A4 Refereed article in a conference publication
How diaspora networks make impossible possible? The internationalization story of one non-English speaking Greek SME
Authors: Maria Elo
Editors: Conference Chair Susanna Lundan
Publication year: 2013
Book title : EIBA Annual Conference 2013 Bremen
Internationalisation of an SME is a stony road with many obstacles (OECD 2009). SME internationalisation has numerous problem areas from financial resources to market entry barriers (e.g. Leonidou, 2004; OECD 2009). Language skills, education, mindset, manager-owner characteristics and institutional support through various SME policies may influence the international development of an SME. The internal resources of an SME enable learning and establishment of activities in foreign markets. In SME literature, also the role of business network is found to be significant in opening new possibilities and providing access to others’ resources. One aspect of paramount importance is international communication (Herbig & Kramer, 1992, Piekkari et al., 2013). A company in international business (IB) has to be able to communicate locally, but also internationally with its foreign interaction partners. Internationalization theories assume that there must be internalized communication resources, as these are a pre-requisite for international business. Thus, if the company speaks only the language of the home country, it is doomed to stay domestic. This longitudinal case study challenges this assumption. Can a small firm with good social capital in the form of diaspora networks overcome even this elementary problem in IB of not speaking English? Therefore, this study focuses on an alternative way of approaching internationalization by using diaspora networks. It presents the story of one Greek SME with no foreign language skills, which has successfully applied its diaspora networks as strategy and resource, and its cultural embeddedness to navigate in international business. This company provides evidence that impossible becomes possible when diaspora network and its socio-cultural resource aspects are well integrated into business strategy and create an external resource base to tap into.