SMEs' internationalisation patterns: descriptives, dynamics and determinants

Abstract

PurposeThe purpose of this paper is to identify the internationalisation patterns of small‐ and medium‐sized enterprises (SMEs) quantitatively, to describe SMEs as they follow different patterns over time and to discuss the determinants of these patterns through empirical study.Design/methodology/approachThe authors conducted a questionnaire survey among mature German SMEs (n=674). To identify internationalisation patterns, a latent class clustering approach was applied. Because of the large sample, a multinomial logistic regression analysis could be used to analyse the factors influencing these patterns.FindingsThe authors empirically find three internationalisation patterns: traditionals, born globals and born‐again globals. Comparing modern SMEs with the same SMEs from ten years ago, it was found that firms may change their patterns. Moreover, the patterns are determined by international orientation, growth orientation, communication capability, intelligence generation capability and marketing‐mix standardisation.Research limitations/implicationsCombining elements of the Uppsala model (countries and operation modes) and born global research (time lag and foreign sales ratio), three internationalisation patterns of established international SMEs from traditional sectors were identified empirically. Because of the multidimensional nature of internationalisation, the patterns may change over time. Different firm‐level factors determine the internationalisation patterns.Originality/valueInstead of applying “arbitrary” thresholds, the paper provides a quantitative approach to identifying internationalisation patterns. These patterns confirm the three main internationalisation pathways discussed in the international marketing literature. The paper further advances the field by describing the patterns, showing evidence that the patterns may cross over time and providing information on the factors that influence the patterns.

As capacidades dinâmicas para a inovação e os padrões de internacionalização de empresas de base tecnológica: um estudo de casos múltiplos com PMEs brasileiras

“…As mentioned in the literature, there are numerous studies that investigate the MNCs 'strategies and entry forms, mainly from North America, Western Europe and Japan (Singh et al, 2010). However, even if there is an extensive literature dedicated to enlighten the internationalization process of SMEs, there are promising possibilities of researches to contribute to this theme (Bell et al, 2003;Kuivalainen et al, 2007;Olejnik & Swoboda, 2012;Tuppura et al, 2008).…”

“…The decision criteria to define the internationalization pattern are the chosen international operational mode, the number of countries and the location of countries where SMEs operate, the international sales intensity and the entry timing, or the time lag from the enterprise's foundation year to the enterprise's commencement year in outward commercial activities (Bell, McNaughton, Young, & Crick, 2003;Olejnik & Swoboda, 2012;Oviatt & McDougall, 1994;Tuppura, Saarenketo, Puumalainen, Jantunen, & Kylaeheiko, 2008). Thus, there are distinctive parameters that explain the SMEs' internationalization patterns.…”

“…The Uppsala Model affirms that there is a progressive development of the firm's commercial activities in international markets, along the "establishment chain", which begins with no regular export activities to evolve to export via independent representatives/agents, sales subsidiary and production/manufacturing (Johanson & Wiedersheim-Paul, 1975, p. 307). Besides these international operation modes, there are others which also may evolve from exporting, such as international alliances, non-equity alliances, joint venture, global sourcing, sales subsidiary and the FDI (Grandinetti & Mason, 2012;Olejnik & Swoboda, 2012;Sass, 2012;Singh, Pathak, & Naz, 2010;Testa, 2011;Tuppura, Saarenketo, Puumalainen, Jantunen, & Kylaeheiko, 2008).…”

“…On the other hand, the internationalization process is the internationalization trajectory of the firm, from its beginning until nowadays. In this sense, the four internationalization patterns present distinctive decision criteria that encompass the firm's strategies (Bell et al, 2003;Olejnik & Swoboda, 2012;Oviatt & McDougall, 1994;Tuppura et al, 2008). The internationalization process, in turn, aims to explain how the firm structures its foreign commercial activities, considering the international operation mode and the progression of this market expansion.…”

“…The Uppsala Model presents a limited explanatory power concerning the relationship between the learning and knowledge gaining processes about international markets and the increasing foreign market commitment, which is dependent on the firm's performance and prospects. The model is, therefore, not deterministic, as it implies that the process of internationalizing concurs with favorable and profitable returns (Johanson & Vahlne, 2009;Olejnik & Swoboda, 2012).…”