Institutional pressures and international market orientation in SMEs: Insights from the French wine industry |
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Authors: | Christopher Williams Nathalie Spielmann |
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Affiliation: | 1. Durham University Business School, Mill Hill Lane, Durham, DH1 3LB, United Kingdom;2. NEOMA Business School, 59 rue Pierre Taittinger, 51100, Reims, France |
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Abstract: | In this research, we examine how external institutional pressures influence international market orientation (IMO) in small-medium sized enterprises (SMEs). We use institutional theory and insights from the international entrepreneurship literature to predict how different formal regulative pressures (from national and international sources) as well as different informal normative pressures (from distributors and end-consumers) influence IMO in SMEs. We test our hypotheses using survey data from 107 small wineries across all of the main wine-producing regions in France. The results provide support to the central assertion that it is outside pressures on decision-making – rather than an endowment of internal resources and capabilities – that influence IMO in SMEs. External regulative sources have the strongest effects with pressures on decision-making from national laws having a negative impact on IMO and those from international laws having a positive impact on IMO. We find partial support for the effect of normative pressures from distributors and end-consumers. Implications for theory and management of internationalization in small firms are discussed. |
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Keywords: | Corresponding author. International market orientation Institutions SMEs Wine industry France |
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