Despite the opportunities offered by the European Union (EU), its single market and globalization at large, most European SMEs still largely depend on their domestic markets. While internationalization incentives and support for SME growth are well explored, there is no evidence of how SMEs’ relations with local governments and their participation in public procurement (PP) influence subsequent internationalization. We apply the Resource Based View (RBV) to investigate how participation in domestic PP affects the upgrading of SMEs’ resources and capabilities, which in turn influences their export performance, by distinguishing between regional and global international focus. We analyze a sample of 599,616 Slovenian SME firm-year observations in the period from 2014 to 2022, which represents all Slovenian SMEs. The results show that SMEs involved in PP report significantly higher subsequent export revenues than firms not involved in PP, but the results are stronger for regionally focused internationalization. These results can contribute to further theory development in the area of PP and international entrepreneurship, and guide future research in the field.

This study examines the effect of managers’ misperceptions of country differences, i.e. underestimating and overestimating formal and informal institutional distance, on foreign location choice. Further, we examine the moderating role of managers’ cognitive styles as the underlying reason behind managerial misperceptions of institutional distance that inevitably affect a foreign location's attractiveness. Drawing data from a vignette experiment on 208 international managers originating in China, our research findings enrich our understanding of how and why managerial misperceptions of institutional distance influence foreign market attractiveness and underscore the significance of cognitive traits in rectifying such misperceptions.

This study focuses on the role of informal institutions on entrepreneurial dynamics in France and Morrocco. Drawing upon the institutional theory, we explore the interplay of informal institutions, entrepreneurship and gender. Based on 26 semi-structured interviews, this study aims to uncover the influence of informal institutions on entrepreneurs’ business endeavors alongside institutional change. Key findings include the significance of family, trust, and reciprocity, as well as the critical role of one’s patronym in leveraging wasta in Morocco. Informal institutions persist even in developed environments while formalizing institutions in emerging countries inadvertently heightens industrial rivalry and escalates wasta usage.

Franchising serves as a pivotal strategy for companies venturing into international markets, balancing rapid expansion with controlled brand management. This study explores the factors influencing entry mode decisions among Spanish franchisors operating globally. Drawing on a comprehensive dataset from the Spanish Franchise Association and Tormo & Asociados, which covers 52 sectors and 305 franchise chains across 140 countries as of late 2022, the research identifies key drivers such as international experience, brand awareness, and host country characteristics, including cultural distance, geographical distance, economic development, corruption, political stability, unemployment rates, and the efficiency of contract enforcement. It also considers industry type (product vs. service). The study employs a multinomial logistic regression model to analyze how these factors shape the selection of entry modes: direct franchising, master franchising, joint ventures, and direct investment. By integrating insights from international business and franchising literature, this paper enhances the understanding of the nuanced strategies employed by Spanish franchisors in diverse global contexts. The findings offer practical implications for franchisors seeking to optimize their international expansion strategies amidst varying market conditions and regulatory environments.