1. LOGO
SMALL MULTINATIONAL
ENTERPRISES UNDER
GLOBALIZATION
Gary Knight (2009)
Student: JC Pham, A1008300

2. CONCLUSIONS & RESEARCH
DIRECTIONS
CONTENTS
INTRODUCTION OF ISMEs
THE CONTEXT: GLOBALIZATION
FINDINGS ON ISMEs
KEY THEORETICAL PERSPECTIVES

3. INTRODUCTION
• International business was the domain of
large MNEs historically
• The emergency of a relatively new class of
international firm, ISMEs or born- globals in
the landscape of international trade &
investment, by the late 1990s
– Simon’s (1996) investigation of 500 “hidden
champions” in niche markets
– Becoming substantially more numerous than
traditional, large multinational firms
– An important phenomenon that may be the result
of contemporary global forces (Knight, 2009)

4. CHARACTERISTICS OF ISME
ORIGINS OF MULTINATIONALS
SMALL SIZE & MODEST
RESOURCE BASE
BREAK THE USUAL
INCREMENTALLY
INTERNATIONAL PROCESS
VERY FLEXIBLE AND
PROACTIVELY LEARNING
ORIENTED
YOUNG AGES AND
INTERNATIONAL AT VERY
FIRST YEAR OF ITS
FOUNDING
1
4
2
5
3
ABLE TO LINK RESOURCES
FROM MULTI-COUNTRIES
6
STRONG NETWORK AND
TIGHTLY MANAGED
ORGANIZATIONAL CULTURE
7

5. Development of
contemporary IC
technology
FACILITATORS THE
INTERNATIONALIZATION OF ISMES
THE CONTEXT: GLOBALIZATION
Ongoing integration of
National economies
The convergence of buyer
Lifestyles & needs
Extensive
multi-country operations
Reduce the cost of
Firm internationalization
Dissemination knowledge
and information globally

6. FINDINGS ON ISMEs
REASONS UNDERLYING THE PHENOMENON
REVEAL THE DIFFERENTIATING
CHARACTERISTICS & BEHAVIORS
DEVELOP EXPLAINTORY FRAMEWORK OF
EARLY INTERNATIONALIZING ISME
•ATTEMPTS TO DESCRIBE, UNDERSTAND & INTERPRET THR REASONS OF
THE GROWING EMERGENCY OF THESE FIRMS (Rialp& Knight, 2005)
•SUCCESS VIA CONTROL OVER UNIQUE RESOURCES, i.e. KNOWLEDGE AND IN NON-LINEAR
PROCESS (Oviatt & Mcdougall, 1994; Bell, 1995), ACROSS A WIDE RANGE OF INDUSTRIES
(Madsen, Servais, 1997)
•THE ROLE OF SPECIFIC ORGANIZATIONAL CAPABILITIES (Burgel& Murray, 1998),
INTERNATIONAL MARKETING ORIENTATION (Knight & Cavusgil, 2004) AND ENTREPRENEURIAL
ORIENTATION (Mcdougall & Oviatt, 2000, Zahra & George, 2002, Kuivalainen et al., 2007)
•LIMITED RESOURCE BASES BUT HIGHER WILLINGNESS TO TAKE SUBSTANTIAL
RISKS, LACK EOS BUT EARLIER & FASTER INTERNATIONALIZED (Czinkota et al.,
2004; Freeman et al.,2006, Knight & Casvugil, 2004)

7. KEY THEORETICAL PERSPECTIVES
1
2
3
•Lack long standing strategic momentum
•Fewer infrastructural & mental barriers
•Flexibility & entrepreneurial maneuverability
• Organizational learning orientation to acquire requisite
knowledge ex: international marketing…
•Innovative & proactive pursuit of opportunities &
relationships across nations
•Exploit capabilities thru
complex bundles of skills &
accumulated knowledge
CERTAIN KEY CONCEPTUAL
FOUNDATIONS HELP EXPLAIN THE
EMERGENCE OF ISMES
•Firm capacity & culture of
Innovation & R&D activities
4
5 •Unique resources
& product
positioning & networ

8. CONCLUSIONS
• ISMEs are faring well in their pursuit of foreign
markets by making use a particular constellation
of knowledge, capabilities, flexibility and unique
resources to provide superior products
• Their rise is partially driven by globalization &
advancing technologies
• The role of international entrepreneurial
orientation, international marketing approaches
& business strategies as antecedents

9. REASSESS TRADITIONAL MODELS ?
THERE’S NO EMPIRICAL DATA OF THE EXTENT &
NATURE OF PHENOMENON WERE COLLECTED?
EX: IN COMPARABLE CONTEXT
WHAT ACCOUNTS FOR ISME’S
INTERNATIONAL PERFORMANCE & THE ROLE
OF COMPANY CHARACTERISTICS AS KSFs?
THE OPERATIONAL DEFINITIONS &
INDICATIONS OF ISME & INTEGRATED
FRAMEWORK BY MULTI-
METHODOLOGIES?
FUTURE RESEARCH DIRECTIONS

10. LOGO