Title: SMEs foreign establishment decision-making: a multiple-case research of internationalisation strategies in the metallurgy and metal-mechanic industry

Authors: Bruno F. Abrantes; Miguel Torres Preto; Nelson António

Addresses: Niels Brock Copenhagen Business College, Copenhagen, Denmark ' Department of Engineering and Management, Instituto Superior Técnico – Universidade de Lisboa, Lisbon, Portugal ' Department of Marketing, Operations and General Management, ISCTE – IUL, Lisbon, Portugal

Abstract: This research aims to untangle the decision-making of Portuguese firms in their selection of overseas host-markets. Herein, a theoretical review will cover both the decision-making and internationalisation theory. Restricted to a target population of SMEs, the empirical testing is focused on the areas of risk-perception and the pace of commitment, and is therefore, a multiple case design comprising a representative sample of the different segments of the sector. The research follows a post-positivistic rationale aligned with its descriptive-evaluative purpose, combining the collection of contrived data and subsequent manipulation in a sequential explanatory mixed methods logic. Quantitative data from documentary analysis, is proceeded by qualitative data from interviews to the strategic apex of the case-firms, coded through content analysis. Results demonstrate that commitment decisions follow distinctive risk-profiles, influenced by a dyad of Ricardian comparative-advantage factors and public policy' practices impacting directly on cross-border establishment decisions.

Keywords: decision-making; foreign establishment; internationalisation; commitment; market-entry; pace of commitment; risk; transnationality index; TNI.

DOI: 10.1504/IJMDM.2020.108647

International Journal of Management and Decision Making, 2020 Vol.19 No.3, pp.364 - 390

Received: 19 Aug 2019
Accepted: 19 Dec 2019

Published online: 23 Jul 2020 *

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