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Internationalization of private firms: environmental turbulence and organizational strategies and resources

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  • Paul Westhead
  • Mike Wright
  • Deniz Ucbasaran

Abstract

Profiles of exporting and superior-performing private small and medium-sized enterprises (SMEs) are presented. Multivariate regression evidence suggests that SMEs focusing upon an offensive and market differentiation strategy of product/service protection is associated with the propensity and the intensity of exporting. Exporting SMEs are also associated with younger and manufacturing firms as well as firms with product or service quality and/or technology resources. The perceptions by SMEs of external environmental turbulence were not significantly associated with the exporting-dependent variables. Most notably, variables associated with exporting SMEs are not the same as those associated with superior firm performance. Moreover, exporting firms did not report superior levels of performance. Implications for policy-makers, practitioners and researchers are discussed.

Suggested Citation

  • Paul Westhead & Mike Wright & Deniz Ucbasaran, 2004. "Internationalization of private firms: environmental turbulence and organizational strategies and resources," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 16(6), pages 501-522, November.
    • Handle: RePEc:taf:entreg:v:16:y:2004:i:6:p:501-522
    DOI: 10.1080/0898562042000231929
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    Cited by:

    1. Zahoor, Nadia & Al-Tabbaa, Omar, 2021. "Post-entry internationalization speed of SMEs: The role of relational mechanisms and foreign market knowledge," International Business Review, Elsevier, vol. 30(1).
    2. James Foreman-Peck & Peng Zhou, 2015. "Firm-Level Evidence for the Language Investment Effect on SME Exporters," Scottish Journal of Political Economy, Scottish Economic Society, vol. 62(4), pages 351-377, September.
    3. Gassmann, Oliver & Keupp, Marcus Matthias, 2007. "The competitive advantage of early and rapidly internationalising SMEs in the biotechnology industry: A knowledge-based view," Journal of World Business, Elsevier, vol. 42(3), pages 350-366, September.
    4. Hessels, Jolanda & Parker, Simon C., 2013. "Constraints, internationalization and growth: A cross-country analysis of European SMEs," Journal of World Business, Elsevier, vol. 48(1), pages 137-148.
    5. Karafyllia, Maria & Zucchella, Antonella, 2017. "Synergies and tensions between and within domestic and international market activities of firms," International Business Review, Elsevier, vol. 26(5), pages 942-958.
    6. Boehe, Dirk Michael, 2011. "Collaborate at home to win abroad: How does access to local network resources influence export behavior?," Insper Working Papers wpe_248, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
    7. Desislava I. Yordanova, 2016. "Differences between Bulgarian Family and Non-family Businesses: A Multivariate Logit Approach," International Review of Management and Marketing, Econjournals, vol. 6(4), pages 779-789.
    8. Dutot, Vincent & Bergeron, François & Raymond, Louis, 2014. "Information management for the internationalization of SMEs: An exploratory study based on a strategic alignment perspective," International Journal of Information Management, Elsevier, vol. 34(5), pages 672-681.
    9. Andrey Mikhailitchenko & Sanjay Varshney, 2016. "SME Internationalization in Emerging Markets: Symbiotic vs. Commensal Pathways," Journal of Marketing and Consumer Behaviour in Emerging Markets, University of Warsaw, Faculty of Management, vol. 1(3), pages 4-19.
    10. Louis Raymond & Josée St-Pierre & Sylvestre Uwizeyemungu & Thang Dinh, 2014. "Internationalization capabilities of SMEs: A comparative study of the manufacturing and industrial service sectors," Journal of International Entrepreneurship, Springer, vol. 12(3), pages 230-253, September.
    11. Farhad Uddin Ahmed & Louis Brennan, 2019. "The impact of Founder’s human capital on firms’ extent of early internationalisation: Evidence from a least-developed country," Asia Pacific Journal of Management, Springer, vol. 36(3), pages 615-659, September.
    12. Alberto Bertello & Alberto Ferraris & Stefano Bresciani & Paola Bernardi, 2021. "Big data analytics (BDA) and degree of internationalization: the interplay between governance of BDA infrastructure and BDA capabilities," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(4), pages 1035-1055, December.
    13. Asghar Afshar Jahanshahi & Alexander Brem, 2020. "Entrepreneurs in post-sanctions Iran: Innovation or imitation under conditions of perceived environmental uncertainty?," Asia Pacific Journal of Management, Springer, vol. 37(2), pages 531-551, June.
    14. Marjorie Lecerf & Nessrine Omrani, 2020. "SME Internationalization: the Impact of Information Technology and Innovation," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(2), pages 805-824, June.
    15. Petrit Gashi, 2014. "Human Capital and Export Decisions: The Case of Small and Medium Enterprises in Kosovo," Croatian Economic Survey, The Institute of Economics, Zagreb, vol. 16(2), pages 91-120, December.
    16. Martineau, Charles & Pastoriza, David, 2016. "International involvement of established SMEs: A systematic review of antecedents, outcomes and moderators," International Business Review, Elsevier, vol. 25(2), pages 458-470.
    17. Yi, Jingtao & Wang, Chengqi & Kafouros, Mario, 2013. "The effects of innovative capabilities on exporting: Do institutional forces matter?," International Business Review, Elsevier, vol. 22(2), pages 392-406.
    18. Reuber, A. Rebecca & Fischer, Eileen, 2011. "International entrepreneurship in internet-enabled markets," Journal of Business Venturing, Elsevier, vol. 26(6), pages 660-679.
    19. Martín-Tapia, Inmaculada & Aragón-Correa, J. Alberto & Rueda-Manzanares, Antonio, 2010. "Environmental strategy and exports in medium, small and micro-enterprises," Journal of World Business, Elsevier, vol. 45(3), pages 266-275, July.
    20. Aleksandr Kljuènikov & Mehmet Civelek & Vladimír Krajèík & Petr Novák & Michal Èervinka, 2022. "Financial performance and bankruptcy concerns of SMEs in their export decision," Oeconomia Copernicana, Institute of Economic Research, vol. 13(3), pages 867-890, September.
    21. Idris, Bochra & Saridakis, George, 2018. "Local formal interpersonal networks and SMEs internationalisation: Empirical evidence from the UK," International Business Review, Elsevier, vol. 27(3), pages 610-624.
    22. Martin-Tapia, Inmaculada & Aragon-Correa, Juan Alberto & Senise-Barrio, Maria Eugenia, 2008. "Being green and export intensity of SMEs: The moderating influence of perceived uncertainty," Ecological Economics, Elsevier, vol. 68(1-2), pages 56-67, December.
    23. Mª Katiauska Cabrera-Suárez & Arístides Olivares Mesa, 2012. "Family firms’ resources and the timing of the export development process," Economic Analysis Working Papers (2002-2010). Atlantic Review of Economics (2011-2016), Colexio de Economistas de A Coruña, Spain and Fundación Una Galicia Moderna, vol. 1, pages 1-1, June.
    24. Desislava I. Yordanova, 2016. "Differences between Bulgarian Family and Non-family Businesses: A Multivariate Logit Approach," International Review of Management and Marketing, Econjournals, vol. 6(4), pages 779-789.
    25. Williams, Christopher & Colovic, Ana & Zhu, Jiqing, 2017. "Integration-responsiveness, local hires and subsidiary performance amidst turbulence: Insights from a survey of Chinese subsidiaries," Journal of World Business, Elsevier, vol. 52(6), pages 842-853.

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