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Early Internationalisation of New and Small Indian Firms: An Exploratory Study

Pratik Arte

Andrew Barron

The Challenge of Bric Multinationals

ISBN: 978-1-78635-350-4, eISBN: 978-1-78635-349-8

Publication date: 24 November 2016

Abstract

Purpose

This study is a response to the paucity of research into early internationalising firms based in India. We seek to explore the internationalisation of small and new Indian firms and the decision-making process of their entrepreneurs/managers.

Methodology/approach

The study uses original, primary data gathered from in-depth, semi-structured interviews conducted with the managers of six such firms to explore the factors that might facilitate, motivate, or impede the efforts undertaken by young Indian firms to embark upon a process of early internationalisation.

Findings

Our findings suggest that, in line with their counterparts from other countries, the early internationalisation of small firms from India is driven primarily by the search for more favourable demand conditions overseas and is facilitated by new technologies. However, we find no evidence suggesting that the emergence of early internationalising firms from India is driven by the search for more favourable production conditions or by the direct international experience and exposure of their founders. In line with prior scholarly work, our research suggests that government support is an important facilitator of early internationalisation of small firms.

Originality/value

The study provides insights into the internationalisation process of INVs from India and contributes to broadening our understanding of the behaviour of firms under a set of specific institutional conditions. Based on our findings, we develop a conceptual framework which can be useful for further empirical testing. Our study is also one of the few to be conducted on a sample of INVs from India.

Keywords

Citation

Arte, P. and Barron, A. (2016), "Early Internationalisation of New and Small Indian Firms: An Exploratory Study", The Challenge of Bric Multinationals (Progress in International Business Research, Vol. 11), Emerald Group Publishing Limited, Leeds, pp. 525-558. https://doi.org/10.1108/S1745-886220160000011027

Publisher

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Emerald Group Publishing Limited