Gender and international entry mode

Abstract

This article examines whether male- and female-led small and medium-sized enterprises (SMEs) adopt different strategic directions when internationalising. We build on the notion of gendered socialisation and the resource-based view examining gender differences in international entry modes. We also analyse several contingencies in the relationship between gender and internationalisation. Findings indicate that female-led SMEs are more likely to internationalise via export than foreign direct investment (FDI). The results challenge conventional wisdom on the role of resources and capabilities accumulated with manager age in the process of internationalisation; younger female chief executive officers are more likely to internationalise via FDI. The results offer novel insights to the literature on internationalisation of SMEs calling for more attention towards the interplay of social norms and gendered structural arrangements, on the one hand, and entrepreneurial agency, on the other, for a better understanding of the internationalisation of female-led SMEs.

Keywords

entry modes export FDI gender internationalisation SMEs

Introduction

This article examines the influence of gender on the internationalisation of small and medium-sized enterprises (SMEs). Women-led businesses have received significant attention lately both in the policy arena and in academic research given their contribution to the economic and social spheres (Hughes et al., 2012; Jennings and Brush, 2013). A growing body of research is investigating practices, constraints, enablers and motivations of women entrepreneurs and female-led SMEs (Dean and Ford, 2017; Gherardi, 2015; Stead, 2017; Tlaiss, 2015). The intersection of women and internationalisation, however, has been characterised as ‘virtually unexplored’ (Orser et al., 2010: 933). Indeed, only a handful of research studies have attempted to shed light on specificities of the internationalisation process as it relates to gender (Lee et al., 2016; Orser et al., 2010; Rosenbaum, 2017). Yet, there are potentially rich contributions that the study of gender can bring to the theory of the internationalisation given the differential motivations and approaches that women bring to such venturing (Welch et al., 2008). Furthermore, gendered societal arrangements tend to constrain the choices and approaches to business around the world influencing access to capital, networks and resources (Lee et al., 2016), all of which are critical to internationalisation.

Against this backdrop, the research question we address is whether male and female chief executive officers (CEOs) of SMEs tend to take different strategic directions for their firms when internationalising, that is, internationalise via export or engage in foreign direct investment (FDI). To explain how gendered arrangements may influence internationalisation entry mode decisions, we build on the resource-based view (RBV) of the firm and combine it with the literature on gendered socialisation and socially constructed norms. The RBV has become an influential theory in explaining internationalisation; it has been suggested as an appropriate framework to examine entry modes of SMEs (Laufs and Schwens, 2014). The theory postulates that a firm’s strategic assets will determine its competitive advantage and performance (Barney, 1991). Some of the owner/manager-related assets that have been established as determinants of internationalisation include managerial experience, education and networks (Paul et al., 2017; Westhead et al., 2001). Gender, however, has not been analysed within the RBV; it is not clear from this theoretical perspective how it might influence internationalisation decisions. Indeed, RBV and many other established theories are presented ‘as if theories and data were gender-neutral’ (Martin, 2000: 207). Scholars have argued that the absence of reference to gender is not actually gender neutrality, as oftentimes a male perspective is tacitly taken (Calas et al., 2009), and thus, theory fails to explore the working of gender in, for instance, access to resources and its impact on strategic choices.

Our first contribution, therefore, is to explain how gendered socialisation and role expectations influence the strategic choice of international entry mode and access to resources for female-led SMEs in their enactment of international opportunities. Our conceptual approach follows a recent wave of studies emphasising the importance of gendered societal arrangements and discourses, as well as social values and expectations, as still underresearched but crucial for explaining entrepreneurial perceptions, behaviours and choices (Díaz-García et al., 2016; Stead, 2017; Tlaiss, 2015). Methodologically, we propose hypotheses and empirically test the effect of CEO sex on international entry mode, following other recent studies that use quantitative analysis while subscribing to the view that entrepreneurial choices and behaviours are socially constructed and influenced by gendered socialisation (Eddleston and Powell, 2012; Kalnins and Williams, 2014).

Second, by focusing on whether male- and female-led SMEs engage differentially in strategies related to internationalisation, we answer a call in the women’s entrepreneurship literature for expanding the remit of questions asked beyond performance differences (Hughes et al., 2012), that is, examining strategies. In our case, we extend research to international entry mode strategy. In addition, our research responds to another call in the women’s entrepreneurship literature for greater attention to heterogeneity among women entrepreneurs (Ahl, 2006; Hughes et al., 2012; Jennings and Brush, 2013). Addressing this concern, we examine whether internationalisation decisions differ depending on age, sector of operation and location so as to arrive at a more fine-grained understanding of gender and internationalisation decisions.

Third, the scant literature on the internationalisation of women-led firms has studied the effect of gender on export propensity in developed economies (Orser et al., 2010; Spence et al., 2011) but has not shed light on strategic decisions related to internationalisation modes for women-led SMEs in other contexts. Entrepreneurship researchers have critiqued the fact that too often context is taken for granted or its influence is underappreciated, yet it can offer deeper insights that can explain seemingly ‘anomalous’ results (Welter, 2011) and enrich and advance theory. Our empirical context is Bulgaria, a mid-income country in Eastern Europe. After being a planned economy in the period 1944–1989, Bulgaria undertook substantial reforms towards a market economy model joining the European Union in 2007. Bulgaria presents an interesting context because in countries that have undergone a transition, structural arrangements from the communist era have persistent effects even after more than two decades of transition and accession to the European Union (Banalieva et al., 2017). One such arrangement relates to gender roles. Although women in planned economies were said to have enjoyed significant gender equality in theory, in many former transition countries women have been confronted with negative gender stereotypes suggesting that entrepreneurship is a male territory (Welter et al., 2006). The juxtaposition of (theoretical) gender equality and strong gender stereotypes in the post-socialist economy context brings the potential to offer differential insights to the literature on internationalisation of female-led SMEs.

To address our arguments, we first review the literature on internationalisation by women-led firms. Then, we build the theoretical rationale for the study and develop hypotheses related to strategic decisions on international mode of entry and the role of CEO sex, as well as several moderating variables in the relationship between CEO sex and internationalisation. We discuss the research method, including sample and data collection, and present the findings. Finally, we offer discussion of the findings, conclusions and future research opportunities.

Literature review: female-led businesses and internationalisation

A growing body of research had identified several constraints that women-led businesses might face when attempting to grow their firms. Such constraints also affect how women perceive and act upon international expansion opportunities. Entrepreneurship is associated with masculine gender role stereotypes (Greene et al., 2013; Gupta et al., 2009), which can negatively influence women’s evaluation of new business opportunities (Gupta et al., 2014), including international opportunities. Sullivan and Meek (2012) conclude that barriers to female entry stem from socialisation and societal attributions. Furthermore, women oftentimes encounter constraints related to dealing with family and household responsibilities and satisfying work–family balance. Brush et al. (2009) stress that ‘gendered power relations and inequalities within the household still remain largely invisible’ (p. 11). Women are more concerned for both perceived risks of high-rate growth and desire to balance work and family responsibilities and may intentionally choose a controlled and manageable rate of growth (Cliff, 1998). This might influence women’s choice of foreign entry mode, as some entry modes, such as FDI, require higher commitment and risk (Laufs and Schwens, 2014). Women also have restricted access to financial resources and can face higher borrowing costs (Gicheva and Link, 2015; Wu and Chua, 2012) affecting international expansion decisions as it is commonly recognised that foreign entry mode choice depends on a firm’s resource base (Laufs and Schwens, 2014). In addition, studies in psychology, sociology, economics and management demonstrate that women tend to be more risk-averse than men (Aculai et al., 2006; Byrnes et al., 1999), which may influence exploration of new international opportunities.

While the female entrepreneurship literature has built a rich understanding of the various constraints faced by women in general, the role of gender in international trade remains under explored (Orser et al., 2010). Indeed, only a few studies have analysed this issue with existing work based mostly on samples from developed economies (Canada, Australia, Denmark and the United Kingdom) and tends to be focused on export only as an internationalisation mode. Early descriptive studies found that Canadian female-owned SMEs lack ‘export readiness’ and were less likely to export, but did not suggest gender to be a primary determinant of internationalisation (Grondin and Grondin, 1994; Grondin and Schaefer, 1995). Similarly, Westhead et al. (2001), using UK data did not find a significant gender effect on exporting. More recent survey-based research using large-scale Canadian data did not find direct gender effects on exporting, but did find immigrant status of the entrepreneur, firm size (Orser et al., 2010) and sector (Spence et al., 2011) to have a moderating effect with gender. Large-scale quantitative analyses using Korean data found innovation and marketing capabilities had mediation effects in the relationship between gender and export performance (Lee et al., 2016). In the context of post-socialist economies, although not specifically focused on gender issues, Manolova et al. (2014) included gender as a control variable in their research upon the influences of financial networks on internationalisation (measured as export intensity). In their study, the gender variable did not have a direct effect on internationalisation.

Qualitative studies have suggested that women might face gender-specific cultural barriers, particularly in some international markets, such as Middle East and South America (Orser et al., 2004). Exploratory research in Australia suggests that women perceive different traits to be important in the internationalisation process, such as honesty, patience and relationship orientation viewing exporting as business and personal growth (Welch et al., 2008). Recent qualitative research on Danish female entrepreneurs points to the importance of information and communication technologies (ICTs) for international expansion as opposed to traditional networks (Rosenbaum, 2017).

In summary, the limited literature on internationalisation of women entrepreneurs is inconclusive on the role of gender in international trade (see Table 1). Qualitative studies tend to identify several ways in which women perceive the internationalisation of their ventures differently (Orser et al., 2004; Welch et al., 2008), with both negative aspects (e.g. perceived gender-related difficulties) and positive influences (e.g. personal growth) in the process. Survey-based quantitative studies tend not to find a significant direct gender effect of gender but do identify some related moderating effects.

Table 1.

Summary of research on internationalisation of female-led businesses.

Authors	Country	Internationalisation mode	Methodology	Major results
Rosenbaum (2017)	Denmark	Entry mode not specified; export is inferred from respondents quotes	Qualitative, eight case studies	Women business owners tend to search the Internet and then use the shotgun approach of sending sales mails to a wide assortment of potential agents and retailers on international markets. Contrary to the traditional emphasis placed on the role of networks in the internationalisation literature, the sample female entrepreneurs sparingly used networks to expand into new foreign markets. Female entrepreneurs attested to the decisive role played by information and communication technology in their internationalisation.
Lee et al. (2016)	Korea	Export	Survey data, regression models	Innovation and marketing capabilities have mediation effects in the relationship between gender and export performance. Female-owned ventures are disadvantaged in obtaining access to venture capital, but venture capital financing is not positively associated with export performance.
Spence et al. (2011)	Canada	Export	Survey data, regression models	Controlling for size and sector, hypothesised gender differences were not supported. Gender did not figure significantly as a factor for services firms. For goods firms, it enters at a p-value of .06, but in the opposite direction of that hypothesised. Majority of the women-owned firms were disproportionately over-represented compared to majority of the male-owned firms.
Orser et al. (2010)	Canada	Export	Survey data, regression models	Gender itself did not manifest any significant direct association with export propensity. Immigrant female entrepreneurs are more likely to export. Given the comparative firm size, majority of the female-owned businesses were less likely to export compared to majority of the male-owned firms.
Welch et al. (2008)	Australia	Export	Qualitative exploratory approach, in depth, semi-structured interviews with 20 women	Women defined the ‘ideal exporter’ differently to that commonly depicted in the exporting literature. The traits or skills that the women identified as being important were honesty, patience, passion for their product, attention to detail, relationship orientation and, above all, ‘not being afraid to ask for help’. Exporting was viewed as a process of personal as much as company growth.
Reavley et al. (2005)	Ireland, Canada	Export	Qualitative, seven successful women entrepreneurs were studied	The female entrepreneurs studied exhibited greater focus on strategic niche and growth compared to other small firms. None of them reported that being a woman created additional challenges in international trade.
Orser et al. (2004)	Canada	Export/export planners	Focus groups, survey, interviews	Totally, 60% of the women indicated that gender played a role in the management practices of their firms (cultural and experiential differences). Cultural challenges were most often cited in the context of business transactions in Asia, the Middle East, South Africa, India and South America.
Westhead et al. (2001)	Great Britain	Export	Survey, regression models	Gender did not affect exporting significantly.
Grondin and Schaefer (1995)	Canada	Export	Survey, descriptive statistics	A higher percentage of male-owned SMEs export compared to female-owned SMEs. Although male- and female-owned SMEs in New Brunswick have different ‘profiles’ or characteristics, these differences do not suggest that gender is the primary determinant of export behaviour.
Grondin and Grondin (1994)	Canada	Export	Survey, descriptive statistics	Many of the female-led businesses are small, lack information on markets and lack ‘export readiness’.

SMEs: small and medium-sized enterprises.

While building on the scant literature on gender and internationalisation, our study presents important differences that advance the field. First, we differentiate between internationalising via export and via FDI. Extant literature on women-led SMEs has focused only on export and has not examined FDI as a market entry choice. Those two entry modes are characterised by very different levels of commitment, risk and resources required (Anderson and Gatignon, 1986; Erramilli and D’Souza, 1993), and this may influence female involvement in FDI, an internationalisation mode requiring higher risk and more resources (Laufs and Schwens, 2014), particularly if women tend to be more risk-averse (Aculai et al., 2006; Byrnes et al., 1999) and have constrained access to resources (Gicheva and Link, 2015; Wu and Chua, 2012). SMEs have been found to engage in higher commitment entry modes beyond exporting (Stoian et al., 2017); thus, it is important to understand how gendered arrangements might influence the choice of entry mode.

Second, we explicitly invoke feminist perspectives and literature on gendered socialisation to emphasise the effect of social values and gendered social forces (Díaz-García et al., 2016) on the cognition and behaviour of women CEOs, and consequently upon their strategic choice of foreign entry mode. Mainstream theories typically used to explain internationalisation of SMEs – such as RBV – fail to account for those forces and thus are presented as ‘gender-neutral’, while in fact they tacitly take a male perspective (Calas et al., 2009; Martin, 2000). Complementing RBV with a feminist perspective brings a richer understanding of the internationalisation decisions of SMEs. Furthermore, our empirical findings using data from a post-socialist economy demonstrate the importance of women serving as role models in countries that have undergone a transition towards market economy (Welter et al., 2004) and point to the interplay of social norms and gendered structural arrangements, on one hand, and agency, on the other (Gherardi, 2015).

Theoretical framework and hypotheses: gender, resources and internationalisation

The role of gendered socialisation in internationalisation

In this section, we build on feminist perspectives and gendered socialisation literature to propose how the social construction of gender and the corresponding gendered expectations and roles can influence entrepreneurial cognition and behaviour related to internationalisation. More specifically, we look at two aspects: differences in international entry mode by CEO sex (i.e. do female- and male-led SMEs tend to choose different entry modes) and the interaction of industry sector and CEO sex. Our decision to delve into sectoral differences is based on the literature indicating that gendered roles and expectations can result in occupational segregation and ‘push’ women into stereotypically female occupations such as services (Anna et al., 2000; Brush et al., 2009), which are usually less export-intensive and less likely to internationalise (Orser et al., 2010). Thus, female CEOs working in what is stereotypically seen as male industries (e.g. manufacturing) might be subject to added social and cognitive pressures (King et al., 2010), which may shape the entry mode decision.

Gender and international mode of entry

Entrepreneurship scholars have recommended feminist theoretical approaches when examining the influence of gender upon entrepreneurial behaviour (Ahl, 2006; Ahl and Nelson, 2010). Different feminist approaches and theories have been discussed in the entrepreneurship literature (Ahl, 2006; Calas et al., 2009). For instance, Ahl (2006) distinguishes among three types of feminist theories: (1) theories that depict women and men as essentially similar and regard any differences as the result of discrimination or structural barriers (e.g. liberal feminist theory and feminist empiricism); (2) theories that depict women and men as essentially different, with feminine traits presented as benefits or as a resource to be used creatively (e.g. social, radical and psychoanalytical feminist theories); and (3) theories that highlight the distinction between biological sex and gender, characterising gender as the result of upbringing and social interaction, as something that is ‘done’ (social constructionist and poststructuralist feminist theories).

In this study, we adopt the view that entrepreneurship is a gendered process as gendered socialisation processes shape individual assumptions concerning how females and males should behave, including entrepreneurial roles (Eddleston and Powell, 2012; Marlow, 2002). We propose that because of gendered socialisation, female and male small business owners/managers will respond differentially to international entrepreneurial opportunities. Specifically, we suggest that the strategic choice of international entry mode will be influenced by internalised gendered roles and expectations that shape cognition and behaviour. Thus, we do not assume that women and men are essentially similar or essentially different (as in Ahl’s first and second group of feminist theories), but subscribe to the view that gendered roles and behaviours are the result of socialisation and social interactions (as in Ahl’s third group of theories). We use the words female and male/women and men to denote biological sex, while we use gender as an indication of socially constructed normative conceptions of attitudes and activities appropriate for one’s sex category (West and Zimmerman, 1987).

Entrepreneurship scholars have pointed to social constructionism or socialisation to propose that men and women are socialised differently and that societal values will shape the expectations and norms about what is considered appropriate behaviour for men and women (Kalnins and Williams, 2014). In the words of Elam and Terjesen (2010), ‘what begins as an idea about how men and women behave or should behave becomes everyday practice by a majority of people over time becomes increasingly institutionalised in the rules and arrangements that define a given society’ (p. 332). One such socialisation effect occurs with respect to risk-taking. Cross discipline research suggests that as a result of upbringing and social expectations, women tend to be more cautious and risk-averse regarding financial issues. In an entrepreneurial setting, Marlow and McAdam (2012) describe a successful female entrepreneur in the ICT sector referring to herself as ‘cautious, conservative and risk averse’ (p. 664), in contrast to her brother whom the entrepreneur described as bold, growth-oriented and opportunity-seeking. Such a finding is particularly telling since it implies that even when women entrepreneurs have achieved success (defined in traditional male-centred terms) in their (male-dominated) field, they might still consider themselves as more risk-averse than male entrepreneurs.

Within entrepreneurship, the concept of risk is critical since risk tolerance serves as a bridge between opportunity recognition and entrepreneurial enactment (Marlow and Swail, 2014). Acedo and Jones (2007) explain that it is the tolerance of ambiguity that assists – and risk perception that prevents – recognition of opportunities for internationalisation in SMEs (Mainela et al., 2014). Entrepreneurial cognitions are, therefore, a key determinant of identifying and acting upon international opportunities (Mainela et al., 2014). Gendered societal arrangements envelop entrepreneurs in different levels of embeddedness, including social and cognitive embeddedness (Welter, 2011), where cognitive embeddedness refers to the ‘ways in which the structured regularities of mental processes limit the exercise of economic reasoning’ (Zukin and DiMaggio, 1990: 15–16).

Given social norms and upbringing, under the same level of resources and skills, women might perceive and act upon international opportunities differently. Thébaud (2010) found that although men and women had approximately equal amounts of human, social and financial capital, women were about half as likely as men to think they have the ability to be an entrepreneur. Gupta et al. (2013) demonstrated that opportunity evaluation is influenced by gender-stereotypical information and the manner in which it is presented; opportunity evaluation is, therefore, rooted in beliefs, values and expectations (Baron and Ensley, 2006). Consequently, the enactment of international opportunities (i.e. the choice to internationalise and the choice of entry mode) will also be shaped by entrepreneur’s cognition rooted in socially constructed beliefs and values. Empirical research has found that despite changing societal expectations regarding the role of women, taking high risks is still seen as less socially and culturally acceptable for women (Humbert and Brindley, 2015). In post-socialist countries women consider family happiness as more important than career (Aculai et al., 2006) and their concern for family and children leads to lower willingness to take business risks in comparison with men (Özcan, 2006). Gendered societal norms make ‘gender-appropriate’ behaviours internalised (Acker, 1992) encouraging self-stereotyping (Westhead and Solesvik, 2016). Such stereotypes often work unconsciously (Nelson et al., 2009), yet they may determine how entrepreneurs think about themselves and about opportunity recognition and enactment (Brush et al., 2009). Thus, we expect that SME CEO sex will influence internationalisation, such that female-led SMEs will tend to choose a less risky international entry mode. Formally, we posit the following:

H1. Female-led and male-led SMEs will engage differentially in internationalisation, such that female-led SMEs will tend to favour exporting over FDI.

Gender and sectoral differences

Different socialisation process for men and women can lead to sectoral differences in occupational choices (Anna et al., 2000). Societal career discourses become part of our assumptions about what constitutes a legitimate career (Duberley and Carrigan, 2012). Entrepreneurs and small business managers might perceive and construct their industries’ boundaries and respective opportunities (both at home and abroad) (Zahra, 2005) under the influence of socialisation norms, which are also likely to shape the enactment of perceived opportunities. Research suggests that female-led firms tend to concentrate in ‘crowded’, more competitive industries, such as services and retail (Anna et al., 2000; Marlow and McAdam, 2013), characterised as low growth with low export opportunities (Cloninger and Oviatt, 2007; Orser et al., 2010). Empirical evidence also suggests that internationalisation is relatively more common within male-dominated manufacturing sectors (Orser et al., 2010).

Industry-specific forces can have a significant impact on the accumulation of resources important in internationalisation, such as networks or international experience. In the labour market in Central and Eastern Europe, there is a gender-based vertical and horizontal employment segregation (Pollert, 2003) with high status and well-remunerated employment in heavy industries dominated by men, while women dominate strategically less important sectors such as retail trade, hotels and restaurants, and the textile industry. This sector-specific employment segregation may carry forward to enacting international entrepreneurial opportunities differently.

If a society tends to define women through roles connected to the family, or confines them to specific job types, then social values implicitly position women’s entrepreneurship as less desirable or important. Consequently, women can unconsciously internalise such values (Babcock et al., 2003; Van Staveren, 2013), influencing their approach to business and pursuit of different opportunities (Brush et al., 2009). Thus, even working within the same industry sector as their male counterparts female CEOs might choose a different internationalisation strategy given the impact of social and sectoral norms on cognition and strategic choices. In the management literature, King et al. (2010) have argued that the structural representation of women in organisations (i.e. numerical underrepresentation or token status) is linked to the context that they individually perceive (i.e. psychological climate) and, further, that this perception is a critical predictor of attitudes and behaviours at work. Kanter (1977: 207) depicts this numerical underrepresentative, token status as a ‘stranger who intrudes upon an alien culture’, a situation that enhances boundaries and emphasises differences between men and women. This makes the underrepresented group feel subject to constrained expectations and social roles consistent with gender stereotypes. Importantly, occupational gender typing plays a major role in how those in the underrepresented group perceive the context and their subsequent behaviour.

Extending this argument to our study, given that women are underrepresented in male-dominated manufacturing, this may affect cognition and behaviour with respect to enacting international opportunities. Indeed, entrepreneurship scholars have argued that we need a critical mass of women in male-dominated industries to change existing norms and values (Brush et al., 2009). Furthermore, as Díaz-García et al. (2016) explain, societal gender role expectations are at the root of occupational segregation; this segregation leads to women’s internalisation of norms. Thus, internalised gendered roles combined with numerical underrepresentation may make women in the manufacturing sector less likely to venture into riskier international expansion. We, therefore, expect that female-led SMEs in the manufacturing sector will tend to avoid FDI as an internationalisation strategy, as this entry mode requires higher commitment and higher risk. Formally, we posit the following:

H2. The influence of CEO sex on internationalisation will be moderated by sector, such that female-led SMEs in the manufacturing sector will be less likely to choose FDI as an entry mode.

The role of resources in the internationalisation of female-led SMEs

From the perspective of RBV (Barney, 1991), internationalisation is based on valuable, rare, non-substitutable and imperfectly imitable resources such as managerial acumen and experience and other tangible and intangible resources that entrepreneurs possess, such as human capital and access to networks (Laufs and Schwens, 2014; Westhead et al., 2001). Here we focus on age and location, variables used in the literature as indicative of the possibilities for accruing the necessary resources and networks important for internationalisation¹ (Ganotakis and Love, 2012; Westhead et al., 2001). We complement the RBV arguments with literature on women’s entrepreneurship to show how gendered norms and contextual factors interact and influence the enactment of international opportunities.

Age and internationalisation

The human capital within SMEs can influence competitive strategies. Conventional thinking following RBV posits that older CEOs usually have higher stocks of social and business contacts and experience, all of which can help in internationalisation efforts (Westhead et al., 2001). The empirical results of Spence et al. (2011) and Westhead et al. (2001) indeed found that older SME owners were more likely to engage in internationalisation. Those results, however, are contrasted by research in former transition economies which has found that young women tend to pursue entrepreneurship (Aidis et al., 2007). Research on ‘communist footprint’ in post-transition economy contexts has established that encountering market liberalisation earlier in life socialises people into capitalist practices (Banalieva et al., 2017), and thus, younger CEOs might align their cognition and behaviours more with the values and practices of market liberalisation. The evolving institutional framework in former transition economies might influence women’s formal integration into the market economy by redefining and changing gender roles (Welter et al., 2003). This could result in younger women seeking different career paths and challenging conventional wisdom. Thus, even without the higher stock of business contacts that comes with age, younger female CEOs might opt for internationalisation as a strategic choice. Research has pointed to the fact that communism subjugated individual interests to those of the state (Pop-Eleches and Tucker, 2014), leaving little, if any, room for individual dissent or proactive pursuit of different opportunities. Therefore, a longer communist footprint indoctrinates individuals into socialisation that does not reward proactive behaviour. Conversely, younger CEOs exposed to lower levels of communist indoctrination are likely to be more familiar with, and supportive of, capitalist management (Banalieva et al., 2017). In addition, they are likely to have been educated towards a more international outlook with knowledge of international markets and fewer travel restrictions common under communism. Therefore, younger CEOs are likely to be more proactive and willing to take international expansion risks, including expanding through higher commitment entry modes. Thus, we expect the following:

H3. The influence of CEO sex on internationalisation will be moderated by age, such that younger female CEOs will be more likely to choose FDI as an entry mode.

Location and internationalisation

The geography in which entrepreneurs are embedded is important to the enactment of international opportunities (Mainela et al., 2014). Entrepreneurship is not only socially bound but is also embedded in spatial, or geographical, contexts (Johannisson et al., 2002). According to Spence et al. (2011), international firms are more likely to operate in particular geographic environments (Macmillan, 2008) to take advantage of dense sector and social networks. Being geographically close to such sector networks provides firms with additional resources that assist internationalisation. From an RBV perspective, networks are vital for the acquisition, mobilisation and development of various resources (e.g. human, financial and social capital) as the firm internationalises (Coviello and Cox, 2006; Jones et al., 2011); thus, location is key in internationalisation as it offers differential access to diverse networks. Firms located in the capital city of a post-transition economy country may be more likely to internationalise given the level of urban development. There is likely to be better access to government agencies involved with international trade, higher numbers of support programmes, better distribution facilities and access to better quality employees. The RBV, however, is silent as to potential sex differences in the importance of location and the access to resources that it affords. Research on women entrepreneurs has found that women might be excluded from formal industry networks and related resources (Marlow and McAdam, 2012). The existence of sex-segregated networks can constrain women’s access to capital and markets (Brush et al., 2009). Thus, we expect that more favourable locations that provide easier access to support networks, programmes and resources might be especially helpful for women-led SME internationalisation (Harris and Li, 2008; Sterlacchini, 2001). Being in a strategic location increases information sharing about foreign markets with other firms, with governmental agencies or international organisation offices which, at the same time, can lead to a reduction in foreign market entry costs (Ganotakis and Love, 2012). The increased access to knowledge and resources might ameliorate risk perceptions for female CEOs, making them more willing to engage in higher commitment entry modes. Thus, we expect the following:

H4. The influence of CEO sex on internationalisation will be moderated by location, such that female-led SMEs located in a capital city will be more likely to choose FDI as an entry mode.

Method

Data and sample

In this study, we focus on private businesses with 249 or less employees (SMEs). Data were acquired through structured interviews in 2008–2009. Due to high financial costs for obtaining a representative sample of Bulgarian enterprises and the lack of official definition and statistical data about Bulgarian firms in the National Statistical Institute, this research relies on a convenient sample of Bulgarian companies. This draws upon the Voluntary Unified Trade Register of the Bulgarian Chamber of Commerce and Industry, an independent, non-governmental organisation for assistance and promotion of the business interests of its members, with the aim to contribute to the development of international economic cooperation. It is nationally represented and has more than 53,000 associated members across the country. A total of 350 enterprises were randomly selected and contacted in advance in order to obtain their agreement to participate in the research; 235 responses were received (178 SMEs). Students from a local university were trained and instructed to personally administer the survey. Such an approach is consistent with prior research in transition economies which are characterised by lack of reliable census data on the population of SMEs and reluctance of small business managers to respond to mail surveys (Manolova et al., 2014). The respondents are CEOs. The structured questionnaire contained questions about the characteristics of the organisation, the attributes of the CEO and environmental factors. A pilot study was conducted among five firms to pre-test the initial version of the questionnaire; this resulted in some minor revisions.

Operationalisation of variables

Internationalisation

We use the SME’s mode of international entry as the measure of internationalisation. In particular, we focus on export and FDI similar to the measure used in previous studies (Brouthers and Nakos, 2004; Erramilli and D’Souza, 1993). Our measure of internationalisation has three categories: 0, domestic; 1, export; and 2, FDI.

CEO sex

The binary variable indicates whether the CEO of the business is male or female (female equals 1).

Location

Following previous studies that have used binary variables for firm location (Ganotakis and Love, 2012), we differentiate between businesses located in Sofia (Bulgaria’s capital) and the rest. This is appropriate since most of entrepreneurial activity (measured as new business start-ups and existing businesses) in Bulgaria is concentrated in the capital city (Vorley and Williams, 2016).

Age

We employ a binary variable including as 0 CEOs 49 years old or less and as 1 CEOs 50 years of age or older. Older managers in Bulgaria have acquired substantial education and work experience during the pre-transition era, characterised by market protection, while younger managers have acquired significant experience in terms of education and employment during the transition era, in which global competition was seen as the norm. This measure, therefore, captures different attitudes and values related to internationalisation and intergenerational differences.

Sector

We use a binary variable that codes as 1 the manufacturing sector and as 0 other sectors (Brouthers, 2002).

Control variables

We use several control variables that have been shown in prior work to influence the internationalisation of SMEs: business size, whether the business has foreign owners, firm age, growth intention, entrepreneurial orientation, access to financial resources and environmental dynamism (Jones et al., 2011).

Table 2 presents the operationalisation of all variables used in the study.

Table 2.

Operationalisation of variables.

Variable	Operationalisation	Measurement
Internationalisation	Whether the organisation has exported products or services to foreign markets. Whether the organisation has made any foreign direct investments in another country	0: Domestic; 1: Export; 2: Foreign direct investment
CEO sex	CEO’s sex	0: Male; 1: Female
Location	Where is the organisation located?	0: Elsewhere; 1: Sofia
Age	CEO age in years	0: 49 years or less; 1: 50 years or more
Manufacturing sector	The organisation operates predominantly in manufacturing sector	0: No; 1: Yes
Size	Total number of employees in the organisation	1: 0–9; 2: 10–49; 3: 50–249
Foreign owners	Are there foreign individuals or legal entities among the owners of the company?	0: No; 1: Yes
Firm age	For how long is your organisation in operation?	From 1 to 81 years
Growth intention	Is your organisation planning to hire new employees in the next 12 months?	0: No; 1: Yes
Entrepreneurial orientation	The established nine-item entrepreneurial orientation scale (Covin and Slevin, 1989; Miller, 1983) was used.	Semantic differential scale (from 1 to 7) used to assess each item. Total sum of all items was used
Access to financial resources	To what extent are you satisfied with the access to financial resources of your organisation?	Semantic differential scale (from 1 to 7) to assess each item
Dynamism	Respondents were asked to assess changes in their environment with respect to growth opportunities, production/service technology, rate of innovation and R&D activity in their industry	Semantic differential scale (from 1 to 7) used to assess each item. Total sum of all items was used

CEO: chief executive officer; R&D: research and development.

Analytical method

Because of the measurement nature of the variable internationalisation (three outcomes: domestic, export or FDI), we use multinomial logistic regression with robust standard errors. This type of regression is preferred when the dependent variable has more than two categories (Wood et al., 2011). The base outcome used is the domestic category, and thus, results compare export versus domestic and FDI versus domestic. In addition, export is also used as a base outcome so that we can observe the results when comparing FDI versus export. To test H2, H3 and H4, we computed interaction terms of CEO sex with location, age and manufacturing sector. Following standard procedures, all variables were mean-centred (Aiken and West, 1991) in order to avoid any potential multicollinearity issues.

Empirical findings

Descriptive statistics and correlations

The descriptive statistics and correlations are presented in Table 3. In our sample, 56% of SMEs are domestic, 30% are exporters and 14% have FDIs. Approximately, 28% of SMEs are female led, and 29% of CEOs in the sample are 50 years of age or older. A total of 68.5% of SMEs are located in Sofia, the capital city of Bulgaria, and 19% of businesses compete in the manufacturing sector. Approximately 22% of businesses have foreign owners. On average, SMEs in our sample have 11.6 years of existence. About 61% of businesses intend to hire new employees in the next 12 months. Around 34% of businesses in our sample have between 0 and 9 employees, 42% have between 10 and 49 employees and 24% have between 50 and 249 employees.

Table 3.

Descriptive statistics and correlations.

Variable	Mean	SD	1	2	3	4	5	6	7	8	9	10	11	12	13
1. Internationalisation (Export)	.298	−	1
2. Internationalisation (FDI)	.14	−	−.26***	1
3. CEO sex	.275	.448	.01	.08	1
4. Location	.685	.466	.07	.10	.20**	1
5. Age	.287	.453	−.09	−.11	−.20**	−.19*	1
6. Manufacturing sector	.191	.394	.25***	−.03	−.11	−.26***	.10	1
7. Size	1.904	.757	.12	.31***	−.04	−.01	.01	.21**	1
8. Foreign owners	.219	.415	.10	.45***	.07	.27***	−.10	−.05	.09	1
9. Firm age	11.601	10.843	.21**	−.03	−.09	−.18*	.22**	.19**	.21**	−.05	1
10. Growth intention	.607	.49	−.00	.23**	−.02	.17*	.05	−.22**	.07	.18*	−.18*	1
11. Entrepreneurial orientation	35.528	10.284	.15*	.12	.05	.16*	−.02	−.03	.21**	.20**	−.09	.36***	1
12. Access to financial resources	4.416	1.565	.01	.27***	.05	.10	−.07	−.11	.16*	.20**	−.11	.15*	.16*	1
13. Dynamism	17.663	4.183	.13^†	.05	−.16*	.13^†	−.01	−.14^†	−.04	.11	−.12	.23**	.34***	.09	1

CEO: chief executive officer; FDI: foreign direct investment; SD: standard deviation.

We run Pearson correlations (n = 178). Since some of the variables under study have an ordinal scale of measurement, we also run Spearman’s rank correlations. Pearson’s and Spearman’s correlations results are very similar. Only Pearson’s correlations are shown in the table. Spearman’s rank correlations are available upon request.

***

p < .001; **p < .01; *p < .05; ^†p < .10.

Given that the internationalisation variable contains three outcomes, we created two binary variables to run bivariate correlations: internationalisation via exports and internationalisation via FDI. Manufacturing sector has a positive and significant correlation with internationalisation via export. Gender, as well as location and age, does not have a significant correlation with internationalisation. Of the control variables, firm age, entrepreneurial orientation and environmental dynamism are positively correlated with internationalisation via exports. Firm size, foreign owners, growth intention and access to resources are significantly correlated with internationalisation via FDI. Pearson’s and Spearman’s correlations are very similar.

Empirical results: testing H1–H4

Table 4 presents the results of the empirical models. CEO sex has a significant and negative relationship with internationalisation via FDI (–10.203, p < .001; –10.865, p < .001), both when the base outcome is the domestic and the export category. Women-led businesses tend to be less likely to use FDI as an internationalisation entry mode supporting H1.

Table 4.

The effect of CEO sex and moderating variables on the internationalisation of SMEs.

Independent variables	Base outcome: Domestic		Base outcome: Export
Independent variables	Export	FDI	FDI
Control variables
Size	0.464 (0.312)	1.622** (0.503)	1.158* (0.488)
Foreign owners	1.638** (0.579)	3.447*** (0.879)	1.809* (0.789)
Firm age	0.073*** (0.019)	0.04 (0.041)	−0.033 (0.038)
Growth intention	0.519 (0.526)	1.916^† (1.058)	1.397 (0.883)
Entrepreneurial orientation	0.017 (0.024)	−0.002 (0.052)	−0.019 (0.05)
Access to financial resources	0.146 (0.135)	0.55* (0.245)	0.404^† (0.229)
Dynamism	0.096* (0.049)	0.071 (0.09)	−0.026 (0.087)
Main effects
CEO sex	0.662 (0.517)	−10.203*** (0.724)	−10.865*** (0.681)
Manufacturing sector	1.871*** (0.574)	−2.644** (0.838)	−4.515*** (0.693)
Age	−1.046^† (0.564)	−5.516*** (0.752)	−4.47*** (0.698)
Location	0.574 (0.488)	3.369*** (0.924)	2.795** (0.919)
Interaction effects
CEO sex × Manufacturing sector	−0.069 (1.103)	−13.686*** (1.491)	−13.618*** (1.489)
CEO sex × Age	0.398 (1.367)	−14.049*** (1.559)	−14.447*** (1.434)
CEO sex × Location	−1.727 (1.121)	12.758*** (1.492)	14.484*** (1.489)
n	178
Wald χ²	1385.13***
Log pseudolikelihood	–113.113
Pseudo R²	.338***

CEO: chief executive officer; SME: small and medium-sized enterprises; FDI: foreign direct investment.

Robust standard errors are between parentheses. All independent variables are mean-centred. Method used: Multinomial logistic regression.

†

p < .10; *p < .05; **p < .01; ***p < .001.

The manufacturing sector has a positive and significant relationship with internationalisation via export (1.871, p < .001) and a significant negative relationship with internationalisation via FDI (–2.644, p < .01; –4.515, p < .001). Manufacturing sector has a significant moderating effect on the relationship between CEO sex and FDI when the base outcome is domestic (–13.686, p < .001) and when the base outcome is export (–13.618, p < .001). These findings indicate that in the manufacturing sector, female-led businesses are less likely to choose FDI as an international entry mode. These results support H2 which states that the influence of gender on internationalisation will be moderated by sector.

Age has a direct negative relationship with internationalisation via export (–1.046, p < .10). Age has also a significant negative relationship with internationalisation via FDI when the base outcome is domestic (–5.516, p < .001) and when the base outcome is export (–4.47, p < .001). Findings indicate that younger CEOs tend to be more likely to internationalise. The interaction between CEO sex and age has a significant effect on FDI when the base outcome is domestic (–14.049, p < .001) and when the base outcome is export (–14.447, p < .001). In the younger age group, female-led businesses are more likely to internationalise via FDI. These findings support H3.

Location has a positive relationship with internationalisation via FDI when the base outcome is domestic (3.369, p < .001) and when the base outcome is export (2.795, p < .01), which indicates that firms located in the capital city tend to be more inclined to engage in FDI as a way to internationalise. The interaction between CEO sex and location has a positive effect on internationalisation via FDI when the base outcome is domestic (12.758, p < .001) and when the base outcome is export (14.484, p < .001). These results indicate that female-led businesses located in the capital city are more likely to choose FDI as an international entry mode. These findings support H4 which states that the influence of CEO sex on internationalisation will be moderated by location.

Of the control variables, firm size has a positive relationship with internationalisation via FDI, while having foreign owners has a significant and positive relationship with both the export and FDI modes of internationalisation. Firm age has a significant positive relationship with the export mode of internationalisation, indicating that older firms are more likely to export. Growth intention and access to financial resources have a significant positive impact on FDI. Dynamism has a positive relationship with export, such that the greater the perceived dynamism of the environment, the higher the probability for a business to engage in exporting.

Robustness check and further analyses

We performed several additional analyses as a robustness check of our results. First, we run a logit model in which only the SMEs engaged in internationalisation were considered. This allows us to compare directly export versus FDI as an internationalisation entry mode strategy via a different statistical technique. The results did not differ from the ones presented here using multinomial regression, providing support for our findings. Second, we tested whether marital status, as an indication of family commitment, influences international entry mode choice, since family responsibilities might differentially influence male and female CEOs. Married CEOs tended to prefer exporting over FDI, but the interaction of CEO sex and marital status was not significant, indicating that family commitment might be a factor for both sexes. The inclusion of this variable did not change the rest of the results. Finally, although we control for access to financial resources in our model, as a further test we also included an interaction between CEO sex and access to financial resources, since this is considered an important constraint in the women entrepreneurship literature. The interaction was positive and significant, indicating that female CEOs who reported having higher access to resources were more likely to choose FDI as an entry mode. All additional analyses are available upon request.

Discussion and conclusion

In this article, we aimed to examine whether male- and female-led SMEs from a post-socialist economy take different strategic directions when internationalising. Consistent with the literature on gendered socialisation, our findings indicate that, overall, female-led SMEs are less likely to internationalise via FDI compared to their male counterparts. However, women entrepreneurs who are younger and located in a capital city are more likely to challenge societal norms and structural arrangements choosing a higher commitment entry mode. We elaborate upon the findings and draw implications for research and policy.

Theoretical implications

The limited previous research on internationalisation pertaining to women-led firms has examined the effect of gender on export propensity (Orser et al., 2010). Recent studies have noted, however, the importance of looking beyond export, as SMEs are increasingly involved in higher commitment entry modes (Stoian et al., 2017). Bringing insights from the literature on gendered socialisation, we demonstrate how gendered norms can play a role in women-led SMEs when enacting international opportunities and choosing entry modes. Gendered socialisation tends to ascribe different roles in society to men and women leading to stereotypes about abilities, attitudes and behaviour patterns. Those can result in adaptive preferences, essentially internalising certain ‘gender-appropriate’ behaviours (Van Staveren, 2013), such as a preference for lower risk strategies (Humbert and Brindley, 2015). Established theories such as RBV fail to acknowledge the workings of socialisation norms and gendered arrangements, placing emphasis on resources alone as an explanation for firm growth and international expansion. We contribute to a better understanding of the internationalisation process of women-led SMEs by explaining how gendered expectations influence cognition, access to resources and ultimately choice of entry mode for women-led SMEs.

In addition to the main effect of CEO sex on international entry mode, there were also significant differences in the interaction between sex and industry sector, sex and age, and sex and location. Consistent with extant research exposing that women-led firms are disproportionately represented in services industries, our findings suggest that in the manufacturing sector, women-led SMEs are less likely to choose FDI as an internationalisation mode. This finding points to an important role of the industry structure and potentially network dynamics within industries. Studies in entrepreneurship have drawn attention to how industry arrangements might affect women entrepreneurs. For instance, Godwin et al. (2006) discuss women partnering with men in male-dominated industries in order to offset gender-based stereotypes and to overcome obstacles in accessing resources. Such arrangements, however, might perpetuate – instead of alleviating – gender stereotypes (Calas et al., 2009; Stead, 2017). Thus, our findings call for more research attention to the role of industry dynamics in the enactment of international opportunities.

The results regarding the interaction of CEO sex and age are thought-provoking. The literature typically has associated age with more networks, more experience and more access to resources, all of which are expected to aid internationalisation. Yet, in our research context, and consistent with literature on women entrepreneurs in post-socialist economies, younger CEOs were more likely to venture into international terrain through a higher risk entry mode. In line with Calas et al. (2009) and Rindova et al. (2009), this result calls for more attention to entrepreneuring as social change. Young female entrepreneurs might opt for internationalisation in order to offset perceived limitations such as social, economic and structural arrangements. Another interesting explanation regarding the role of age and internationalisation can be found in Yamakawa et al. (2008); they suggest that older entrepreneurs and managers in the former transition economies have acquired substantial education and work experience during the pre-transition era, which was characterised by market protection. On the contrary, younger managers have acquired most of their experience – both education and work – during the transition era, during which global competition was increasingly seen as the norm (Yamakawa et al., 2008). Thus, younger entrepreneurs and CEOs might have different attitudes and values related to the importance of internationalisation and participating in the global economy. Such intergenerational differences might be a promising future area to explore and can add to our understanding of the theory of internationalisation of SMEs by pointing to the importance of context and history, as well as socially constructed expectations. For instance, the results of Shinnar et al. (2012) in another context – China – indicate that China’s one-child-per-family policy may have created gender-neutral parental expectations, as well as gender-neutral parental pressure to succeed which may minimise gender differences in fear of failure or perceived competences for entrepreneurship.

Location was also found to be important for women CEOs engaged in FDI. The literature has indicated that women entrepreneurs might be excluded from traditional networks important in internationalisation. As such, being close to support programmes and different resources that may aid international expansion could be more important to women. Interestingly, there were not significant gender differences for the export entry mode, but only for the riskier FDI entry mode. While recent studies suggest that women entrepreneurs might prefer information technologies and the Internet instead of engaging in formal networks to help them internationalise (Rosenbaum, 2017), previous research does not distinguish between different entry modes. We know little about the importance of different types of resources for enacting international opportunities through different entry modes. Our findings bring additional insights and point to the role of location and the advantages that come with it, such as access to resources and networks, for women-led businesses, taking into account preferences for market entry strategies.

Overall, our results offer a novel perspective for understanding internationalisation choices for women-led SMEs through the interplay of gendered socialisation and resources. The results challenge received wisdom, including some of the RBV explanations of internationalisation factors, as older age – and the resources and capabilities that come with it – was not a predictor of internationalisation in the context of a post-socialist economy. The role of context and path-dependent structural arrangements need to be accounted for in order to better understand strategic choices for SMEs and the differential impact that those can have for men and women.

Policy implications

From a policy perspective, our findings imply that a special focus for policy should be young entrepreneurs challenging the social structure in emerging countries. Policy-makers can drive institutional change by motivating young entrepreneurs to pursue international opportunities. However, it should also be noted that improved access to resources might not change women’s strategy on internationalisation if gendered arrangements influence the way women perceive their environment, for example, perceiving risk-taking as socially less appropriate. Furthermore, policies aimed at encouraging women in manufacturing industries to internationalise via equity entry mode (FDI) might not have the desired effect if subtle yet entrenched industry arrangements and dynamics are not recognised. In order to guide policy measures, we need better understanding of industry practices, as well as individual preferences for enacting international opportunities that relate to personal, not only business, objectives of entrepreneurs, within their socially constructed entrepreneurial realities. A useful starting point might be considering the multiplicity of discourses that shape female entrepreneurial leaders, such as social, community and family discourses (Dean and Ford, 2017), as well as ways to deal with perceived dissonance between womanhood and entrepreneurial pursuits (Díaz García and Welter, 2013).

Limitations and future research lines

We acknowledge several limitations of this study which offer opportunities for future research. Because of the difficulties in obtaining a representative dataset of post-socialist economy SMEs, we relied on data drawn from the Voluntary Unified Trade Register in Bulgaria, which may skew the results towards representing companies willing to register. Thus, we cannot generalise the results to the whole population of SMEs in the country or indeed to draw conclusions about SMEs in other economies. Further research can explore the relationship between gender and internationalisation across a range of countries. Such comparative studies can substantially enrich the field by examining how women in different countries approach internationalisation and the extent to which different gendered arrangements have an impact upon their internationalisation decisions.

Furthermore, we used a survey-based approach, and while this allows us to use statistical techniques to discover the effect of CEO sex on internationalisation, it does not allow for individual female CEO voices to uncover their perceptions about internationalisation. We also acknowledge that using survey data and quantitative analysis may appear unusual for a study taking the view that entrepreneurial choices and behaviours are socially constructed and influenced by gendered socialisation. Indeed, such a social construction view of gender has been typically linked to qualitative methods. Nevertheless, we join a wave of studies in both entrepreneurship (Eddleston and Powell, 2012; Kalnins and Williams, 2014) and feminist research (Cole and Stewart, 2012; Miner et al., 2012) that challenges this division and emphasises instead the idea that feminist inquiry can benefit from diverse methods. As Hesse-Biber (2012) explains, many feminist research projects have used traditionally androcentric methods, such as survey methods and quantitative data analysis, to produce very women-centred results.

Recent thinking in feminist research methods has also offered novel non-traditional avenues for mixing qualitative and quantitative methods, such as taking quantitative indicators and constructing a qualitative narrative on the basis of those indicators (Cole and Stewart, 2012). While it is not the objective of this article to illustrate this approach, we offer as a conclusion a very brief narrative of the female CEOs from our sample engaged in FDI, using quantitative indicators as a basis. Our empirical findings paint a picture of a group of women that challenges preconceived notions about what is required to expand internationally. They are young and, thus, not very experienced and with relatively limited networks – challenging some of the tenets of RBV. They engage in FDI, a riskier entry mode, operating in service industries – so they disregard social norms and expectations about women and risk while adhering to gendered occupation norms. They work in a location that gives them easier access to resources and have growth intentions and foreign partners; they are highly educated and most are not married. The brief description of those female CEOs, while produced using quantitative data, allows links to feminist post-structural thinking in that it leads us to see the agency of those women without presuming freedom from discursive constitution as historically specific and socially regulated (Gannon and Davies, 2012). As such, while those CEOs are embedded in social structures, it is important to note that they can influence their context or ameliorate its impact on their entrepreneurial endeavours (Díaz-García et al., 2016). Future research is required to explore what happens to such young ambitious women when they enter different stages of their lives and especially when their professional determination meets personal milestones such as motherhood and higher work–life balance constraints (Díaz García and Welter, 2013; Duberley and Carrigan, 2012; Gherardi, 2015). Another question that needs further inquiry is the role of trade-offs – riskier entry mode – more expected rewards – possibly less time for other activities, such as less time to spend with children/family – in the strategic decision to choose a particular internationalisation entry mode. We also encourage research that incorporates explicit attention to changing societal values over time and the interplay of agency and social constitution.

Footnotes

Funding

The author(s) received no financial support for the research, authorship and/or publication of this article.

Notes

Author biographies

Albena Pergelova, PhD, is an Associate Professor at the Department of International Business, Marketing, Strategy & Law, MacEwan University School of Business, Canada. Albena’s research interests are in two disciplines: entrepreneurship and marketing. Current research areas include internationalization of new and small ventures, women entrepreneurship, digital technologies and consumer empowerment in marketing. Albena’s research has received several awards from international conferences and has been published in a variety of academic journals.

Fernando Angulo-Ruiz, PhD, is currently an Associate Professor in the Department of International Business, Marketing, Strategy & Law at MacEwan University School of Business, Canada. He received his Ph.D. from Universitat Autònoma de Barcelona. He is very interested in the study of the antecedents and consequences of organizational capabilities in the domestic, international and other contexts, using multiple theoretical frameworks, and mainly employing quantitative methods. Dr. Angulo’s research has been published in high impact international academic journals.

Desislava I. Yordanova, PhD, is an Associate Professor of Entrepreneurship and Management at the Faculty of Economics and Business Administration of Sofia University “St. Kliment Ohridski”. She is teaching graduate and undergraduate courses in entrepreneurship and business administration. Her research interests include entrepreneurship, small business management, and family business.

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