Environment Characteristics and Internationalization of SMEs : Insights from a Polish and Finnish Sample

• Autorzy: Adam Oleksiuk , Agnieszka Pleśniak
• Języki publikacji: EN

Abstrakty

EN

Purpose: The article presents research on enterprises from various economic environments, namely the mature Finnish market and the Polish post-transformation one. Thus, our study examined how the external (international) environment affected the internationalization and business opportunities of Polish and Finnish SMEs.

Methodology: Data for the Polish sub-sample was collected from January to February 2021 using the mixed CATI/CAWI method. We used multigroup confirmatory factor analysis (MGCFA) to check for measurement invariance, and chi-square independence test and logistic regression to verify the hypothesis.

Findings: Perceiving the environment as hostile hinders internationalization for Poland only and not for Finland. According to theoretical premises and earlier studies, entrepreneurial marketing orientation (EMO) increases the probability of internationalization in both countries. However, countries differ in terms of which EMO dimensions - and to what extent - influence internationalization.

Implications: In turbulent times, such as a pandemic, respondents might take the worst moment of turbulence as a reference point while assessing environmental hostility and appraising it as favorable. Perceiving the environment as hostile hinders internationalization in some sets only. In a mature economy, resources such as human capital, managerial experience, and access to finance may help to mitigate the negative influence of environmental hostility on internationalization. Respondents in both countries perceived the EMO dimensions in a similar way, so the EMO scale proved to be invariant and useful in a different country setting. Nevertheless, the EMO dimensions that are the main drivers of internationalization were country specific.

Originality: The article presents a study on the influence of environment characteristics on the internationalization of enterprises from various economic environments, i.e. the mature Finnish market and the Polish post-transition one. Thus, the article fills the literature gap regarding comparative studies of small and medium-sized enterprises (SMEs) acting in different country sets. (original abstract)

Słowa kluczowe

EN

Small business; Enterprise environment; Enterprise internationalization; Factor analysis

PL

Małe i średnie przedsiębiorstwa; Otoczenie przedsiębiorstwa; Internacjonalizacja przedsiębiorstw; Analiza czynnikowa

• Czasopismo: Central European Management Journal
• Rocznik: 2022
• Tom: 30
• Numer: nr 3
• Strony: 175--194

Twórcy

autor

Adam Oleksiuk

• Warsaw School of Economics, Warsaw, Poland

autor

Agnieszka Pleśniak

• Warsaw School of Economics, Warsaw, Poland

Bibliografia

• Agwu, M.E., & Onwuegbuzie, H.N. (2018). Effects of international marketing environments on entrepreneurship development. Journal of Innovation and Entrepreneurship, 7(12). https://doi.org/10.1186/s13731-018-0093-4.
• Alimadadi, S., Bengtson, A., & Hadjikhani, A. (2018). How does uncertainty impact opportunity development in internationalization? International Business Review, 27(1), 161-172. https://doi.org/10.1016/j.ibusrev.2017.06.002.
• Bagozzi, R.P. (1981). Attitudes, intentions, and behavior: A test of some key hypotheses. Journal of Personality and Social Psychology, 41(4), 607-627. https://doi.org/10.1037/0022-3514.41.4.607.
• Baird, I.S., Lyles, M.A., & Orris, J.B. (1994). The choice of international strategies by small businesses. Journal of Small Business Management, 32(1), 48-59.
• Beck, Th., & Demirguc-Kunt, A. (2006). Small and medium-size enterprises: Access to finance as a growth constraint. Journal of Banking & Finance, 30(11), 2931-2943. https://doi.org/10.1016/j.jbankfin.2006.05.009.
• Bijmolt, T.H.A., & Zwart, P.S. (1994). The impact of internal factors on the export success of Dutch small and medium-sized firms. Journal of Small Business Management, 32(2), 69-83.
• Brouthers, K.D. (2002). Institutional, Cultural and Transaction Cost Influences on Entry Mode Choice and Performance. Journal of International Business Studies, 33, 203-221. https://doi.org/10.1057/palgrave.jibs.8491013.
• Buzavaite, M., & Korsakiene, R. (2019). Human Capital and the Internationalisation of SMEs: A Systemic Literature Review. Entrepreneurial Business and Economics Review, 7(3), 125-142. https://doi.org/10.15678/EBER.2019.070307.
• Chandra, A., Paul, J. & Chavan, M. (2020). Internationalization barriers of SMEs from developing countries: a review and research agenda. International Journal of Entrepreneurial Behavior & Research, 26(6), 1281-1310. https://doi.org/10.1108/IJEBR-03-2020-0167.
• Chen, J., Liu, L. & Wang, Y. (2021). Business model innovation and growth of manufacturing SMEs: a social exchange perspective. Journal of Manufacturing Technology Management, 32(2), 290-312. https://doi.org/10.1108/JMTM-03-2020-0089.
• Chetty, S.K., & Stang, L.M. (2010). Internationalization and innovation in a network relationship context. European Journal of Marketing, 44(11/12), 1725-1743. https://doi.org/10.1108/03090561011079855.
• Culpan, R. (1989). Export Behavior of Firms: Relevance of Firm Size. Journal of Business Research, 18, 207-218. https://doi.org/10.1016/0148-2963(89)90045-3.
• Daniels, J., Radebaugh, L., & Sullivan, D. (2007). International Business: environment and operations. Prentice Hall.
• Demir, R., Campopiano G., Kruckenhauser Ch., & Bauer F. (2021). Strategic agility, internationalisation speed and international success - The role of coordination mechanisms and growth modes. Journal of International Management, 27(1). https://doi.org/10.1016/j.intman.2021.100838.
• Diamantopoulos, A. & Inglis, K. (1988). Identifying Differences Between High- and Low- Involvement Exporters. International Marketing Review, 5(2), 52-60. https://doi.org/10.1108/eb008352.
• Dichtl, E., Köglmayr, H.G., & Müller, S. (1990). International Orientation as a Precondition for Export Success. Journal of International Business Studies, 21(1), 23-40. https://doi.org/10.1057/palgrave.jibs.8490325.
• Dimitratos, P., Petrou, A., Plakoyiannaki, E., & Johnson, J.E. (2011). Strategic decision-making processes in internationalization: does national culture of the focal firm matter? Journal of World Business, 46(2), 194-204. https://doi.org/10.1016/j.jwb.2010.05.002.
• Dimitratos, P., Voudouris, I., Plakoyiannaki, E., & Nakos, G. (2012). International entrepreneurial culture - Toward a comprehensive opportunity-based operationalization of international entrepreneurship. International Business Review, 21, 708-721. https://doi.org/10.1016/j.ibusrev.2011.08.001.
• European Commission. (2021). Annual Report on European SMEs 2020/2021 Digitalisation of SMEs. SME Performance Review 2020/2021. Brussels, July.
• European Commission. (2019). Annual Report on European SMEs 2018/2019. Research & Development and Innovation by SMEs. Luxemburg.
• Fornell, C., & Larcker, D.F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18(1), 39. https://doi.org/10.1177/002224378101800104.
• Freeman, S., Deligonul, S., & Cavusgil, T. (2013). Strategic re-structuring by born-globals using outward and inward-oriented activity. International Marketing Review, 30(2), 156-182. https://doi.org/10.1108/02651331311314574.
• Freixaneta J., & Renart, G. (2020). A capabilities perspective on the joint effects of internationalization time, speed, geographic scope and managers' competencies on SME survival. Journal of World Business, 55(6). https://doi.org/10.1016/j.jwb.2020.101110.
• Gabrielsson, P., Gabrielsson, M. & Seppälä, T. (2012). Marketing Strategies for Foreign Expansion of Companies Originating in Small and Open Economies: The Consequences of Strategic Fit and Performance. Journal of International Marketing, 20(2), 25-48. https://doi.org/10.1509/jim.11.0068.
• Gaganis, Ch., Pasiouras, F. & Voulgari, F. (2018). Culture, business environment and SMEs' profitability: Evidence from European Countries. Economic Modelling, 78, May 2019, 275-292. https://doi.org/10.1016/j.econmod.2018.09.023.
• Głodowska, A., Maciejewski, M., & Wach, K. (2019). How Entrepreneurial Orientation Stimulates Different Types of Knowledge in the Internationalisation Process of Firms from Poland? Entrepreneurial Business and Economics Review, 7(1), 61-73. https://doi.org/10.15678/EBER.2019.070104.
• Hofstede, G. (1983). The cultural relativity of organizational practices and theories. Journal of International Business Studies, 14(2), 75-89. https://doi.org/10.1057/palgrave.jibs.8490867.
• Hofstede, G. (1980). Culture's consequences: International differences in work-related values. London and Beverly Hills, CA: Sage Publications.
• Khandwalla, P.N. (1977). The Design of Organizations. Harcourt Bruce Jovanovich.
• Kotabe, M., & Helsen, K. (2017). Global Marketing Management. John Wiley & Sons.
• Kowalik, I. (ed.) (2020). Entrepreneurial Marketing and International New Ventures. Antecedents, Elements and Outcomes. Routledge. https://doi.org/10.4324/9781003034261.
• Liesch, P.W., Welch, L.S., & Buckley, P.J. (2011). Risk and uncertainty in internationalisation and international entrepreneurship studies. Management International Review, 51(6), 851-873. https://doi.org/10.1007/s11575-011-0107-y.
• Loayza, N.V, & Pennings, S. (2020). Macroeconomic Policy in the Time of COVID-19: A Primer for Developing Countries. Research and Policy Briefs. World Bank. https://doi.org/10.1596/33540.
• López-Duarte, C., & Vidal-Suárez, M.M. (2010). External uncertainty and entry mode choice: Cultural distance, political risk and language diversity. International Business Review, 19(6), 575-588. https://doi.org/10.1016/j.ibusrev.2010.03.007.
• Love, J.H. & Roper, S. (2015). SME innovation, exporting and growth: a review of existing evidence. International Small Business Journal, 33(1), 28-48. https://doi.org/10.1177/0266242614550190.
• McKibbin, W.J. & Fernando, R. (2020). The Global Macroeconomic Impacts of COVID-19: Seven Scenarios CAMA Working Paper, 19. https://doi.org/10.2139/ssrn.3547729.
• Miesenböck, K.J. (1988). Small Business and Exporting: A Literature Review. International Small Business Journal, 6(2), 42-61. https://doi.org/10.1177/026624268800600204.
• Morrison, E.R. & Saavedra, A.C. (2020). Bankruptcy's Role in the COVID-19 Crisis. Columbia Law and Economics Working Paper, 624. https://doi.org/10.2139/ssrn.3567127.
• Musso, F. & Francioni, B. (2014). International strategy for SMEs: criteria for foreign markets and entry modes selection. Journal of Small Business and Enterprise Development, 21(2), 301-312. https://doi.org/10.1108/JSBED-10-2013-0149.
• Musso, F. & Francioni, B. (2013). The decision-making process in international business strategies: factors of influence on small and medium enterprises. International Journal of Applied Behavioral Economics, 2(2), 1-22. https://doi.org/10.4018/ijabe.2013040101.
• Nicola, M., Alsafi, Z., Sohrabi, C., Kerwan, A., Al-Jabir, A., Iosifidis, C., Agha, M., & Agha, R. (2020). The socio-economic implications of the coronavirus pandemic (COVID-19): A review. International Journal of Surgery, 78. https://doi.org/10.1016/j.ijsu.2020.04.018.
• Nielsen, B.B. & Nielsen, S. (2011). The role of top management team international orientation in international strategic decision-making: the choice of foreign entry mode. Journal of World Business, 46(2), 185-193. https://doi.org/10.1016/j.jwb.2010.05.003.
• OECD. (2019). OECD SME and Entrepreneurship Outlook 2021.
• Oleksiuk A., Pleśniak A., & Kowalik I. (2020). Impact of International Environment on the Entrepreneurial Marketing Orientation of Small and Medium Enterprises. 20th International Joint Conference: Central and Eastern Europe in the Changing Business Environment, 182-196. https://doi.org/10.18267/pr.2020.cer.2395.17.
• Oliveira, L., Bai, W., Johanson, M., Ratajczak-Mrozek, M., & Francioni, B. (2019). Uncertainty and Decision-Making in SME Internationalization: The Importance of Control, Prediction, and Knowledge, In International Business in a VUCA World: The Changing Role of States and Firms, Progress in International Business Research (pp. 337-359). Emerald Publishing Limited. https://doi.org/10.1108/S1745-886220190000014018.
• Oviatt, B.M. & McDougall, P.P. (2005). Defining international entrepreneurship and modeling the speed of internationalization. Entrepreneurship Theory & Practice, 29(5), 537-553. https://doi.org/10.1111/j.1540-6520.2005.00097.x.
• Penrose, E. (1959). The Theory of the Growth of the Firm. Oxford University Press.
• Rönkkö, M., & Cho, E. (2020). An Updated Guideline for Assessing Discriminant Validity. Organizational Research Methods. https://doi.org/10.1177/1094428120968614.
• Schweizer, R. (2012). The internationalization process of SMEs: a muddling-through process.Journal of Business Research, 65(6), 745-751. https://doi.org/10.1016/j.jbusres.2010.12.011.
• Smallbone, D. & Welter, F. (2001). The role of government in SME development in transition economies. International Small Business Journal, 19(4), 63-77. https://doi.org/10.1177/0266242601194004.
• Solberg, C.A. (2008). Product complexity and cultural distance effects on managing international distributor relationships: A contingency approach. Journal of International Marketing, 16(3), 57-83. https://doi.org/10.1509/jimk.16.3.57.
• Stenholm, P., Acs, Z.J., & Wuebker, R. (2013). Exploring country-level institutional arrangements on the rate and type of entrepreneurial activity. Journal of Business Venturing, 28(1), 176-193. https://doi.org/10.1016/j.jbusvent.2011.11.002.
• Stephan, U., & Stride, C. (2015). Institutions and social entrepreneurship: the role of institutional voids, institutional support, and institutional configurations. Journal of International Business Studies, 46, 308-331. https://doi.org/10.1057/jibs.2014.38.
• Tokic, D. (2020). Long-term consequences of the 2020 coronavirus pandemics: Historical globalmacro context. Journal of Corporate Accounting and Finance. https://doi.org/10.1002/jcaf.22448.
• Torkkeli, L., Puumalainen, K., Saarenketo, S., & Kuivalainen, O. (2012). The effect of network competence and environmental hostility on the internationalization of SMEs. Journal of International Entrepreneurship, 10(1), 25-49. https://doi.org/10.1007/s10843-011-0083-0.
• Wach, K. (2021). The evolution of the Uppsala model: Towards non-linearity of internationalization of firms. International Entrepreneurship Review, 7(2), 7-19. https://doi.org/10.15678/IER.2021.0702.01.
• Wach, K. (2017). Exploring the Role of Ownership in International Entrepreneurship: How does Ownership Affect Internationalisation of Polish Firms? Entrepreneurial Business and Economics Review, 5(4), 205-224. https://doi.org/10.15678/EBER.2017.050410.
• Weick, K.E. (1979). The social psychology of organizing. McGraw-Hill.
• Wnukowski, D. (2020). The Consequences of the Coronavirus Epidemic for the EU Economy. Polski Instytut Spraw Międzynarodowych.
• World Bank. (2020). Doing business 2020. Comparing Business Regulation in 190 Economies. International Bank for Reconstruction and Development/The World Bank 1818 H Street NW. Washington.
• Wolf, M. & Fornaro, L. (2020). Covid-19 Coronavirus and Macroeconomic Policy. CEPR Discussion Paper, DP14529.
• Yang, M., & Gabrielsson, P. (2017). Entrepreneurial marketing of international high-tech business to-business new ventures: A decision-making process perspective. Industrial Marketing Management, 64, 147-160. https://doi.org/10.1016/j.indmarman.2017.01.007.
• Yu, X., Tao, Y., Tao, X., Xia, F., & Li, Y. (2018). Managing uncertainty in emerging economies: The interaction effects between causation and effectuation on firm performance. Technological Forecasting and Social Change, 135, 121-131. https://doi.org/10.1016/j.techfore.2017.11.017.
• Zwan, P., Thurik, R., Verheul, I., & Hessels, J. (2016). Factors influencing the entrepreneurial engagement of opportunity and necessity entrepreneurs. Eurasian Business Review, 6(3), 273-295. https://doi.org/10.1007/s40821-016-0065-1.

Identyfikatory

DOI

10.7206/cemj.2658-0845.86