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Decision-makers' risk perception in the internationalisation of small and medium-sized firms

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  • Jonas Eduardsen
  • Svetla Marinova

Abstract

This study examines the risk perception of decision-makers in small and medium sized enterprises (SMEs) and the factors underlying these perceptions in the process of internationalisation of their firms. While risk perception has been identified as a potential predictor variable in internationalisation research, very little work has been done exploring the factors and processes that shape decision-makers' perception of risk. A qualitative interview-based approach was adopted by collecting data from 32 Danish SMEs operating in four different industries. Findings suggest that while risk awareness exists, decision-makers do not perceive internationalisation as risky behaviour. Findings highlight the importance of decision-makers' background, including cognitive and psychological characteristics, such as self-efficacy and locus of control, and their experiences in explaining risk perceptions associated with firm internationalisation.

Suggested Citation

  • Jonas Eduardsen & Svetla Marinova, 2016. "Decision-makers' risk perception in the internationalisation of small and medium-sized firms," International Journal of Export Marketing, Inderscience Enterprises Ltd, vol. 1(1), pages 4-26.
    • Handle: RePEc:ids:ijexpo:v:1:y:2016:i:1:p:4-26
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    2. Gundula Glowka & Richard Hule & Anita Zehrer, 2024. "Risk perception of SMEs: strategic risks, family-related risks, external risks," Risk Management, Palgrave Macmillan, vol. 26(4), pages 1-27, December.

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