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Where Angels Fear to Tread: Internationalization of Emerging Country SMEs

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  • Sonia Ketkar
  • Zoltan Acs

    ()

Abstract

Based on institutional theory and risk perspectives, this study examines how the entrepreneurial orientation of firms as determined by national cultural factors is related to the internationalization of small- and medium-sized enterprises (SMEs) from emerging and developing countries. We also suggest that institutional improvements can have a moderating effect on the relationship between culture and internationalization. We develop a unique measure of internationalization and test it on a sample of 7,212 SMEs from 36 developing countries using a multilevel linear hierarchical model that allows us to examine both firm- and country-level effects. We find that developed institutions support the internationalization of SMEs from more masculine and individualistic cultures. Copyright Springer Science+Business Media New York 2013

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File URL: http://hdl.handle.net/10.1007/s10843-013-0107-z
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Bibliographic Info

Article provided by Springer in its journal Journal of International Entrepreneurship.

Volume (Year): 11 (2013)
Issue (Month): 3 (September)
Pages: 201-219

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Handle: RePEc:kap:jinten:v:11:y:2013:i:3:p:201-219

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Web page: http://www.springerlink.com/link.asp?id=112039

Related research

Keywords: Culture; Hierarchical linear modeling; SMEs; Emerging markets; Institutions;

References

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  1. Globerman, Steven & Shapiro, Daniel, 2002. "Global Foreign Direct Investment Flows: The Role of Governance Infrastructure," World Development, Elsevier, vol. 30(11), pages 1899-1919, November.
  2. Kannan Ramaswamy & K Galen Kroeck & William Renforth, 1996. "Measuring the Degree of Internationalization of a firm: A Comment," Journal of International Business Studies, Palgrave Macmillan, vol. 27(1), pages 167-177, March.
  3. Chakrabarty, Subrata, 2009. "The influence of national culture and institutional voids on family ownership of large firms: A country level empirical study," Journal of International Management, Elsevier, vol. 15(1), pages 32-45, March.
  4. Bruce Kogut & Harbir Singh, 1988. "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, Palgrave Macmillan, vol. 19(3), pages 411-432, September.
  5. Michael H Morris & Duane L Davis & Jeffrey W Allen, 1994. "Fostering Corporate Entrepreneurship: Cross-Cultural Comparisons of the Importance of Individualism Versus Collectivism," Journal of International Business Studies, Palgrave Macmillan, vol. 25(1), pages 65-89, March.
  6. Chittoor, Raveendra & Ray, Sougata & Aulakh, Preet S. & Sarkar, M.B., 2008. "Strategic responses to institutional changes: 'Indigenous growth' model of the Indian pharmaceutical industry," Journal of International Management, Elsevier, vol. 14(3), pages 252-269, September.
  7. Knight, Gary A., 2001. "Entrepreneurship and strategy in the international SME," Journal of International Management, Elsevier, vol. 7(3), pages 155-171.
  8. Zhang, Marina Y. & Dodgson, Mark, 2007. ""A roasted duck can still fly away": A case study of technology, nationality, culture and the rapid and early internationalization of the firm," Journal of World Business, Elsevier, vol. 42(3), pages 336-349, September.
  9. Ted Baker & Eric Gedajlovic & Michael Lubatkin, 2005. "A framework for comparing entrepreneurship processes across nations," Journal of International Business Studies, Palgrave Macmillan, vol. 36(5), pages 492-504, September.
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