Factors affecting SMEs’ strategic decisions to approach international markets
Date
2020
Embargo
Advisor
Coadvisor
Journal Title
Journal ISSN
Volume Title
Publisher
Language
English
Alternative Title
Abstract
The internationalisation challenges that face all companies are no longer the exclusive concern of multinationals. Participation in the international marketplace has become a reality for large firms and small and medium-sized enterprises (SME) alike. This kind of participation can be rewarding for both companies and employees. The markets that SMEs enter and the success of this entry depend on several factors such as cultural differences, company tradition, venture capital, products and competitors. The goal of this study is therefore to understand whether the characteristics of the external market, the characteristics of the company itself and the barriers to internationalisation influence the strategic approach that SMEs adopt in their internationalisation processes. Using data on 320 Portuguese SMEs, we apply multivariate analyses to test the dimensions of internationalisation. We find that the decision of SMEs to internationalise involves an institutional change in response to external pressures in the home country. SMEs under greater institutional pressure not only tend to expand further but also engage in their initial international activities more radically.
Keywords
Internationalisation, SMEs, Strategic approach, External market, Barriers
Document Type
Journal article
Publisher Version
10.1504/EJIM.2020.10018550
Dataset
Citation
Lobo, C. A., Fernandes, C., Ferreira, J. J. M., & Ortiz, M. P. (2020). Factors affecting SMEs’ strategic decisions to approach international markets. European Journal of International Management, 14(4), 617-639. Repositório Institucional UPT. http://hdl.handle.net/11328/2544
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TID
Designation
Access Type
Open Access