Abstract
For many decades global business was considered the preserve of large multinationals and traditional international business theory was developed to explain the behaviour of these firms. However, increasingly there is a realization that the small entrepreneurial firm has an important role to play in international business especially given that there are strong globalization pressures that both pull and push the small firm into international markets to ensure its very survival. On the questions of how and why international business takes place, several theoretical approaches have been developed that appear to run parallel to each other. However, this paper posits that the point of convergence is international entrepreneurship.
Similar content being viewed by others
References
Aharoni Y (1966) The foreign investment decision process. Division of Research, Harvard School of Business, Boston
Andersen O (1993) On the internationalization process of firms: A critical analysis. Journal of International Business Studies 24(2):209–231
Andersen PH, Blenker P, Christensen PR (1995) Generic routes to subcontractors’ internationalization. Working Paper presented to Rentx, Italy
Anderson E, Gatignon H (1986) Modes of foreign entry: A transaction cost analysis and propositions. Journal of International Business Studies 1(3):1–26
Andersson S (2000) The internationalization of the firm from an entrepreneurial perspective. International Studies of Management and Organization 30(1):63–92
Autio E, Sapienza HJ, Almelda JG (2000) Effects of age at entry, knowledge intensity, and imitability of international growth. Academy of Management Journal 43(5):909–941
Ayal I, Raban J (1987) Export management structure and successful high technology innovation. In: Reid SD and Rosson PJ (eds), Managing export entry and expansion. Praeger, New York
Ball DA, McCulloch WH, Frantz PL, Geringer JM, Minor MS (2002) International business: The challenge of global competition. McGraw-Hill, New York
Banerji K, Sambharya RB (1996) Vertical keiretsu and international market entry: The case of the japanese automobile ancillary industry. Journal of International Business Studies 1st Quarter: 89–113
Bell J (1995) The internationalization of small computer software firms: A further challenge to “stage” theories. European Journal of Marketing 29(8):60–75
Bell J, McNaughton R, Crick D (2003) Towards an integrative model of small firm internationalisation. Journal of International Entrepreneurship 1:339–362
Bilkey WJ (1978) An attempted integration of the literature on the export behaviour of firms. Journal of International Business Studies 9(1):33–46
Bonaccorsi A (1992) On the relationship between firm size and export intensity. Journal of International Business Studies 23(4):605–635
Brush C (1995) International entrepreneurship: The effect of firm age on motives for internationalization. Garland, New York
Buckley PJ, Brooke MZ (1992) International business studies: An overview. Blackwell, Oxford
Buckley PJ, Casson MC (1976) The future of the multinational enterprise. Macmillan Press, London
Buckley P, Newbould GD, Thruwell J (1979) Going international? The foreign direct investment behaviour of smaller UK firms. In: Mattsson LG, Wiedersheim-Paul F (eds), Recent Research on the Internationalization of Business. Uppsala, Sweden
Buckley PJ, Chapman M (1997) A longitudinal study of the internationalisation process in a small sample of pharmaceutical an scientific instrument companies. Journal of Marketing Management 13:43–55
Buckley PJ, Casson MC (1998) Analyzing foreign market entry strategies: Extending the internalization approach. Journal of International Business Studies 29(3):539–562
Burgel O, Murray GC (2000) The international market entry choices of start-up companies in high-technology industries. Journal of International Marketing 8(2):33–62
Burns P (2001) Entrepreneurship and small business. Palgrave, London
Calvet AL (1981) A synthesis of foreign direct investment theories and theories of the multinational firm. Journal of International Business Studies 12(1):43–59
Cavusgil ST, Naor J (1987) Firm and management characteristics as discriminators of export marketing activity. Journal of Business Research 15:221–235
Chandra R, Newbury W (1997) A cognitive map of the international business field. International Business Review 6(4):387–410
Chetty SK (1999) Dimensions of internationalization of manufacturing firms in the apparel industry. European Journal of Marketing 33(1):1–18
Chetty SK, Hamilton RT (1993) Firm-level determinants of export performance: A meta-analysis. International Marketing Review 10(3):26–34
Chetty S, Campbell-Hunt C (2003) Explosive international growth and problems of success amongst small to medium-sized firms. International Small Business Journal 21(1):5–27
Chetty S, Campbell-Hunt C (2004) A strategic approach to internationalization: A traditional versus a Born-Global approach. Journal of International Marketing 12(1):57–81
Coase RH (1937) The nature of the firm: Meaning and influence. In: Williamson OE, Winter SG (eds) The nature of the firm. Oxford University Press
Coviello NE, Munro HJ (1995) Growing the entrepreneurial firm: Networking for internal market development. European Journal of Marketing 29(7):49–61
Coviello NE, Munro HJ (1997) Network relationships and the internationalization process of small software firms. International Business Review 6(4):361–386
Coviello NE, Martin MAM (1999) Internationalization of services SMEs: An integrated perspective from the engineering consulting sector. Journal of International Marketing 7(4):23–43
Crick D (1995) An investigation into the targeting of UK export assistance. European Journal of Marketing 29(9):76–94
Czinkota MR (1982) Export development strategies: US promotion policies. Praeger, New York
Dalli D (1994) The exporting process: The evolution of small and medium sized firms toward internationalization. In: Axinn CN (ed) Advances in international marketing. Jai Press, Greenwich, CT
Da Rocha A, Christes CH (1994) The export experience of a developing country. Advances in International Marketing 6:111–142
De Chiara A, Minguzzi A (2002) Success factors in SMEs internationalization process: An Italian investigation. Journal of Small Business Management 40(2):144–153
Denis JE, Depelteau D (1985) Market knowledge, diversification and export expansion. Journal of International Business Studies 16(3):77–89
Dunning JH (1977) Trade location of economic activity and the multinational enterprise: A search for an eclectic approach. In: Ohlin B, Hesselborn PO Wikman PM (eds), The international allocation of economic activity. Macmillan, London
Dunning JH (1981) Explaining outward direct investment of developing countries: In support of the eclectic theory of international production. In: Kumar K McLeod MG (eds) Multinationals from developing countries. Lexington: Toronto
Ellis J, Williams D (1995) International business strategy. Pitman, London
Etemad H (2004) International entrepreneurship as a dynamic adaptive system: Towards a grounded theory. Journal of International Entrepreneurship 2:5–59
Fillis I (2001) Small firm internationalization: An investigative survey and future research directions. Management Decision 39(9):767–783
Fillis I (2002) The internationalization process of the craft microenterprise. Journal of Developmental Entrepreneurship 7(1):25–43
Ford ID, Leonidou LC (1991) Research developments in international marketing: A E uropean perspective. In: Paliwoda SJ (ed) New perspectives on international mrketing. Routledge, London
Ghauri PN (2000) Internationalisation of the firm. In: Tayeb MH (Ed) International business: Theories, policies and practices. Pearson
Globerman S (1986) Fundamentals of international business management. Prentice Hall International, New Jersey
Hecksher E, Ohlin B (1933) Interregional and international trade. Harvard University Press, Cambridge, MA
Hedlund G, Kverneland A (1985) Are strategies for foreign markets changing? International Studies of Management and Organization 15(2):41–59
Hennart JF (1982) A theory of the multinational enterprise. University of Michigan Press, Michigan
Hill CWL (2004) International business: Competing in the global market place. McGraw-Hill, New York
Hymer SH (1960) The international operations of national firms: A study of direct foreign investment. Ph.D. Cambridge, Mass
Ibeh KIN, Young S (2001) Exporting as an entrepreneurial act: An empirical study of Nigerian firms. European Journal of Marketing 35(5/6):566–586
Itaki M (1991) A critical assessment of the eclectic theory of the multinational enterprise. Journal of International Business Studies. 3rd Quarter:445–460
Jaffe ED, Pasternak H (1994) An attitudinal model to determine the export intention of non-exporting, small manufacturers. International Marketing Review 11(3):17–32
Johnsen RE, Johnsen TE (1999) International market development through networks: The case of the Ayrshire knitware sector. International Journal of Entrepreneurial Behaviour and Research 5(6):1–14
Johanson J, Mattson LG (1988) Internationalization in industrial systems: A network approach. In: Hood N, Vahlne J-E (eds), Strategies in global competition. Croom Helm, London, pp. 287–314
Johanson J, Wiedersheim-Paul F (1975) The internationalization of the firm: Four swedish case studies. Journal of Management Studies 12:305–322
Johanson J, Vahlne JE (1977) The internationalization process of the firm: A model of knowledge development and increasing foreign commitments. Journal of International Business Studies 8(1):23–32
Jones G (1996) The evolution of international business. Routledge, London
Karagozoglu N, Martin L (1998) Internationalization of small and medium-sized technology-based firms: An exploratory study. Journal of Small Business Management 36(1):44–60
Kogut B, Zander U (1993) Knowledge of the firm and the evolutionary theory of the multinational corporation. Journal of International Business Studies. 4th Quarter: pp. 625–645
Lamb PW, Liesch PW (2002) The internationalization process of the smaller firm: Re-framing the relationships between market commitment, knowledge and involvement. Management International Review 42(1):7–26
Lawrence PR, Lorsch JW (1967) Organization and environment: Managing differentiation and integration. Division of Research, Graduate School of Business Administration, Harvard University, Boston, MA
Lee W, Brasch JJ (1978) the adoption of export as an innovative strategy. Journal of International Business Studies 9:85–93
Leonidou L (2000) Barriers to export management: An organizational and internationalization analysis. Journal of International Management 6:121–148
Leonidou LC, Katsikeas CS (1996) The export development process: An integrative review of empirical models. Journal of International Business Studies 27(3):517–551
Leonidou LC, Katsikeas CS, Piercy NF (1998) Identifying managerial influences on exporting: Past research and future directions. Journal of International Marketing 6(2):74–102
Leontief W (1953) Domestic production and foreign trade: The American capital position re-examined. proceedings of the American philosophical society
Lu JW, Beamish PW (2001) The internationalization and performance of SMEs. Strategic Management Journal 22(6/7):565–586
Luostarinen R (1980) The Internationalization of the firm. Acta Academia series A, Vol. 30 Helsinki School of Economics. Helsinki
Madsen TK, Servais P (1997) The internationalization of born globals: An evolutionary process? International Business Review 6(6):561–583
Malhotra NK, Agarwal J, Ulgado FM (2003) Internationalization and entry modes: A multitheoretical framework and research propositions. Journal of International Marketing 11(4):1–31
McDougall P, Shane S, Oviatt BM (1994) Explaining the formation of international new ventures: The limits of theories from international business research. Journal of Business Venturing 7s(5):419– 429
McDougall P, Oviatt BM (1996) New venture internationalization, strategic change, and performance: A follow-up study. Journal of Business Venturing 11(1):23–40
McDougall P, Oviatt BM (2000) International entrepreneurship: The intersection of two paths. Guest Editor’s Introduction, Academy of Management Journal 43(5):902–908
Miller MM (1993) Executive insights: The 10 step road map to success in foreign markets. Journal of International Marketing 1(2):89–100
Millington AI, Bayliss BT (1990) The process of internationalisation: UK companies in the E.C. Management International Review 30(2):151–161
Morgan RE, Katsikeas CS (1997) Theories of international trade, foreign direct investment and firm internationalization: A critique. Management Decision 35(1):1–14
Mtigwe B (2004) The internationalization process of small-to-medium size enterprise (SMEs) in the African context: A comparative study. Unpublished Doctoral Thesis, University of Pretoria
Ogbuehi AO, Longfellow TA (1994) Perceptions of U.S. manufacturing SMEs concerning exporting: A comparison based on export experience. Journal of Small Business Management 32(4):37–48
Ohmae K (1995) The end of nation state: The rise of regional economies. Harper, London
Oviatt BM, McDougall PP (1994) Toward a theory of international new ventures. Journal of International Business Studies 25(1):45–64
Penrose ET (1956) Foreign investment and growth of the firm. Economic Journal 60:220–235
Perlmutter H (1969) The torturous evolution of the multinational enterprise. Columbia Journal of World Business 4(1):9–18
Pinney JK (1970) Process of commitment to foreign trade Indiana Department of Commerce
Porter ME (1990) The competitive advantage of nations The Free Press
Posner MV (1961) International trade and technical change. Oxford Economic Papers 13:323–341
Prahalad CK, Hamel G (1990) The core competence of the corporation. Harvard Business Review 90:79–91
Prefontaine L, Bourgault M (2002) Strategic analysis and export behaviour of SMEs: A comparison between the United States and Canada. International Small Business Journal 20(2):123–138
Punnett BJ, Ricks DA (1997) International business. Blackwell Cambridge MA
Ramaswamy K, Kroeck KG, Renforth W (1996) Measuring the degree of internationalization of a firm: A Comment. Journal of International Business Studies 26(1):167–177
Reid S (1981) The decision make and export entry and expansion. Journal of International Business Studies 12(2):101–112
Reid SR (1984) Information acquisition and export entry decisions in small firms. Journal of Business Research 12(2):141–158
Reuber AR, Fischer E (1997) The influence of the management’s team’s experience on the internationalization behaviours of SMEs. Journal of International Business Studies 4th Quarter:807–825
Ricardo D (1817) On the principles of political economy and taxation. London
Root FR (1987) Entry strategies for international markets, Lexington: Massachussetts
Rugman AM (1971) Risk reduction by international diversification. International Journal of Business Studies 7(Fall):75–80
Rugman AM, Verbeke A (1992) A note on cost theory of multinational strategic management. International Journal of Business Studies 4th Quarter:761–771
Sadler-Smith E, Spicer DP, Chaston I (2001) Learning orientations in smaller firms. Long Range Planning 34(1):139–158
Sharma D, Johanson J (1987) Technical consultancy in internationalization. International Marketing Review 4(4):20–29
Shrader RC, Oviatt BM, McDougall P (2000) How new ventures exploit trade offs among international risk factors: Lessons for the accelerated internationalization of the century. Academy of Management Journal 43(6):1227–1258
Simmonds K, Smith H (1968) The first export order: A marketing innovation. British Journal of Marketing 2(2):93–100
Simpson CL, Kujawa D (1974) The export decision process: An empirical enquiry. Journal of International Business Studies 5(1):107–117
Smith A (1776) The wealth of nation. Modern Library Edition, New York
Stevenson HH, Jarillo JC (1990) A paradigm of entrepreneurship: Entrepreneurial management. Strategic Management Journal 11:17–27
Stone MM, Brush CG (1996) Planning in ambiguous contexts: The dilemma of meeting needs for commitment and demands for legitimacy. Strategic Management Journal 17:633–652
Sullivan D (1994) Measuring the degree of internationalization of a firm. Journal of International Business Studies 25(2):325–342
Sullivan D, Bauerschmidt A (1990) Incremental Internationalization: A test of Johanson and Vahlne’s thesis. Management International Review 20(1):19–30
Sundaram AK, Black JS (1995) The international business environment: Text and cases. Prentice Hall International, Illinois
Suranovic S (2004) The theory of comparative advantage: Overview’ http://internationalecon.com/v1.0/ch40/40c000.html accessed on 30 November 2004
Teece DJ, Pisano G, Shuen A (1997) Dynamic capabilities and strategic management. Strategic Management Journal 18:509–533
Tikkaneen H (1998) The network approach in analyzing international marketing and purchasing operations: A case study of a European SME’s focal net 1992–95. Journal of Business and Industrial Marketing 13(2):1–23
Toyne B (1989) International exchange: A foundation for theory building in international business. Journal of International Business Studies 20(1):1–17
Turnbull PW (1987) A challenge to the stages theory of the Internationalization process. In: Rosson PJ Reid SD (eds.) Managing export and expansion, Praeger, New York, pp. 21–40
Turnbull PW, Valla JP (1986) Strategies for international industrial marketing. Croom Helm, London
Vernon R (1966) International Investment and International trade in the product life cycle. Quarterly Journal of Economics 80(2):120–207
Wells LT (July 1968) A product life cycle for international trade? Journal of Marketing 32 (July): 1–6
Williamson OE (1975) Markets and hierarchies: Analysis and antitrust implications. Free Press, New York
Woodcock CP, Beamish PW, Makino S (1994) Ownership-based entry mode strategies and international performance. Journal of International Business Studies 2nd Quarter:253–273
Yeung HW (2002) Entrepreneurship and the internationalization of Asian firms: An institutional perspective. In Young S. (ed) Entrepreneurship and the internationalization of Asian firms: An institutional perspective. (Review), International Small Business Journal 21(2):229–232
Zahra SA, George G (2005) International entrepreneurship: The current status of the field and future research agenda. http://instruction.bus.wisc.edu/ggeorge/research/IE.pdf accessed on 3 Feb. 2005
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Mtigwe, B. Theoretical milestones in international business: The journey to international entrepreneurship theory. J Int Entrepr 4, 5–25 (2006). https://doi.org/10.1007/s10843-006-5872-5
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10843-006-5872-5