International Activities in Small Firms: Examining Factors Influencing the Internationalization and Export Growth of Small Firms

Abstract

In this paper we explore internationalization and export growth over time in a sample of 135 small manufacturing firms. By using concepts and arguments from literature on international business and small firms. the paper identifies six situational, or contingency, factors that are expected to influence the international activities of small firms. Our results show that a dynamic and fast-changing environment may push small Jrms to go abroad, while it seems to be the experiences built up in the organization and a younger generation of CEOs that can explain why some small firms continue to expand their international activities. The findings suggest that the factors influencing small firms to go abroad and become international difler fmm the factors that influence them to continue and grow once they are on the international marketplace. The paper ends with a discussion of the findings, together with suggestions for further research. Risumk Dans cet article, nous analysons, a partir d'un ichantilion deI35 petites firmes manufacturiires, I 'impact, au fil du temps, de l'intemationalisation et de la croissance de l'exportation. Grdce a l'utilisation des concepts et d'arguments tiris de la littirature sur le commerce international et sur les petites entreprises, nous digageons six facteurs situationnels et conjoncturels qui sont censis avoir un impact sur les activitis internationales des petites entreprises. Nos risultats indiquent qu 'un envimnnement dynamique et en mutation rapide peut &re a 1 'origine de 1 'internationalisation des petites entreprises. Bien plus, les experiences acquises dans 1 'organisation et le rajeunissement des cadres expliqueraient pourquoi certaines petites entreprises continuent a itendre leurs activitis internationales. Les risultats montrent aussi que les facteurs qui poussent les petites entreprises a s'exporter et a s 'intemationaliser sont diffirents de ceux qui les poussent b continuer a croitre une fois qu'elles sont sur le marchd international. Nous bouclons notre itude par une analyse des risultats et une proposition des pistes de recherche futures. Small firms are becoming increasingly international. Small firms are reported to contribute 25 to 35% of world exports of manufacturers, and about one-fifth of manufacturing small firms receive between 10 and 40% of their turnover from cross-border activities (OECD, 2000). The authors thank "Lars Erik Lundberg's stillelse fir forskning w h utveckling" and Halmtad University for financial suppon. Addms correspondence to Svante Andersson. SlRuHalmstad Univeresity, P.O. Box 823. S-301 18 Halmstad. Sweden. E-mail: svante.andersson@sct.hh.se 8 ASAC 2004 22Moreover, small firms seem to get into the international scene at a much earlier age than before, and they are also more actively pursuing strategies that involve international activities (Knight

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