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Prevalence and Longitudinal Trends of Early Internationalisation Patterns among Canadian SMEs

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  • Sui, Sui
  • Yu, Zhihao
  • Baum, Matthias

Abstract

Purpose: 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.

Suggested Citation

  • Sui, Sui & Yu, Zhihao & Baum, Matthias, 2012. "Prevalence and Longitudinal Trends of Early Internationalisation Patterns among Canadian SMEs," MPRA Paper 41177, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:41177
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    Cited by:

    1. Rubina Romanello & Maria Chiarvesio, 2019. "Early internationalizing firms: 2004–2018," Journal of International Entrepreneurship, Springer, vol. 17(2), pages 172-219, June.
    2. Baum, Matthias & Schwens, Christian & Kabst, Ruediger, 2015. "A latent class analysis of small firms’ internationalization patterns," Journal of World Business, Elsevier, vol. 50(4), pages 754-768.
    3. Sui, Sui & Morgan, Horatio M. & Baum, Matthias, 2015. "Internationalization of immigrant-owned SMEs: The role of language," Journal of World Business, Elsevier, vol. 50(4), pages 804-814.
    4. Morais, Flávio & Ferreira, João J., 2020. "SME internationalisation process: Key issues and contributions, existing gaps and the future research agenda," European Management Journal, Elsevier, vol. 38(1), pages 62-77.
    5. Vissak, Tiia & Masso, Jaan, 2015. "Export patterns: Typology development and application to Estonian data," International Business Review, Elsevier, vol. 24(4), pages 652-664.
    6. Mika Gabrielsson & Peter Gabrielsson & Pavlos Dimitratos, 2014. "International Entrepreneurial Culture and Growth of International New Ventures," Management International Review, Springer, vol. 54(4), pages 445-471, August.
    7. Hamid Etemad, 2022. "Towards an integrated and longitudinal life-cycle framework of international entrepreneurship: Exploring entrepreneurial orientation, capabilities, and network advantages overcoming barriers to intern," Journal of International Entrepreneurship, Springer, vol. 20(4), pages 503-536, December.
    8. Birgit Hagen & Antonella Zucchella, 2014. "Born Global or Born to Run? The Long-Term Growth of Born Global Firms," Management International Review, Springer, vol. 54(4), pages 497-525, August.
    9. Choquette, Eliane & Rask, Morten & Sala, Davide & Schröder, Philipp, 2017. "Born Globals—Is there fire behind the smoke?," International Business Review, Elsevier, vol. 26(3), pages 448-460.
    10. Sui Sui & Matthias Baum & Shavin Malhotra, 2019. "How Home-Peers Affect the Export Market Exit of Small Firms: Evidence From Canadian Exporters," Entrepreneurship Theory and Practice, , vol. 43(5), pages 1018-1045, September.

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    More about this item

    Keywords

    International New Ventures; Born Globals; Born Regionals; Longitudinal Study; Regional Strategy; Internationalization Process;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada

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    This paper has been announced in the following NEP Reports:

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