International Entrepreneurship in Small and Medium Size Enterprises

International Entrepreneurship in Small and Medium Size Enterprises

Orientation, Environment and Strategy

The McGill International Entrepreneurship series

Hamid Etemad

The contributors to this volume explore the emerging patterns of SME growth and international expansion in response to the evolving competitive environment, dynamics of competitive behavior, entrepreneurial processes and formulation of strategy.

Chapter 12: Conclusion: The Evolutionary Patterns of Change, the Emerging Trends and Implications for Internationalizing Small Firms

Hamid Etemad

Subjects: business and management, entrepreneurship, international business


Hamid Etemad INTRODUCTION Although slow and evolutionary change has been with us for a long time, systematic change in the business environment started some time in the 1950s. International trade introduced comparatively advantageous goods and services, through exports, from one nation to another and inevitably introduced change, but the rate of diffusion of the change due to trade was comparatively low. International investment followed trade and foreign direct investment (FDI) gradually replaced the initial imports of traded goods.1 International investment introduced a qualitatively different change with a potentially higher diffusion rate than international trade (that is, exports and imports) because of higher involvement of investors than of traders. Inadvertently the subsidiaries of multinational enterprises (MNEs) became the systematic and consistent change agents as they introduced an innovative portfolio not only of goods and services but also of corporate practices and procedures which originated in their parent company environments (or headquarters). The early parent companies were mainly based in the United States and European countries. Their corporate research and development (R&D) laboratories created a continual stream of new products and services centrally, mainly in response to competition in their own markets in industrialized countries, and their modern marketing departments commercialized them with a vengeance to keep the competition at home at bay. When they expanded beyond their shores, naturally they took their innovations to other countries as well. This in turn enabled them to enlarge their sales and benefit from the associated scale economies worldwide. As a result the health...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information