SME internationalization research: Mapping the state of the art

• Published date: 01 June 2018
• DOI: http://doi.org/10.1002/cjas.1419
• Date: 01 June 2018

SME internationalization research: Mapping the

state of the art

Cláudia P. Ribau

University of Aveiro

António Carrizo Moreira*

University of Aveiro

Mário Raposo

University of Beira Interior

Abstract

This paper offers a review of published conceptual and

empirical studies indexed in the main academic search

databases, covering literature on the internationalization

of small and medium-sized f‌irms. We analyzed a total of

554 papers covering the period between 1977 and 2014,

and found the following general trends: empirical research

focuses mainly on Europe and is characterized by a

diversity that identif‌ies 74 different topics. This study

provides academics and practitioners with a clear perspec-

tive on future directions of SME internationalization and

contributes to our understanding of the relevant research

to date. Copyright © 2016 ASAC. Published by John Wiley

& Sons, Ltd.

Keywords: internationalization, SME, small f‌irms, literature

review, internationalization topics

Résumé

Le présent article propose un tour d’horizon des études

empiriques et conceptuelles sur l’internationalisation des

petites et moyennes entreprises répertoriées dans les

principales bases de données de recherches scientif‌iques.

L’analyse de 554 articles publiés entre 1977 et 2014 met

en évidence les tendances suivantes : les études empiriques

portent surtout sur l’Europe et couvrent soixante-quatorze

sujets différents. L’étude propose aux chercheurs et aux

praticiens des pistes claires pour les recherches futures sur

l’internationalisation des PME en même temps qu’elle

permet de mieux cerner les recherches pertinentes

existantes. Copyright © 2016 ASAC. Published by John

Wiley & Sons, Ltd.

Mots-clés : Internationalisation, PME, petite entreprise, re-

vue de la littérature, sujets sur l’internationalisation

The current trend of increasing integration and interrela-

tionships in the international economy has had a pervasive

inf‌luence on the internationalization of small and medium-

sized enterprises (SMEs). To date, although several studies

have analyzed the literature on SME internationalization, a

full understanding needs developing in several dimensions,

as this literature is of signif‌icant importance to companies

in the international economy and to academic research.

The study of internationalization, particularly of SMEs,

has been of increasing interest to the research community

(e.g., Etemad, 2004; Kuivalainen, Sundqvist, Saarenketo,

& McNaughton, 2012b; McAuley, 2010) because of the

relationship between SME competitiveness and increased

productivity, f‌lexibility, and an active presence in the global

market. Although SME internationalization is a topic that

has already received special attention, it is still relatively

new. Traditionally, research has extensively focused on

large manufacturing f‌irms, especially on the activities of

multinational enterprises (MNEs), by mainly applying the

transaction cost model, the eclectic paradigm, and the

monopolistic advantage theory (Dana, 2001; Etemad,

Wright, & Dana, 2001; McAuley, 2010; Wright & Dana,

2003). However, international markets are not only occupied

by MNEs but also by SMEs, which differ extensively in

terms of competences, market behaviour, and strategies

followed. SMEs have created new opportunities and shown

prof‌itable growth (Lin & Chaney, 2007) while playing an

important role in the contemporary global marketplace

(Hessels & Parker, 2013; Javalgi, Todd, & Granot, 2011).

If in the literature on SME internationalization, a contrast

is drawn between the “traditional stages models”and

“new”phenomena, born globals (BGs), or international

new ventures (INVs) (D’Angelo, Majocchi, Zucchella, &

Buck, 2013), the articles most often examine f‌irms and

ventures without specifying small or large f‌irms.

*Please address correspondence to: António Moreira,University of Aveiro,

DEGEI, Campus Universitário de Santiago, Aveiro, 3810-193, Portugal.

Email: amoreira@ua.pt

Canadian Journal of Administrative Sciences

Revue canadienne des sciences de l’administration

35: 280–303 (2018)

Published online 25 November 2016 in Wiley Online Library (wileyonlinelibrary.com) DOI: 10.1002/CJAS.1419

Can J Adm Sci

35(2), 280–303 (2018)Copyright © 2016 ASAC. Published by John Wiley & Sons, Ltd. 280

Previous reviews have found that the theoretical and

methodological bases of SME internationalization

knowledge are growing but that the f‌ield is still fragmented.

While several researchers have attempted to put forward an

integrative view of SME internationalization (e.g., Graves

& Thomas, 2008; Mejri & Umemoto, 2010; Saarenketo,

Puumalainen, Kuivalainen, & Kyläheiko, 2004), none of

the models has been commonly accepted by the academic

community.

Although previous studies have covered several topics

within SME internationalization, the present study is unique

in its depth and length of coverage. McAuley (1999, 2010)

covered 20 years of research (1989–2009) but selects only

some of the relevant work published (i.e., 24 papers) on

SME internationalization, using a process view and failing

to cover internationalization from other angles. Leonidou

and Katsikeas (1996), Coviello and Martin (1999), Coviello

and Jones (2004), and Rialp, Rialp, and Knight (2005)

reviewed 10 years of research limited to early

internationalizing f‌irms. Fillis (2001) analyzed 33 papers

on internationalization, covering the period 1975–2000,

without applying a clear criterion for f‌irm size, which

therefore included MNEs in the study. Etemad (2004) and

Kuivalainen et al. (2012) presented an overview of the

conceptual frameworks and concepts relating to internation-

alization patterns of SMEs without including trends in the

empirical literature on this area of research. Kontinen and

Ojala (2010) focused on a review of the relevant research

on internationalization of family businesses, in which only

56% of the studies were based on SMEs.

The following authors stand out for their emphasis on

international entrepreneurship. Keupp and Gassmann

(2009) reviewed 179 papers published in 16 journals.

Although f‌irm size was not considered or def‌ined as a search

criterion in their study on international entrepreneurship,

their conclusions note that small, young f‌irms have a propen-

sity to internationalize. Jones, Coviello, and Tang (2011)

reviewed 323 relevant articles, excluding SME international-

ization papers that do not incorporate elements of entrepre-

neurship. Peiris, Akoorie, and Sinha (2012) analyzed 291

papers but excluded papers focusing on SME internationali-

zation without entrepreneurial intervention and included

papers that mix SMEs with large f‌irms. Kiss, Danis, and

Cavusgil (2012) analyzed 88 papers focusing on interna-

tional entrepreneurship in emerging economies. They

concluded that the research in emerging economies is still

quite limited and argue for a stronger theoretical grounding

and development, better contextual positioning, and greater

methodological rigor and sophistication.

Based on these reviews, the growing interest in interna-

tionalization and SMEs is obvious. However, one can also

conclude that several studies, while addressing international-

ization, do not focus specif‌ically on how SMEs behave.

Rather, they focus on early internationalization, family busi-

ness, internationalizing f‌irms, international entrepreneurship,

BGs, INVs, and so on, without an obvious criterion for f‌irm

size that clearly separates SMEs from large f‌irms. In this

context, we seek to f‌ill this gap in reviews on the internation-

alization of SMEs. For this reason, we systematically

examine the literature on internationalization with the clear

objective of analyzing only SMEs, the relevant topics

studied, and the latter’s theoretical or empirical nature—

without any restrictions on time, journals, papers, or

researchers. Rather than restricting the search to journals

with the highest impact in their f‌ields, we included all

published and accessible journal papers that f‌it the selection

criteria deployed. Based on these criteria, this literature

review offers a unique contribution.

Evaluations of SME internationalization processes

remain in high demand, with the following questions still

needing answers. How much SME internationalization

research has been published and in what kind of journals?

What are the main characteristics of SME internationaliza-

tion research? What is the current state of research and future

opportunities for scholars? To explore these issues, we

carried out an extensive literature review, seeking to provide

an overview of published work focusing on SME interna-

tionalization. In addition to addressing the above-mentioned

questions, this review also complements previous surveys of

SME internationalization research that did not apply a

systematic perspective. Through this in-depth look at SME

internationalization patterns, the present study helps identify

pathways, patterns, and trends, that provide insights into

how knowledge may be developed in the future and,

consequently, contributes to a better understanding of the

SME internationalization f‌ield.

We categorize, summarize, synthesize, and inte rpret re-

search on SME internationalization between 1977 and 2014.

To this end, we reviewed and evaluated 554 studies

published in international journals that, as a whole, can be

considered representative of the present knowledge on

SME internationalization. These papers were systematically

analyzed in an effort to clarify the current state of knowledge

about SME internationalization, focusing on the main topic

studied, type of paper and methodology, principal methodo-

logical procedures, and countries analyzed. We conclude

with a discussion of our f‌indings, provide insights into the

most important and challenging areas for the research

community and practitioners, as well as offer a clearer

perspective on future developments within this topic.

SME Internationalization

The concept of SME internationalization is multifaceted,

and the def‌inition of SME varies signif‌icantly across

countries. An SME in Europe is a f‌irm that has fewer than

250 employees and a turnover not exceeding €50 million or

a balance sheet total not exceeding €43 million (European

Commission, 2014). However, in the US an SME can have

SME INTERNATIONALIZATION RESEARCH: MAPPINGTHE STATE OF THE ART RIBAU ET AL.

Can J Adm Sci

35(2), 280–303 (2018)Copyright © 2016 ASAC. Published by John Wiley & Sons, Ltd. 281