When Is Too Little Not Too Late? Evidence From De-Internationalizations Of Small High-Technology Firms

Author: Romeo Turcan (AALBORG UNIVERSITY), Marinova Svetla (AALBORG UNIVERSITY)

Challenges and Perspectives in SME Internationalization Theorizing
[Slot L] Parallel Sessions (Friday, June 8th 2012 09:00 - 10:30)
T - Building, T8-67

This paper introduces the concept of point of no return to explain various change options entrepreneurs might pursue when the attainment of firm international objectives and international growth strategy becomes uncertain. We distinguish between two types of points of no return: real and false. When in the area of the real point of no return, the appropriate strategy for small firms would be to cocoon. To successfully cocoon, a firm would require having a minimum safety net, referred to as a withstanding gestalt. Agility and escalation of commitment have emerged as the two major behavioural factors that discriminate between success and failure.

Keywords: De-Internationalization Small High-Technology Firms Theory Building