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The Positive Effect of Motivation and International Orientation on SME Growth

Author

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  • Øystein Moen
  • Alf Gunnar Heggeseth
  • Ola Lome

Abstract

This empirical study on small and medium‐sized enterprise growth investigates the relationship between motivation for growth, international orientation, and subsequent performance by following 247 firms over 11 years. Using a combination of regression analysis and structural equation modeling, the authors find the international orientation of the firm to be a consistent predictor of growth in revenue and exports. The authors also find the international orientation of the firm to be closely interrelated with motivation for growth: Firms with managers and owners having a strong motivation for growth tend also to have managers with high international orientation and display superior growth both domestically and abroad. Whereas motivation seems independent of past performance, it has a profound positive influence on the growth in revenue. Moreover, the findings reveal that some firms are able to sustain high growth rates over an extended period of time. The study supports the contention that some firms are able to systematically outperform the rest.

Suggested Citation

  • Øystein Moen & Alf Gunnar Heggeseth & Ola Lome, 2016. "The Positive Effect of Motivation and International Orientation on SME Growth," Journal of Small Business Management, Taylor & Francis Journals, vol. 54(2), pages 659-678, April.
    • Handle: RePEc:taf:ujbmxx:v:54:y:2016:i:2:p:659-678
    DOI: 10.1111/jsbm.12163
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    Cited by:

    1. Crespo, Nuno Fernandes & Crespo, Cátia Fernandes & Silva, Graça Miranda & Nicola, Maura Bedin, 2023. "Innovation in times of crisis: The relevance of digitalization and early internationalization strategies," Technological Forecasting and Social Change, Elsevier, vol. 188(C).

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