The influence of company size on its internationalization capacity: a comprehensive view on Portugal
Abstract
In the competitive environment that companies operate today, there is a need to adopt internationalization strategies to enable consolidation in diversified markets. The internationalization process is part of a relevant strategy for companies, has several implications and is influenced by innumerable specific aspects, namely by the behavior of companies, by their culture and structure, as well as by their leadership, but it is on the organization structure that we find one of the most relevant features: the dimension (size) of companies. Based on a qualitative methodology, we interviewed managers of the furniture manufacturing industry. We concluded that companies value increase in size; nevertheless, for cultural reasons, they are still resistant to such an increase. For increasing their size, companies value several instruments, such as: strategic alliances/corporate cooperation; fusions and acquisitions; and risk capital interventions. This work is an eye opener about the need to educate and train entrepreneurs in the Portuguese industrial sector and to bring about an awareness of the benefits of formation, training, expansion and diversification in order to be able to compete on a global basis.
Keyword : dimension, size, internationalization, organizational behavior, organization culture, leadership
How to Cite
Fernandes, J. B., Albuquerque, E. B., & da Silva, A. F. C. (2022). The influence of company size on its internationalization capacity: a comprehensive view on Portugal. Business: Theory and Practice, 23(1), 208–217. https://doi.org/10.3846/btp.2022.15639
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Pugh, D. (1969). Organization theory: An approach from psychology. Human Relations, 22(4), 345–354. https://doi.org/10.1177/001872676902200405
Solinger, O., Olffen, W., & Roe, R. (2008). Beyond the three-component model of organization commitment. Journal of Applied Psychology, 93(1), 70–83. https://doi.org/10.1037/0021-9010.93.1.70
Tavares, F., & Marques, A. (2013). A internacionalização no setor da cortiça: Estudo exploratório às empresas. Revista Portuguesa e Brasileira de Gestão, 12(4), 37–49. https://doi.org/10.5585/riae.v12i3.1893
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Yu, C., & Zhang, T. (2010). Internal factors affecting the organizations’ internationalizations process: Evidence from Huawei case study [Master’s Dissertation. Halmstad University]. Sweden.
Boffelli, A., Golini, R., Orzes, G., & Dotti, S. (2020). Open the box: A behavioral perspective on the reshoring decision-making and implementation process. Journal of Purchasing and Supply Management, 26(3), 100623. https://doi.org/10.1016/j.pursup.2020.100623
Brazinskas, S., & Beinoravičius, J. (2014). SMEs and integration driving factors to regional and global value chains. Procedia – Social and Behavioral Sciences, 110, 1033–1041. https://doi.org/10.1016/j.sbspro.2013.12.950
Camara, P., Guerra, P., & Rodrigues, J. (2010). Novo Humanator, Recursos Humanos e Sucesso Empresarial. Publicações Dom Quixote.
Dal-Soto, F., Alves, J., & Bulé, A. (2013). Análise do Processo de Internacionalização da IQB Britanite sob a Ótica da Abordagem Comportamental. Revista Eletrónica de Negócios Internacionais, 8(3), 81–102.
Dal-Soto, F., Alves, J., & Bulé, A. (2014). Análise do Processo se Internacionalização do Modelo De Uppsala: Caminhos para as Empresas Brasileiras. Estudo & Debate, Lajeado, 21(1), 179–199.
Dinheiro Vivo. (2014). António Mota “O negócio da construção em Portugal nunca mais retomará”. http://www.noticiasaominuto.com/economia/306937/o-negocio-da-construcao-em-portugal-nunca-mais-retomara?utm_source=rsseconomia&utm_medium=rss&utm_campaign=rssfeed
Dubrin, A. (1998). Leadership, research findings, practice and skills. Houghton Mifflin Company.
Ebrahimpour, H., Zahed, A., Khaleghkhah, A., & Sepehri, M. B. (2011). Survey relation between organization culture and organization citizenship behavior. Procedia – Social and Behavioral Sciences, 30, 1920–1925. https://doi.org/10.1016/j.sbspro.2011.10.373
Fonseca, J., & Silva, S. (2014). Factores de decisão das PMEs portuguesas em relação às pesquisas de mercados internacionais [Masters’ Thesis. Universidade Católica Portuguesa, Faculdade de Economia e Gestão].
Freire, A. (2008). Estratégia: Sucesso em Portugal. Editora Verbo, Lisboa.
Fryges, H., & Wagner, J. (2008). Exports and productivity growth: First evidence from a continuous treatment approach. Review of World Economics, 144(4), 695–722. https://doi.org/10.1007/s10290-008-0166-8
Gonzalez, R., Martins, M., & Toledo, J. (2009). Gestão do conhecimento em uma estrutura organizacional em rede. Ciência da Informação, Brasília, 38(1), 57–73. https://doi.org/10.1590/S0100-19652009000100004
Hersey, P., & Blanchard, K. (1988). Management of organization behavior: Utilizing human resources (5th ed.). Prentice-Hall.
Honório, L. (2008). A internacionalização de empresas brasileiras em uma perspetiva motivacional. RAM. Revista de Administração Mackenzie, 9(2), 128–151. https://doi.org/10.1590/S1678-69712008000200007
Huang, C.-M., Hsu, P.-Y., & Chiau, W.-L. (2011). Perceptions of the impact of chief executive leadership style on organization performance through successful enterprise resource planning. Social Behavior and Personality, 39(7), 865–878. https://doi.org/10.2224/sbp.2011.39.7.865
Hult, G., Gonzalez-Perez, M., & Lagerström, K. (2020). The theoretical evolution and use of the Uppsala Model of internationalization in the international business ecosystem. Journal of International Business Studies, 51(1), 38–49. https://doi.org/10.1057/s41267-019-00293-x
Jacobs, R., Mannion, R., Davies, W., Harrison, S., Konteh, F., & Walshe, K. (2013). The relationship between organization culture and performance in acute hospitals. Social Science & Medicine, 76, 115–125. https://doi.org/10.1016/j.socscimed.2012.10.014
Jardón, C. & Silva, A. (2017). Intellectual capital and environmental concern in subsistence small businesses. Management of Environmental Quality, 28(2), 214–230. https://doi.org/10.1108/MEQ-05-2015-0085
Johanson, J., & Vahlne, J. (1977). The internationalization process of the firm: A model of knowledge development and increasing foreign market commitments. Journal of International Business Studies, 8(1), 23–32. https://doi.org/10.1057/palgrave.jibs.8490676
Johanson, J., & Vahlne, J. (2009). The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership. Journal of International Business Studies, 40, 1411–1431. https://doi.org/10.1057/jibs.2009.24
Kort, E. (2008). What, after all, is leadership? “Leadership” and plural action. The Leadership Quarterly, 19(4), 409–425. https://doi.org/10.1016/j.leaqua.2008.05.003
Kotter, J. (1990). A force for change: How leadership differs from management. Free Press.
Ling, Y., López-Fernández, M., Serrano-Bedia, A., & Kellermanns, F. (2020). Organizational culture and entrepreneurial orientation: Examination through a new conceptualization lens. International Entrepreneurship and Management Journal, 16(2), 709–737. https://doi.org/10.1007/s11365-019-00600-w
Lopes, A., & Baioa, P. (2011). O impacto da liderança partilhada no desempenho organizacional percecionado. Gestão e Desenvolvimento, 19, 7–36. https://doi.org/10.7559/gestaoedesenvolvimento.2011.135
Luthans, F. (1973). Organization behavior. McGraw-Hill.
Machado, C., & Fernandes, J. (2004). Dimension and organization behavior – The Portuguese furniture sector case. European Business Review, 16(2), 191–204. https://doi.org/10.1108/09555340410524274
Miranda, F., Cruz, D., & Chinelato, F. (2015). A influência das redes sociais no processo de internacionalização de empresas: um estudo baseado no modelo de networks. Revista da Faculdade de Administração e Economia, 6(2), 67–84. https://doi.org/10.15603/2176-9583/refae.v6n2p67-84
Obiwuru, C., Okwu, T., Akpa, V., & Nwankwere, A. (2011). Effects of leadership style on organization performance: A survey of selected small-scale enterprises in Ikosi-Ketu Council development area of Lagos State, Nigeria. Australian Journal of Business and Management Research, 1(7), 100–111. https://doi.org/10.52283/NSWRCA.AJBMR.20110107A11
Oliveira, P. (2011). Segmentation of SME clients at AICEP Portugal Global: A proposal based on real data [Dissertation. Faculdade de Engenharia da Universidade do Porto]. Porto.
Pugh, D. (1966). Modern organization theory: Psychological study. Psychological Bulletin, 66(4), 235–251. https://doi.org/10.1037/h0023853
Pugh, D. (1969). Organization theory: An approach from psychology. Human Relations, 22(4), 345–354. https://doi.org/10.1177/001872676902200405
Solinger, O., Olffen, W., & Roe, R. (2008). Beyond the three-component model of organization commitment. Journal of Applied Psychology, 93(1), 70–83. https://doi.org/10.1037/0021-9010.93.1.70
Tavares, F., & Marques, A. (2013). A internacionalização no setor da cortiça: Estudo exploratório às empresas. Revista Portuguesa e Brasileira de Gestão, 12(4), 37–49. https://doi.org/10.5585/riae.v12i3.1893
Varanda, A., Tremonte, D., Kulaif, F., & Francischini, A. (2010). Estratégias de Internacionalização: Análise de Empresas Brasileiras do Setor Alimentícios. Revista Jovens Pesquisadores, 7(1), 12.
Vertel, A., Paternina, C., Riaño, H., & Pereira, J. (2013). Cultura organizacional: evolución en la medición. Estudios Gerenciales, 29(128), 350–355. https://doi.org/10.1016/j.estger.2013.09.009
Villarreal, J., & Cerna, L. (2008). Competencias Directivas en Escenarios Globales. Estudos Gerenciales, 24(109), 87–103. https://doi.org/10.1016/S0123-5923(08)70054-8
Wagner III, J., & Hollenbeck, J. (2012). Comportamento Organizacional: criando vantagem competitiva (3rd ed.). Saraiva.
Yarza, P., Cladera, R., & Moriana, M. (2018, October). Strategic growth decisions in family firms: Evidence from the hotel industry. In 10th World Conference for Graduate Research in Tourism Hospitality and Leisure (pp. 52–57), Book Proceedings. Nevşehir, Turkey.
Yu, C., & Zhang, T. (2010). Internal factors affecting the organizations’ internationalizations process: Evidence from Huawei case study [Master’s Dissertation. Halmstad University]. Sweden.