‘Born’ Exporting in Regional Clusters: Preliminary Empirical Evidence

Abstract

Only in the last decade did International Business research start to address a long-ignored issue: why a growing number of firms are international from the moment of birth or in the very first years of activity (Ray, 1989; McDougall et al., 1994; McDougall and Oviatt, 1996; Oviatt and McDougall, 1997; Westhead et al., 1998; Burgel and Murray, 1998). In the case of international new ventures² (INV) from small countries the major research question is how early internationalisation is possible rather than why. Even the less sophisticated mode of entry into foreign markets, exports, usually requires a minimal knowledge of foreign languages and external trade techniques. Also exporting firms will generally be in a disadvantageous position in relation to local competitors that benefit from better information about buyers’ tastes and preferences and potentially enjoy higher credibility near local customers. These are likely to be especially important advantages when products sold are customised, technically complex, and require frequent contacts between the buyer and the supplier.

I thank Alberto Castro and Gianni Lorenzoni for suggestions. Financial support from ‘Sub-Programa Ciência e Tecnologia do 2° Quadro Comunitário de Apoio’ is acknowledged.