Why are some Spanish manufacturing firms internationalizing rapidly? The role of business and institutional international networks

Abstract

The aim of this paper is to examine the profile of international manufacturing firms located in Spain. After reviewing previous research on the internationalization of small and medium companies, we will look at whether the relevance of certain characteristics and key internationalization factors differ between firms following the traditional gradual internationalization process and firms internationalizing rapidly. Basically, economic literature points out that clients', suppliers', competitors' and institutions' networks and differentiation advantages such as marketing or technology play an essential role in the acceleration of the internationalization process. Our empirical analysis for the Valencian Community (a southern Spanish region) shows that some small and medium-sized companies exhibit an accelerated internationalization process. Research findings evidence that firms which admitted an accelerated internationalization process present greater integration in client networks and greater international orientation of sector and company. Our investigation does not find greater differentiation for rapidly internationalized Spanish manufacturing firms. Neither does it recognize suppliers', competitors' and institutions' networks as key factors for developing a rapid internationalization process. Policy-makers and public agencies can benefit from these results: manufacturing sectors appear as targets for programmes focused on rapid internationalization promotion, networking and knowledge-based activities should be constantly encouraged in order to accelerate the internationalization process, entrepreneurs' and managers' international orientation and capabilities should also be promoted if more rapid internationalization process is desirable.

O Impacto dos Recursos do Desempenho Exportador de Empresas Pertencentes a Clusters: um estudo no setor vitivinícola francês

“…Unlike previous studies, which evaluated the impact of belonging to clusters on internationalization in export performance (BECCHETTI; ROSSI, 2000; MITTELSTAEDT; WARD; NOWLIN, 2006;BELSO-MARTINEZ, 2006;BECCHETTI;PANIZZA;OROPALLO, 2007). These findings indicate that, depending on the cluster in which the winery is located, this impact will be different.…”

“…Confirming the argument of Zhao and Zou (2002) In addition, the results of these studies are contradictory: on the one hand, the results indicate the existence of a positive influence of the geographical agglomeration of companies in export performance (BECCHETTI;ROSSI, 2000;MITTELSTAEDT;WARD;NOWLIN, 2006;BELSO-MARTINEZ, 2006;BECCHETTI;PANIZZA;OROPALLO, 2007); on the other, studies that found no relationship or even a negative influence of geographic concentration on the export performance (ZHAO; ZOU, 2002;MACCARINI;SCABINI;ZUCCHELLA, 2003). Intermediately, Fernhaber, Gilbert andMcDougall (2008) found that the concentration of companies in a cluster relates positively with the intensity of exports of new projects to some extent, from which the relationship becomes negative.…”

International Entrepreneurship research (1989–2009): A domain ontology and thematic analysis

“…Research in this theme identifies and explores such patterns, sometimes identifying influences and outcomes. For example, factors enabling rapid internationalization include client followership, the firm's knowledge intensity and its social capital (Bell, 1995;Belso-Martinez, 2006;Litvak, 1990;McNaughton, 2001;Yli-Renko et al, 2002), and its perception and management of risk (Acedo and Jones, 2007;Shrader et al, 2000). Early internationalization can enhance firm growth , while entering diverse international markets can increase technological learning and improve performance .…”

Understanding Decisions to Internationalize by Small and Medium-sized Firms Located in an Emerging Market

“…To the extent Colombian small and medium-sized firms indeed have few, short term, and unimportant relationships with their customers and suppliers, (Fairbanks 2000) they gain little knowledge about foreign markets, and thus cannot count on utilizing these relationships to gain such knowledge (Gomes-casseres 1997, Johanson/Mattsson 1988, Pla-Barber 2001. this may explain differences with other research which found sMes in the more developed context of spain following customers due to their significant links, but remaining unaffected by internationalized competitors (Belso-Martinez 2006).…”