Towards an integrative model of small firm internationalisation

Firm internationalisation has long been regarded as an incremental process, wherein firms gravitate towards lsquopsychologically closersquo markets and increase commitment to international markets in a gradual, step-wise, manner through a series of evolutionary lsquostagesrsquo. However, much of the recent literature provides clear evidence of rapid and dedicated internationalisation by lsquoborn global firmsrsquo. Typically, these are smaller entrepreneurial firms that internationalise from inception, or start to shortly thereafter. Their main source of competitive advantage is often related to a more sophisticated knowledge base. In addition, the authors have found evidence of firms supporting this lsquoborn globalrsquo pattern of behaviour but also evidence of firms that suddenly internationalise after a long period of focusing on the domestic market. These lsquoborn-againrsquo globals appear to be influenced by critical events that provide them with additional human or financial resources, such as changes in ownership/management, being taken over by another company with international networks, or themselves acquiring such a firm. Based upon the extant literature and our own research, we propose an integrative model that recognises the existence of different internationalisation lsquopathwaysrsquo. We then explore differences in behaviour due to the firm's internationalisation trajectory and discuss the strategic and public policy implications.