Internationalization of small firms: A case study of Turkish small‐ and medium‐sized enterprises
TL;DR: In this article, the authors investigated the factors that underlie the internationalization of small-medium-sized enterprises (SMEs) and identified the most significant factors/variables that are related to the internationalisation process of these firms in Turkey.
Abstract: Purpose – The purpose of this paper is to investigate the factors that underlie the internationalization of small‐ medium‐sized enterprises (SMEs) and to identify the most significant factors/variables that are related to the internationalization process of these firms in Turkey.Design/methodology/approach – The data for the analysis conducted in this study were collected from 471 owners/managers of SMEs in Turkey. This study examined the relationship of all variables in the internationalization of the small firms through use of Pearson and regression analysis.Findings – This study showed that the ability to be an exporter was related to the business age and size, the intensity of R&D, the growth rate of the domestic markets and the planning for export, pursued by SMEs.Research limitations/implications – The cross‐sectional nature of this study may have limitations in regards to observing the direction and causality of some of the variables. The caution should be also taken when generalizing the findings ...
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TL;DR: This article examined the importance of human capital and relational capital derived from relations with corporate clients for internationalization, and found that human capital was more important than relational capital for the task of internationalization.
Abstract: To further knowledge about the bases of internationalization, we examined the importance of two firm resources: human capital, and relational capital derived from relations with corporate clients a...
694 citations
TL;DR: In this paper, the authors analyzed the relationship between the internationalisation strategies of SMEs and types of ownership and found that internationalisation is negatively related to family ownership and positively related to corporate ownership.
Abstract: This paper analyses the relationship between the internationalisation strategies of SMEs and types of ownership. Different types of ownership affect firms, and this in turn will influence the internationalisation strategy adopted. Using a sample of Spanish SMEs, our results show that internationalisation is negatively related to family ownership and positively related to corporate ownership. We have also observed that the presence of a corporate blockholder in family firms encourages internationalisation. These results support the idea that ownership type influences the decision to internationalise.
550 citations
TL;DR: Wright et al. as mentioned in this paper reviewed the emerging international entrepreneurship perspective relating to SME internationalization with regard to the following seven themes: the timing of internationalization; the intensity and susta...
Abstract: Wright M., Westhead P. and Ucbasaran D. (2007) Internationalization of small and medium-sized enterprises (SMEs) and international entrepreneurship: a critique and policy implications, Regional Studies 41, 1013–1029. Practitioners are seeking to provide a supportive environment for growing ventures. An important policy challenge is the provision of support for small and medium-sized enterprises (SMEs) seeking to internationalize. To guide practitioner resource allocation decisions, recent conceptual and empirical developments relating to SME internationalization are discussed. An international entrepreneurship perspective is presented as a counterpoint to the established internationalization perspectives, which may have guided practitioner understanding of the aspirations and needs of SMEs. The emerging international entrepreneurship perspective relating to SME internationalization is critically reviewed with regard to the following seven themes: the timing of internationalization; the intensity and susta...
331 citations
TL;DR: In this article, the authors extend the literature addressing the relationships surrounding the internationalization of SMEs in India as related to entrepreneurial behavior, firm resources, and commitment to internationalization.
314 citations
TL;DR: In this paper, the authors discuss the globalization process of business-to-business born globals in a rapidly growing industry, the wireless technology industry, and discuss the role of the founders and managers, the networks, the financial resources of the companies, and the innovations behind the companies under consideration.
230 citations
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TL;DR: This article used subjective estimates and extrapolations in an analysis of mail survey data from published studies for estimates of the magnitude of bias and found that the use of extrapolation led to substantial improvements over a strategy of not using extrapolation.
Abstract: Valid predictions for the direction of nonresponse bias were obtained from subjective estimates and extrapolations in an analysis of mail survey data from published studies For estimates of the magnitude of bias, the use of extrapolations led to substantial improvements over a strategy of not using extrapolations
11,245 citations
TL;DR: In this paper, a model of the internationalization process of a firm focusing on the gradual acquisition, integration and use of knowledge about foreign markets and operations, and on the incrementally increasing commitments to foreign markets is developed.
Abstract: On the basis of empirical research, a model of the internationalization process of the firm is developed. The model focuses on the gradual acquisition, integration and use of knowledge about foreign markets and operations, and on the incrementally increasing commitments to foreign markets. In particular, attention is concentrated on the increasing involvement in the individual foreign country.
9,918 citations
TL;DR: In this article, the authors analyse the internationalization of four Swedish firms (Sandvik, Atlas Copco, Facit and Volvo) and show that they sell more than two-thirds of their turnover abroad and have production facilities in more than one foreign country.
Abstract: Many firms start international operations when they are still comparatively small and gradually develop their operations abroad. This chapter analyses the internationalization of four Swedish firms — Sandvik, Atlas Copco, Facit and Volvo. All of them sell more than two-thirds of their turnover abroad and have production facilities in more than one foreign country. Of the four firms Sandvik is the oldest and also the one which first started its internationalization course. The first contacts with representatives were established in the 1860s. Sandvik's early start with representatives in foreign countries was an innovation at that time. Until then the Swedish iron and steel exporting had mainly been undertaken by trading firms. In 1905 Atlas produced the first air compressor. In 1917 the company was merged with another firm, producing diesel engines. Atlas Copco is five years younger than Sandvik but started the internationalization process considerably later.
3,697 citations
"Internationalization of small firms..." refers background in this paper
...The Uppsala model concentrates on the gradual acquisition, integration, and use of knowledge about foreign markets ( Johanson and Wiedersheim-Paul, 1975...
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TL;DR: The formation of organizations that are international from inception is an increasingly important phenomenon that is incongruent with traditionally expected characteristics of multinational enterprises as mentioned in this paper, and a framework is presented that explains the phenomenon by integrating international business, entrepreneurship, and strategic management theory that describes four necessary and sufficient elements for the existence of international new ventures.
Abstract: The formation of organizations that are international from inception—international new ventures—is an increasingly important phenomenon that is incongruent with traditionally expected characteristics of multinational enterprises A framework is presented that explains the phenomenon by integrating international business, entrepreneurship, and strategic management theory That framework describes four necessary and sufficient elements for the existence of international new ventures: (1) organizational formation through internalization of some transactions, (2) strong reliance on alternative governance structures to access resources, (3) establishment of foreign location advantages, and (4) control over unique resources
3,469 citations
TL;DR: The contemporary relevance of the Uppsala Internationalisation Model is discussed in this article, which is a framework advanced by a number of Swedish colleagues describing the typical process of "going international".
Abstract: The contemporary relevance of the so‐called Uppsala Internationalisation Model is discussed. This is a framework advanced by a number of Swedish colleagues describing the typical process of “going international”. Johanson and Vahlne respond to the criticisms of the model they proposed in the 1970s and relate it to the Eclectic Paradigm Model and the Networking literature. The concepts of the advantage package and the advantage cycle in the internationalisation context are also introduced.
3,412 citations