The Influence of the Management Team's International Experience on the Internationalization Behaviors of SMES
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EileenFischer** York University
Abstract.Why are some small and medium-sizedenterprises(SMEs) moresuccessfulin sellingoutsidetheirdomesticmarketsthan are other SMEs in the sameindustry?Althoughthe traditionalexplanationis that firmscan gain valuableknowledgeand resourcesas they becomeolder and larger,small and youngfirms are not necessarilydisadvantagedif they developother mechanismsto acquirethe requisiteknowledgeand resources.We examinethe role of the managementteam'sinternational experience as such a mechanism, for the internationalizationof Canadian software product firms. We show that internationally experiencedmanagementteams have a greater propensityto develop foreignstrategic partnersand to delay less in obtainingforeignsales after start-up,and that these behaviorsare associatedwith a higher degreeof internationalization. Obtainingsales outside their own domestic marketis an objectiveof many small and medium-sized enterprises (SMEs) and their governments (for example,Economic DevelopmentBoard [1993];Manley and Martin [1994]; Yamamoto and Igusa [1996]). Despite the purported benefits of internationalizationfor smallerfirms [Beamish,Craig and McLellan 1993], the extant literature holds a relatively negative view of their prospects (e.g., Cavusgil,Bilkey and Tesar [1979];Cavusgiland Nevin [1981];Cavusgiland Naor [1987]; Chandler [1986]; Christensen, Rocha and Gertner [1987]; *A. RebeccaReuber(PhD, MSc., Queen'sUniversity)is an AssociateProfessorat the Joseph L. RotmanSchool of Management,Universityof Toronto.Her researchinterestsfocus on the internationalizationof SMEs and the managementof rapidgrowthstart-ups. **EileenFischer(PhD, Queen'sUniversity;MASc., Universityof Waterloo)is an Associate Professor and Associate Dean of Research at the Schulich School of Business, York University. Her research interests focus on the antecedents and consequences of internationalizationfor SMEs and on the social and situationallearningof entrepreneurial behavior. This research is partially funded by a Strategic Grant from the Social Sciences and Humanities Research Council of Canada. The authors are grateful for the helpful comments and suggestions of four anonymous reviewers, Paul Beamish, Ida Berger and seminar participants at Queen's University and The Australian National University, and for the research assistance of Wendy Bryan, Marion McKenzie and Tricia Sands. Received: July 1995; Revised: August & October 1996, January, March & May 1997; Accepted: May 1997. 807
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JOURNAL OF INTERNATIONALBUSINESS STUDIES, FOURTH QUARTER 1997
Maleksadehand Nahavandhi[1985]).It has been arguedthat, comparedwith largefirms,SMEs are disadvantagedin enteringand expandingsales in international markets because they lack the necessary skills and resources. Moreover,young firms are seen as being disadvantagedfurtherbecausethey lack the experienceand credibilitythat a domestictrac
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