Accelerated internationalisation: evidence from a late investor country

Abstract

PurposeRecent 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/approachCluster analysis and logit regressions are used on a sample of 271 Spanish export firms.FindingsThe 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 implicationsThe 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/valueFrom a politics perspective the research suggests several ways to stimulate the acceleration of the internationalisation process.

Speed of SME Internationalization and Performance

“…Moreover, Zucchella et al (2007) found that firms belonging to an industrial district, pursuing a niche strategy, and possessing various types of prior experience of international activity internationalize at a high speed. Pla-Barber and Escribá-Esteve (2006) found that a proactive attitude among the management team and marketing differentiation advantages lead to faster internationalization, whereas Luo et al (2005) observed that, among Internet firms, top management experience and firm strengths in innovation and marketing are positively associated with high speed.…”

Innovation and internationalization through exports

“…Spain may be described as a late-investor country (Pla-Barber & Escriba-Esteve, 2006). Before Spain joined the European Economic Community in 1986 it had little FDI abroad, being traditionally a net recipient of FDI.…”

“…Recent globalization trends have influenced the patterns of internationalization of both large multinational enterprises and SMEs, leading to the emergence of so-called "born globals", that is, firms that from inception are active exporters, with a high percentage of sales from abroad (Oviatt & McDougall, 1994;Pla-Barber & Escriba-Esteve, 2006). 5 In our sample of SMEs the average percentage of sales coming from exports is 19% for the exporters, with 75% of exporters selling abroad less than 30% of their total output, which is not a characteristic of "born-global" companies.…”

International new ventures as “small multinationals”: The importance of marketing capabilities

“…Nevertheless, we established a more conservative treshold: firms whose level of exports was more than 25% of their annual sales were regarded as having a consolidated international presence. In this way we eliminated firms with isolated activities abroad, as other studies have previously done (Knight & Kavusgil, 1996, Moen, 2002, Pla-Barber & Escribá-Esteve, 2006, Kuivalainen et al, 2007Milanov & Fernhaber, 2009;Jantunen et al, 2008). requested, together with confirmation of the e-mail address.…”