Technological imperatives in the internationalization process

Abstract

Purpose -The purpose of this paper is to empirically examine how a firm's leading-edge technology affects the way international business is conducted. Design/methodology/approach -The paper presents the issues faced by high-tech, small to medium-sized enterprises (SMEs) from New Zealand in the internationalization process. Since the research is anchored within a realism framework, case studies and semi-structured in-depth interviews were applied. Findings -The research suggests that current foreign activities result in a stream of indicators closely related to the firm's technology, which are instrumental in shaping and driving future international activities. The paper demonstrates that firms tend to be influenced by the entry decisions made by other firms in the same/similar industry targeting the same market; and that a firm's technological capabilities and the advantages of specialized knowledge act as the constraints in the development of the firm's future international strategy. Practical implications -The paper helps to increase the understanding of how lack of foreign market knowledge can be perceived as an obstacle to carrying out international business. Originality/value -The paper presents the internationalization process as a dynamic process in an approach which is an extension of past thinking. However, past research has been motivated by generalizing findings across firms, to understand shared patterns in the process of internationalization. This approach overlooks the unique distinctiveness of firms in different sectors and contexts where idiosyncratic behavior is the norm rather than the exception to the rule.

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

“…The advancements of Pla-Barber and Alegre (2007) corroborates the results of the studies of Massa andTesta (2011) andSedoglavich (2012), with regard to the importance of technological resources and scientific and innovation development as the main sources of competitive advantages for the internationalization process of technology-based SMEs. The variable size, even if decisive for the analysis of the export performance, is a secondary variable when compared with the rare resources and skills present in high-tech firms.…”

“…It is inferred, therefore, that exporting may assume gradual stages, which are related to the firm's commitment with international activities, the learning process, the strategy and the objectives (Andersen, 1993;Kontinen & Ojala, 2012) also designed as the SMEs' main operation mode in international markets (Testa, 2011;Sedoglavich, 2012;Westhead, Binks, Ucbasaran, & Wright, 2002). Conversely, exporting aims to reduce risks and uncertainties and corroborates with the learning perspective (Gankema et al, 2000).…”

“…Even though the networks are promising means to internationalize, factors such as the innovation development and skilled human capital are of paramount importance, especially for high-technology SMEs, as they constitute the organization's core valuable resources (Li et al, 2012;Pla-Barber & Alegre, 2007;Sedoglavich, 2012). Therefore, as stated by Loefgren (2014) and Oxtorp and Elg (2015) networks are important for SMEs to obtain strategic resources and to enhance the innovation development that leads to international market competitiveness and further business opportunities.…”

“…The possibilities reside on further studies about the internationalization process of SMEs from developed (Majocchi & Zucchela, 2003) and emerging economies (Amal & Freitg Filho, 2012;Chang, 2011;Mtigwe, 2005;Neupert, Baughn, & Dao, 2006;Thai & Chong, 2013) and from high-technological and low-technological industrial sectors (D'Angelo, 2012;Hermel & Khayat, 2011;Li, Qian, & Qian, 2012;Sedoglavich, 2012). There are also opportunities of research beyond the study of the gradual internationalization pattern, which encompasses the rapid internationalization pattern (Bell et al, 2003;Chetty & Campbell-Hunt, 2003;Hermel & Khayat, 2011;Karlsson & Honig, 2009;Zhou, Wu, & Luo, 2007).…”

“…Yet, exigent clients, consumer and customers, i.e. buyers, can pose new challenges for organizations, such as requirements, standards and consumption trends that stimulate the learning process and the continuous development of products and services (Filippetti, Frenz, & Ietto-Gillies, 2013;Sedoglavich, 2012). As a result, innovative organizations are more prone to the international market expansion due to competitive advantages inherent to the innovation development and the improvement in their productive performance (D'Angelo, 2012;Pla-Barber & Alegre, 2007;Rodríguez & Rodríguez, 2005).…”