First steps in internationalisation

Abstract

There has been widespread dissatisfaction with step-stage development models of small firm internationalisation, and difficulties in applying comprehensive theories or explanations to the decisions and processes involved, resulting in calls for a return to exploratory research, and for a series of connected submodels covering different stages and dimensions of internationalisation. This paper attempts to address, at least partially, these demands. Empirical evidence from a sample of 213 small high-technology firms, consisting of quantitative data on their first steps in internationalisation, is presented and discussed. Descriptive statistics illustrate the frequency with which each type of cross-border activity is indicated across the sample, the time elapsed before each activity is established, and the combination in which they occur. The results indicate that, as expected from previous empirical evidence, trade-related activities, i.e., importing and exporting, are the modes of activity most frequently reported. Further examination reveals, however, that at least half of the firms in the sample include value chain activities other than trade in their first steps in internationalisation. These results raise questions relating to the conventional categorisations of foreign market entry modes and the design and interpretation of survey research relating to internationalisation.