The Internationalization of Small and Medium-Sized Firms

What is it about?

This study examines how small and medium-sized enterprises (SMEs) form intentions to expand internationally, focusing on learning efforts and entrepreneurial orientation. Drawing on organizational learning and new venture theories, it argues that renewing knowledge about foreign markets strengthens internationalization intent, while concentrating learning on domestic contexts can weaken it. Entrepreneurship provides the mindset and behavior that enable firms to turn learning into global ambitions. Based on data from Belgian SMEs, the findings show that both international learning effort and entrepreneurial orientation are positively linked to firms’ desire to grow internationally. In contrast, domestic learning effort is negatively associated with this intent. The results suggest that companies investing in understanding global markets and international processes are more likely to perceive cross-border opportunities as attainable and rewarding. Firms that channel their learning inward, toward local operations, appear more hesitant to expand beyond their home market. For business leaders, the results emphasize that learning scope matters. Developing routines to acquire and apply knowledge about international environments can help SMEs identify and act on emerging global opportunities. Likewise, cultivating an entrepreneurial culture—marked by proactiveness, innovation, and a willingness to take risks—can translate market knowledge into concrete strategic initiatives abroad. Managers who encourage exploration beyond national boundaries may help their firms overcome uncertainty and inertia.

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Photo by Saj Shafique on Unsplash

Photo by Saj Shafique on Unsplash

Why is it important?

This research is unique in integrating two central ideas—organizational learning and entrepreneurial orientation—within the study of international entrepreneurship. It shows that international expansion is not just a function of firm size or resources but also of how companies learn and interpret opportunities. In particular, it reveals that focusing learning efforts too narrowly on the domestic market can dampen global ambitions, an insight that deepens understanding of how firms allocate their attention. Its timeliness lies in its focus on Belgian SMEs, which operate in an increasingly globalized yet competitive regional economy. The findings provide valuable guidance for European firms seeking to strengthen their international presence: global growth requires both the knowledge of foreign markets and an entrepreneurial mindset to act on that knowledge. This combination helps smaller firms move from cautious observation to confident international engagement.