An assessment of growth potential of South African startups adopting early internationalisation strategies

Abstract

Most studies of multinational organisations (MNE’s) have been focused on large mature corporations. Traditional literature explains that firms internationalise after a certain level of domestic maturity and wield a significant amount of economic power to withstand the threat of international competition (Oviatt, McDougall, 1993, p. 29)However, this premise has changed in recent years with the adoption of new legislation and technologies that allow firms to become established MNE’s much sooner, with many of these pursuing rapid internationalisation strategies.If the traditional notions of staged theory no longer hold true and new behavioural aspects are driving small businesses to internationalise, it is essential for researchers to gain insights into new firm development, survival and growth in the South African context. Firm growth is of particular interest where globalised SME’s are concerned.