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Types of Exporting Smes

In: Business and Management

Submitted By rangin
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TYPES OF EXPORTING SMEs
Until mid-1990s, the reviewed companies in export marketing and per- formance studies were often divided into exporting and non-exporting, or to highly vs. limitedly exporting companies. The past 10 years witnessed an increasing interest toward firms which do not try first to grow and get strong market positions in their home countries and after that start foreign op- erations but rather are involved in foreign operations in their first years of operations or even straightaway start their foreign sales. These firms have been labeled quite differently in various studies: born globals (Knight & Cavusgil, 1996; Madsen & Servais, 1997; Aspelund & Moen, 2001), inter- national new ventures (INVs) (Oviatt & McDougall, 1994, 1995, 1997), global start-ups (Oviatt & McDougall, 1994), or high-technology start-ups (Jolly, Alahuhta, & Jeanet, 1992). More recently, the term born-again global firm has also been proposed, to describe long-established firms that used to focus on their domestic markets, but suddenly opt for rapid internation- alization (see e.g., Bell, McNaughton, & Young, 2001).
The main driving forces for the existence of these new types of companies are (see Knight & Cavusgil, 1996; Madsen & Servais, 1997; Rialp, Rialp, & Knight, 2005): (1) the increasing role of niche markets, (2) the advances in process technology, (3) the advances in communication technology, (4) the inherent advances of small companies, (5) the means of internationalization that have become more accessible to all firms and increasing support ac- tivities for the greater international contacts and cooperation, and (6) the increasing amounts and use of international networks.
Looking at the operational definitions used in various studies focusing on the born globals, several reviews indicate clearly that there has been a lot of…...

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