Infant Multinationals: Internationalisation of Small Technology-Based Firms

During the last few years, the relatively few large multinational corporations dominating Swedish industry have, whilst increasing their international activities, dramatically reduced domestic employment within their organisations. As a result, there has been a focus by policy-makers on the development of small technology-based firms, mainly because it is frequently argued that such firms have an important role in creating opportunities for new employment and stimulating industrial growth. However, since opportunities in a small home market are limited to niche-oriented, technology-based firms, Swedish firms have traditionally been forced to direct their activities abroad at a relatively early stage (Carlson, 1975). This trend is perhaps even more important today, with the globalisation of markets and an increased speed and complexity of technology development. At the same time, small firms are particularly dependent upon their home market, since the time and resources required for successful international activities — such as access to managerial competence and extensive funds — are limited. Consequently, the process of internationalisation may be complicated for small firms and many may favour a more localised growth strategy.