Early, Rapid or Global? Internationalization Speed and SME’s Performance

Abstract

The article investigates the impact of three dimensions of the speed of internationalization speed – the entry timing, the initial speed and the pace of international expansion – on the performance of exporting small‐ and medium‐sized enterprises (SMEs). To this purpose, we adopt a mixed-method approach analysing quantitative and qualitative data on Italian-exporting SMEs. The results show that entry timing, which is not relevant per se, moderates the positive impact of the initial speed on SME’s performance. Furthermore, a higher pace of international expansion is negatively related to the performance of SMEs. Building on the early internationalization literature, the study contributes to the existing literature on performance outcomes of the speed of internationalization of SMEs. The study has managerial implications for managers and entrepreneurs who are planning to internationalize.