The Internationalization Speed of SMEs and their Long-term Sustainability in Foreign Markets

Abstract

This chapter analyzes the motivation and factors that accelerate the internationalization process, comparing the pre- and post-entry stages and its consequences for long-term sustainability in a single case of a Brazilian TBF. Permanence emerges in this case as an output reached by long-term sustainability, which is strongly related to innovation, international legitimacy, institutional and commercial network, scalability of business models, and responsiveness to world reference large clients. Moreover, the study highlights that firms from emerging countries can change their motivation for internationalization throughout the process by adopting a more hybrid perspective between upgrade and escape. This means that firms may internationalize to look for sources of capabilities and resources in host countries, as well, seeking escape from weak institutional conditions typical to emerging countries.