Abstract
Smaller firms have played a pivotal role in the present decade of globalization. Reduced barriers to international trade and investment coupled with the advances in information technology have accorded opportunities for smaller firms -- employing fewer than 500 persons -- to emerge as multinational. The focus of this exploratory paper is on the how of their globalization or internationalization. Information from field studies of seven firms -- three Dutch and four American -- obtained by means of personal interviews with senior managers constitutes the primary qualitative data. Considering the convenient choice of the firms and the subjective nature of the recall data the paper, without claiming to draw any inferences, offers three initial propositions, for further refinement, expansion and empirical testing.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Acs, Z. J. and D. Audretsch, 1990, Innovation and Small Firms, Cambridge, MA: MIT Press.
Anderson, O., 1993, ‘On the Internationalization Process of Firms: A Critical Analysis’, Journal of International Business Studies 24, 209–231.
Bell, J., 1997, ‘A Comparative Study of the Export Problems of Smaller Computer Software Exporters in Finland, Ireland, Norway’, International Business Review 6(6), 585–604.
Braunerhjelm, P., 1993, ‘Globalization and the Future Role of Small and Medium Sized Enterprises’, in L. Oxelheim (ed.), The Global Race for Foreign Direct Investment, Berlin: Springer-Verlag.
Buckley, P. J., 1994, ‘International Business versus International Management?’, Journal of the Economics of Business 1, 95–104.
Calof, J. L. and P. W. Beemish, 1995, ‘Adapting to Foreign Markets: Explaining Internationalization’, International Business Review 4, 115–131.
Caves, R. E., 1971, ‘International Corporations: The Industrial Economics of Foreign Investment’, Economica 38, 1–27.
Cavusgil, S. T., 1984, ‘Differences among Exporting Firms Bases on Their Degree of Internalization’, Journal of Business Research 12, 195–208.
Coviello, N. and H. Munro, 1997, ‘Network Relationships and the Internationalization Process of Small Software Firms’, International Business Review 6(4), 361–385.
Ghauri, P. N. and S. B. Prasad, 1995, International Management, London: Dryden Press.
Huertas, Thomas F., 1990, ‘U.S. Multinational Banking: History and Prospects’, in G. Jones (ed.), Banks as Multinationals, London: Routledge, pp. 248–267.
Johanson, J. and F. Weidersheim-Paul, 1975, ‘The Internationalization of the Firm: Four Swedish Cases’, Journal of Management Studies 12, 305–322.
Johanson, J. and J. E. Vahlne, 1977, ‘The Internationalization Process of the Firm: A Model of Knowledge Development and Increasing Foreign Market Commitment’, Journal of International Business Studies 8, 23–32.
Kimberly, J. R. and R. H. Miles, 1980, The Organization Life Cycle, San Francisco: Jossey-Bass.
Mamis, R. A., 1989, ‘Global Start-up’, INC (August), 38–47.
Melin, Leif, 1992, ‘The Internationalization Process of Franchise Systems: A Conceptual Model,’ Strategic Management Journal 13, 99–128.
Mintzberg, Henry and J. A. Waters, 1982, ‘Tracking Strategy in an Entrepreneurial Firm’, Academy of Management Journal 25(3) 465–499.
Newbould, G. D., P. J. Buckley and J. Thurwell, 1978, Foreign Direct Investment by Smaller U.K.Firms, London: Macmillan.
Ohishi, Tsuyoshi, 1994, ‘The Internationalization of Japanese Firms’, Management Japan 26(2), 3–6.
Oviatt, B. M. and P. P. McDougall, 1994, ‘Toward a Theory of International New Ventures’, Journal of International Business Studies 25(1), 45–64.
Procter & Gamble, 1997, Annual Report, 5.
Palaniswami, Shantakumar and S. B. Prasad, 1996, ‘Manufacturing Strategies of Smaller Firms in Two National Contexts’, Advances in International Comparative Management 11, 87–99.
Rugman, A. M., 1986, ‘New Theories of the Multinational Enterprise: An Assessment of Internalization Theory’, Bulletin of Economic Research 38(1), 101–118.
Shapiro, Alan C., 1991, Foundations of Multinational Financial Management, Needham Heights, MA: Allyn & Bacon.
The Wall Street Journal, 1996, ‘More Small U.S. Firms Take Up Exporting, with Much Success’, October 20: Sec A1.
Turnbull, P. A., 1987, ‘Challenges to the Stages-Theory of Internationalization Process’, in P. J. Rosson and S. D. Reed (eds.), Managing Export Entry and Expansion, London: Praeger.
Van de Ven, A. and M. S. Poole, 1995, ‘Explaining Development and Change in Organizations’, Academy of Management Review 20, 510–540.
Vernon, R., 1966, ‘International Investment and International Trade in the Product Life Cycle’, Quarterly Journal of Economics (May), 190–207; also his revised paper in iOxford Bulletin of Economics and Statistics (November), 255–267.
Warner, John et al., 1999, ‘The Atlantic Century?’, Business Week (February 8), 64–67.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Prasad, r.B. Globalization of Smaller Firms: Field Notes on Processes. Small Business Economics 13, 1–7 (1999). https://doi.org/10.1023/A:1008013932344
Issue Date:
DOI: https://doi.org/10.1023/A:1008013932344