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The internationalisation patterns of small and medium-sized enterprises and their determinants
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- In the context of the growing internationalisation of companies and the growing importance of SMEs in the world economy, this master’s thesis aims to provide answers to three research questions: [Q1] What are the internationalisation patterns followed by SMEs? [Q2] What are the determinants of these internationalisation patterns? [Q3] What are the managerial implications that can be built from the answers of the two first research questions? To reach this goal, the paper is divided into five main parts: (1) the introduction, (2) the literature review which provides some definitions, examines the three internationalisation patterns followed by SMEs and explores the determinants of these, (3) the practical part in which the research methodology is described and the analysis of four interviewed SMEs is realised, (4) the managerial implications, (5) the conclusion along with the limitations and perspectives for future research. The literature review provides theoretical answers to the two first research questions. For the first one, three internationalisation patterns commonly followed by SMEs are identified. The traditional one is slow and gradual, firms entering international markets with progressively greater psychic distance after being well established in their domestic markets. The born global one is early and accelerated, firms entering multiple international markets from their founding or soon after. The born again global one is delayed and accelerated, firms entering multiple international markets due a particular episode after a long period of focusing on their domestic markets. For the second one, nine firm-internal determinants of the three internationalisation patterns are identified namely managers’ characteristics and mind-set, international growth orientation, intelligence generation, marketing capabilities, financial resources and capabilities, knowledge, communication capabilities, network and finally firm strategy and environment. The practical part aims to add a concrete dimension to this master’s thesis and to better reflect the reality. To reach these goals, we interviewed the managers of four Belgian SMEs (EUREMI, Fishing Cactus, Lisam and Ipratech) operating in different sectors and having an international dimension. These meetings had dual objectives. The first objective is to obtain a parallel between the theory and the practise. The second objective is to gain a deeper understanding about what shapes the SMEs internationalisation by understanding the experience and the expertise of these managers. To do so, firstly, we expose the research methodology that has been used to conduct the interviews and we precise that we do not pretend to reach generalisations or statistical outcomes based on these interviews. Secondly, we analyse our interviewed SMEs by presenting them, identifying their internationalisation pattern and evaluating their determinants. While EUREMI has been identified as following a traditional internationalisation pattern, Fishing Cactus and Ipratech have been classified into the born global category. Finally, Lisam belongs to the last type of internationalisation pattern; the born again global one. After that, each of the nine determinants presented into the theoretical part are evaluated for each company in order to assess the matching between the theory and the practice and in order to evaluate what has determined the internationalisation pattern followed by our four SMEs. We conclude that, for our four SMEs, some determinants plays a more important role than others like the managers’ characteristics, the international growth orientation, the knowledge, the network and the environment. However, it should be borne that these are not statistically and convincing results since it is based on the interviews of four SMEs. Finally, we ventures two managerial implications based on the results obtained to the two first research questions in order to answer the third one.