Behind the Internationalization Process of Northeast Italian SMEs : An Abductive Approach

Abstract: This study strives to investigate why some small and medium enterprises (SMEs) from Northeast Italy internationalize at inception and some internationalize gradually. The main literature regarding both, Born Globals and Stage-Models, were reviewed. In face of a high degree of fragmentation in the Born Global literature the study was developed through an abductive logic of reasoning. This basically means that we started by clustering already accepted internal and external factors, working then, towards a unified explanation. A qualitative study was developed with four SMEs. The main results show that no factor can singularly drive a company to internationalize at inception. Instead, the interaction of internal and external factors determines how SMEs internationalize. The findings provide empirical insights on the internationalization behavior of SMEs and redress the apparent theoretical gap in this field.