Small Firm Internationalization and Business Strategy

TLDR

The study investigates how small firms’ overall business strategies influence their internationalization patterns, processes, and speed. The authors conducted 30 in‑depth interviews with decision makers from 30 small firms—half knowledge‑intensive and half traditional—across three UK regions. Results show that ownership/management changes, product policies, and innovation drive international orientation, but knowledge‑intensive and traditional firms differ in their internationalization patterns, processes, and pace.

Abstract

The objective of this study was to explore the linkages between the overall business strategies of small firms and their patterns, processes and pace of internationalization. A qualitative approach was adopted, involving 30 indepth interviews with key decision makers of internationalizing small firms based in 3 UK regions (15 ‘knowledge-intensive’ and 15 ‘traditional’ firms). The findings suggest that business policies, including those linked to ownership and/or management changes, had an important influence upon the international orientation of many firms. There were close relationships between product policies and market focus, with product or process innovation often providing an important stimulus to international expansion. However, differences existed in the patterns, processes and pace of internationalization between small ‘knowledge-intensive’ and ‘traditional’ manufacturing firms. The implications of these results on firm strategy, public policy and theory development are discussed and a series of research questions are postulated for future investigation.