The international commitment of late‐internationalizing Brazilian entrepreneurial firms

Abstract

PurposeThe purpose of this paper is to contribute to the understanding of international commitment of entrepreneurial firms from an emerging economy to their foreign operations. Specifically, it intends to help bridge an existing gap in the literature by focusing on the international commitment of established small entrepreneurial firms, a topic that has been largely overlooked; investigating small‐firm commitment to foreign investments whereas most studies focus on exporting; combining the different research streams that studied international commitment; and using the resource‐based view (RBV) to explore the interplay between resource allocation and commitment in the foreign investments of small entrepreneurial firms.Design/methodology/approachThe study adopts an abductive approach to theory development and uses the case method of investigation. Three case studies were developed from primary and secondary sources. A total of 153 pieces of documentation were used to reconstruct past events, in addition to the interviews and information from company sites, permitting triangulation. Pattern‐matching logic was employed as case development progressed, continuously comparing with the theoretical background used in the study.FindingsThe interplay between resource availability, goal congruence, entrepreneur's desire to internationalize and family attitude seem to have a combined impact on the arousal and initial development of international commitment. The relative importance of managerial over financial resources in the early stages and the impact of preparatory activities on the speed and scope of internationalization seem to be specific manifestations of commitment among emerging market firms. As to the outcomes of commitment, performance appears both as an outcome and an antecedent, and, knowledge acquisition and opportunity development seem to increase pari passu with international commitment of emerging market firms.Practical implicationsThe findings can be useful to emerging market firms by pointing out the potential negative impact of low international commitment on a firm's internationalization process. Since most firms from emerging markets cannot count on previous internationalization knowledge accumulated by other firms in their (domestic) institutional environment to be used as guides to international expansion, this type of research can provide some guidelines to help their internationalization efforts.Originality/valueWhile certain results agreed with the extant literature, new findings generated a set of theoretical propositions regarding international commitment of late‐internationalizing entrepreneurial firms from an emerging Latin American market.