A4 Conference proceedings

A global mindset – still a prerequisite for SME internationalization?


Publication Details
Authors: Torkkeli Lasse, Nummela Niina, Saarenketo Sami
Publication year: 2017
Language: English
Title of parent publication: 43rd EIBA Annual Conference 2017
ISBN: 978 88 6493 042 8
JUFO-Level of this publication: 0
Open Access: Not an Open Access publication

Abstract

It has been more than a decade since the concept of global mindset was established as a prerequisite for successful internationalisation of small and medium-size enterprises (SMEs). Since then, the pace of global integration and globalisation has accelerated even further. In this study, we ask: To what extent is the concept of global mindset still a critical driver for successful international expansion of SMEs? We are particularly interested in learning how global mindset is reflected in decision making of internationalising SMEs.

To respond to this question, we test the following four propositions: (1) SMEs with global mindsets perform better than other SMEs; (2) SMEs with global mindsets perform better in international markets than other SMEs; (3) SMEs with global mindsets prefer effectual decision-making logic; and (4) SMEs using effectual decision-making logic perform better in international markets. Our study is based on the responses drawn from a cross-sectional sample of 141 Finnish SMEs, which support the second and third propositions, indicating that a global mindset leads both to effectual decision-making logic and increased international performance. Conversely, we found no link between effectual logic and SME performance, and global mindset predicts international performance specifically, rather than the performance of SMEs in general. Consequently, our study validates the relevance of the global-mindset concept as an impactful driver of successful SME internationalisation. Additionally, it indicates that global mindset and entrepreneurial decision-making logic are intertwined, and that their joint effect is relevant when trying to explain entrepreneurial internationalisation.


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Last updated on 2019-15-01 at 10:40