Beyond categorization: new directions for theory development about entrepreneurial internationalization

Categorizations emphasizing the earliness of internationalization have long been a cornerstone of international entrepreneurship research. Here we contend that the prominence of categories has not been commensurate with theory development associated with them. We draw on categorization theory to explain why earliness-based categories are persistent, and argue that a greater focus on notions related to opportunity can open new avenues of research about the entrepreneurial internationalization of business. We propose and discuss three directions for opportunity-based research on entrepreneurial internationalization, involving context, dynamics and variety

How do business-level strategies affect multiple market servicing modes in the foreign country?

Purpose-There is considerable literature on the firm’s market servicing mode (MSM) when it enters the foreign country. However, scant research has been conducted to examine how business-level strategies (BLSs) affect internationalised firms to choose a multiple rather than single post-entry MSM. The purpose of this paper is to test the effect of three BLSs on firms’ selection of multiple MSMs. Design/methodology/approach-Survey responses of 165 internationalised Greek small-and medium-sized enterprises (SMEs) were collected capturing the types of BLSs they used during 2008-2010 and their number of MSMs in a particular foreign country in 2011. The data were analysed using logistic regression. Findings-The findings suggest that firms that implement collaborative and differentiation strategies are more likely to use multiple rather than single MSMs. Firms that implement penetration pricing strategies are more likely to use single MSMs, although this effect is marginally significant. Overall, the validity of the strategic choice model regarding the choice of multiple MSMs is confirmed. Originality/value-Despite its importance, the effect of BLSs influencing MSMs has not seemingly been investigated, especially in the context of internationalised SMEs as opposed to large multinational enterprises; and, for post-entry as opposed to initial modes. The findings underline the BLS significance on internationalised SME adoption of multiple vs single MSMs in the host country

Problem-Solving Dissension and International Entry Mode Performance

Purpose This paper examines international decision-making, information processing and related performance implications. We explore the relationship between international decision-making and problem-solving dissensions related to entry mode decisions. In addition, we investigate the effects of dissension on entry mode performance, and the moderating effect of the foreign direct investment (FDI) vs. non-FDI decision as it relates to dissension-mode performance. Despite their significance from an information processing perspective, these issues have not been sufficiently explored in international entry mode research. Design/methodology/approach This research presents data collected from 233 privately owned internationalized Chinese firms. The analysis in this investigation includes hierarchical ordinary least squares (OLS) regression. Findings The findings suggest an inverse U-shaped relationship between dissension and entry mode performance, as opposed to a linear one, and a moderating effect of FDI vs. non-FDI decisions on this curvilinear dissension–performance association. These findings support and refine the rationale of the information processing perspective. Originality/value These findings add realistic elements to the alleged “rational” international decision-making doctrine assumed in previous entry mode literature. Our findings show the importance of the heterogeneity of information processing in entry mode strategic decision-making processes (SDMPs), and its effects on specific decision types. We believe that this is the first empirical study to use an information processing perspective to examine the effects of SDMPs on entry mode performance

A taxonomy of strategic postures of international SMEs

This study provides a theoretical analysis of SME strategic postures and presents empirical evidence of strategic types of international SMEs across three European countries, namely Italy, Finland and Greece. Empirical investigation based on a sample of more than 550 international SMEs is performed through cluster analysis. Findings suggest there are four broad strategic types, i.e. the entrepreneurial/growth oriented group of firms, a marketing/selling group of business, a cluster of firms which lack strategic orientation and strategy, and the cluster which focuses on innovation/technology and core manufacturing competencies. The taxonomy provides a description and an explanation of international strategic postures and the basis for theorizing on SMEs’ international behaviour and outcome consequences. Any programs – business- and policy-wise - which aim to stimulate internationalization would benefit greatly from tailoring recommendations to the nature of the strategic types

How do European trade promotion organisations manage their stakeholders?

Trade Promotion Organisations (TPOs) exert significant influence on the internationalisation potential of domestic firms and improving the indigenous country’s trade balance. However, TPOs’ strategies to uphold their impact as to the relationship vis-à-vis their stakeholders are largely unknown. This is an important gap in the literature considering that effective stakeholder management can enhance TPOs’ performance and the value they develop for three primary stakeholder groups, namely home country government, domestic firms and foreign trade offices. In this study, we employ the stakeholder theory and draw upon in-depth case studies of 14 European TPOs to address this gap. We advance six related propositions on how funding sourcing, services to domestic firms and functions of foreign trade offices can be effectively associated with TPOs’ relationship management towards these stakeholder groups. The contribution of the study lies on the application of stakeholder theory in trade promotion and the derivation of related sets of strategies

A missing operationalization: entrepreneurial competencies in multinational enterprise subsidiaries

We seek to provide a comprehensive operationalization of firm-specific variables that constitute multinational enterprise subsidiary entrepreneurial competencies. Towards this objective, we bring together notions from the fields of entrepreneurship and international business. Drawing on an empirical study of 260 subsidiaries located in the UK, we propose a comprehensive set of scales encompassing innovativeness, risk-taking, proactiveness, learning, intra-multinational networking, extra-multinational networking and autonomy; which capture distinct subsidiary entrepreneurial competencies at the subsidiary level. Research and managerial implications are discussed

UK export performance research - review and implications

Previous research on export performance has been criticized for being a mosaic of autonomous endeavours and for a lack of theoretical development. Building upon extant models of export performance, and a review and analysis of research on export performance in the UK for the period 1990-2005, an integrated model of export performance is developed and theoretical explanations of export performance are put forward. It is suggested that a multi-theory approach to explaining export performance is viable. Management and policy implications for the UK emerging from the review and synthesis of the literature and the integrated model are discussed

SME Internationalization beyond Exporting: A Knowledge-based Perspective across Managers and Advisers

Micromultinationals are small and medium-sized enterprises that engage in foreign market entry modes beyond exporting. The purpose of this study is to unveil the knowledge types required by micromultinationals. To this end, we conducted an interpretive interview study involving managers and advisers. We extend the SME internationalization literature by distilling the knowledge types that this unique body of small multinationals requires. Furthermore, we generate a framework that enhances the knowledge-based perspective by showing that micromultinational expansion is led by tacitly dominated knowledge of internal actors related to products, industries, and markets and facilitated by functional knowledge provided by external actors

How do MNC R&D laboratory roles affect employee international assignments?

Research and development (R&D) employees are important human resources for multinational corporations (MNCs) as they are the driving force behind the advancement of innovative ideas and products. International assignments of these employees can be a unique way to upgrade their expertise; allowing them to effectively recombine their unique human resources to progress existing knowledge and advance new ones. This study aims to investigate the effect of the roles of R&D laboratories in which these employees work on the international assignments they undertake. We categorise R&D laboratory roles into those of the support laboratory, the locally integrated laboratory and the internationally interdependent laboratory. Based on the theory of resource recombinations, we hypothesise that R&D employees in support laboratories are not likely to assume international assignments, whereas those in locally integrated and internationally interdependent laboratories are likely to assume international assignments. The empirical evidence, which draws from research conducted on 559 professionals in 66 MNC subsidiaries based in Greece, provides support to our hypotheses. The resource recombinations theory that extends the resource based view can effectively illuminate the international assignment field. Also, research may provide more emphasis on the close work context of R&D scientists rather than analyse their demographic characteristics, the latter being the focus of scholarly practice hitherto

SME networks and international performance: Unveiling the significance of foreign market entry mode

This study investigates the relevance of inter-organizational networks for the international performance of small and medium-sized enterprises (SMEs) in relation to the foreign market entry mode (FMEM) selected. We distinguish two groups of internationalized SMEs: exporting firms and micromultinational enterprises (mMNEs). Drawing on insights from the network theory, our study accounts for the role of intermediate outcomes (innovative behavior and foreign market knowledge). Structural equation modeling is conducted in a sample of UK-based internationalized SMEs. Our findings suggest that inter-organizational networks have an indirect influence on international performance but differences are found among the two groups of internationalized SMEs