research on identifying the typology of internationalization patterns for SMEs in developing countries, Aghazadeh and Zandi (2023) revealed that the majority of firms showed regional and incremental internationalizing behavior. Similarly, Nummela et al (2020) argued that non-entrepreneurial SME’s internationalization may occur without maintaining a clearly defined internationalization strategy.…”

25 Years internationalization research in SMEs, a scientometric analysis

“…However, they did not empirically test their model. Aghazadeh and Zandi (2023) provided a typological analysis of internationalization patterns of SMEs in developing countries, a categorical framework consisting of 32 internationalization patterns for this purpose and evidence of the behavior of internationalizing SMEs in a developing Middle Eastern economy.…”