Internationalization strategy, firm resources and the survival of SMEs in the export market

Does "born-global" internationalization enhance or threaten a firm's chances for survival in the export market? Despite the ongoing debate about born-global firms, we know little about what drives their survival in the export market. In particular, different theories yield conflicting...

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Bibliographic Details
Published in:	Journal of international business studies 2014-09, Vol.45 (7), p.821-841
Main Authors:	Sui, Sui, Baum, Matthias
Format:	Article
Language:	eng
Subjects:	Business and Management Business innovation Business Strategy/Leadership Business structures Canada Economic resources Exporters Exports Globalization Hypotheses Innovation International International Business International trade Internationalization Management Market Nationalization Natural resources Operations research Organization Product innovation Productivity Small & medium sized enterprises-SME Small and medium sized enterprises Studies Technological innovation
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Summary:	Does "born-global" internationalization enhance or threaten a firm's chances for survival in the export market? Despite the ongoing debate about born-global firms, we know little about what drives their survival in the export market. In particular, different theories yield conflicting predictions regarding whether born-global internationalization is superior or inferior to born-regional internationalization or gradual internationalization. Analyzing a longitudinal data set (from 1997 to 2005) of 1959 newly established Canadian small-and mediumsized enterprises (SMEs), we show that no single strategy is superior per se but that internationalization strategy moderates the relative importance of resources to SMEs survival abroad. Although resources are important for the survival of all SMEs, the relative importance of slack resources and innovation resources are most important for born-global firms followed by born-regional firms, and are the least important for gradual internationalizes.
ISSN:	0047-2506 1478-6990