Prevalence and Longitudinal Trends of Early Internationalisation Patterns among Canadian SMEs
AbstractPurpose: Recently, studies call for a more nuanced perspective on different internationalization patterns pursued by early internationalizers. These studies argue that most Born Global firms turn out to be Born Regional and that the proportion of true Born Global firms would be overestimated. Moreover, literature claims that the proportion of Born Global firms increases over time due to macroeconomic trends. We investigate these assumptions by providing a dynamic perspective on the prevalence of different types of internationalization patterns among Canadian small and medium-sized exporters (SMEs). Design/methodology/approach: To empirically examine the ideas above, we constructed a unique large-scale longitudinal (1997–2004) dataset. A multinomial logit model is employed to estimate a firm’s predicted probability, ceteris paribus, of choosing different internationalization patterns: Born Global, Born Regional, and Gradual Internationalization. Findings: We find that Born Global firms indeed account for a smaller proportion than Born Regional firms (16% vs. 27%). However, we find evidence that Born Globals and Born Regionals are increasingly established over time and that macroeconomic factors seem to account for this development at least partially. Originality/value Combining a rigorous empirical analysis with a unique large scale longitudinal dataset, we address two fundamental research questions in the international entrepreneurship (IE) literature a) which internationalization pattern prevails and b) if the Born Global pattern is increasingly established over time. We therewith theoretically contribute by comparing the predictive value of different internationalization frameworks international new venture (INV) framework, stage-models and regionalization hypothesis), toward which there is considerable current debate.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 41177.
Date of creation: Jun 2012
Date of revision:
International New Ventures; Born Globals; Born Regionals; Longitudinal Study; Regional Strategy; Internationalization Process;
Find related papers by JEL classification:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- O51 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-09-22 (All new papers)
- NEP-BEC-2012-09-22 (Business Economics)
- NEP-CSE-2012-09-22 (Economics of Strategic Management)
- NEP-ENT-2012-09-22 (Entrepreneurship)
- NEP-SBM-2012-09-22 (Small Business Management)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kuivalainen, Olli & Sundqvist, Sanna & Servais, Per, 2007. "Firms' degree of born-globalness, international entrepreneurial orientation and export performance," Journal of World Business, Elsevier, Elsevier, vol. 42(3), pages 253-267, September.
- Alan M Rugman & Alain Verbeke, 2004.
"A perspective on regional and global strategies of multinational enterprises,"
Journal of International Business Studies,
Palgrave Macmillan, vol. 35(1), pages 3-18, January.
- Alan M. Rugman & Alain Verbeke, 2004. "A Perspective on Regional and Global Strategies of Multinational Enterprises," Working Papers, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy 2004-19, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
- Alex Rialp-Criado & Josep Rialp-Criado & Gary A. Knight, 2002. "The phenomenon of international new ventures, global start-ups, and born-globals: what do we know after a decade (1993-2002) of exhaustive scientific inquiry?," Working Paper, Department of Business Economics, Universitat Autonoma de Barcelona 200211, Department of Business Economics, Universitat Autonoma de Barcelona.
- Coviello, Nicole E. & Jones, Marian V., 2004. "Methodological issues in international entrepreneurship research," Journal of Business Venturing, Elsevier, vol. 19(4), pages 485-508, July.
- Keith Head & John Ries, 1998. "Immigration and Trade Creation: Econometric Evidence from Canada," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 31(1), pages 47-62, February.
- Preece, Stephen B. & Miles, Grant & Baetz, Mark C., 1999. "Explaining the international intensity and global diversity of early-stage technology-based firms," Journal of Business Venturing, Elsevier, vol. 14(3), pages 259-281, May.
- Ram Mudambi & Shaker A Zahra, 2007. "The survival of international new ventures," Journal of International Business Studies, Palgrave Macmillan, vol. 38(2), pages 333-352, March.
- Luis E Lopez & Sumit K Kundu & Luciano Ciravegna, 2009. "Born global or born regional? Evidence from an exploratory study in the Costa Rican software industry," Journal of International Business Studies, Palgrave Macmillan, vol. 40(7), pages 1228-1238, September.
- Roper, Stephen & Love, James H., 2002. "Innovation and export performance: evidence from the UK and German manufacturing plants," Research Policy, Elsevier, Elsevier, vol. 31(7), pages 1087-1102, September.
- Sergey Anokhin & Joakim Wincent, 2012. "Start-up rates and innovation: A cross-country examination," Journal of International Business Studies, Palgrave Macmillan, vol. 43(1), pages 41-60, January.
- Kuivalainen, Olli & Saarenketo, Sami & Puumalainen, Kaisu, 2012. "Start-up patterns of internationalization: A framework and its application in the context of knowledge-intensive SMEs," European Management Journal, Elsevier, Elsevier, vol. 30(4), pages 372-385.
- J. Stephen Ferris, 2010. "Quantifying Non-Tariff Trade Barriers: What Difference Did 9/11 Make to Canadian Cross-Border Shopping?," Canadian Public Policy, University of Toronto Press, University of Toronto Press, vol. 36(4), pages 487-501, December.
- Tuppura, Anni & Saarenketo, Sami & Puumalainen, Kaisu & Jantunen, Ari & Kyläheiko, Kalevi, 2008. "Linking knowledge, entry timing and internationalization strategy," International Business Review, Elsevier, Elsevier, vol. 17(4), pages 473-487, August.
- Alan M Rugman & Alain Verbeke, 2007. "Liabilities of regional foreignness and the use of firm-level versus country-level data: a response to Dunning et al. (2007)," Journal of International Business Studies, Palgrave Macmillan, vol. 38(1), pages 200-205, January.
- Paul D Ellis, 2008. "Does psychic distance moderate the market size–entry sequence relationship?," Journal of International Business Studies, Palgrave Macmillan, vol. 39(3), pages 351-369, April.
- Terence Fan & Phillip Phan, 2007. "International new ventures: revisiting the influences behind the ‘born-global’ firm," Journal of International Business Studies, Palgrave Macmillan, vol. 38(7), pages 1113-1131, December.
- Rugman, Alan M. & Oh, Chang Hoon, 2010. "Does the regional nature of multinationals affect the multinationality and performance relationship?," International Business Review, Elsevier, Elsevier, vol. 19(5), pages 479-488, October.
- Alan M Rugman & Alain Verbeke, 2003. "Extending the theory of the multinational enterprise: internalization and strategic management perspectives," Journal of International Business Studies, Palgrave Macmillan, vol. 34(2), pages 125-137, March.
- Kim P. Huynh & Robert J. Petrunia & Marcel Voia, 2010. "THE IMPACT OF INITIAL FINANCIAL STATE ON FIRM DURATION ACROSS ENTRY COHORTS -super-* ," Journal of Industrial Economics, Wiley Blackwell, Wiley Blackwell, vol. 58(3), pages 661-689, 09.
- McDougall, Patricia Phillips & Oviatt, Benjamin M., 1996. "New venture internationalization, strategic change, and performance: A follow-up study," Journal of Business Venturing, Elsevier, vol. 11(1), pages 23-40, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.