Study reveals strategies for rapid internationalization of small and medium-sized companies
With globalization and technological advances, Small and Medium Enterprises (SMEs) have been accessing foreign markets faster and faster. These companies begin operating in international markets soon after their founding, seeking advantages such as greater competitiveness and new revenue streams. This is called early internationalization. However, how quickly they adapt to global challenges depends on strategic factors such as innovation, international networks, and a solid entrepreneurial orientation.
The study by Jorge Carneiro (School of Business Administration of São Paulo - FGV EAESP), Edgar Nave and João Ferreira (University of Beira Interior, Portugal), used data from 171 SMEs in Portugal, including early internationalization companies (EIFs) and late exporters. Published in the Journal of International Management, the work applied logistic regression models to examine how dimensions of international entrepreneurial orientation (IEO) and international networks (INO) affect rapid access to foreign markets.
There are five dimensions of International Entrepreneurial Orientation. They are: proactivity, innovation, risk-taking, competitive aggressiveness, and autonomy.
The results highlighted that innovation, autonomy and competitive aggressiveness are key factors for early internationalization.
Therefore, companies that promote an innovative internal culture and give their employees greater levels of autonomy are in a better position to introduce products adapted to global demands and exploit international opportunities during their first three years of life. Competitive aggressiveness, that is, the ability to respond to competitors' actions, also showed a positive influence on this process, although less compared to the previous ones.
On the other hand, the dimensions of risk-taking and proactivity did not show statistical significance. This may indicate that early-stage SMEs prioritize responses to external stimuli rather than taking proactive or risky stances in international markets.
The role of international networks
Coopetition — strategic collaboration with competitors — proved essential to strengthen the relationship between innovation and early internationalization. The study revealed that companies that network with competitors are able to develop innovations that accelerate their access to foreign markets. On the other hand, collaboration with non-competitors, such as suppliers and customers, has not demonstrated a significant impact on the dimensions of International Entrepreneurial Orientation.
The study reinforces that SMEs must invest in organizational cultures based on innovation, autonomy, competitive aggressiveness and coopetition to achieve internationalization already in their early stages of operation. Strategic partnerships with competitors can amplify the impact of innovation, allowing companies to overcome initial market barriers.
Finally, these findings provide insights for SME managers and policymakers, highlighting the importance of international networks as strategic assets for companies looking to compete on a global stage.
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