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Journal of International Entrepreneurship

Erschienen in:

01.09.2011

Differences in managerial behavior between small international and non-international firms

verfasst von: Svante Andersson, Henrik Florén

Erschienen in: Journal of International Entrepreneurship | Ausgabe 3/2011

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Abstract

The main question raised in this article is whether there are any differences between the work activities of managers in small firms primarily operating on an international market and those managing firms doing business on a domestic market. If so, what are these differences, and what do they tell us about the internationalization of small firms? The comparative method used here is based on multiple approaches including interviews, diary studies, and direct observations. The conclusions indicate that managers in small international firms are more proactive in their networking behavior, delegate operative activities, and devote more time to planned strategic activities connected with their international expansion than managers in other small firms.

Vorheriger Artikel Toward a theory of international new venture survivability

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There is an extensive vein of research treating small firm internationalization and performance (Leonidou et al. 2002; Lu and Beamish 2006). Performance is a multi-dimensional measure and internationalization can have different effects on different aspects such as profitability and growth (Lu and Beamish 2006). While this study is focused not on performance but on behavior, we will briefly reflect on the effect of internationalization. The performance of the companies (information was collected through official documents, such as annual reports and interviews with CEOs) showed some clear patterns. The sales turnover grew in the international firms whereas the growth rate in the domestic firms was low. However, regarding profitability (return on sales and return on assets), no clear patterns could be identified. This is in line with the study by Lu and Beamish (2006) who found a positive relationship between export and growth, as well as between FDI activity and growth. They also found a negative relationship between export activity and profitability and a U-curve relationship between FDI activity and profitability. However, we could not find this pattern in our study. We discussed these findings with the CEOs in the international firms. The CEOs are also owners (one owns the company 100% and the other two are significant part-owners). All three companies have growth as an important long-term goal. As they were significant owners of the companies, they did not need to show short-term profitability for other owners or investors but could invest in international new markets. To sum up, profitability differences between the two types of firms are not shown in the financial figures, as the international growing firms are using their “profitability” to grow on international markets.

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Titel: Differences in managerial behavior between small international and non-international firms
verfasst von: Svante Andersson
Henrik Florén
Publikationsdatum: 01.09.2011
Verlag: Springer US
Erschienen in: Journal of International Entrepreneurship / Ausgabe 3/2011
Print ISSN: 1570-7385
Elektronische ISSN: 1573-7349
DOI: https://doi.org/10.1007/s10843-011-0074-1