Internationalisation commitment of emerging market firms

Abstract

Purpose Enhancing firm commitment towards internationalisation is an important step towards ensuring successful international performance. However, there is limited research on this topic for emerging market firms. The purpose of this paper is to investigate the factors that influence the internationalisation commitment of emerging market firms located in two Latin American countries with different institutional environments. Design/methodology/approach This study proposes and tests a conceptual model that includes drivers and barriers of internationalisation commitment. Data were collected from Chilean and Brazilian firms. The model uses confirmatory factor analysis to develop the underlying multi-item constructs and structural equation modelling to test the model. Findings The results show that managers’ perceptions of firm resources and capabilities are significant drivers of internationalisation commitment in both countries. In addition, perceptions of internal firm-specific barriers, such as a manager’s lack of international experience and knowledge, are negatively related to internationalisation commitment in Chile, but not in Brazil. Finally, external environmental barriers are negatively related to internationalisation commitment in Brazil, but not in Chile. Practical implications The context for the study is Chile and Brazil. Both are important emerging markets in Latin America, with a strong focus on firm internationalisation. The research design is cross-sectional and so does not allow for any causal claims to be made. The findings have important implications for internationalisation efforts of managers and export promotion agencies of emerging markets with different institutional environments. Originality/value This research contributes to the relatively scant but increasing number of empirical studies which investigate emerging market internationalisation in Latin America.

Product innovation and performance in SME’s: the role of the creative process and risk taking

“…A reluctance to participate in surveys still persists in Chile, making empirical studies difficult, despite efforts to increase the response rate. This situation is not unique and the literature (Bianchi et al, 2018) indicates that the general response rate of companies is decreasing worldwide. Table 1 illustrates the sample characterisation by economic activity.…”

Manufacturing SMEs, network governance and global supply chains

“…A recent study in France showed that 84 per cent of SMEs want to increase their export activity – an increase of five percentage points on 2016 (Euler Hermes, 2018). Research has shown that firm commitment towards internationalisation is an important first step towards achieving successful international performance (Bianchi et al , 2018).…”

Top managers' attributes, innovation, and the participation in China–Pakistan Economic Corridor: A study of energy sector small and medium‐sized enterprises

“…(Anwar, Shah, & Khan, 2018), Other reasons cited for the trend include a high degree of local competition (Neubert & Van Der Krogt, 2020), lack of state support (Wu & Deng, 2020), poor technology (Li & Ding, 2017), and unstable market conditions (Adomako, Amankwah‐Amoah, Dankwah, Danso, & Donbesuur, 2019). At the same time, the potential benefits of internationalization (e.g., high profitability, sales growth, stable markets, and opportunities), motivate emerging small and medium‐sized enterprises (SMEs) to enter into foreign markets (Bianchi, Carneiro, & Wickramasekera, 2018; Zhang, Ma, Wang, & Wang, 2014). However, all the SMEs cannot make a successful international entry due to several weaknesses and constraints: lack of support, deficiency of resources, regulations, and poor managerial skills (Anwar et al, 2018; Hutchinson, Fleck, & Lloyd‐Reason, 2009; Lin & Chaney, 2007; Lu & Beamish, 2001).…”