Brazilian Software SME's Export Propensity: Bridging “Born Global” and Stage Approaches

Abstract

ABSTRACT How software small- and medium-sized enterprises (SMEs) in a developing country context might enhance their propensity to export is central to this study. This article aims to examine factors that influence the small- and medium-sized firms' propensity to export. Drawing on theoretical contributions from international entrepreneurship literature, the stages model and the underlying theories of entrepreneurship and of the growth of the firm, we develop hypotheses regarding the relationship between several antecedents of the propensity to export: foreign market knowledge, international entrepreneurship orientation, international experience, and local inter-organizational relationships. Using a small sample (n = 76) of software SMEs located in Brazil's Northeastern region, we test a path model using partial least squares (PLS) technique and PLS-Graph software. We find empirical support for the argument that the more restrictive Penrosian theory of firm growth is compatible with the more enabling, proactive Schumpeterian view of entrepreneurship. The results also suggest that some resources and capabilities built by domestic inter-organizational relationships may become a hindrance or a driver for the propensity to export depending on whether they are sticky or whether they may be easily redeployed elsewhere. The study provides recommendations for executives and policymakers interested in the question of how SMEs might enhance their propensity to export.