The role of digital presence and investment network signals on the internationalisation of small firms

Abstract

This article proposes a network signalling theory approach to analyse small firm internationalisation in the digital economy. We use a data set of 4446 small- and medium-sized firms extracted from Funderbeam and logit regression models to test five hypotheses about internationalisation. Exploring a firm’s digital presence indicates that the number of social media followers is a better indicator of internationalisation than website traffic, highlighting the importance of engagement signals in the digital space. Investment signals such as the time and size of funding are also positively related to internationalisation but surprisingly, not the number of investors, suggesting that more focused investment strategies work better in the international context. To complement our international network signalling approach, controlling for firm factors such as age and size and environmental factors such as competition and industry provides a more detailed analysis. Our contribution lies in extending signalling theory in the context of international networks using a novel and extensive data set.

Effects of Internationalization Rhythm and Speed on E-Commerce Firms’ Growth and the Role of Institutional Distances

“…The firms' website traffic (measured as monthly unique website visits, Kotha et al, 2001) was chosen as a relevant IV for the firms' internationalization speed because it encourages e-commerce firms to internationalize (e.g., Benmamoun et al, 2019). Website traffic is an indicator of e-commerce firms' customer relations and their promotional effectiveness in terms of foreign website access and search engine placement (e.g., Kromidha & Robson, 2021). Consequently, higher website traffic enables firms to establish partnerships and attract consumers, which accelerates the penetration of foreign markets (Kotha et al, 2001).…”

The Maturity of Corporate Websites as a Digital Communication Channel in Portuguese SMEs’ Process of Adopting E-Commerce

“…Secondly, the corporate websites of Portuguese SMEs are digital tools with a minimum of functionalities that allow them to communicate at a low level. For that reason, it has been found that Portuguese SMEs need to make changes in their digital communications strategy with their publics in order to be more competitive [51] and to reach a high level of maturity in the context of their digital communication.…”

Effective Internationalisation Practice in the Higher Education Institutions

“…Liu (2023) maintained that due to the setback in universal economic rescue, obstinate international situation uncertainties, and an increase in isolationism, China has consistently upheld a reasonable level of sincerity and actively engaged in international assistance to the outside world, most especially African countries. Interestingly, high-profile educational organisations in China have willingly extended their participation in foreign markets, by accelerating their expedition to penetrating the global internationalisation sphere (Maldonado-Maldonado & Bassett, 2014;Kromidha & Robson, 2021). However, organisations face several encounters due to reasons such as capability, capital, and access to other resources (Dekel-Dachs et al, 2021).…”