Gianpaolo Baronchelli

International Market Entry: How Do Small and Medium-Sized Enterprises Make Decisions?

Choosing the right international market entry mode is of utmost importance for an internationalizing firm. However, there is a lack of analysis concerning the decision-making process (DMP), specifically with regard to small and medium-sized enterprises (SMEs). The authors study the DMP among SMEs intent on entering international markets and how it affects each firms international market development strategy. Using six cases based in Finland and Italy, the authors develop a model of the SME DMP. Their results imply that the DMP evolves and goes through various phases. By focusing on the postentry phase, this study enhances knowledge on decision-making frameworks by linking the traditional international marketing literature related to initial entry mode with “mainstream” international business literature. Furthermore, the study reveals that SMEs adopting a more rational DMP are more likely to succeed in foreign markets, and consequently, it demonstrates the importance of real options reasoning as a theoretical lens for making entry mode decisions in the context of SMEs.

TMT international orientation and firm internationalisation: evidence from Italy

Several studies have highlighted a significant relationship between the degree of international orientation of a firms Top Management Team (TMT) and the firms international development. Previous analyses on this issue have been conducted using samples of firms from countries (such as the UK, USA and Switzerland) whose national culture is characterised by a low degree of uncertainty avoidance (UA). The purpose of this paper is to extend the available knowledge to include firms operating in cultures with a high degree of UA, and which may perceive the internationalisation process as a threat. Four hypotheses are suggested and tested using data from the Italian firms listed on the Italian Stock Exchange - FTSE MIB index. Our findings show that the national diversity of TMT members is positively related to firm internationalisation. Moreover, the international working experience and international educational experience of TMT members are important, but only when they are combined.