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Understanding Decisions to Internationalize by Small and Medium-sized Firms Located in an Emerging Market

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  • Frances Fabian

    (The University of Memphis)

  • Henry Molina

    (Icesi University)

  • Giuseppe Labianca

    (University of Kentucky)

Abstract

We examined perceptions differentiating key Colombian decisionmakers in 168 SMEs who decided to either internationalize or remain domestic. An integrative model compares managerial perceptions of competitive, macro-environmental and neo-institutional factors. Foreign MNEs in the home market significantly differentiated decisions to internationalize, as well as the presence of internationalizing domestic competitors, anticipated product acceptance, and internationalizing suppliers. The lack of findings for some institutional and macro-environmental factors may reflect important contextual features of the Colombian business environment.

Suggested Citation

  • Frances Fabian & Henry Molina & Giuseppe Labianca, 2009. "Understanding Decisions to Internationalize by Small and Medium-sized Firms Located in an Emerging Market," Management International Review, Springer, vol. 49(5), pages 537-563, October.
    • Handle: RePEc:spr:manint:v:49:y:2009:i:5:d:10.1007_s11575-009-0007-6
    DOI: 10.1007/s11575-009-0007-6
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    2. Sascha Kraus & Christine Mitter & Felix Eggers & Philipp Stieg, 2017. "Drivers of internationalization success: a conjoint choice experiment on German SME managers," Review of Managerial Science, Springer, vol. 11(3), pages 691-716, July.
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    4. Hui, Kent N. & Hult, G. Tomas M. & Ketchen, David J., 2020. "Causal attribution for peer performance and international joint venture divestment," Journal of International Management, Elsevier, vol. 26(2).
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    7. Sushma Kumari & Vikrant Shirodkar & Steven McGuire, 2023. "Pre-Liberalization Foundations and the FDI-Based Internationalization of SMEs from Emerging Markets," Management International Review, Springer, vol. 63(4), pages 641-671, August.
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    9. Kiss, Andreea N. & Danis, Wade M. & Cavusgil, S. Tamer, 2012. "International entrepreneurship research in emerging economies: A critical review and research agenda," Journal of Business Venturing, Elsevier, vol. 27(2), pages 266-290.
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    11. Stephan Gerschewski & Joanna Scott‐Kennel & Elizabeth L. Rose, 2020. "Ready to export? The role of export readiness for superior export performance of small and medium‐sized enterprises," The World Economy, Wiley Blackwell, vol. 43(5), pages 1253-1276, May.
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    13. Stojčić, Nebojša & Dabić, Marina & Musteen, Martina, 2024. "With a little help from my friends: Institutional obstacles, networking, and SME exporting in emerging European and Asian economies," International Business Review, Elsevier, vol. 33(3).
    14. Zhang, Xiao & Ma, Xufei & Wang, Yue & Li, Xin & Huo, Dong, 2016. "What drives the internationalization of Chinese SMEs? The joint effects of international entrepreneurship characteristics, network ties, and firm ownership," International Business Review, Elsevier, vol. 25(2), pages 522-534.
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    16. Reddy, Rama Krishna & Park, Sung- Jin & Mooty, Scott, 2022. "Emerging market firm investments in advanced markets: A country of origin perspective," Journal of Multinational Financial Management, Elsevier, vol. 65(C).

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