The internationalization of small firms: The relationship between the global mindset and firms’ internationalization behavior

Kyvik, Oyvin; Saris, Willem E.; Bonet, Eduard; Felício, J. Augusto

doi:10.1007/s10843-013-0105-1

Cited by 88 publications

(88 citation statements)

References 83 publications

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“…For example, a considerable number of studies have been published on the relationship between entrepreneurial orientation (EO), namely the combination of key behaviors (innovativeness, proactiveness, and risk-taking) that drive entrepreneurial activity, and IE indicating that high levels of EO lead to international activity (Jantunen et al 2005;Joardar and Wu 2011;Ripollés-Meliá et al 2007). Additionally, in recent years, several authors have focused on the concept of a global mindset (GM), seen as a cognitive capability represented by the curiosity for and understanding of actions that support the identification entrepreneurial opportunities in a global setting, to explain international entrepreneurial behavior Kyvik et al 2013). This paper investigates the combination of these two concepts as an indicator for EIT in different contexts.…”

Section: Introductionmentioning

confidence: 99%

Cross-Country Differences in Entrepreneurial Internationalization Tendencies: Evidence from Germany and Pakistan

Middermann

Rashid

2019

Administrative Sciences

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Previous research has emphasized the importance of entrepreneurial characteristics for international entrepreneurship, hence the application of concepts such as entrepreneurial orientation and global mindset to the study of entrepreneurial internationalization tendencies (EIT). However, literature does not adequately address how EIT differ between countries or manifest in fragile country settings. We address this gap through a quantitative study to investigate EIT in two national settings that largely differ in terms of development, institutional stability, and culture. Through the lens of the institutional theory and the mindset theory, we therefore piloted the study on 112 high-growth startups in Germany and Pakistan. Our findings show, that while entrepreneurs in Germany and Pakistan show comparable levels of innovativeness and proactiveness, they significantly differ in other EIT measures. German entrepreneurs appear to have higher levels of risk-taking, which when explained through the institutional theory lens can be attributed to the higher institutional stability and support as well as social security in Germany. This potentially makes engagement in risky activities, such as business internationalization, more appealing than in Pakistan. However, despite having lower international cognition and international knowledge compared to Germany, Pakistani entrepreneurs appear to exhibit higher degrees of international behavior.

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Section: Introductionmentioning

confidence: 99%

Cross-Country Differences in Entrepreneurial Internationalization Tendencies: Evidence from Germany and Pakistan

Middermann

Rashid

2019

Administrative Sciences

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“…Similarly, Gupta and Govindarajan (2002) or Levy et al (2007) focused on concepts like cosmopolitanism and cognitive complexity in the international business context. However, studies explicitly linking managerial mindsets and characteristics to MNE performance are even less frequent (e.g., Felício et al, 2012;Kyvik, Saris, Bonet, & Felício, 2013;Nummela et al, 2004).…”

Section: Concluding Discussionmentioning

confidence: 99%

Viewing global strategy through a microfoundations lens

Contractor

Foss

Kundu

et al. 2018

Global Strategy Journal

112

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Research Summary: The emerging microfoundations literature asserts that macro concepts and macro‐outcomes, such as firm‐level capabilities, performance and strategies, need to be understood in terms of the underlying actions, interactions and characteristics of micro‐level entities, such as individual actors and managers. This literature has specific implications for the understanding of cross‐level explanatory mechanisms; notably, it asserts that all relations between macro variables are mechanisms that involve micro variables. While the microfoundations literature has been influential in the general strategy literature, global strategy has been less impacted by it. This is paradoxical because the research challenges pointed to by the literature are often magnified in the multinational corporation and in a global strategy context, and this context may introduce novel challenges. For example, Google's strategic decision in 2018 to reenter the Chinese market (macro‐level analysis) is best understood through the thinking of decision‐makers in the company, as well as opposition to the move from over 1,000 of its employees. We characterize microfoundations, discuss their relevance to the global strategy, and show how the papers in this special issue fill important microfoundational gaps in the global strategy literature. Managerial Summary: For too long, studies of corporate strategies have focused on the firm as a unit of analysis, as if the firm could decide or think on its own, neglecting the fact that it is managers who think. The underlying motivations, interactions and characteristics of individual managers of companies have often been missing in explanations of global strategy formulation. This can especially be a lacuna in closely‐held companies in emerging countries where decision‐making is more concentrated in the minds of owners, top managers and family members. The microfoundations literature specifically tries to connect the thinking and backgrounds of individual managers with strategic decisions their firm makes. While the microfoundations literature has made some headway in the general strategy literature, the analysis of global strategy has been less impacted by it. This is paradoxical because the research challenges pointed to by the literature are often magnified in the multinational corporation and in a global strategy context. This introductory paper first refines and enunciates microfoundations theory, in its application to global business. It then also shows how the papers in this special issue fill important microfoundational gaps in the global strategy literature.

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“…For instance, Rialp et al (2005) argue that the small firm's founder(s) and the founding team's characteristics, international vision, prior international experience, managerial commitment and networking capability are important factors, which enable an instant type of internationalization. Kyvik et al (2013) find that the global mindset, cognitive flexibility and networking capability of the CEO and key decision-makers in the small business determine the level of instant internationalization of their small firms compared with other small firms from the same industry. Note that the entrepreneur and TMT are both important participants and technology (means) in the firms (see Figure 2.1) to carry out important tasks during internationalization.…”

Section: Inputs and Influence From The Individual Levelmentioning

confidence: 95%

“…The individual level inputs are put as the primary layer of the means pool (see the inner layer of Figure 2.2) in the analysis framework. International vision and attitude (Kyvik et al, 2013; 48 2. THEORETICAL FRAME Ruzzier et al, 2006), human capital with international knowledge and skills (Felício et al, 2012;Evers and O'Gorman, 2011), and TMT's social capital (Zhou et al, 2007;Ellis, 2011), are the three important elements identified in earlier literature at this level.…”

Section: Inputs and Influence From The Individual Levelmentioning

confidence: 99%

Contextualization of Evolving Patterns in the Internationalization of Small Firms

2015

Linköping Studies in Science and Technology. Dissertations

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The internationalization of SMEs has been recognized as one of the important paths to growth in SMEs. However, internationalization is also a resource and competence-demanding process. This is especially true for smaller-sized SMEs – the small and micro-sized firms – which have a large resource constraint, making internationalization even more challenging. Although this group of small firms counts for an average of over 98% of the total population of enterprises in EU countries, extant research on the internationalization of this group is still limited. Therefore, the main purpose of this dissertation is to contribute to a better understanding of evolving patterns of internationalization in the smaller-sized SMEs. The study uses emerging market entry along the internationalization of small firms as a context to probe the dynamics of perceived risk (uncertainty) and perceived opportunity in different foreign markets which influence the important decisions of small firms during their internationalization. The main study takes a longitudinal approach and uses mixed methods to investigate the features in both the initial period and the continued period of internationalization. It mainly builds on a multiple-case study of 12 Swedish firms, which have/had emerging market entry experience and/or involvement. This study illustrates influences from the environmental, organizational and individual levels on evolving patterns of internationalization in the investigated firms. This dissertation concludes that critical decisions and actions taken in the internationalization process depend on interactions among the influence and resources from the three levels. Such interactions form a conditional preference on perceived risk (uncertainty) and perceived opportunity during the internationalization of small firms. The study further proposes that the dynamics in the internationalization process are caused by a prospect-guided change mechanism. This dissertation contributes to the literature by: differentiating patterns of internationalization; enriching the study of “born global” in the continued period of internationalization; introducing a new perspective on the interpretation of dynamics in the internationalization; and increasing the understanding on the interactions of resources from three levels on the internationalization of small firms

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The internationalization of small firms: The relationship between the global mindset and firms’ internationalization behavior

Cited by 88 publications

References 83 publications

Cross-Country Differences in Entrepreneurial Internationalization Tendencies: Evidence from Germany and Pakistan

Cross-Country Differences in Entrepreneurial Internationalization Tendencies: Evidence from Germany and Pakistan

Viewing global strategy through a microfoundations lens

Contextualization of Evolving Patterns in the Internationalization of Small Firms

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