Dynamic knowledge-related learning processes in internationalizing high-tech SMEs

Abstract

This paper studies the internationalization of high-tech small- and medium-sized firms (SMEs). The traditional internationalization theories suggest that the firm's international involvement increases in stages as a result of incremental learning. However, the small information and communications technology (ICT) companies are often characterized as born globals, showing very rapid and intensive international growth enabled by the use of external resources, such as partnerships and networks. Adopting a knowledge-based view of the firm has proved to be a useful way to theoretically explain the internationalization process of these ICT SMEs. However, in our view, the crucial dynamic aspects of knowledge development have not received enough attention in previous empirical studies, which have typically been more like static snapshots. In this paper, we will first launch an evolutionary knowledge management model, derive then its basic theoretical propositions and finally test them empirically in terms of a longitudinal survey of small- and medium-sized software and content providers in the Finnish ICT-sector (from the year 1999 to 2001). Most of the results are straightforward and show that at least some of the proposed knowledge-related determinants really have significant effects on the dynamics of internationalization. © 2003 Elsevier B.V. All rights reserved.