A latent class analysis of small firms’ internationalization patterns

Abstract

Research on International Entrepreneurship recently argues for a fine-grained perspective on different internationalization patterns. By combining prior literature on internationalization patterns with the regionalization hypothesis, we theoretically derive four distinct internationalization patterns of small firms (i.e. born-globals, born-again globals, traditional internationalizers and born-regionals). We then draw on the resource-based view to examine capabilities’ and resources’ impact on these patterns. Testing our theoretical predictions by means of latent class analysis, we find that gradually internationalizing small firms (traditional internationalizers) account for roughly 50% of small firms, while only 15% of the small firms pursue a “true” born-global pattern. International growth orientation and prior international experience promote a born-global and born-regional pattern; learning orientation fosters traditional internationalization; intense network contacts positively affect born-again global patterns and product differentiation leads to a “regionalized” internationalization. We discuss these findings and highlight implications for future studies based on our theoretical and methodological contributions.