SMEs' internationalisation patterns: descriptives, dynamics and determinants

Abstract

PurposeThe purpose of this paper is to identify the internationalisation patterns of small‐ and medium‐sized enterprises (SMEs) quantitatively, to describe SMEs as they follow different patterns over time and to discuss the determinants of these patterns through empirical study.Design/methodology/approachThe authors conducted a questionnaire survey among mature German SMEs (n=674). To identify internationalisation patterns, a latent class clustering approach was applied. Because of the large sample, a multinomial logistic regression analysis could be used to analyse the factors influencing these patterns.FindingsThe authors empirically find three internationalisation patterns: traditionals, born globals and born‐again globals. Comparing modern SMEs with the same SMEs from ten years ago, it was found that firms may change their patterns. Moreover, the patterns are determined by international orientation, growth orientation, communication capability, intelligence generation capability and marketing‐mix standardisation.Research limitations/implicationsCombining elements of the Uppsala model (countries and operation modes) and born global research (time lag and foreign sales ratio), three internationalisation patterns of established international SMEs from traditional sectors were identified empirically. Because of the multidimensional nature of internationalisation, the patterns may change over time. Different firm‐level factors determine the internationalisation patterns.Originality/valueInstead of applying “arbitrary” thresholds, the paper provides a quantitative approach to identifying internationalisation patterns. These patterns confirm the three main internationalisation pathways discussed in the international marketing literature. The paper further advances the field by describing the patterns, showing evidence that the patterns may cross over time and providing information on the factors that influence the patterns.