The Internationalisation Process of Small, Technology-Based Firms

Forty-four small, technology-based firms were clustered on the basis of size, age and degree of internationalisation. Three groups, (1) small, highly international, young firms (Group 1), (2) small, young, less international firms (Group 2) and (3) larger, older firms with a mid-level of internationalisation (Group 3), were identified. This paper studies the market selection, mode of entry and international expansion processes of these firms in relation to their degree of internationalisation. More recent firms begin to expand internationally at an early stage. The level of international success differs significantly (Groups 1 and 2). Group 2 firms expand rapidly into successive countries and regions and achieve lower levels of international success than Group 1 firms, which expand more rapidly within each market.