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The internationalisation process of small- and medium-sized firms and the liability of complexity

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  • Antonella Zucchella
  • Per Servais

Abstract

This contribution focuses on the process related to the decision of entry into a complex market, as a relevant expression of international entrepreneurial attitude from a small firm. The construct of market complexity has rarely been adopted and explored in the international business literature, even though it may represent a useful complement in the market foreignness theory, in order to reach a deeper understanding of the liability of foreignness. Market complexity encompasses psychic distance, institutional distance, cultural distance and additionally includes the foreign market heterogeneity and volatility, competitive conditions and channels to access to market opportunities (distribution channels, business networks). An empirical research based on six case studies highlights the different dimensions of the liability of complexity, its subjective and objective nature, the influence on entry modes selection and the impact on the firms' knowledge base after the entry into a complex market.

Suggested Citation

  • Antonella Zucchella & Per Servais, 2012. "The internationalisation process of small- and medium-sized firms and the liability of complexity," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 15(2), pages 191-212.
    • Handle: RePEc:ids:ijesbu:v:15:y:2012:i:2:p:191-212
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    Citations

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    Cited by:

    1. Antonella Zucchella & Birgit Hagen & Stefano Denicolai & Monica Masucci, 2016. "Early and accelerated internationalisation: the role of the niche strategy in a new generation of exporters," International Journal of Export Marketing, Inderscience Enterprises Ltd, vol. 1(1), pages 27-47.
    2. Nikhil Ghag & Padmanav Acharya & Vivekanand Khanapuri, 2022. "Prioritizing the Challenges Faced in Achieving International Competitiveness by Export-Oriented Indian SMEs: a DEMATEL Approach," International Journal of Global Business and Competitiveness, Springer, vol. 17(1), pages 12-24, December.
    3. Costa, Eric & Soares, António Lucas & de Sousa, Jorge Pinho, 2016. "Information, knowledge and collaboration management in the internationalisation of SMEs: A systematic literature review," International Journal of Information Management, Elsevier, vol. 36(4), pages 557-569.
    4. Giovanna Magnani & Antonella Zucchella & Dinorà Eliete Floriani, 2015. "Relativity and asymmetry in distance. The role of strategic distance in the internationalization decisions of Brazilian and Italian firms," DEM Working Papers Series 111, University of Pavia, Department of Economics and Management.
    5. Birgit Hagen & Antonella Zucchella, 2014. "Born Global or Born to Run? The Long-Term Growth of Born Global Firms," Management International Review, Springer, vol. 54(4), pages 497-525, August.
    6. Magnani, Giovanna & Zucchella, Antonella & Floriani, Dinorá Eliete, 2018. "The logic behind foreign market selection: Objective distance dimensions vs. strategic objectives and psychic distance," International Business Review, Elsevier, vol. 27(1), pages 1-20.
    7. Oparaocha, Gospel Onyema, 2015. "SMEs and international entrepreneurship: An institutional network perspective," International Business Review, Elsevier, vol. 24(5), pages 861-873.

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