Internationalization Barriers Faced by Incubated Companies: A Study in the City of Natal/RN – Brazil
Keywords:
Internationalization; Barriers to Internationalization; Business Incubators.Abstract
Due to the current global competitiveness, there is a constant need for companies to find alternatives to internationalize their business models as a strategy not only of expansion, but also survival. This reality is imperative not exclusively to large corporations, but also to small and medium enterprises that can no longer rely on their local market neither have the competitive advantages of large scale organizations, thus being prone to encounter several barriers throughout the internationalization process. Business incubators have a seminal role in the internationalization process of incubated companies, offering to entrepreneurs the tools, know-how and facilities for international development and expansion. This article endeavours to identify, from the local entrepreneurs’ perspective, the barriers to the process of internationalization of the companies incubated in the city of Natal/RN. The research was exploratory and descriptive, focusing on the analysis of qualitative and quantitative variables. In total, 22 businesses across three incubators were analysed, as a result of that, it was possible to define the nature of the most pressing barriers faced by local entrepreneurs vis-à-vis the internationalization process into two groups: (1) External barriers increased by entrepreneurs’ and incubators’ technical limitations and (2) Strategic management barriers associated with poor networking and lack of an international expansion planning.
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