Becoming a small multinational enterprise: Four multinationalization strategies for SMEs

Vanninen, Heini; Keränen, Joona; Kuivalainen, Olli

doi:10.1016/j.ibusrev.2021.101917

Cited by 19 publications

(15 citation statements)

References 51 publications

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“…Integrating these complicated influencing factors into a guiding causal mechanism framework is challenging in GPN research. More broadly, although this study mainly uses the research paradigm of GPN to develop a new framework, the core content of the discussion is the issue of global industrial organizations, strategic selection and supply chain and network (Bair & Mahutga, 2023; Islam & Chadee, 2023; Jean et al., 2021; Jindra et al., 2019; Niittymies, 2020; Vanninen et al., 2022). In the future, more extensive discussions can be carried out based on this study.…”

Section: Discussionmentioning

confidence: 99%

Rethinking the dynamic of global production networks: Integrate the influence of suppliers and towards a flexible strategy making causal mechanism

Zheng

2023

Global Networks

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The global production network (GPN) 2.0 framework mainly considers the organizational capabilities of lead firms, neglecting the influence of supplier capabilities on the strategic making of lead firms. I argue that the GPN 2.0 framework must integrate the influence of supplier capabilities (both industrial and individual firm levels) to better explain the organization of the global economy. Industrial‐level capability determines the possible strategic choices that firms may make under certain dynamic combinations, whereas the individual firm level determines the geographic extension direction of GPNs. Therefore, this study incorporates the influence of suppliers and builds a more flexible strategy‐making causal mechanism other than the definitive and limiting causal mechanism in GPN 2.0. I hope this article can promote the further development of GPN 2.0 and convey some valuable concepts to make it perform better in deconstructing the organization of the global economy in the real world.

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Section: Discussionmentioning

confidence: 99%

Rethinking the dynamic of global production networks: Integrate the influence of suppliers and towards a flexible strategy making causal mechanism

Zheng

2023

Global Networks

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“…These attributes may lead to ‘less-rational’ or non-systematic decision-making about the dispersion and structure of an organisation. As smaller and younger entrepreneurial firms, INVs or BGs may not always have a clear strategy, or their strategy may be rapidly evolving in response to the environment and opportunities (Evers and Andersson, 2021; Evers and O’Gorman, 2011; Vanninen et al, 2022; Zander et al, 2015).…”

Section: Brief Background Literaturementioning

confidence: 99%

Corporate governance in international new ventures and born global firms

Evers,

Gerschewski,

Khan

et al. 2023

International Small Business Journal: Researching Entrepreneurs

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International new ventures (INVs) and born globals (BGs) play a significant role in the global economy. These firms have rapidly expanded into foreign markets offering unique products and services. Despite the role such ventures play in the global economy, we know relatively little about the role of corporate governance (CG) in INVs and BGs and the challenges these firms face in foreign markets. This introductory article and the papers included in this Special Issue provide important insights into the role of corporate governance and the rapid rise of INVs and BGs and their evolutionary process, and highlight the topics where more research is needed. We also contribute to the current literature by examining corporate governance in early internationalising firms and discussing what sets them apart from well-established multinational enterprises.

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“…SMEs seldom have the required track record to overcome the liability of foreignness and quickly establish their business in foreign markets, but they can leverage or rent the reputation of partner firms (Lu and Beamish, 2006b; Singh and Gaur, 2013). This strategy has been found in young SMEs that operate as micro-multinationals companies in using high-commitment foreign market entry modes from inception to work geographically close to international clients and partners (Vanninen et al. , 2022; Prashantham and Birkinshaw, 2020).…”

Section: Theoretical Perspective and Hypothesis Developmentmentioning

confidence: 99%

“…Taking into account the aforementioned factors, this study contributes to the existing literature on SME internationalization and performance in several ways. First, we respond to a call for more research to study how SMEs benefit from internationalization (Vanninen et al ., 2022) and clarify how internationalization affects SME performance (Fariborzi et al ., 2022; Martín et al ., 2022; Paul et al ., 2017; Ribau et al ., 2018) and specifically “the international performance attained with internationalization (Morais and Ferreira, 2020). Second, we build on the ongoing interest in using organizational learning as a theoretical lens to study the complex relationship between SME internationalization strategy and performance (Kang et al ., 2022; Sadeghi et al ., 2023).…”

Section: Introductionmentioning

confidence: 99%

Foreign market involvement, entry-mode learning potential and SME internationalization outcomes

Elbanna,

Hsieh,

Child

et al. 2023

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PurposeDrawing 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).Design/methodology/approachThe 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.FindingsThe 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.Practical implicationsThis study reveals several new insights that help explain the pathway through which foreign market involvement activities are translated into internationalization outcomes.Originality/valueThe 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.

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Becoming a small multinational enterprise: Four multinationalization strategies for SMEs

Cited by 19 publications

References 51 publications

Rethinking the dynamic of global production networks: Integrate the influence of suppliers and towards a flexible strategy making causal mechanism

Rethinking the dynamic of global production networks: Integrate the influence of suppliers and towards a flexible strategy making causal mechanism

Corporate governance in international new ventures and born global firms

Foreign market involvement, entry-mode learning potential and SME internationalization outcomes

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