How does international experience help New Zealand's SMEs internationalize?

Abstract

The purpose of this research is to explore how the international experience of individuals help small firms in New Zealand internationalize. Although the Organization for Economic Cooperation and Development (OECD) indicates that SMEs account for a significant proportion of export activities in both developed and developing economies, relatively little is understood about the effect of individuals’ knowledge of the international market on overseas business activities of such firms.

This research employs a qualitative case study of six firms to address this research question. In-depth interviews were conducted with decision makers of the case firms. Interview data were manually analyzed using a multi-stage coding process.

The findings of this research suggest that decision-makers’ international experience is essential to their firms’ international development. This study identifies the benefits associated with the employment of foreign-born migrants who are skilled and internationally experienced, adding to the firms’ international business activities. These findings contribute to the existing literature by revealing the role of individuals’ international experience in small firms’ internationalizing activities.The findings and implications of this study for scholars and managers are discussed.