International niche players more crisis resistant
A study by Flanders DC into the determinants of successful internationalisation by small and medium-sized firms (SMEs) in Flanders has revealed that international SMEs are more resistant to the impact of an economic downturn. The study also shows that although many SMEs in Flanders set up international activities gradually, starting only once they are well-established and entering new markets sequentially using a waterfall strategy, there is also a set of young, fast-growing international SMEs that use a sprinkler strategy launching niche products simultaneously in a number of countries. These young international SMEs are generally more proactive than their older counterparts and are more involved in international networks. They are also more likely to source their inputs from foreign countries, often outside Europe and use multiple modes of internationalisation, including foreign sales subsidiaries, production plants, joint ventures and licenses.
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