Abstract:
The internationalization literature has extensively examined the internationalization strategies of small and medium enterprises (SMEs). Based on their distinctive strategies, several types of internationalizing firms have been identified. Two of the most widely studied are those that internationalize gradually and those that internationalize early and rapidly. Extant research has investigated how these firms’ internationalization strategies differ, but this comparison has been static, a look at a point in time. However, internationalization is a dynamic process that evolves as firms expand. In this paper, we report the findings of our research where we examined, using a comparative, process-based research method, the evolution of eight NZ SMEs’, four incrementally and four rapidly internationalizing firms, internationalization strategies. Specifically, we found that early definition of a competitive strategy is an important factor in underlining successful internationalization. In addition, the evolution of these firms’ internationalization was path dependent and influenced by their resources, and their product and industry characteristics.
