The role of information alignment and entrepreneurial traits on SME internationalization

Abstract

Purpose – The paper aims to explore the internationalisation decision-making of small- and medium-sized enterprise (SME) owner/managers. Specifically, structural alignment theory (SAT) and regulatory focus theory (RFT) are utilised to examine the concept of opportunity recognition in the context of internationalisation choices. Design/methodology/approach – This paper is conceptual in nature, and an integrative cognitive model of internationalisation choice decisions is developed based on SAT and RFT, underpinned by a critical review of the international entrepreneurship (IE) literature. Findings – Scenarios are identified in which the structure of available information may affect the decision-evaluation process in terms of cognitive resource requirements. Further, the SME owner/manager’s motivational goal orientation is suggested to moderate the role of the information structure in line with IE literature. A conceptual model and propositions are presented. Research limitations/implications – The conceptual model and the propositions arising from the discussion in this paper offer new directions of research to explore SME internationalisation. Originality/value – This paper offers a cognitive perspective of SME internationalisation. This paper offers insights for policymakers, SME owner/managers, practitioners and researchers alike. For internationalisation decisions, this paper highlights the potential impact of the structure of information that is made available to SME owner/managers by industry or policy bodies; further, the moderating influence of motivational goal orientation may inform policy on how information should be presented to SME owner/managers to aid their decision-making.

Micro-foundations of small business internationalization: introduction to the Special Section

“…1 Pinho (2007) showed that the entrepreneur's ability to innovate and its international experience are positively associated with an equity-based entry mode. This lack of attention to the individual level does not only contradict general small business and entrepreneurship literature (Shepherd, 2011), but also ignores SME internationalization research (Oviatt and McDougall, 2005) where it is argued that the manager / owner is in the centre of the entrepreneurial decision-making process (Bruneel and De Cock, 2016;Peschken et al, 2016). Given that motivational dispositions and specifically deep-rooted implicit needs energize individuals and predict stable, long-term behaviour (Schultheiss and Brunstein, 2010;Slabbinck et al, 2018) In sum, even though the body of knowledge on the pre-internationalization phase thus shows that individual aspects such as risk perception (e.g., Acedo and Jones, 2007;Shrader et al, 2000), higher education levels (e.g., Amorós et al, 2016) or international experience (Child and Hsieh, 2014) impact the decision to internationalize and its timing, the specificities on the impact of such individual aspects in specific sub-domains are under-researched (e.g., Bruneel and De Cock, 2016) and the number of studies on deeper-level psychological and behavioural aspects is still surprisingly low (Acedo and Florin, 2006;Geh, 2010;Peschken et al, 2016).…”

“…Amor os et al, 2016) or international experience (Child and Hsieh, 2014) impact the decision to internationalize and its timing, the specificities on the impact of such individual aspects in specific sub-domains are under-researched (e.g. Bruneel and De Cock, 2016) and the number of studies on deeper-level psychological and behavioural aspects is still surprisingly low (Acedo and Florin, 2006;Geh, 2010;Peschken et al, 2016).…”

“…They only found one study that focused on the individual level; Pinho (2007) showed that the entrepreneur's ability to innovate and its international experience are positively associated with an equity-based entry mode. This lack of attention to the individual level does not only contradict general small business and entrepreneurship literature (Shepherd, 2011) but also ignores SME internationalization research (Oviatt and McDougall, 2005) where it is argued that the manager/owner is in the centre of the entrepreneurial decision-making process (Bruneel and De Cock, 2016;Peschken et al, 2016).…”

Chinese SMEs in Germany: an exploratory study on OFDI motives and the role of China’s institutional environment

“…the SI of Vanderstraeten et al, 2020). Especially in small firms, where key decision-makers directly shape the agenda, their motivations and orientation are of central importance (Peschken et al, 2016). Yamakawa et al (2008) considered entrepreneurial orientation (EO) an important firm-specific capability and factor for OFDI decisions.…”

SME Growth and Performance: Examining performance dimensions, drivers and Barriers

“…Thus, SMEs make substantial contributions to national output and growth, exports and employment creation resulting in improved Gross Domestic Product (GDP) for a country. The contribution of SMEs to economies is widely acknowledged by both academics and policymakers (Peschken, 2016). Many developing economies are confronted with challenges such as low output from industry, high graduate unemployment, poor resource utilisation, influx of foreign goods unto the local domestic market leading to increased competition among others.…”