Internationalisation business processes in an under-supported policy contexts: evidence from Italian SMEs

Abstract

PurposeThe main objective of this research was to identify the key critical determinants of internationalisation business processes that entrepreneurs adopted in under-supported policy contexts.Design/methodology/approachThis research utilised a case-study design, incorporating multiple case examples, applying non-probability purposive selection criteria. A total of five in-depth, structured 90-min to two-hour case interviews were conducted with Italian entrepreneurs, in which four out of the five cases selected are goods-oriented, and one is services oriented.FindingsRegarding internal entrepreneurial motives, four crucial determinants were recognised: (1) Making more profit, (2) Expanding market, (3) Personal tendency to export and (4) Obtaining social respect. Regarding external networking capabilities, two key factors were identified: (1) Developing relationships with an international partner or representative and (2) Maintaining relationships with industry-relevant authorities.Research limitations/implicationsThe data gathered for this paper depends on self-announcing, expanding the likelihood of being one-sided for social desirability answers. The sample of research is also limited to small and medium businesses and has covered a limited number of companies.Originality/valueAn under-supported policy context forces international entrepreneurs to make their own arrangements and tailor their business process through personal initiative and interactions with network partners. Taking advantage of field-based data, this paper is probably one of the earliest research studies to identify several internal and external factors impacting on firm internationalisation business processes in the low policy support context for entrepreneurship.

Context-specific micro-foundations and successful SME internationalisation in emerging markets: A mixed-method analysis of managerial resources and dynamic capabilities

“…Therefore, SMEs highly rely on intangible individual-level resources such as managerial resources, their knowledge, innovativeness, etc. (Mokhtarzadeh, et al, 2020;Jafari-Sadeghi, Dutta, Ferraris, & Del Giudice, 2020;Jafari-Sadeghi, Kimiagari, & Biancone, 2020;Jafari-Sadeghi, Nkongolo-Bakenda, Dana, Anderson, & Biancone, 2020;Sukumar et al, 2020). Managerial resources are precious, difficult to duplicate or be transferred and are seen as an asset for SMEs (Neher & Miles, 2020;Zulu-Chisanga et al, 2020).…”

“…Highlighting its crucial function in the internationalisation process, the literature highlights that international networking assists firms (SMEs in particular) exploit new opportunities to overcome their shortcomings of necessary resources (Chandra & Wilkinson, 2017;Mensah et al, 2021). Therefore, leveraging international networking is seen as an important strategy for SME managers looking at global markets as an opportunity for their business (Jafari- Sadeghi, Dutta, Ferraris, & Del Giudice, 2020;Jafari-Sadeghi, Kimiagari, & Biancone, 2020;Jafari-Sadeghi, Nkongolo-Bakenda, Dana, Anderson, & Biancone, 2020;Narooz & Child, 2017).…”

“…Particularly for Small and Medium-Sized Enterprises (SMEs), internationalisation, as known among the most intricate and challenging strategies, provides an opportunity not only to survive but also to look for success and growth (Dimitratos et al, 2016;Fernández & Nieto, 2005). While it is generally accepted that recent technological advancements, as well as the reduction in trade barriers, have assisted ventures in their internationalisation processes (Jafari- Sadeghi, Dutta, Ferraris, & Del Giudice, 2020;Jafari-Sadeghi, Kimiagari, & Biancone, 2020;Jafari-Sadeghi, Nkongolo-Bakenda, Dana, Anderson, & Biancone, 2020;Jean et al, 2020;Leonidou, 2004), it has also been observed that environmental changes have played only a limited or even negative role in decisions by ventures to expand their markets internationally (Acs et al, 2003;Dana & Wright, 2009). Thus, in this accelerating evolving environment, firms need to adopt an integrated policy, taking into account favourable and unfavourable environmental factors with their global activities (Chichilnisky & Heal, 1986;Lindsay et al, 2017).…”

“…In this vein, the interest in micro-foundations stresses the significant role of international managers and entrepreneur as being the central decision-maker in opposition to the larger multi-national firms, in which the management team has the power of decision-making (Bhuian et al, 2005). In international SMEs, the founder, owner or/and manager is often willing to be the first person and to be in charge of making decisions for internationalisation (Jafari-Sadeghi, Dutta, Ferraris, & Del Giudice, 2020;Jafari-Sadeghi, Kimiagari, & Biancone, 2020;Jafari-Sadeghi, Nkongolo-Bakenda, Dana, Anderson, & Biancone, 2020).…”

“…Furthermore, exploring the micro-foundations constitute to better understanding of how micro-level drivers such as managerial resources and dynamic capabilities impact the processes of SME internationalisation at macro-level processes (Buckley et al, 2016;Hutzschenreuter et al, 2007). That is, the intertwined individuals' actions with firm outcomes ought to be supported by a relevant theory (Coviello et al, 2017).…”