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The Internationalisation of Food and Drink Smes: Towards a Recipe for Success

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The Internationalisation of Food and Drink Smes: Towards a Recipe for Success The Internationalisation of Food and Drink SMEs: Towards a Recipe for Success Robert Howel Bowen A thesis submitted to Aberystwyth University in partial fulfilment of the requirements for the degree Doctor of Philosophy November 2017 Abstract This research provides an investigation of the critical success factors of SME internationalisation within the food and drink industry. Since the seminal works of the Uppsala scholars (Johanson & Wiedersheim-Paul, 1975; Johanson & Vahlne, 1977), SME internationalisation has developed as a field in recent decades with numerous studies investigating different theories across a range of industries and locations. The purpose of this study is to contribute to research in this field by investigating specific issues for food and drink SMEs, as there is an increasing need to focus research on specific research contexts (Fillis, 2008). Considering the close associations that exist between food and place (Tregear, 2001), the role of place is incorporated with traditional theories of SME internationalisation in a conceptual framework designed to reflect the critical success factors of food and drink SME internationalisation. A mixed methods study, both quantitative and qualitative methods were used to gather and analyse data from food and drink producers in two independent phases. Wales and Brittany were chosen as case studies for this study, with both regions sharing cultural and geographical characteristics as regions where the food and drink industry is a prominent part of the economy. Findings of the study highlight that most companies, regardless of size and location, have the ability to internationalise, provided that the conditions for internationalisation are supportive for companies that wish to do so. The study identifies 4 company types that describe companies in relation to their international activities, ranging from improbable exporters to proactive exporters. Findings of the study culminate in the creation of two models, which outline the conditions required for internationalisation and the process in which a company can develop international activities through awareness and networks. iii Table of Contents Declaration .............................................................................................................................................. ii Abstract .................................................................................................................................................. iii List of Tables .......................................................................................................................................... xi List of Figures ........................................................................................................................................xiv List of Abbreviations .............................................................................................................................xvi Acknowledgements .............................................................................................................................. xvii Chapter 1: Introduction .......................................................................................................................... 1 1.1 Rationale to the Study .................................................................................................................. 1 1.1.1 Contextual Rationale .................................................................................................................. 2 1.1.2 Theoretical Rationale ................................................................................................................. 3 1.1.3 Methodological Rationale .......................................................................................................... 4 1.2 Research Background .................................................................................................................... 4 1.3 Research Aims and Objectives ...................................................................................................... 7 1.4 Definitions ..................................................................................................................................... 8 1.4.1 SME ............................................................................................................................................ 8 1.4.2 Internationalisation .................................................................................................................... 9 1.5 Thesis Structure ............................................................................................................................ 9 Chapter 2: SME Internationalisation: A Theoretical Background ......................................................... 13 2.1 Early Internationalisation Theories ............................................................................................. 14 2.2 The Stage Approach .................................................................................................................... 16 2.2.1 The Uppsala Internationalisation Model (U-model) ................................................................ 16 2.2.2 The Innovation-related Internationalisation Model (I-model) ................................................ 18 2.2.3 Criticism of the Stage Approach .............................................................................................. 21 2.3 Rapid Internationalisation .......................................................................................................... 23 2.3.1 Stage Approach v Rapid Internationalisation .......................................................................... 27 2.4 Network Theory .......................................................................................................................... 30 2.5 Resources .................................................................................................................................... 38 2.5.1 The Resource-Based View (RBV) .............................................................................................. 41 2.6 International Entrepreneurship .................................................................................................. 44 2.6.1 Entrepreneur ............................................................................................................................ 46 2.6.2 Firm Characteristics ................................................................................................................. 48 2.6.3 Environment............................................................................................................................. 49 2.7 Drivers to Internationalisation .................................................................................................... 51 2.8 Barriers to Internationalisation ................................................................................................... 54 2.9 Conclusion ................................................................................................................................... 56 iv Chapter 3: Place: A Theoretical Background ........................................................................................ 59 3.1 What is ‘Place’? ........................................................................................................................... 61 3.2 Firm Location .............................................................................................................................. 64 3.3. Rural v Urban Locations ............................................................................................................. 65 3.3.1 Competition ............................................................................................................................. 67 3.3.2 Networks .................................................................................................................................. 67 3.3.3 Infrastructure/Services ............................................................................................................ 69 3.4 Place ............................................................................................................................................ 72 3.5 Food and Place ............................................................................................................................ 76 3.5.1 Embeddedness v Social Construction ...................................................................................... 78 3.5.2 Place-based Marketing ............................................................................................................ 81 3.5.3 Country of Origin (COO) ........................................................................................................... 82 3.5.4 Geographic Indications (GI) ..................................................................................................... 86 3.6 Conclusion ................................................................................................................................... 89 Chapter 4: Towards a Conceptual Framework for the Internationalisation of Food and Drink SMEs . 90 4.1 SME internationalisation in the Food and Drink Industry........................................................... 90 4.2 Towards a Conceptual Framework ............................................................................................. 96 4.2.1 International Entrepreneurship
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