Internationalisation of Central and Eastern European small firms

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this paper is to investigate the internationalisation of small firms from a Central and Eastern Europe (CEE) country with an emerging market economy, while accounting for the constantly changing institutional framework as well as resource (un)availability which may influence their involvement in foreign market operations. In doing so, it supports the applicability of the revised Uppsala internationalisation process model (2009), which highlights the key role of networks for international activity. Design/methodology/approach -This study is based on a qualitative approach leading to multiple case studies. The main source of data is semi-structured, in-depth interviews conducted within six small firms. Findings -The revisited Uppsala model proves to be generally valid for the small firms analysed in this study. Networks play a crucial role for knowledge creation and exchange, and frequently represent the most reliable resource at firms' disposal. Trust is an indispensable ingredient that shapes network relationships. Institutional changes acted as push factors for small firms' internationalisation. Research limitations/implications -Policy-makers and entrepreneurs should direct their efforts at encouraging international network building and the formation of partnerships. Specific policydriven actions should facilitate the connection between (international) entrepreneurs and potential foreign business partners. Originality/value -This study brings insights to the revised Uppsala model, particularly considering the continuous and relatively rapid changes within the institutional environment that interact with the experiential learning curve and resource accumulation and subsequent commitment to foreign markets. Furthermore, it is one of the few studies that address the internationalisation of small firms from a CEE economy.

Export promotion programmes and SMEs’ performance

“…Furthermore, relational resources may facilitate access to different types of resources, including political influence, reputation, and even emotional support (Oh et al, 2006). Recent evidence from Romania acknowledged that both social and business networks represented the most important and reliable resource for SMEs' internationalisation (Stoian et al, 2016). Equally, evidence from Norway and Ireland showed that networks played an important role in increase speed of internationalisation (Langseth et al, 2016).…”

International Strategy as the Facilitator of the Speed, Scope, and Scale of Firms’ Internationalization

“…In the European Union, member states often become initial expansion markets (Wach, 2014). At present, the scope of internationalization is mostly based on knowledge, learning, and interactions that dynamically happen between partners, but also on trust necessary for further relations (Stoian, Rialp, Rialp and Jarvis, 2016). Khavul, Pérez-Nordtvedt, and Wood (2010) rightly observe that linking the activity of firms to the scope of internationalization and geographical diversity has a long history in the literature on the subject.…”

What do we know about internationalization strategies implementation and what are we missing?

“…Mort and Weerawardena (2006) explain that link with evidences that fundamental and secondary networking capabilities enable identification and exploitation of market opportunities and facilitates the development of knowledge-intensive products. Stoian, Rialp, Rialp and Jarvis (2016) deepen pointing out that networks play a crucial role for knowledge creation and exchange, and frequently represent the most reliable resource at firms ' disposal, and Hashim (2015) complements by stating its role as a way to surpass external difficulties. About the Management/subsidiary autonomy factor, Gilbert and Heinecke (2014) and Gammelgaard, McDonald, Stephan, Tuselmann and Dorrenbacher (2012) agrees that increases in autonomy to an appropriate degree are highly contingent upon contextual influences, and Miozzo and Mo (2012) assigns the contingenct role to the flexibility that it brings to the firm.…”