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Towards an Integrative Model of Small Firm Internationalisation

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Abstract

Firm internationalisation has long been regarded as an incremental process, wherein firms gravitate towards ‘psychologically close’ markets and increase commitment to international markets in a gradual, step-wise, manner through a series of evolutionary ‘stages’. However, much of the recent literature provides clear evidence of rapid and dedicated internationalisation by ‘born global firms’. Typically, these are smaller entrepreneurial firms that internationalise from inception, or start to shortly thereafter. Their main source of competitive advantage is often related to a more sophisticated knowledge base. In addition, the authors have found evidence of firms supporting this ‘born global’ pattern of behaviour but also evidence of firms that suddenly internationalise after a long period of focusing on the domestic market. These ‘born-again’ globals appear to be influenced by critical events that provide them with additional human or financial resources, such as changes in ownership/management, being taken over by another company with international networks, or themselves acquiring such a firm. Based upon the extant literature and our own research, we propose an integrative model that recognises the existence of different internationalisation ‘pathways’. We then explore differences in behaviour due to the firm's internationalisation trajectory and discuss the strategic and public policy implications.

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Authors and Affiliations

  1. University of Ulster, Northern Ireland

    Jim Bell

  2. University of Waterloo, Canada

    Rod McNaughton

  3. University of Strathclyde, Scotland

    Stephen Young

  4. University of Central, England

    Dave Crick

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  1. Jim Bell
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  2. Rod McNaughton
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  4. Dave Crick
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Correspondence to Jim Bell.

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Bell, J., McNaughton, R., Young, S. et al. Towards an Integrative Model of Small Firm Internationalisation. Journal of International Entrepreneurship 1, 339–362 (2003). https://doi.org/10.1023/A:1025629424041

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