Small and medium sized firms play an important role in the process of creative destruction. The focus of the paper is on the international diffusion of small and medium sized firms innovations. Small and medium sized firms face two challenges in globalization: property rights protection and...

We refine the prominent of the process by which firms expand internationally - internationalization theory. By argumenting the behavioral theory of the firm (which is the basis of internationalization theory) with theories of foreign direct investment, we argue that international expansion is...

By exporting, firms sell in markets whose business cycles are not perfectly correlated, and so can be expected to have more stable cash flows. If companies are liquidity constrained, this stability of cash flows can provide exporters with certain advantages over firms that operate solely in a...