The role of trust in the internationalisation of knowledge-intensive small and medium enterprises

Abstract

In the internationalisation of knowledge-intensive SMEs, or KI-SMEs, trust can play a significant role in facilitating the introduction of these SMEs to a complex constellation of networks and relationships. This study of four contrasting cases, two from Quebec and two from Bogota, takes an in-depth look at the role of trust in their internationalisation processes. Results emphasise the primary role of trust in all of its forms: interpersonal, interorganisational, institutional and competence-based. All KI-SMEs used trust to gain legitimacy in new markets. Certain disparities have been identified. Firms from 'low-trust societies' (Colombia) privileged a gradual process of legitimacy-building based on certified competencies, successful experiences and the establishment of interpersonal trust relationships at the international level. Entrepreneurs from 'high-trust societies' (Canada) tended to rely on experts to help them more rapidly gain legitimacy in international markets. The path to internationalisation was even longer for young, inexperienced entrepreneurs, notwithstanding their origin and is industry driven.