Forces influencing the speed of internationalisation

Abstract

Purpose – This study applies Oviatt and McDougall’s (2005) model of forces influencing the speed of internationalisation to small, export oriented enterprises. The purpose of this paper is to explore the significance of the forces enabling, motivating, mediating and moderating internationalisation in small and medium-sized enterprises (SMEs), and the manner in which these forces manifest themselves in the market. Design/methodology/approach – A qualitative research approach utilising eight case studies within Norway and Ireland was adopted in order to facilitate theory building required for this study. Findings – The findings demonstrate that four forces in particular are found to be strongly significant to the speed of internationalisation among the case SMEs: the enabling force of technology, the mediating force of entrepreneurial actor perceptions/owner-managers’ global vision and the moderating forces of foreign market knowledge and tie strength in networks. Practical implications – The empirical evidence has several implications for managers and policy regarding influencing the speed of internationalisation process. The enabling force (technology) has implications for government in their support of the SME macro environment. The motivating force (competition) has implications for government, in understanding what motivates entrepreneurs to enter international markets. The two moderating forces (foreign market knowledge and network tie strength) have implications for managers and can be leveraged through product innovation, increased focus on intellectual property rights for better protection against copycats, and through active and deliberate international networking. Originality/value – The paper suggests adjustments to Oviatt and McDougall’s (2005) model, permitting researchers to gain an in-depth understanding of the complex reality of SME internationalisation.