The Impact of Resources on Small Firm Internationalization
Abstract
Theory posits that resource type and composition determine a firm's geographic scope. To date, few studies test this premise. This article compares resource profiles of internationalized and non-internationalized small firms, then examines the impact of five types of resources on their internationalization strategies. Results show that resource profiles differ between internationalized and non-internationalized firms, and that social and financial resources are more important than human resources for small firms pursuing an internationalization strategy. For firms selling a greater variety of international products, achieved owner founder attributes need to be strong. Small firm managers should build a solid social network and develop international competencies if they plan to internationalize.
References
Axelsson, B., & Johanson, J. (Eds.). ( 1992). Foreign market entry: The textbook view vs. the network view. Industrial Networks: A New View of Reality. In Axelsson, B. and G. Easton. London, Routledge, 91-1 02
Barkema, H.G., & Drogendijk, R. H. J. (2001, August). A new internationalization process model: Theory and evidence. Paper presented at the Academy of Management Meetings, Wash ington, D.C.
Barney, J. (1991 ). Firm resources and sustained competitive advantage. Journal of Management, 17 ( I ), 99-120.
Becker, G. ( 1964). Human capital: A theoretical and empirical analysis, with special reference to education. NY: Columbia University Press.
Bijmolt, T. H. A., & Zwart, P. S. ( I 994). The impact of internal factors on the export success of
Dutch small and medium-sized firms. Journal of Small Business Management, (April) 69-83.
Bi Ikey, W. J. (1978). An attempted integration of the literature on export behavior of firms. Journal of International Business Studies, 9 ( I ), 33-46.
Bird, B. ( 1995). Toward a theory of entrepreneurial competency. In J. Katz, and R. Brockhaus (Ed.), Advances in entrepreneurship. firm emergence and growth. Greenwich, CT., JAi Press. 2: 5 1-72.
Birley, S. & Westhead, P. ( I 990). Growth and performance contracts between "types" of small firms. Strategic ManagementJournal, 11 (7), 535-557.
Bloodgood, J., Sapienza, H. J. & Almeida, J. (1996). The internationalization of new high potential U.S. ventures: antecedents and outcomes. Entrepreneurship Theory and Practice (Summer), 6 I -76.
Bruno, A. & Tyebjee, T. (1982). The environment for entrepreneurship. In C.A. Kent, D.L. Sexton and K.H. Vesper, (Eds.), Encyclopedia of Entrepreneurship, Englewood Cliffs, NJ: Prentice Hall, 288-315.
Buckley, P. J. & Brooke, M. S. ( 1992). International business studies: An overview. Cambridge, Mass: Blackwell Publishing.
Buckley, P. J., Pass, C. L., & Prescott, K. (1992). Internationalization of service firms: A comparison with the manufacturing sector. Scandinavian International Business Review, I ( I ), 39-56.
Burgell, 0., & Murray, G. (1998). The international activities of start-up companies in high technology industries: Differences between internationalisersand non-internationalisers. Article presented at the 1998 Annual Babson Entrepreneurship Research Conference.
Bygrave, W.D. (1992). Venture capital returns in the 1980's, in D.L. Sexton and J. Kasarda (eds.) The State of the Art of Entrepreneurship. Boston: PWS Kent
Calof, J. L. & Viviers, W. ( 1995). Internationalization behavior of small and medium-sized South African enterprises. Journal of Small Business Management, (October), 71-79.
Cavusgil, S. T. (1984). Differences among exporting firms based on their degree of internationalization. Journal of Business Research, 12 (2), 195-208.
Cavusgil, S. T. & Naor, J. (1987). Firm management characteristics as discrim inatorsof export marketing activity. Journal of Business Research, 15 (3), 33-46.
Chandler, G. & Hanks, S. H. ( I 994). Market attractiveness, resource-based capabilities, venture strategies and venture performance. Journal of Business Venturing,9 (4), 331-349.
Cooper, A. C. (198 I ). Strategic management: new ventures and small businesses. long Range Planning, 14 (5), 39-45.
Davidsson, P. (1989). Entrepreneurship and after? A study of growth willingness in small firms. Journal of Business Venturing, 4 (3), 2 I1-226.
Dillman, D. A. (1978). Mail and telephone surveys: The total design method. New York, NY: Wiley Publishing.
Dollinger, M. J. (I995). Entrepreneurship: Strategies and resources. Boston, MA: Irwin.
Gankema, H. G. J., Snuif, H. R., & Zwart, P. S. (2000). The internationalization process of small and medium-sized enterprises: An evaluation of stage theory. Journal of Small Business Management, (October}, I5-27.
Greene, P. G. & Brown, T. (1997). Resource needs and the dynamic capitalism typology. Journal of Business Venturing, 12 (3), 161-174.
Greene, P. G., Brush, C. G., & Brown, T. (I997). Resources in small firms: An exploratory study. Journal of Small Business Strategy, 8 (2), 29-40.
Hofer, C. W., & Schendel, D. E. ( 1978). Strategy formulation: Analysis & concepts. St. Paul, Minn: West Publishing.
Hymer, S. 1976 [1960]. The international operations of national firms: A study of direct investment. Unpublished Doctoral Dissertation, MIT.
Johanson, J., & Vahlne, J. (I977). The internationalization process of the firm: A model of knowledge development on increasing foreign commitments. Journal of International Business Studies, (Spring/Summer), 23-32.
Julian, S. D., & Castrogiovanni, G. J. (1995). Franchisor geographic expansion. Journal of Small Business Management, (April), I-II.
Karagozoglu, N., & Lindell, M. (1998). Internationalization of small and medium-sized technology-based firms: An exploratory study. Journal of Small Business Management, 36 (1), 44-59.
Leonidou, L. C. (I998). Organizational determ inants of exporting: Conceptual, methodological, and empirical insights. Management International Review, 38 (Special Issue) 7-52.
Leonidou, L. C., & Katsikeas, C. S. (I996). The export development process: An integrative review of empirical studies. Journal of International Business Studies, 27 (3), 517-55 I.
McDougall, P. (I989). International versus domestic entrepreneurship: New venture strategic behavior and industry structure. Journal of Business Venturing, 4, 387-399.
McDougall, P. P., Shane, S., & Oviatt, B. M. ( 1994). Explaining formations of international new ventures: The limits of theories from international business research. Journal of Business Venturing, 9 (6), 469-488.
McNaughton, R. B., & Bell, J. D. (I999). Brokering networks of small firms to generate social capital for growth and internationalization. In A. M. Rugman, & R. W. Wright, (Eds.}, International Entrepreneurship: Globalization of Emerging Businesses. Stanford, CT: JAi Press (pp. 63-84).
Miesen bock, K. J. ( 1988). Small business and exporting A l iterature review. International Small Business Journal, (January - March), 42-63.
Melin, L. (I 992). Internationalization as a strategy process. Strategic Management Journal, 13: (Winter, Special Issue}, 99- II8.
Moin i, A. H. (I998). Small firms exporting: How effective are government assistance programs? Journal of Small Business Management, 36 (I), 1-15.
Naidu, G. M., & Prasad, V. K. (I994). Predictors of Export Strategy and Performance of Small and Medium-sized Firms. Journal of Business Research, 3 ( I ), 107-115.
Nation's Business. ( 1998). Markets at risk, 14-20.
Oviatt, B. M. & McDougall, P. P. (1994). Toward a theory of international new ventures. Journal of International Business Studies, 25 (I},45-63.
Oviatt, B. M., & P. P. McDougall. (1999). A framework for understanding accelerated international entrepreneurship. In A. M. Rugman, & R. W. Wright, (Eds.), International Entrepreneurship: Globalization of Emerging Businesses. Stanford, CT: JAi Press 63- 84.
Penrose, E. (1959). The theory of growth of thefirm. New York: John Wiley & Sons.
Penrose, E. ( 1971). The growth of firms: Middle East oil, and other essays. London: Frank Cass & Co., Ltd.
Reuber, A. R., & Fisher, E. (1997). The influence of the management team's international experience on the internationalization behaviors of SMEs. Journal of International Business Studies, 28 (4), 807-826.
Rynning, M. R. & Anderson, 0. (1994). Structural and behavioral predictors of export adoption: A Norwegian study. Journal of International Marketing, 2 (l ), 73-89.
Shrader, R. C., Oviatt, B. M., & McDougall, P. P. (2000). How new ventures exploit trade-offs
among international risk factors: Lessons for the accelerated internationalization of the 21" century. Academy of Management Journal, 43 (6), 1227-1247.
Stevenson, H. H. & Gumpert, D. E. (I 985). The heart of entrepreneurship. Harvard Business &'View, (April-May), 85-94.
The State of Small Business. ( 1 995). Office of Advocacy, U.S. Small Business Administration, Washington, D.C.: U.S. Government Printing Office.
Tomer, J. F. (1987). Organizationalcapital. NY: Praeger.
Toyne, B. (1989). International exchange: A foundation for theory build ing in international business. Journal of International Business Studies, 21 (I ), 1-17.
Vernon, R. ( 1 974). The location of industry. In J. H. Dunning, (Ed.), Economic Analysis and the Multinational Enterprise. London: George Allen & Unwin.
Vesper, K. ( 1990). New venture strategies. Englewood Cliffs, NJ: Prentice Hall.
Wemerfelt, B. ( 1 984). A resource-based view of the firm. Strategic Management Journal, 5, 1 71-180.